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Operational Risk
Imagine a company that sells some of the hottest products on the planet
with just a few products representing a disproportionate share of revenues.
Imagine further that this company has relied on a single Chinese sup-
plier and location to build these products. And imagine even further that
this Chinese supplier is secretive, oen showing an unwillingness to share
information publicly, particularly about labor problems. If this scenario
sounds operationally risky (and strategically risky as well), you just g-
ured out why Apple has made a decision to diversify its supplier base by
expanding its outsourcing to a second sup ...