External Environment Assignment 2022

External environment
C.P4
Political:
Membership of trading communities such as the European Union- Since the UK leaving the EU,
Apples shares decreased by 2.8%. Along with that, NASDAQ (where Apple shares trade) was also
down by more than 4% and, the value of the British pound subsequently dropped. These factors
have hugely damaged Apples sales and their revenue and in fact they would not be able to maximise
their profits as they would have to readjust each products value by dropping their original price to
suit the current condition of the market to benefit their customers.
The European regulators have released a list of big tech companies who will be facing tougher
regulations in terms of market influence and includes Apple! The idea of the campaign is that the
larger the companies are (Apple being the largest on the list) they should share date and information
with their rivals and along with that, face tougher regulations. These factors would damage Apple as
they would have to give intel to other companies allowing them to gather knowledge of how Apple
functions and works, therefore, Apples market share could slowly decrease allowing other
businesses shares to increase
Apple has been manufacturing their products all over the globe but mostly in China. The reason is for
lower the expanses in manufacturing. This has also led to various objection as the political relation
between China and America has been through different views, especially in the recent months,
president Trump having a very negative view to China ever since COVID-19 was outbroken.
ECONOMIC:
ECONOMIC GROWTH- Believe it or not Apples GDP is higher than some countries! Switzerland, Saudi
Arabia, Netherlands, Indonesia and Mexico are all lower than Apple. Apples economic growth rate
have drastically dropped since then and its due to to Covid-19. The organisation had to close many
stores across the globe in which plummeted their revenue, they lost around $2.7 billion and this
drastically damaged their sales of the new brand-new iPhone 12 in which they dropped by 24.3%.
Apples response to COVID-19 allowed them to have committed donation in order to help treat those
who are sick and to help lessen the economic and the community as they reached $15million
worldwide.
EXCHANGE RATES- The value of the British pound, other known as Sterling has dropped quicker
than ever (Due to COVID19 currently), therefore, exchange rates have dropped too. Sterling fell 5%
to $1.15 which have damaged Apple stocks and their shares in which shareholders has panicked sold
in order to liquidate and not to make even more of a loss. If the stock’s price falls too much then
Apple may need to borrow money to raise funds to expand their business, however if the share
prices are still yet to change or continually dropping, shareholders will continue to be unhappy
towards Apple and they may leave and invest in other shares for example their rivals, Samsung.
SOCIAL RESPONSIBILITY:
DEMOGRAPHIC TRENDS- The average age of an Apple customers lies around the age gap of 35-44
years old. Apple users are 94% more likely to be affluent than others who utilize mobile devices on a

regular basis and that may be due to, their ground-breaking and innovate products with ultimate
fast software. 1 in 4 customers in the 18-34 age express a strong interest in purchasing an Apple
product and that could be because of their advanced technology that allows users to have the best
experience. Men outnumber women on 2:1 basis when it comes to purchase an Apple product.
CUSTOMERS TASTE/PREFERENCE- Globalization, allowed Apple to have a rapid increase in
popularity, therefore, taste in customer has never been important than ever before. Apple has
invested in millions in their design and software in order to satisfy and deliver in their audience
taste. The organisation has invested in $16billion in research and development, in order for their
customers to have the latest ground-breaking technology and to have the best experience when
using an Apple device. Apple products are extremely easy to use that ultimately a 5-year-old can
understand, along with that fact, fast software and advanced camera quality allows customer to
have the best experience with instant access of launch of apps.
Social factors that effects Apple business. The most significant factor to Apple is the rising use of
mobile access and the rising use of social media, these are two opportunities for Apple. Apple
continue to provide these mobile devices, the trend of increasing mobile popularity of mobile access
is an opportunity that Apple can utilise and to carry on expanding their business by generating even
more sales coming into the organisation. Moreover, in today’s world, social media is becoming more
and more populated so therefore, the rise of this trend will increase the demand for digital products
such as the iPhone where users are able to download lots of popular social media apps. This will
allow Apple to have major opportunities to sell their products in which can allow them to continually
to grow and increase the sale rate and therefore, beating their competitors and allows Apple to
please their consumers.
