Contemporary Business Environment

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of company..................................................................................................................1
Business Environment and Micro Economic concepts and models............................................1
2. External Audit..........................................................................................................................8
3. Limitation of Micro Economics...............................................................................................9
RECOMMENDATION.................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCERS ...........................................................................................................................12

INTRODUCTION
In present time, the business environment is dynamic and keeps on changing with the
time and nature of different operation occurs within market. Contemporary business environment
is consider to be continuous changing environment that fluctuate due to number of factors like
sudden change in demand and supply, customer preferences and taste, employee engagement
(Aćimović and et.al., 2014). There are some other common components that include suppliers,
rival firms, internal and external factors which have greater impact on performance of firm. To
better recognize the micro-environment, companies need to consider variables like supply and
demand, elasticity and internal auditing, which greatly increases profitability by effective
methods. In this report, Apple Inc is selected which is an international American company that
use to sell number of useful electronic gadgets.
In this report, topic such as supply & demand curve, price-elasticity, internal factors
analysis and PESTEL in context of selected company. Apart from this, report also involves the
external audit by SWOT analysis that enables to understand the strength, weakness, opportunity
and threat of the company.
MAIN BODY
Overview of company
Apple Inc is known to be the world leading electronic company that usually manufacture
and sell several beneficial electronic devices, computer software and other effective online
services. The main founder of the company is Steve Jobs and Steve Wozniak and Ronald Wayne
that is located in California, USA. Apple first business operation is related with producing and
selling of personal computers that grows into different sectors and become the 2nd largest
electronic company in World. Furthermore, company is consider to be the largest IT sectors in
the entire globe in term of revenue generation. Apple have around 500 retail store and total
number of employees are 120000 with a main motive to bring the best personal computing
experience
Business Environment and Micro Economic concepts and models
In modern era, the concept of business environment is related with an increase in external
relation to internal pressures (Darlington, 2017). This mainly includes suppliers, government
operations, consumer expectations, workers, technological development, changes in the
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economy, market forces. As well as cultural trends, strategic planning and competitive landscape
that have enormous influence on the processes of the company.
Demand: The actual quantity that is needed or requested by consumer in order to fulfil
their existing demand and needs in economic term is called demand (Cardoso, 2017). Customer
use to make standard demand according to their requirement and pay specific amount in favour
of item purchased. The connection between quantity demand and price paid is shown with the
support of demand curve which help marketer to set reliable prices in future. This is an crucial
economic principle which states that whenever price rises the demanded quantity will goes
down. On other side when price reduce for a commodity then demand increase for respective
time as for longer time different factors impact price.
The Curve that shows the number of goods purchased on every achievable price is know
as demand curve. In the above represented graph, It has been clearly determined that price and
goods demanded have a adverse relation (Kalitanyi, 2019). Such as in case if price grows then
the request of goods decrease and vice versa.
Supply: This is an economic principle that defines the amount of goods commercially
available. Supply compared to the amount produced by the commodity price shift. In essence,
value and amount generated include a positive relationship, as when price rises, the supply of
goods often improves due to various high market demand. Similarly, in case when price reduces
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