Contemporary Business Environment: Internal and External Factors Impacting Apple Company

CONTEMPORARY
BUSINESS
ENVIRONMENT

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Internal Audit......................................................................................................................3
2. External Audit....................................................................................................................6
3. Limitations of Micro Economics......................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business Environment is a process of study the combination of internal and external
factors which has different impact on the organisation in the long run. . Companies are required
to make their strategies in the way which suits them and makes sure that goals and objectives are
achieved in an efficient way (Amankwah-Amoah and Wang, 2019). In this context, Apple
company is chosen for the assignment, which was founded in the year 1976 and is headquarter 1
Apple Park Way, Cupertino, California, U.S. This company provides their customers with
different types of products and services such as mobile and telecommunication services with the
help of which they can reach out the larger number of customer. the assignment will make its
focus on different models such PESTLE Analysis, SWOT Analysis and many more with the help
of which different factors impacting upon the working of this organisation will be known. Along
with this, the explanation will also be provided about the internal and external audit along with
limitations of microeconomics as well.
MAIN BODY
1. Internal Audit
Supply and Demand: The supply refers to the availability of product and services in the
market for which customer are willing to pay. The demand refers to how much customer are
willing to pay for the good and services in the market to fulfil their basic needs and want.
(Anđelković, 2016). It is important to know about the supply and demand in the market so that
the market could be stabilise and the situations of inflation and deflation could be avoided.
Supplier should know its target audience so that product and services are provided to selected
market and profits can be earned. Inflation is a situations where prices of product and services
are increase in the market whereas deflation occurs when the prices are decrease in the market.
Their should be prefect balance between the demand and supply of the product and services in
the economic.
Elasticity of Supply and Demand: Elasticity is a tool use to show the relationship between
quantity demand or supply and another variable such as price, income in the market. The
flexibility interest is the rate change in the amount of administration isolated by the rate change
in the cost. The value versatility of supply is the rate change in amount provided separated by
the rate change in cost (Baporikar, 2015).

Flexibilities can be classified into five general classes such as superbly versatile,
versatile, flawlessly inelastic, inelastic and unitary. Versatile inventory is one which has a more
flexibility in showing a high responsiveness to change in the cost. An inelastic interest is having
short flexibilities showing less responsiveness to value change. Unitary versatilities have relative
responsiveness of supply. It is important to know about the change as with the help of this the
change in the prices could along with the effect on price as well.
Superbly versatile and impeccably inelastic allude to the two boundaries of flexibility.
Consummately, versatile methods is a reaction to cost finished and any adjustment in value
brings the amount tumbling to zero. Impeccably inelastic refers to the situation where no
adjustment is made when value is changed.
Oligopoly: Oligopoly has very few number of firms in the market structure these firms has
different impact on the market. (Barr and et. al., 2018). The fixation is a proportion that
quantifies the piece of the overall industry of the biggest firms. A syndication has one firm,
duopoly include two firms and oligopoly has at least two firms. There is no higher maximum
cut-off to the quantity of firms in an oligopoly structure. however the number of firms must be
low enough so that the activities of one firm essentially impact the others. Oligopoly is the
market structure where few firms are present either in expressly or in implicitly. so as to
accomplish better then average market returns. Monetary, legitimate, and mechanical variables
can add to the arrangement and disintegration, of oligopolies. There is significant trouble that
oligopolies face is the detainer's difficulty in the every part of faces, which effect every part to
swindle. Government approach can demoralize or support oligopolistic conduct, and firms in
blended economies frequently look for government favouring for approaches to restrict rivalry.
It is important to analyse the market as a single mistake of the company could make it out of the
market. So the companies dealing in these type of markets are required to make proper and
timely analysis of their own products related to the products and services of their competitive
organisations in order to remain in the market.
Key Diagrams:
Supply and Demand Curve: the depiction of supply curve is being provided as under: