Impact of Business Environment on Organizations

This assignment examines the profound influence of the business environment on organizational effectiveness. It delves into various aspects like economic conditions, technological advancements, legal regulations, and social trends, analyzing how these factors impact organizational culture, leadership behaviors, employee engagement, and ultimately, business success. The analysis draws upon relevant academic literature and real-world examples to illustrate the intricate relationship between the business environment and organizational performance.

OPERATION
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1)......................................................................................................................................................1
Covered in ppt.......................................................................................................................1
2)......................................................................................................................................................1
a) Importance of operation management................................................................................1
b) Apple use of lean production.............................................................................................2
c) Role play by leader and manger in operational management............................................2
3)......................................................................................................................................................4
Covered in ppt.......................................................................................................................4
TASK 2............................................................................................................................................5
A Stakeholder framework and McKinsey framework which affect decision of manager and
leader in the Apple company..................................................................................................5
Stakeholder framework....................................................................................................................5
McKinsey’s 7 frameworks...............................................................................................................8
B External and internal environment factors which can affect the Apple company............10
TASK 3..........................................................................................................................................13
Key approaches to operation management and role of leader and manger..........................13
Importance and values of operational management.............................................................15
Factors impacting operation management and decision making..........................................16
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Operation management helps in maximizing the profit of firm by bringing its efficiency
to the highest level. Its focus lies on converting the labour and resources into goods and services.
It manages the resources of company so that proper utilization of it can be done (Nir and et.al,
2016). It assists firm by producing effective product and by providing effective services to their
customers so that they can be satisfied. Its concerned with managing the production management
of firm. Production process convert the input into output. Operation management has three main
roles that is producing a product, manage quality of product and provide great service.
Operation management include day to day production of good and services and strategies
regarding this product. In current report Apple Inc. has been taken into consideration. It's an
American private Ltd. Company. Its operating in more than 22 countries all over the world,
managing more than 400 retail stores. The firm design and develop software and consumer
electronics. It also provides online services to their customer. In this study importance of
operation management will be discussed along with important role played by manager and leader
in the firm. Theories like Kaizen and JIT are analysed. Importance of stakeholder and effect of
internal and external environment will also be mentioned. It will also throw light on subjects like
key approaches of Operational management.
TASK 1
1)
Covered in ppt
2)
a) Importance of operation management
Operation management is an important part of firm. In current time it has become as
important as any other function. It helps in bringing efficiency in firm by reducing the waste in
firm without sacrificing the quality of product. It plays important role in organisation few are
mentioned below
Enhance the productivity:
Efficiency and effectiveness are key to enhance the productivity of any firm. Operation
management of firm revolve around this two words. It helps in bringing the effectiveness in
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organisation by managing different operation and ensuring that whole process works right. An
operation or process requires great amount of resources. It's the job of operation management to
see that all the resources require for the development of product are provided at right time in
right way (Plagányi and et.al, 2014). It also manages time and cost invested in product. It not
great idea or innovation that provide company with competitive advantage. The secret of success
lies in the root process.
A total quality approach:
It acts as complementary or supplement department to all other activities of firm. Every
department have their own roles and responsibility. Research department focuses on product that
can meet the need of customer. Finance department is concerned with cost while human resource
department focus on skills of employee. Operation management work to integrate all this
function. It makes the product according the specification, under the defined budget and using
the skilled labour. This help marketing people in targeting the desired market.
b) Apple use of lean production
Apple has used lean production in their firm but unlike other firm it has used this theory
in other way. It eliminates the waste in the way service user use their product. For e.g. using
volume button only for the adjustment was waste to them so it included other features in this
such as selecting menu, taking pictures etc. because of this the cited firm was able to produce a
phone with just five buttons.
Other such example of is the Apple store open by firm. It has eliminated unnecessary steps such
as handing of credit card, printing of receipt etc. The CEO of company did not believe in extra
steps and work to eliminate it. The plan was truly successful and after opening of its first store
more than 5000 people visited the store which add to the value of firm.
c) Role play by leader and manger in operational management
Manager: Manager is responsible for efficiency and continuous growth in firm. It sees to
it that products, system, operation and process are all working smoothly. It leads the team and is
responsible for the budgetary responsibility of production. Lean manger works with senior team
management to come up with different business transformation strategies and policy for
continuous growth while keeping in mind the organisational structure, culture, commercial
approach and people (Sharifi and et.al, 2016).
The main role played by manager are mentioned below:
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Strategy development
It contributes in the new business initiative taken by firm by reviewing and introducing the
impact of lean activities.
Implement different strategies, vision, policy, process etc.
General task manager
Produce strategy with the help of senior team management and key stakeholder.
Support culture change in firm while driving people toward business improvement.
Provide expertise and professional advice and guidance.
Provide documentation of best practices publishing and development of business environment.
Undertake continuous training program for development of workers.
Financial and budget control
Produce the budget for all the operational activity of firm.
Prepare annual budget of company and forecast the cost spend on the various activity of firm.
Leader: Leader are responsible to provide guidance and direction to the employee of
firm. It set new vision for its subordinate and encourage and motivate them so that they can
achieve their goals and objectives. Their main goal is direct the effort of team so that they can
achieve the goal set by management. They monitor and asses the performance of its subordinate
so that their skills can be improved (Chanda and et.al, 2016).
Motivator
Leader encourage employee by boosting there confidence they provide them vision and
correct direction so that they can move in right direction.
Interpersonal role
It works as mediator between the organisation and firm. It makes sure that all the
important information and changes are understood by employee and in return make sure that firm
listen and respond to the complains of employee.
Informational role
They work as spoke person. It monitors different internal and external events and pass
information to its team.
Decisional role
It has make important decision regarding the allotment people equipment and money. It
also maintains schedule of trainings and programming work.
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3)
Covered in ppt
4

