Analyzing Apple's Business Environment and Strategy

This assignment requires you to conduct a thorough SWOT analysis on Apple Inc., evaluating its internal Strengths and Weaknesses, as well as external Opportunities and Threats within the global business environment. You will also need to discuss the impact of these factors on Apple's strategies and operations, drawing insights from various sources including academic papers and online resources.

Business and the Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types and purposes of organisations with their legal structures.......................1
P2. Scope and size of a range of different types of organisations..........................................4
D1...........................................................................................................................................6
TASK 2............................................................................................................................................7
P3. Relationship between different organisational functions and their link with set objectives
and structure of firm...............................................................................................................7
TASK 3............................................................................................................................................8
P4. Negative and positive impacts the macro environment has upon business operations....8
P5. Internal and external analysis to identify strengths and weaknesses.............................11
P6. Interrelation of strengths and weakness with external macro factors............................14
D2. Impacts of macro and micro factors upon business objectives and decision-making...15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Business environment consists of internal and external factors. Both create a huge impact
on the business and operations of organisation. An internal environment can be controlled by the
management while, on the other hand, external environment cannot (Al-Swidi and Al-Hosam,
2012). There can be negative as well as positive impacts on the productivity and growth of an
enterprise. Apple Inc. is a multinational and also a telecommunication business organisation
which is chosen for the present study. Mainly, this company deals in manufacturing and selling
the computer software, electronics and the online services along with hardware products such as
iPhones, Mac Book, iPod, etc. In this, types and the sizes of different types of organisations will
be explained. Also, there will be a discussion on the relationship among various functions of
organisations and their interrelation. Further, negative and positive impact of macro environment
on business will be given here.
TASK 1
P1. Different types and purposes of organisations with their legal structures
The three different types of organisations and their purposes are given below as below:
Private sector- These are the organisations where government does not play any
important role. Generally, these business firms are owned and managed in the partnership, sole
proprietorship, joint venture, etc. This sector is the necessary part of economic system of country
(Avramenko, 2012). In the private sector, minimum number of partners can be 2 and the 20
persons are maximum. Main aim of this sector is to increase the profit level and expanding its
business in new areas. The private sector consists multinational and corporate business
enterprises.

Apple is a private business organisation and its main objective is to increase the telecom
services with providing new and unique quality of its electronic products as well as different
applications and specifications. Some of the purposes of firm are:
 Main purpose of this company is to enhance its sales to the consumers who do not use the
products and services of Apple (Bansal and Hoffman, 2012).
 It major objective is to enhance its suppliers and the distribution channel.
 This business organisation wants to make improvement in the accuracy estimation related
to all the projects of software.
 The owner of this company wants to expand its business more in new areas mainly in
China.
 Main motive of this business organisation is to increase its level of profit or maximize the
business.
 It wants to enhance its market share and the growth rate.
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Legal Structure- The legal aspects of the private sector are sole proprietorship, private
limited company, partnership. In the sole proprietorship the business is conducted by the one
person and sole trader provide jobs to the waged workers their liability is unlimited.
Partnership- In this, two and more than two people running the business. Profit is divided
among the partners is equal.
Private limited company- It is a type of joint stock firm and it has a separate legal entity.
Public sector- This sector is under controlled the government. The main focus of these
types of organisations are satisfactory the needs and demands of people. These are mostly work
for the society and the people of society. It works for increasing the economic level of country.
The government provide the money to the small business in this sector so that they can conduct
their business activities and also increase them in the private sector includes the government
hospitals, schools, military, transit etc.
Like Vodafone Romania is a public limited business organisation and it is a multinational
telecommunication organisation (Bill Pasmore PhD and CMC, 2010). It operates and also
conducts its telecommunication related business in to new sectors. It provides the network
related to the mobile phones. It is the seventh largest subsidiary company in all over the world.
There are some of the effective purposes of this sector mentions:
 The main motive of this sector is to provide large number of job services to the people. It
will be helpful in enhancing the economic level.
 It primary purpose is to increase the living standard of the local people.
Legal aspects of the public sector- This sector formulates the financial data and statement
in their own manner. The legal authority of this sector is the government.
