Business and business environment assignment :Apple Inc
Added on 2021-02-20
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BUSINESS AND BUSINESSENVIRONMENT
Table of ContentINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3P4. Positive and negative impact of macro environment on business operations.......................3P5. Conducting internal and external analysis of Apple Inc.......................................................5P6. Explaining how strengths and weaknesses are interrelated with macro factors...................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONBusiness environment is defined as the surrounding that contains all the internal andexternal factors such as; need and expectations of customers, employees, management, owner,technological innovation, activities by government, market or social trend, etc. that positively ornegatively affects the business. The present study of the business environment is based on thestudy of Apple Inc., is an American based multi-national technological company that isheadquartered in California. Apple company designs and sell computer software, consumerelectronic and online services. The study will analyse the negative and positive impact of macroenvironment on the operations of Apple and also going to analyse internal and externalenvironment of company.MAIN BODYP4. Positive and negative impact of macro environment on business operationsMacro environment in the business includes all the political and economic protocol thatacts positively by raise opportunities for the industry or negatively by limits the operations(Barik and Kumar, 2018). One of the major impact of the Macro environment is due to the factthat economic policy of the country that are implemented by the government can help toencourage and expand the business. Macro environment of Apple can be identified throughPESTLE framework. PESTLE is an analytical tool to analyse and monitor macro environmentalfactors. The analysis provide Apple an understanding about the opportunity that provide anadvantage to the company and areas of improvement.Political FactorBrexit effect- A political decision regarding the Brexit affects company the most asApple in UK have to limits their operations. Weaken pound against the dollar, forinstance; the Brexit vote led the value of the pound of fall by 18.6% against the USdollar. This put pressure on the company to reduce their prices of products and services.Free trade policy- The political factor have direct affects on the operations of Apple Inc.UK's free trade policy is improving with implementing various policies that is the biggestopportunity for the company (Deasy and et. al., 2016). This external strategic factorenhance the opportunity for Apple Inc. and strengthen the distribution channel todistribute its products all around the world.
Economic FactorCost of labour- Apple Inc. has directly affected through Brexit decision in negativemanner. It fluctuates various costs and prices, for example; Brexit increases the price oflabour cost in UK that affects the company's operation and increase the cost of productsand services of the industry.Increasing disposable income among the target consumers- High economic growthrate of the country has positive effect on the company as the income of consumers willincrease and it makes them able to invest in the products and service of Apple Inc. thecompany have opportunity to sell high priced technology products and high disposableincome contribute to the growth of the company.Socio-Cultural FactorIncrease in the dependency on digital system- The rising trend to use mobile phonesand other technological devices provides an opportunity to the company regardinggrowth and development (Evans and et. al., 2017). For example; Population is dependenton digital system that is a positive impact on the company and Apple able to sell moreproducts that is based on higher demand.Anti-Apple sentiment- other than opportunity, this factor is a threat for the company.Anti-Apple sentiment are questioning and mounting business practices such as lawsuitsagainst third party service provider, for example; who repair iPhone and MacBook. Thisfactor reduces the brand image of Apple and trust and confidence of the consumers toadopt technology in the day to day life.Technological FactorIncrease in technological integration- Under the external strategic factor, technologicalintegration and growing demand for cloud computing presents opportunity to enhanceservices of Apple. For example; Apple is offering cloud services to the consumers in thelimited extent maximize the profitability of the business. Thus, technological factor havepositive impact on Apple and contribute in the growth and development.Growing capabilities under technology of other business- With the technologicaladvancement, other firm that are intense competitor of Apple Inc. are more technologicaladvanced than Apple that is a threat for the industry (Fozer and et. al., 2017). Forexample; Many companies like; Samsung are more technological advanced and capable
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