Factors of Internal and External Environment of Apple Organization

This report discusses the main factors of the internal and external environment of Apple organization, including SWOT analysis and PESTEL analysis. It also explores the functions of market economy and the role of government in it, as well as the economic environment in which Apple operates in the UK. Additionally, it examines the benefits of trade between countries.

Contemporary
Business
Environment

Table of Contents
INTRODUCTION...............................................................................................................................3
MAIN BODY......................................................................................................................................3
LO 1 The main factors of the internal environment and external environment of Apple
organisation.....................................................................................................................................3
LO2 The functions of market economy and the role of government in it.......................................5
LO 3 The economic environment in which the Apple business operate in the UK........................6
LO 4 The countries benefit from trade with each other..................................................................7
LO 5 The increasing impact of European union on British business..............................................8
CONCLUSION....................................................................................................................................8

INTRODUCTION
Contemporary business environment means the business environment that has a huge
competitive market and that changing in a very fast way. For standing against this challenging
environment business must have to develop a ability to achieve the fast response of environment.
Organisation's operating situation influenced by the internal and external factors of business
environment. Business environment involves various elements such as its owner and competition,
suppliers and clients, government and laws activities, economic and social trends and technology
improvements. Apple is a well known mobile company in the United Kingdom. It is an American
multinational company. The Apple headquartered in California, Cupertino. The Apple organisation
develops, sells and designs computer software, online services and electronics. This report will
include the factors of internal environment and external environment of Apple mobile phone
company. This report will also highlight the role of government in the market economy functions
and the economic environment in which the mobile business operation in the UK. This report will
also state about the benefits of trade when countries trade together and how the British business
influenced by the developing effects of the European union.
MAIN BODY
LO 1 The main factors of the internal environment and external environment of Apple organisation
Internal audit is a consulting activity and objective assurance that will designed to enhance
the value of business and it also help to improve company's operations. Internal audit also
identifying the impact of internal environment on the business of company (Barr and et.al., 2018).
SWOT analysis
SWOT analysis is a best tool to identify the various factors that can impact of internal environment
of Apple company. SWOT analysis involves company's strengths, weaknesses, opportunities and
threats.
Strengths
Well known brand
Apple company is a most famous mobile company and also a best reliable brand in global
market. The Apple includes personalized smart technology devices and advanced computer that
make the organisation more reliable (Boone and et.al., 2019). They have huge customers base with
quick increment. They delivers its devices and products globally. It is the main reason that makes
the Apple organisation most powerful brand. Apple is most demanded brand in mobile industry.
Excellent technology
The Apple has excellent technology which will help the organisation to develop innovative
and unique products. Apple is identified to craft and build better and best technology devices.
Financial strength
Apple has most stable financial growth so that they are able to finance all of its research
activities and investment to produce its products and services.
Superior design
The design of Apple products is very unique that attract more customers and youngsters
(Nikitina and Lapiņa., 2019).
Weaknesses
Lack of promotion and marketing

The Apple has poor marketing and promotional strategies for their products.
High price of products
The Apple products or devices are very expensive and they have premium prices so that
only high-income customers can afford its products.
Limited variety
The variations in the iPhone is very less because all the variety of iPhone do not have
difference as per their looking (Ahmed., 2016).
Opportunities
Demand of Laptops and Computers
Today, The demand of Laptops an d Computers are very high as compared to Mobile phone.
So the Apple has a huge opportunity to expand their market with innovative Laptops and
Computers design.
Apple watch applications
Apple watch apps are increasing quickly, approximately 3500 applications have been
implemented for the Apple watch. So the Apple company should have to create their own app for
Apple watch to enhance customer's buying activity.
Qualified Professionals
Apple has highly qualified develops, product specialists and researchers in their team that
have high experience, it can generate more opportunities for Apple (Domanović and Janjić., 2018).
Threats
Increasing competitors
The expansion in the competition in the mobile industry can create huge threat for Apple
company.
Lawsuits
Against the Apple, about 60 action lawsuit have been recorded. It can diversely affect the
Apple's customers and their trust.
Forgery
It is major threat that are faced by Apple because many people or company sell duplicate
products of Apple. This will create negative publicity of the organisation.
PESTEL analysis

