Contemporary Business Environment

Contemporary
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Understanding key elements of internal environment and their interaction with external
environment.................................................................................................................................1
LO 2.................................................................................................................................................3
Identifying the functions of market economy and role of government within it.........................3
LO 3.................................................................................................................................................5
Examining economic environment within which business operates...........................................5
LO 4.................................................................................................................................................6
Reasons of countries benefiting from trade with each other.......................................................6
LO 5.................................................................................................................................................8
Growing impact of European Union on British business............................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Contemporary is that term which refers to as that part which belongs to a particular
period or time. Thus, to understand it in a better way its business environment has a vast and
huge market that is full of competition which changes at very fast pace (Ahmed, 2016).
Moreover, the owner of such business environment must have capability in order to understand
and identify the needs and requirements that has to be done in an organisation. In this report,
Apple Inc. has been taken into consideration. It is an American multinational technology
company that has been headquartered in California. The main aim of this organisation is to sell
consumer electronics, computer software and also online services.
In the following report, the key elements of internal environment that interacts with
external environment will be discussed in detail. Further, this report will also help in analysing
the role of Government in the functions of market economy along with the economic
environment within which cited business actually operates. In addition to this, this report also
highlights on benefits that countries enjoy while trading with each other and also helps in making
student aware of growing impact of EU on business that is performed by British.
LO 1
Understanding key elements of internal environment and their interaction with external
environment
Internal environment factors are those factors that occur basically within a particular
organisation and on the other hand, external environment factors are those that are termed as an
event that is taken place outside of the particular organisation. Therefore, external factors are
hard in order to predict and later to control (Boone, Kurtz, Khan and Canzer, 2019). Thus, key
elements of internal environment and their reaction with external environment has been
discussed as per below context with the help of SWOT analysis-
Internal environment
Strengths
 Leading innovators among electronic brands- Apple is the top most ranker in terms of
innovation of electronic devices. It has been termed as the most innovative company that
brings up with unique and innovative ideas in market that creates huge level of
competition. In addition to this, the cited organisation has been expanded in terms of
reaching towards the services that are related to environment and information. Therefore,
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due to this it has been termed as one of the largest retailer in terms of music streaming
and video and software solutions.
 High recognition of a Brand- Apple is the company that invested $4.5 billion for
Research and Development which helped them in order to access the market in close
manner (Caporale, Sova and Sova, 2015). This organisation therefore takes complete
control of supply chain which leads them in enhancing the brand image and increases the
recognition of a particular brand. In addition to this, it also helped customers in building
immense trust among them which helped them in achieving great and innovative versions
of mobile phones.
Weakness
 High Price- The price of a product which is produced by Apple is quite high and their
fans makes it as a premium gadget maker. Thus, it has been stated that this product is for
those people who afford pony. In other words, it has been analysed that cited organisation
has lost maximum amount of customers and this is because they have cheaper products
access as compared to Apple.
 Unsuccessful Anticipation- The founder of the cited organisation predicted that there will
be no person who will buy big or large screen phones. Thus, this prediction actually
failed which made them suffer huge loss. The other brands like Samsung launched
phablets and Apple only invested in tablets. Further, it has been analysed that the demand
for large screen phone is rising vastly.
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Figure 1: SWOT analysis
(Source: SWOT Analysis, 2019)