Despite these opportunities, Apple faces social threat of opposition against its business operation.
Questions are being asked of the business practices, such as lawsuits against third party repair
services and these sentiments have the potential to harm Apple’s brand image therefore, these
factors emphasise the importance of Apple corporate social responsibility strategy and such
strategy, helps satisfy stakeholders, including customers.
In this current environment involving COVID-19, people are more likely to save their money in order
to buy necessity such as food, anything involving day to day basis or to plan ahead in the near future.
This will affect Apple due to the fact; consumers are less likely to buy an Apple product now as
before due to the current conditions in the environment in which will influence them not buying the
products as they do not necessarily need it or instead of buying a costly product, they could
purchase other things in order to maximise their money in which will benefit them with the current
condition they are in and this damages Apple sales rate in which, they will lose out sales revenue and
competition will gradually increase and from them to perhaps lose out in the market share. Apple
products and the demand of the goods has dropped by 28%, and has lost around $4-7 billion due to
COIV-19 and people not buying the goods. People are spending their money highly regarding to
technology products and Apple being a technology business it will affect the business in a positive
note as this means, they have opportunities to exploit the market and to sell the products to their
audience. Apple products is showing a success in the market in which, allows the business to
generate sales and to compete with their rivals in the market.
TECHNOLGICAL CHANGE:

IMPROVED COMMUNICATION- Apple has changed the world due to their advanced development of
understanding technology and communication has benefited billions of people across the globe.
Their continuous change of each of their product has evolved and has met their audience demands
in which they have pleased them with and here are some examples;
FaceTime, the video quality is superior to any other video app, with 720p allows customer to have
the great quality and is supported with many Apple devices such as; iPhone, iPads and MacBook’s
however, facetime is only supported with an Apple product therefore, people trying to facetime
others without an Apple product will not be able to.
App store has millions of apps on communicating such as; Snapchat, Instagram, Twitter and others.
Allows customer to communicate to others and along with that, allows people to communicate with
other mobile devices such as Samsung and Hawaii.
Technology is a massive influence, especially Apple. Technology is constantly changing therefore,
businesses like Apple need to keep up with these changes and need to be able to integrate when
needed to. These factors are analysed so the businesses can understand how consumers react to
different technological trends and how they use them for their benefit.
Apple has a great opportunity to grow its app store and they have even come up with things like
voice recognition and face identification to unlock their phones which keeps them a step ahead of
major competitors, Samsung. Apple is in a very good condition to exploit the opportunities in the
technological business environment and grow as a business. These factors have made Apple to be
unique as they were the first companies to launch the first smartphone along with, touch ID and face
ID in which has driven up their sales massively and has allowed them to grow and expand the
business.
Technology affects Apple ability to communicate with customers and within the organisation. Apple
being a technology organisation has allowed them to upgrade and improve their technology in
which, employees can easily interact with clients quickly and clearly such as Apple’s website. When
customers use technology interaction with Apple, the business benefits from it because, better
communication creates a stronger public image therefore, installs trust and confidence to their
consumers in which, increase them becoming loyal to the brand and helps to increase sales.
Another factor is that, Apple using technology has allowed their security to be at the safest.
Technology can be used to protect Apple financial date, confidential decision and other important
information that leads to competitive advantages. Technology has affected and improved Apple’s
security, that it has allowed to keep their ideas away from their competition by having computers
with passwords and ensures none of its forthcoming projects will be at risk.