The Apple organisation has many impacts from the factors of external environment (Namvar and
et.al., 2018). PESTEL analysis includes Political factors, Economic, Social, Technological,
Environmental and Legal factors.
Political factors
The Apple faces higher corporate taxation that created income equality in the organisation
and its a major political issues for them. Apple is dependent on chine for lower cost manufacturing,
political and social unrest in china will enhance manufacturing costs in the country. The threat of
terrorist attack can develop a negative patch on the Apple organisation.
Economic factors
The economic issues and recession can diversely affected the company's income. Apple is
negatively affected by their huge pricing and premium quality products. The increasing inflation
rate in the United Kingdom and labour cost in china has effected company profitability.
Social factors
The various social elements have contributed huge impact on Apple. It increases company's
popularity and demand in market (Blahová, Haghirian and Pálka., 2015). The high standard
lifestyle of people attracted towards the premium and leading brand of Apple. Brand acquisition in
various countries also increase the company's social image.
Technological factors
The various technological advancement in the company attract more customers. Apple
spend more on Research and development activities to approach customers. Many others
companies such as Google and Samsung also adopted high technologies in their products, it can
affect Apple's performance.
Environmental Factors
Because of several environmental factors, Apple's revenue can be affect. Pollution issues
and disposal of waste like non working devices etc. which will generate more issues for Apple.
Legal factors
The various rules and regulations of UK government affect the operations of Apple
(Amankwah-Amoah and Wang., 2019). Government of the UK banned import of some parts that
are usable for manufacturing Apple devices, which will create more problems for Apple.
LO2 The functions of market economy and the role of government in it
Market economy is a effective system that includes the law of demand and supply that helps
the production of goods and services. Market economy helps the organisation to set prices of their
products. Through the Market economy, Apple company can find out their resources, prices of their
products etc. The market economy is totally dependent on the demand and supply activities
(Aksenov., 2017). Economic development and growth in the market economy is identified by the
rewards and risks that generated from economic activity. If the demand of product is high but the
supply of product is low , than the price of product become high. If the supply of product is high
and demand is low, than the price of product becomes low. Market economy is the situation where
products are controlled by people and allocated through market transactions according to the
products demand and supply. The market economy provides various advantages for the Apple
organisation because it encouraged innovation by enhancing scope for wealth and providing a
competitive edge. The Apple has huge variety of products, in which market economy differentiate
them in the whole market. Market economy encourage towards the economy activities because
money is essential for any business (Tarabasz, Selaković and Abraham., 2018). It provide a

freedom of people choices by offering options for developing a business, work and buying goods
and services. The economy is operate by market. Use of resources, production, employment level
an d pricing of the Apple products are based on the market demand and supply of goods. Customers
are sovereign in the market economy (Namada., 2018). Effective economy market implement a
perfect competition in the market.
The involvement of government in the market economy is very limited, they only focus on
the rules of market are applied and enforced by the all participants. In the directing and planning
economic growth and development, government involvement is very less. Pure market economy is
very beneficial for Apple company because in that situations no government regulations related to
economic activities and no taxation on economic activities. The government has less involvement
in the determination of company's products prices, distribution of profits, production and
employment. The main role of government in the market economy is to resolve market failure of
such as excessive pollution and monopoly to develop a efficient economic system for Apple
company (Phillips and Moutinho., 2018). They develop integrated infrastructure to increase
efficiency and output level in production. The government should have to organize programmes to
develop equity use taxes. Government make concern on the expenditures, monetary regulation and
taxes to enhance macro economic stability and growth to decrease inflation and unemployment.
LO 3 The economic environment in which the Apple business operate in the UK
Economic environment includes the law of demand and supply, elasticity, Oligopoly etc.
Demand – Demand means the amount of products or services that customers is willing, wants to
purchase and capable to but at any price. The demand of the products is affected by two factors
such as willingness to buy according to their preferences and tastes. The price factor is also
influence the demand of products. The supply curve and demand curve of Apple products are
interconnected with each other (Mani., 2016). If the demand of Apple product is high but the
supply is low, it will lead to high price. If the demand of Apple product is low but supply is high, it
will lead to low price. For example, if the price of iPhone is $1000, the quantity of iPhone
demanded is 10 million but if the price of the iPhone increased up to $1200 that the quantity
demanded would reduced to 8 million. Other factors that affect demand of Apple products such as
changing preferences and tastes, alterations in composition of population and changes in expected
future prices.
The production cost is also affect the supply. Factors that affect supply such as
organisation's profits, factors of production or inputs like material, machinery and labour (Zafar,