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Central government- It includes all the departments related to the administrative of some
central agencies and the state. They all are responsible to cover up the economic territory.
Local government- It includes all the public administration types and their responsibility
is to cover-up the part of the local economy.
State government- It is a separate and also different unit of an organisation and this this
government has some important functions and there is also the support of the local government.
Voluntary sector- It is a non-profit sector. This sector works for the welfare of society
not for earning the profit. It includes volunteers, funders, donations, charitable trusts and also
NGO's.
Like- NHS is a charitable trust or NGO. It provides the medical services and many other
facilities to the diseased and the unhealthy people. The purpose of this sector mention below:
 The main objective of this sector is to work for the benefit of society by the help of
volunteers, donors and many other people (Boons and Lüdeke-Freund, 2013).
 It gives all the facilities to the local people and also the old people.
P2. Scope and size of a range of different types of organisations
The purpose, structure and the size of every sector or organisation is different. In regards
to this, there are public, private and the voluntary organisations mentions. The size of every
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organisation is depend upon its structure. Like the Apple is a big private organisation and it deals
in the telecommunication sector. The size of this company is large.
Private sector- The private organisations are generally managed, owned and controlled through
the sole proprietorship and also with the partnership. This type of organisations are always try to
develop the positive goodwill in front of customers.
Size- The main motive of Apple business firm is to provide the unique and the additional
services in its products as comparison to the other company goods. This company has total 498
stores and in this organisation there are 116,000 staff members are working (Gebauer, Paiola,
and Edvardsson, 2010).
Scope of private Sector-
 It operates by one person and any one can start with this.
 There is a minimum requirement for incorporating the private sector companies
is to 2 members and maximum can be varied as per the firms size.
 It is easy to operate and any one can incorporate under this sector and run their
business.
 There is a minimum requirement of finance to incorporate to this sector as
comparison to others.
Stakeholders- Its important stakeholders are its clients, employees, suppliers,
shareholders and the customers.
Purposes:
 The objective of this business organisation is to make improvement in the quality of its
products and also features.
 It uses the new and the latest technology and also machineries in its manufacturing
process.
 It contribute some money or profit in the welfare of the society.
 The aim of Apple business organisation is to expand its business in to new sectors or
areas.
Public sector- This sector works for the benefit of the people. Under this, the
government plays an important role and also provides the funds to the public sector companies.
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The government control and managed all the operations and also the activities of the public
sector organisations (Gharajedaghi, 2011).
Size of Vodafone Company- It is a big multinational company and in this firm there are
large number of staff members are working. The scope of public company is that there is
government role and there is also the 50% intervention of government in this sector.
Stakeholders- Its stakeholders are legal advisors, government.
Objectives-
 Its motive is to inverse the standard of living of local people.
 It conduct many activities for the society.
Scope:
 There is a need of license.
 To incorporate a business, there is a more requirement of funds.
 With out the permission of government, no one can incorporate and run its
business.
Voluntary sector- It is mainly the not for profit organisation. Under it includes donors, funders,
volunteers etc. It works for the welfare of the people by giving them good treatment.
Size of NHS- It is the biggest public health centre. In this there are 107 million people are
working and they all are working to make improvement in the health of people.
Objectives:
 Its objective is to provide good treatment to the unhealthy people and also take care their
health.
 It provides the good treatment to diseased people from the expert doctors.
D1
According to Reinhardt and Stavins, 2010, different organisations has entirely distinct
structure as when there are a number of operational levels it makes it difficult to manage the
same. Such as voluntary organisation complexity come in the matter of funding. The investor or
fund provider can deduct the amount any time they want and there is no certainty of income. In
the private sector complication falls while establishing the company as because it become more
costly process to from a company and the tax amount they pay is higher than others. The major
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drawback for public limited companies is any activity implication will require a large process of
agreement and require a lot of paper work.
According to Marino, 2014 the interrelationship among the different structure is high as
the function of one department has its effect on the other too. It is due to the reason that various
activities are inter connected and if one of any section do not give the desired results the
efficiency of other department also gets affected.