ENVIRONMENTAL FACTORS:
RECYCLING, POLLUTION AND CARBON EMISSION- If you have an old Apple product you would be
able to recycle it by heading over to their website called “Apples Recycling Program site” in which
there are a list of several countries where Apple offers recycling or trade-in programs. Customers are
able to trade in their old technology for a return of an estimated price of the value of the product
handed in
The climate change has impacted Apple due to the fact; it can influence on harsh weathers such as
floods, droughts, extreme heat wave and storms therefore, becomes a safety risk for workers as

they could be harmed and Apple will lose out in sales if their stores are damaged. Pollution also
affects Apple due to; it causes major environmental events in which, can disrupt of supply chain or
an increase in raw material. Apple have taken an opportunity from it. Apple has reduced the carbon
footprint emission in which has allowed them to become eco-friendly business. The reason why this
is important is due to the fact, reducing the emission of the CO2 level will reduce pollution and help
reduce climate change in which will benefit the wild life, people and decreases harsh weather
conditions.
Another factor is that, Apple becoming an environmentally friendly business it has attracted a lot
more customer and their organisation has stood out compared to their competitors. This has
allowed Apple to gain a good brand image that their audience understands that the business is
looking after the environment therefore, it has driven sales due to the fact, plays a significant role in
influencing consumer choice therefore, drives Apple sales as more people are buying Apple products
and along with this, motivates their staff due to, they understand the business is having a positive
impact on the environment in which, influences staff members.
Apple has developed a PET recycling program in which uses waste film liner material, used to protect
iPhones. Reusing the liner allows Apple to eliminate 200 tonnes of solid waste each year. Apples
energy efficiency programme which trains suppliers to find opportunities that slashes their energy
usage and carbon emission. Increasing the amount of recycling and decreasing the amount of carbon
emission allows Apple to have a control of pollution rate to be low.
LEGAL ENVIRONMENT:
PRIVACY REGULATIONS- Governments are realizing the privacy issues connected to technology
therefore, as a result, it creates a threat towards Apple as it creates a challenge in developing their
products that involve transmission of private information. Governments are also imposing a stricter
telecommunication regulation, which is a threat to Apple as it can potentially limit the usability of
their products such as, the iPhone will need to have a strong privacy setting.
LEGAL CHALLENGES AGAINST POLICIES AND PRACTICES- Apple faces legal challenges related to its
practices and policies on after sale service and other areas of the business. For example, in Australia,
the European Union, and the United States, the company has faced strong criticism and legal battles
regarding its policies on third-party repair services.
Labour- Apple has been discovered multiple cases of child labour in its supply chain and along with
they also were discovered cases of juveniles being used to lift heavy goods, workers having their
wages docked as a punishment and one factor dumping waste oil in the toilets.
LAWSUIT- A French organisation has finned Apple 25 million euros (£21m, $27m) for deliberately
slowing down older iPhone models to push customers to buy its new devices. The French antitrust
authorities also ordered it to pay a fine of 1.1billion euro for anti-competitive behaviour. These
examples demonstrate the consequence of not abiding by the rules and regulation.
Partnership legislation- Sets out that all partners share the responsibility for the business and for the
decisions which affect the business. This allows all partners within Apple to share all responsibility
such as decision making in which each partner has the right to equally contribute to matters that
affect the day-today running of the business. This can affect Apple due to the fact; it gives more

information and ideas of how the business should be run and they are all responsible to the idea if
anything happens.
Competition legislation- Apple need to comply with in relation to how they compete in the market.
The legislation positively impacts a business as it maintains competition allowing Apple to improve
and develop in order to remain a strong competitor in market. The anti-competitive conduct ensures
that aims to reduce competition therefore, can affect Apple such as: it allows to reduce competition
in which allows Apple to grow and expand as a company more easily therefore, gaining more
recognition from consumers and allows them to generate sales and to gain profit.
Industry regulators- To keep a close eye on industry prices and products to ensure they don’t take
advantages of consumers. This can affect Apple as being an advanced technology business they have
to make sure their price their selling the product is suitable to their audience and if not, these
consumers can easily change and enter a rival’s firm in which offers a more suitable price therefore,
increase competition and loss of sales or the business can be heavily finned.
