Business Strategy: Analysis of Apple's Macro and Micro Environment

Business Strategy
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1) Application of appropriate frameworks to analyse the impact and influence of the macro
environment on an organization.............................................................................................3
2) Internal environment & strategic capabilities of Apple by utilizing models.....................6
3) Porter’s five forces model in regard to competitive analysis.............................................9
4) Strategic directions available to Apple............................................................................10
5) Recommendation and justification of appropriate strategic direction accessible for chosen
firm.......................................................................................................................................11
6) Strategic management plan with objective & priorities based on analysis......................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................16
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INTRODUCTION
Business strategies refer to adjustments and actions that a company takes in order to gain
its business aims and objectives & to be competitive in its industry. This term define what a
company need to do to reach set goals, which could aid guide decision making for resource
allocation, hiring etc. The current assignment will be based on Apple, which falls under category
of leading technology organizations in the whole world. This study will explore macro and micro
environmental analysis by using strategic models such as PESTLE, stakeholder analysis, value
change analysis, and VRIO framework. Furthermore, this report will explain competitive
analysis in context of chosen company by utilizing Porter’s five forces models and will also
justify strengths, weaknesses, opportunities and threat of organization.
Moreover, this study will clarify strategic directions accessible to Apple with the help of
Porter’s generic tactics, Ansoff matrix and Bowman’s strategy clock models. It will describe
appropriate suggestions and strategic direction for firm. In this report strategic management plan
will be discussed that has tactical and tangible strategic objectives and priorities based on overall
analysis presented in this assignment.
MAIN BODY
1) Application of appropriate frameworks to analyse the impact and influence of the macro
environment on an organization.
PESTLE analysis
Apple Company is one of the high performance company and is considered to be as one
of the most recognizable consumer brand. The PESTLE analysis will be useful in examining the
key macro- environmental factors which can adversely influence the operations of the company.
Political factor: There are range of political factors like terrorism, trading restrictions,
labour laws, government policy, foreign trade policy, etc. which has impacted the working of the
Apple company during this COVID- 19 pandemic. Apple Company is immensely dependent on
the China for the low degree of labour cost (Yoosefi Lebni and et.al., 2020). However, this
COVID- 19 pandemic has affected the relationship with China. Social and political unrest with
the China can leads to high degree of increased manufacturing cost and disrupt manufacturing
process for the company. The impact of Brexit is high and largely influences the operations of
business. It increases uncertainty for the firms. There are variation stock prices because of
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Brexit. Brexit has also lead to the weakening of the Europe both politically and economically. It
is also likely to lower the productivity of company which hampers its future growth.
Economic factor: COVID- 19 has severely affected the economy of the country. Due to
lockdown, most of the countries were not into operations which has severely affected the GDP of
the country. This has led to the stagnant growth within the economy (Zhang and et.al., 2020).
Due to lockdown there seems to be low degree of disposable income of the consumers and
business which has also affected the operations of the Apple Company. Increased level of labour
cost can affect the cost advantage benefit of the Apple Company.
Social factor: Major issue is linked with the wages and salaries (Shtal and et.al., 2018).
There is a high degree of negative impact on the working of the Apple Company because it has
led to significant number of lay- off within the organization. Growth within the population and
age distribution has severely affected the individuals because of COVID- 19 and this in turn has
affected the working of the Apple Company.
Technological factor: Rise in the price of the advanced technology is one of the major
issue of COVID-19 on the operational efficiency and performance of the organization
(Nandonde, 2019). Maturity of the technologies, potential return on the investment, emergence
of the new advanced technologies, etc. are the major factors which influence the operations of
the Apple Company. The Coronavirus has significantly affected the business because it has led
to high cost to the company and has impacted the business operations.
Environmental factor: There seems to be decline in the availability of the raw material
which has adversely influenced the working of the Apple Company (Albuquerque and et.al..,
2020). Low degree of access to the geographical location and climatic impact has severely
influenced the performance of company during the COVID-19 pandemic. High degree of
competition is another major threat to the company.
Legal factor: Complying with the legal legislation associated with health and safety
standards, labour laws, etc. are the health and safety, competitive legislations, consumer rights
and laws, advertising standards, etc. are of key significance importance especially during this
time of COVID- 19 pandemic. Any sort of legal challenge against the practices and policies of
the Apple Company is considered to be as a major threat to the business.
Stakeholder analysis-
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