Hafeez and Shariff., 2016). The changes in the inputs prices will affect the production costs and
also the supply. Demand in the economics is the ability and willingness of customers to purchase
Apple products in the offer prices. Supply is the seller's willingness to offer quantity of products for
decided price.
In the UK, elasticity is a measurement of changes in economic variable as peer changes in
another. It define that how easy for the consumers and suppliers top change their choices and
substitution different products (Siriwardana and Dissanayake., 2018).
Oligopoly is a specific market form where the industry or market is dominated by the
various number of sellers. It is a market structure that include many small number of sellers. The
oligopoly in the market can reduce competition form the market and increase prices for consumers.
The economic environment in the UK provide a great platform for the Apple business to run
their operations and production activities in a very effective manner. It assists the business to
expand their economic situation within the best economic environment. The economic environment
in the United kingdom is very smooth, means that sellers and buyers have power of take their
decisions in dependently. They are not restricted by the several government regulations, rules and
policies (Matijević, Vrdoljak Raguž and Filipovıć., 2015). The UK has most developed and
investment environment for the businesses to expand their trade relationships with various
countries. In this environment, Apple company develops their business as most efficient business.
In the United kingdom, economic environment is very secure for business contracts and agreement
which can helps the UK business to develop their business activities with conceiting other
businesses. It created a better economic environment for business to balance their demand and
supply activities in a very effective manner. It also assist in improving business behaviour and
strategies for the great expansion and growth. The economic environment also provide various
opportunities to the Apple company by indulging related actions and trade agreements. The
economic growth and development percentage is very high in United Kingdom, it is a major
advantage for the UK business. It helps the business to complete their production of good and
services activities within a specific period of time. The economic growth in the UK depends on
many factors such as inflation etc. which can affect the business's production activities. Usually, the
economic environment of UK is open and is mainly influenced by the demand of customers.
LO 4 The countries benefit from trade with each other
The trading with each other generate more benefits for the countries or their business. the
advantage of the international trade is very high (Bogdan and Beata., 2018). For the great
expansion of business, company will choose to trade with other country. Apple company largely
involved in trading activities with various countries. The major advantages of countries trading is
that company becomes able to enhance their number of potential customers from all over the world.
Each country you approach for trading can create a new path for for the business development and
growth. It increased huge revenue for organisation.
Trade with other countries generate a huge advance by decreasing number of competitors in
various countries. With the trading business will approach many countries and country's business
which can eliminate the competition from global market. With the increasing trading activities with
other countries, Apple organisation become able to stable their products image for longer period as
people always attracted towards another countries products or goods. Through the overseas selling
business can extend the life of product (Gregor and Gotwald-Feja., 2018). The another advantage of
global trade is, it makes the cash flow management easier. It also assist in by market diversification
of Apple business.
The countries trading with each other also develop the better risk management ability in the
organisation. If the company only focus on the local market it will enhanced risk from downturns in
the political, economy, environmental and other risk elements. The international trading assist the