TASK 2
P3. Relationship between different organisational functions and their link with set objectives and
structure of firm
In the Apple business organisation, there are many different departments are working
such as Human resource, Technology, marketing, finance, manufacturing etc. These all
departments implement different types of activities to accomplish the main objectives of the
business organisation. It is necessary for the of the Apple business organisation is to make
coordination among all the functions. The work of all the departments are different but their
motive is same (Hall, 2011). So in context to achieving the common organisational goals. All
departments are working together by contributing their skills and abilities. The manager of this
business organisation are interrelated with each other. Some of the different departments given
below:
Human resource- It is the backbone of the company and the main objective of this
business organisation is to hiring and selecting the most capable and the suitable staff members,
payroll, motivation, etc. The functions of the human resource management also impacted by the
organisational activities like in the large size companies there will be the need of more
employees and implement all the business related activities. And on the other hand the small
firms needs the small number of employees and in this there will be a need of limited finance. I
(Kulkarni and Agrawal, 2014).
Marketing- The main responsibility of this function is to make new designs of products,
techniques related to introduces of new product at market place, effective promotional strategies
etc. like for an instance the Apple company enhance its sales by making the good policies. With
the help of this the sales of new products will be enhanced and the goodwill or productivity of
company will also be enhanced.
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Operations department- Its main motive is to manufacturing the goods and services by
making the effective plan. For the productivity of the business the products plays an important
role and also offer to the customers that is effective for the business. The activities and the
operations of this process is impacted by the size of an organisation.
Information Technology- The main work of this function is to work on the advanced
technology and also enhancing the difficult businesses have enhanced voice, data, text messages
inside a company. This department works for the betterment of company. It provides the relevant
information to all departments which is necessary in doing the business work.
Finance- The work of this department is to gathered and also collect the funds for
running the business activities or any tasks. The people of finance department arrange money for
operations and activities of company, so that all employees can work well and also achieve the
goals and objectives of company in particular time period.
TASK 3
P4. Negative and positive impacts the macro environment has upon business operations
The performance level of the Apple Inc. is high and it is linked to the effectiveness and
the efficiency of the company to determine the macro factors. The success and the productivity
of this business organisation is impacted by the many factors and it is necessary for the
management to determine all the issues and problems so that company can overcome from all
these. In the macro factors consists technological, social, economic, environmental, political and
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legal. Apple have to identify the external market scenario for which they have to organise Pestle
analysis. The negative as well as positive effects of the macro environment of Apple given below
as above:
Political factors- It is the number one technology company in the telecommunication but
in the China the sales of this company is less (Reinhardt and Stavins, 2010). From the
government instability the business is impacted more. Because from changing the government,
their rules and regulations are also changes. Its impacts is bad ion business. So in context to this,
with the help of this factor company can make improvement in its trading policies and it can also
conduct its business related activities in an effective and efficient manner. Government
instability affect the working and operations of Apple. Thus before starting any project in other
country management have to determine their political stability properly.
Economic factors – These factors involves interest rates, unemployment, poverty, bank
rates etc. If the economic condition of the country is not good then it will influenced purchasing
power of customers. Apple is a multinational organisation which deals in branded products. Due
to lower income level and unemployment customers are not capable to UK's public will not be
spend more money on buying of luxurious products and services. This will also affected sales
and profits of business organisations. Apple have to determine the economic condition of a
country as well before commencing their operations over there. This support them in increase
their profitability and productivity in an adequate manner.
Social- The negative impact of this factor is that if the Apple business organisation harm
the society from, its business operations and also if it is not provide the attractive and quality
services to its customers. The demand of Apple products is high in the Africa. The younger
people uses the apple mobiles phones and it is good for the business. At last Apple have to
identify the impact of their product on society so that they can increase their profit margin in
more adequate manner.
Technological factors- This macro component can be positively as well as negatively
effect on the business related activities and also operations. This company is a technical giant
and it is also impacted by the changes in the technology. From the rapidly changes in the
technology impacts the business environment (Marino, 2014). The negative impact of the
technology on the Apple is that because of technological changes it losing its competitive
position from Google. On the other it has many strong competitors and in the field of
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telecommunication it made its good position. With the help of advanced technology, this
company make changes in its electronic products. Apple have to apply the new and modern
technology in business for manufacturing their quality of products.
