External Environment Analysis Assignment Sample
Added on 2021-06-16
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ContentsExecutive Summary........................................................................................................2Introduction to the organization........................................................................................3External environment analysis..........................................................................................4Internal environment analysis...........................................................................................7Five forces analysis.........................................................................................................9Four building blocks of competitive advantage................................................................11Distinctive competencies...............................................................................................12Differentiation strategy..................................................................................................13Strategic alliances..........................................................................................................14Potential problems.........................................................................................................15Recommendations.........................................................................................................16References....................................................................................................................181
Executive SummaryThis report comprises of strategic case analysis of Apple Inc. Apple Inc is an Americanorganisation which was founded in the year 1976 jointly by Steve Jobs and Steve Wozniak.After the immense success of the organisation in the personal computers market theorganisation for the diversified their portfolio by offering various electronic productsincluding music player, tablets, mobile phones, computers and laptops. It is not just animmensely successful consumer electronic products organisation but is also a commonlyrecognized brand with high visibility across the world. The external environment of anorganisation comprises of the various factors which influence the operations and theprofitability of the organisation. Understanding these factors and their influence on theorganisation helps in developing the strategic plan to identify the position and the propositionof the company and develop strategies for ensuring their success. The internal strengths andweaknesses of an organisation make up their internal environment. The study of internalenvironment comprises of the analysis of the financial performance of Apple Inc and thestrength and weakness of the company which impact their efficiency and productivity in themarket. The simultaneous targeting of the software and the hardware market by Apple Inc iscoming up as a challenge as there is intense competition in every field which is making iteven more difficult for them to continue with their innovative developments. Apple needs toensure that they develop a robust plan for the production, marketing and launch of theirproducts if they want to continue to maintain their position in the market.2
Introduction to the organizationApple Inc is an American organisation which was founded in the year 1976 jointly by SteveJobs and Steve Wozniak. After the immense success of the organisation in the personalcomputers market the organisation for the diversified their portfolio by offering variouselectronic products including music player, tablets, mobile phones, computers and laptops. Itis not just an immensely successful consumer electronic products organisation but is also acommonly recognized brand with high visibility across the world. The business model of theorganisation is extremely unique having proprietary software and all the electronic productsdeveloped by them feature their own operating system. Headquartered in California, it is apublic organisation employing more than 123,000 people and the registered revenue for theorganisation for the financial year 2017 was US$ 229.23 Billion. In addition to offering theconsumer electronics, apple has also ventured into the domain of information andentertainment services and has become the largest retailer of music online. The softwaresolutions and video streaming apps offered by apple are also very successful. Theorganisation has been constantly performing well in the market and is the largest informationtechnology organisation in the world at present. It is also the second largest cell phonemanufacturing company falling only behind Samsung. Running and maintaining 499 retailstores in 22 countries, there are more than a billion Apple products actively being used by thepeople across the world. The marketing initiatives and aggressive and unique propositionoffered by the company through their innovative products and services has accumulatedworldwide critical acclaim for Apple Inc.3
External environment analysisThe external environment of an organisation comprises of the various factors which influencethe operations and the profitability of the organisation. Understanding these factors and theirinfluence on the organisation helps in developing the strategic plan to identify the positionand the proposition of the company and develop strategies for ensuring their success.PESTEL analysis is a tool implemented to identify the various political, economic, social,technological, environmental and legal factors that constitute the external opportunities andthreats for the company. The PESTEL analysis for Apple Inc is included here.Political factorsBeing a multinational organisation, there are various political factors that influence theworking of this organisation. They have the retail stores operational across 22 nations and theproducts of the company are also sold through the resellers. Global relations of the countries,communal disturbance, terrorism, wars and disasters impact the business of the company.The operations of Apple Inc are also affected by the local regulations and rules, tax structure,intellectual property laws, foreign exchange control and the import and export dutiesdetermined by their governments.Economic factorsThe cost of labour, GDP of the countries, the disposable income and the variation in thecurrency exchange rates plays an important role in the operations of Apple Inc. Theproduction of most of the Electronics by the company takes place in China and therefore thelabour costs in China let Apple enjoy the cost advantage. The purchasing power of the peopleand the economic conditions across the world also directly impact the sales and theproductivity of the organisation [ CITATION Mra06 \l 1033 ].4
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