Business Strategy: Impact of Macro Environment on Apple Inc.

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies...............................................................................3
PART 2............................................................................................................................................7
Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.............................................................................................................................7
PART 3............................................................................................................................................9
Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector
for an organisation..................................................................................................................9
PART 4..........................................................................................................................................10
Applying a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation..............................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business Strategy is referred to as the set of steps and rules that are taken up by the
management to have a better competitive hold on the business environment. These are
combination of rules taken and the actions performed to achieve the business goals and
organisational goals. These are decisions that determine the direction and success of an
organisation. Apple is one of the leading company to have a large market share in the digital
industry. But apple was not always a success as it is now. It started with its first product which
was Apple computers. It was the first innovated product in the market. Innovation has always
been a major aspect in the products of Apple. To come off with such success, Apple had used
strategic planning to help its own workings and work in accordance to have a competitive
advantage over its competitors. The business strategies that have helped and are still helping
Apple to hold major share in market are discussed in this report. These will give insights as to
what all strategic tools and theories are there and how they can be applied in a business to help it
grow and achieve success in the market. This will be done with the help of Apple Inc.
PART 1
Applying appropriate frameworks analyse the impact and influence of the macro environment on
a given organisation and its strategies.
Business is influenced by the environment it works in. There are many internal and
external factors that influence a business's working and these are included in Macro environment.
To have a healthy business, a organisation has to give its attention to these factors and include
them while formulating business strategy (Thomas and et.al., 2021). These are discussed in detail
with the help of Apple Inc:
PESTLE Analysis
PESTLE is a model in management theory which basically talks about all the factors of
external environment which are there for a business which might influence and impact the
working of the business. PESTLE analysis is a tool used by business to analyse its political,
economic, social, technological factors that influence the working of the business. These factors
are discussed below:
 Political Factors that influence a business include the tax policies, trade
restrictions, political stability. These factors are concerned with as to what extent

a government may influence an industry or a particular company. Government
may make new tax policies and reforms that might change the whole profit
margins of the business. Apple is dependent on China for its manufacturing units
and this makes it a threat for the company due to the political unrest in that
country. Also, the cost of searching an alternative to the Chinese unit could be
high which may lead to increased prices for the company.
 Economic Factors that influence a business include cost of living, inflation and
wage rates, working hours, economic growth and decline. These determine an
economy's performance which has a direct influence on a company. For example,
a deflation in an economy might result for many businesses to shut due to less or
negligible revenue. In case of Apple, the strong US dollar could increase the
exchange rates which would in return make its products more expensive for its
key business markets all over the world.
 Social Factors that influence a business include health consciousness, population
growth rates, age distribution, safety and cultural norms and expectations that
might influence the buying of the consumers (Monteiro, 2021). These help the
business to come up such a plan of action that would guarantee the maximum
profit with consumer growth and retention. These also help them target certain
customers. In the case of Apple, the concerns about the manufacturing of Apple's
products in China could come as bad for the socially-conscious consumers.
 Technological Factors mean the innovations and developments in the
technologies of production and management. Machine learning, Deep learning,
AI are several new developments in the field of technology and if the company
fails to meet these, it might lose its position in the industry. Apple's competitors
like google and Samsung have shown their abilities to duplicate apple's services
and products . Growing technologies and high competition can be a major threat
to Apple if it lacks anywhere in the advancement and also, growing cyber crimes
can make Apple's systems less secure and there might be a threat of stealing of
personal information of consumers of apple.
 Legal Factors include the changes in the legislation of a country, changes in law
impacting the imports/exports and taxation which might influence the profits and