Legal- The legal system and the regulations creates the challenges and the problems for
the business. In the external factors includes enhancing the privacy regulations and the
enhancement in the telecommunication. The apple has many pals to increase its business in to
new sectors and also areas. This business organisation rapidly regulated its high quality services.
But the rules and regulation of the government impacts on the business. The auto mobile will
also enhance the legal proceedings, the regulations and also insurance (Olawale and Garwe,
2010). The positive impact of legal factor is that with the help of this company can keep its
intellectual property safe.
Environmental factors – Now these days, government is more concerned towards
environmental awareness. It also bound business organisations to produce eco-friendly products
and services. Apple also conduct certain programmes which forces people to consume green
products.
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P5. Internal and external analysis to identify strengths and weaknesses
SWOT Analysis of Apple. Inc.
Apple Company is the strongest and most popular brand at global market render wide
range of products and services. SWOT analysis can helps the company in forming and
introducing new economical services virtue of its powerful recognition (Marino, 2014). In
exchanges of this, the company manage its cost premium strategy that come along with margins
and profits. It is the main strengths of company as it build important role in increasing profits.
Apple have to conduct a SWOT analysis properly so that can prepare their strategies according
to that.
(Source 1: Apple SWOT analysis, 2016)
The organisation in popular for rapid development in the market for which they conducts
the internal and external analysis which factors are related to each other. It is required to study
the internal analysis of Apple. Inc. to identify the limitation and strengths of company (Ullah and
Lai, 2011).
SWOT Analysis
Strengths Weakness
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 Apple is the most popular brand
provide telecommunication tool,
technological gadgets, software etc.
 The sales of digital iPod has been
enhanced of which the profit of second
quarter is more than 320million dollars
(Turban, Sharda and Delen, 2011).
 The perception of company, as the
favourable brand has also raised its
Macintosh computer sale.
 The company have increased cause of
the innovation in technologies that the
organisation provide.
 For example - the Apple have launched
iPhone X 8 which is the most
revolutionary invention in phones has
discovered.
 The income of Apple. Inc. of Romania
iPods hugely impacted by the sales of
Notebook of Apple contributing a huge
part. The company have a unique
recognition.
 The enterprise is most formed and
emerging brand in the entire
international market and the consumers
are very enthusiastic in advocating
Apple that help in development.
 This states that the organisation not
only create new consumers but also
focus over the existing clients to retain
them to come back at the brand for next
 The company have limited distribution
of services and products cause of the
exclusivity of company policy. This is
the main weakness of company as it
have limited reach in market.
 Some of the controversies of Apple
iPod defective screen caused major loss
of consumers and users. The company
iPod music was pressured to increase
the cost of download files which is
order industry of music. The companies
is making their stress of they earn more
revenues out of iTunes download than
the sales of CDs. The company have
achieved the limit of 500 million song
sales from iTunes stores and 20 million
from iPod digital which is rendering the
stress of the company itself.
 This is emerging as the weakness of
commercials and is causing less
download after the gain in prices
(Teece, 2010). Also the sales of Apple
products is more concerned with high
end market which is meeting the sales
of products and services.
 The meddle class of people who
represent the majority of Romania are
unable of buying the gadgets of
company as it is expansive for them to
affords.
 One of a major weakness for Apple is
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purchasing the satisfactory services. Apple have to determine their strength
which is high quality products and
better and effective growth rate as well.
This support them in increase their
market share as compared to their
competitors.
dealing in existing products by not
changing them. This is termed as major
weakness for an organisation.
Opportunities
 The expansion of network of
distribution is render the opportunity to
deploy the business the company.
 Market expansions and industrial
democracy of trade has catered the
opportunity to deploy the business in
other countries which can aid the
company in gaining more growth and
revenues from global market.
 Also the raise in demands of iPhones
and Mac laptops have catered in
opportunities and increased the sales of
company products and services which
is leaning enterprise toward a large
success and path of achievements
(Smallbone and et. al., 2010).
 The best example of iPhone X8 which
was pre booked by more than 4 million
consumers.
 The company is aggressively hiring
new and innovative employee for
company. Thus helps in creating new
Threats
 The major threat the company is facing
in the recent era is aggressive
competition in market in the industry
such as Samsung, Red-mi and many
other which are rapidly increasing and
expanding their business.
 The company is working hard for
competing the rivals through
conducting market research and
development programmes.
 The organisation is dealing with the
imitation problem. This can increase in
future as there are large number of
organisation which are able to imitate
the cited firm.
 Wide range of competitors is a major
threat for Apple which have to take in
account by management and prepare
their strategies according to that.
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and innovative products.
 The company have claimed to carry out
transparent phone by the end of 2020. Apple have opportunity to grab the
whole market share by delivering more
quality products.
P6. Interrelation of strengths and weakness with external macro factors
The business environment of an organization macro and micro factors that affect the
growth and productivity of organisation and its overall operation. The factors of external
elements are interlinked with the internal factors which determines the limitation and threats as
well as positive aspects and opportunities to develop of organisation like Apple. Inc. The
strengths and weakness is based on politician, social, legal, technological, economic and
environmental components which are explained as below:
Technological Factors
The company provide innovative and modified technologies to their consumer for which
they conduct market research which create one of strength of company. As there are various
competitors in market which are producing same technologies as Apple. This can cause of
weakness of company because why would consumer choose expensive product rather the
cheaper one who is rendering same technologies?
Social Factors
The negative impact that society is rendered by organisation can considered as the
weakness of company. But the demands in youth of most countries and elites people is one d
strengths of organization that can lead it to success.
Legal Factors
The telecommunication errors and privacy policies can restrain the growth of company.
The company was announced by RU as the 'illegal state aid' which is one of the weakness of
company which they require to turn into strength for development. Also in the contrast situation
it will considered as the strength of organisation (Reinhardt and Stavins, 2010).
Political Factors
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The company has expanded its stores and services availability in most of the countries
and deployed its business in global market. The demand of company services such as digital
watch, digital iPhone and other can help in deployment of the organization. This is one of the
strengths of company. The international expansion of company make the management and
political process more complex. The enterprise have to handle the factors of politics in each
nation they have been expanded in which can considered as weakness of Apple. Inc.
Economic Factors
The increase in cost of labour is decreasing the cost revenues of Apple. Inc. is which is
leading to weakness of company. The situation of economic of country is affecting the cited
organisation negatively. This will consider as one of weakness.
Environmental Factors
Apple produce and undertake the eco-friendly process of manufacture and most of
products and services are able to recycle which increase the strength of company in market.
D2. Impacts of macro and micro factors upon business objectives and decision-making
According to Saleem, (2017) the macro and micro elements plays a vital role in achieving
business objective and influence the decision making of an organisation. There are various ways
through which it can pace the speed of achieving objectives of Apple. Inc.
 Micro and macro factors helps in determining the gaols and objectives of organisation
according to the situation of market and surroundings (Olawale and Garwe, 2010).
 It influence the thoughts and opinions of leader’s managers of Apple. Inc. to innovate and
invent the produces and services.
 Apple CEO Steve Jobs accept the contribution of their people in their invention as they
motivate and stimulate the perception and through of the higher authorities.
 It also aid in alternating the objectives according to the market also assist the
management in path through which the business objectives can be attained for which the
decisions are taken by the authorities.
CONCLUSION
From the above assignment, it can be concluded that there are various types of
organisations in market including private, public and voluntary that are different on the basis
size, scope and purpose. Every organisation has their own purpose to function which they attain
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by implementing various techniques and strategies. To achieve success in the market of
Romania, Apple. Inc. is required to analyse their internal and external environment factors that
are affecting the growth and probability. It has been assessed that elements of macro as well as
micro environment are interrelated which influence the development and enterprise's
sustainability. It is significant for the organization like Apple to understand the elements of
environment to attain their set targets effectually.
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