Contemporary Business Environment: Audit of Internal and External Environment, Microeconomics, and Elasticity

CONTEMPORARY
BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Background.............................................................................................................................3
AUDIT OF INTERNAL AND EXTERNAL ENVIRONMENT....................................................3
Internal- SWOT......................................................................................................................3
External- PESTLE..................................................................................................................5
Benefits of consulting an audit...............................................................................................7
MICROEONOMICS........................................................................................................................7
Supply and demand................................................................................................................7
Elasticity.................................................................................................................................8
Oligopoly..............................................................................................................................11
LIMITATION................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is defined as the combination of forces of the external and internal
environment which impacts the working of the business either in positive or in negative way. On
the other hand, microeconomics is that branch of economics that pays attention to the individual
behaviour and the behaviour of firms on taking decision relating to allocation of scarce
resources. The present essay will discuss about the audit of the internal as well as external
environment and the reason why it is necessary for the company to carry on these analyses.
Further the discussion will take place on the microeconomic concepts of demand and supply and
different types of elasticity. In the end the limitation will be drawn from the whole assignment.
Background
The present study is based on Apple which is a multinational company founded by Steve
Jobs, Steve Wozniak and Ronald Wayne in the year 1976. This is a company which deals in
consumer electronics, online services, computer software and other related goods and services.
The environment within the country is very dynamic and that is why it is necessary for the
company to audit its external as well as internal environment.
AUDIT OF INTERNAL AND EXTERNAL ENVIRONMENT
It is very necessary for Apple to conduct the internal and external audit of the
environment because there are many changes taking place within the external environment. The
changes within the external environment also impacts the working of the company (Orders and
et.al., 2017). That is why it is of utmost importance to have time- to- time analysis of the external
and internal environment.
Internal- SWOT
The internal analysis is the process of analysing the whole organization to know every
detail of the company and to analyse its capabilities and drawbacks relating to the changes taking
place within the external environment. Thus, for this Apple takes help of SWOT analysis which
is a tool which help the company in analysing all its strengths and weakness and the relating
opportunities and threats present within the external environment. The SWOT analysis of Apple
is discussed in the following points connected below-
Strengths- these are the positive things which makes the brand stronger in comparison to
other competitors. The major strength of Apple is as follows-

 The major strength of company is its large base of loyal consumers. This is a major
strength because though the products are very costly then also the consumers are loyal to
the company. this provides a competitive advantage for the company as consumer
supports the product of the company
 Another strength is innovation as company keeps on innovating some or the other feature
in its products. This attracts more of the consumers as they like the product with new
innovations and creativity.
Weakness- these are the areas which hampers the company working and the company
needs to improve this. The major weakness is like below-
 The major weakness is the high prices of the products and services. The high-class people
can afford this heavy priced product but not the low or middle-class people. The major
portion of the country is middle class thus, this is a weakness as company cannot cover
that segment of population.
 Another weakness is the incompatibility with other system and software. once the Apple
product is purchased it cannot be used with the other software or technologies. Thus, for
this the consumer has to buy the Apple products only.
Opportunities- these are the options within the market which can be used by the company
to grow them and earn profits out of those situations. The major opportunity lying for Apple
within the market are as follows-
 Expand the distribution network- this is the latest opportunity for the company as
currently the distribution network of the company is very limited. Thus, for increasing the
revenues and sales the company can increase its distribution network to a great extent.
 Green technology- in the present scenario the consumers are more concerned towards the
protection of the environment. Thus, this can also be an opportunity for the company as it
can produce the products which are eco- friendly and does not harm the environment with
the radiations coming out from the electronic products.
Threats- these are the restriction which are on the company which restrict the company to
perform up to their maximum capability. The major threat faced by Apple are discussed in the
following points-
 The major threat faced by Apple is the high competition which is present in the market.
There are many big brands which deals in same business field like Samsung, Dell,