organisation to reduce their dependency on the one market and helps to remove potential risks in
specific market. For the international trading Apple company also take advance from currency
exchange. They gain the advantages from currency fluctuations and currency conversion. By this
company will be capable to leverage export financing. It provides a great opportunity to the
company to dispose their surplus goods that company not able to sell this goods in their own
market or country. Countries trade also increased the reputation of business. Conducting business
activities in other countries can enhance the company's reputation. Apple are operating their
business in many countries which are increasingly boost their business and reputation in
international market. Success in one country directly affect the success in another countries that can
boost organisation's profile in own market. It can improve the company's performance and
productivity because company have to offer their products within a deciding time with great
efficiency. It can enhance company's creditability in the local as well as abroad market. It will
provides a immense opportunities to the company to become a specialize in various areas to offer
effective products or services in that country (Dartey-Baah and Ampofo., 2016). Countries trade
with each other opens a many new lines of products or services so that company can expose their
talent and innovative approach globally. By this, company can adopt up-gradation, improve
efficiency and increase innovations for their products or devices. Company approaches other
countries for their trading if they don't have enough capacity and resources to satisfy their wants
and needs, so that countries trade provide a better opportunity to the business to fulfil their desires
and needs. It reduces the number of competitors form the several countries. If the company trade
with other countries, they have to produce higher volumes, that generate many cost benefits as per
the economics of scale and company also seriously focus on producing the products more
efficiently and effectively.
LO 5 The increasing impact of European union on British business
The European union has raised British business in a very next level. This union generate
various positive effects by enhancing trade and also make positive competition in the British
business. The economic benefits of European union for the British business are very high. The
European union improved the macro economic situation of British business.
THE European union created their major impacts on the British business. Initially, it
develops the uncertainty in the businesses, firms and businesses becomes uncertain about dealing
with many situations. The European union also developed the British business by proving effective
tools and assistance. European union affect the British company's productivity performances and
also decreased the trade costs (Divyashree., 2016). They helps the British business by giving
assistance in many collaboration activities. It improves the business's productive efficiency and
allocative efficiency. It develop a effective platform for the British companies to trade their
products or goods internationally. The European union implemented a effective policies for the
British business to run their business with a great manner ad also taken necessary action to increase
the business profitability from various investments activities. It created huge effects on the
economy situation of British business environment. It offers a great advantage by offering effective
budgetary contribution in the British businesses. The European union helps to develop a smooth
business environment in the British, it assist in import and export activities of business and also
helps in resolving many business laws and lawsuits by collaborating various countries. It created
their strong effects on trade activities in British business. They helps to decreased taxes on business
and enhance government spendings on the British businesses. The European union made the British
business more bigger and open for any challenges. It has enhanced the openness to flow of business
investments, trade and labour. It assist in business economic growth and development and also
enhance labour standards in the business activities (Prowle and Lucas., 2016).
But it has also diverse impact on the British business. European union reduced the value of
British economy according to the measurement in GDP. By this, British become able to eliminate
all barriers in trading activities, through this, they become able to trade with many countries in the

world. British become able to remove all the European regulations such as labour market and
environment.
CONCLUSION
From the above report, it is concluded that the effective business environment is very
necessary for the great development of business. The success of business depends on the positive
business environment. Apple is a popular brand in the mobile industry. They operated their busiesns
in many countries. With the great business environment in the UK, Apple become able to expand
their business worldwide. UK provides best business environment for all the organisation to run
their operations and functions in a very effective manner. UK has effective economic growth and
development which promote the business largely. The effective business environment in the
country provide a positive competition in the market. It helps the organisation to develop their
businesses and achieve competitive advantages in many countries. It is very necessary for the all
business to control their demand and supply to develop stability in the productivity and profitability
of the business. Business must have to develop their ability to stand against competitors in the
market and gain attractive competitive gain. The company's operating activities is influenced by the
internal and external factors of business environment. Business environment includes the several
elements like as its suppliers and clients, owner and competition, economic and social trends and
technology improvements, government and laws activities. This also includes various political,
economical, social, technological, environmental and legal factors that can create positive and also
negative impacts on business. It also includes the company's strength, weaknesses, opportunities
and treats which helps to identifying the major threats and opportunities for the business.

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