Micro and Macro Environment Analysis of Apple Inc.

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Table of Contents
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INTRODUCTION
Micro environment is the environment which directly linked with the organization and
affect its operational activities. It includes various elements which affect business such as
suppliers, competitors, mediators, customers etc. In order to understand micro environment,
business have to understand the factors such as supply & demand, elasticity and done internal
audit which helps in increasing productivity through making effective strategies (Aćimović and
et.al., 2014). Macro environment also affect the business operations which further impact
production as well as profitability. This report based on Apple Inc, which is American
multinational technology based company which sell electronic items through online or offline
mode. This report covers various topics such as Supply & Demand, price, cross or income
elasticity, internal audit as well as done PESTEL analysis. I addition, it includes the external
audit and it will have done with the help of SWOT analysis which helps in understand strength,
weakness, opportunity or threat of the company.
MAIN BODY
Overview of company:
Apple Inc. is an American based multinational technology company which situated in
Cupertino, California. They design, develop or sell the electronic items for the consumers such
as computer software, online services, electronic items etc. Apple consider into Big Four Tech
Companies and remaining include the Amazon, Google and Facebook (Apple Inc, 2019).
Smartphone products include the serious of iPhones, iPad for tablet, Mac for personal computer,
smartwatch etc. Company founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne.
Currently they have more than 500 stores in world wide area.
1. Micro Environment
Supply: It is an economic concept which describe the number of goods which make
available for consumers. Supply related to the quantity which produce according to the change in
the price of commodity. Basically, price and produced quantity have positive relation because
when price increases then supply of goods also increases due to high demand in the market
(Cashin and et.al., 2014). On the other hand, when price decreases then supply of product also
reduces due to low demand in the market. Law of supply must be understanding by the company
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because further it helps in formulating strategy or decision making process. Relationship of price
and quantity will effective represent with the help of supply curve.
Supply curve also a graphical representation which plot the combination of price and
supply quantity (Supply Curve, 2019). Product price will be measured on vertical axis and
quantity measured on horizontal axis. Below mentions graph will provide better understating:
Illustration 1: Supply Curve, 2019.
(Source: Supply Curve, 2019)
Above mention graph shows the positive relation between price and quantity. As price
increases, supplied quantity also increases on the other hand it will happen the same (Cardoso,
2017). Price increased from 2 to 3 and similarly quantity also increased from 30 to 40. Price
plotted on vertical axis and quantity on horizontal axis.
Demand: It is the quantity which demanded by the consumers when they are willing to
purchase something and satisfy their needs & desires. Relationship of price and quantity will be
represented in the diagram called demand curve (Cook, 2017). It is an economic principle which
refer to the consumer's desire regarding any product or services. When price of product increases
then demand of product will reduces due to high price of commodity. Similarly, when price is
low, then demand will increase and it will be happening when other than price all the factors are
constant. It will be possible in the shorter period because in the long run every factor impact the
demand of commodity.
Demand curve is the graphical representation which shows the number of unit bought on
each possible price (Demand Curve, 2019). Basically it plots the relationship of price and
quantity which calculated with the help of demand schedule. Demand curve will provide better
understating of this concept which mention below:
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