Government departments- Taxes can affect Apple such as: it has an impact on how much profit
Apple makes, the business location can affect Apple too due to, local level can influence the business
growth such as Apple stores on London therefore, they would have to pay a lot more compared to a
location with little popularity. Apple is required to pay taxes for unemployment and these tax rates
can influence whether Apple chooses to hire workers or not to.
INTERNAL ENVIRONMENT
Corporate Culture:
Apples structure has encouraged rapid innovation and technological advancement which had been
used and adopted by a hierarchy that favoured a flat structure, and these are the reason why they
opted for it;
- Largest tech organisation in the world Apple needs quick and easy ways to communicate
between employees as there are fewer layers.
- Removes excess layers of management allowing the industry to save money, controlling
budget cost.
- Encourages quicker decision-making calls.
- New products and services reach customers faster.
- Creativity of employees are encouraged as they work independently and pursue their
passion.
Apple has been known for a high-level understanding of technology in which they have
fantastically developed in which they have changed the world of how it was viewed. Apple
has been mainly known for its intense focus on performance and productivity. Steve Jobs
believed in maintaining a very high level of professionality in which he was known for his
relentless pursuit of perfection, he was continually interested in hiring the best, paying them
well, retaining them and to have the best and smartest minds in his organisation. Ever since
Tim Crook took in control (replacement of Steve Jobs) his focus in terms is more on creating
a satisfaction for employees. Now Apple has a fast-moving, innovative, cutting edge and a
confident culture with a growing focus on employees’ personal satisfaction.

Apple has specific branches for employees to focus in and for them to imply their knowledge and
information which allowed the industry to work at their optimal best. Some of the branches of Apple
are;
- HR department, Apple wants to hire a diverse, independent and talented people in which
they look at what background skills they have and place them in the correct sector etc sale.
- Sales, the department is responsible for generating revenue and is tasked to ensure the
product is going to be sold and to create a profit.
- Accounting and sales, they are responsible to have records of Apples transaction of how
money is being spent and being entered into the organisation.
- IT, they are responsible for providing the infrastructure for automation, the use of network
and operating systems for Apple
Corporate social responsibility:
Apple has various policies, which provide guidelines and of a working CSR. For instance, Apples plans
entails funding of various programs in the community and promoting the condition of the
environment. CSR has various programs that includes supports for local communities. Apple adopted
the Global Volunteer Program, which has seen over $78 billion donated since its launch. The support
allowed local communities creating a reputable brand image alongside, provided helpful in the
maintain employee happiness knowing that Apple has given back to the society in which helped their
own company to evolve and expanded to become one of the wealthiest business in the world
Training and developing workers, Apple puts a lot of emphasis on development on training for their
employees. Reason why is due to the fact, the company operates in a relatively competitive
technological industry, which requires expertise and professionalism in the handling of customers. In
a year, Apple have trained around 280,000 workers in over the fifteen factories across the world.
Apple empowers their workers in a bid to improve their satisfaction. The employees in return ensure
that customers are well handed, which promotes brand reputation.
Waste reduction and recycling. The company adopted various techniques and projects to reduce the
amount of pollution, Apple adopted a robot that uses the minimal time to remove component of a
phone for recycling. This has been taken a good move as it ensures Apple do not end up polluting
the environment.
Apples health and safety is their number one responsibility. The organisation is permitted to look
after their employees’ health by providing them with certain training in order for them to be safe.
Official statement is “Apple is committed to protect the environment, health and safety of our
employees, customer and the global communities where we operate. We recognize that by
integrating sound environment, health and safety management practices”.
Apple ethics however, have been noted as being unethical in the past and recently the organisation
has been accused of overpowering employees’ long hours and having dangerous working conditions
in its suppliers in China (totally ironic and against their health and safety laws). The first reactions
were voiced in the media in which Apples iPods were being created. It was affirmed that the Apple
workers were gaining as minor as $50 per month, as they were working 15 hours per day!
COMPETITIVE ENVIRONMENT