TASK 2
A Stakeholder framework and McKinsey framework which affect decision of manager and
leader in the Apple company
Stakeholder framework
Stakeholder is that person who is directly and indirectly connected with business unit and
they can influence with each and every business decisions. While company takes any decision
then it is great responsibility of the company to take the consideration of stakeholder. It is
another responsibility of company to keep satisfies their stakeholder so as they can survive its
business activities in an effective manner and attain its determined objective within decided
period of time. In every business enterprise, there have great role of the stakeholder and whose
participation in the business is very important (aur and Haase, 2015). There are various
stakeholders such as manager, employees, customers, investors, suppliers, government etc. These
all are affected by the company decision so firm should always take their consideration in the
business decision making an keep satisfy them by fulfil their rights and requirements.
As per the discussion it has been analysed that operation management is very significant
aspect in the business enterprise by which company can easily attain its determined objective and
gain effective profitability. With assistance of effective operation management, company can
produce the high quality of product and services. In addition to this, with help of effective
management and operation in the company, firm can earn effective market share and profitability
(Bonanni and Cafazzo, 2014). Apply is one of the most popular leading technical company
which produce the high quality of telecommunication product in the market. While its manager
takes any decision of the business then leader and manager have to focused on the several
players who is directly and indirectly connected with company. Apply have various stakeholder
such as employees, government, customer, suppliers, investors employees etc. Thus while its
leader and manager takes any business decision then it is huge responsibility of company to
consider all of these stakeholder participation in the business and consider their views and
opinions in the business decision making. These stakeholders of the Apple company are as
follows-
 Customers- Customer is one of the most significant stakeholder of the business enterprise
who requires an effective product and services from the organisation. They are directly
and indirectly connected with the company and they also influence by any decision which
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is taken by management in respect of product and services. They mostly required a high
quality of goods and services from the company in a reasonable prices (Chiaburu, Diaz
and Pitts, 2011). It is huge responsibility of organisation to deliver right quality and
quantity of product and services to the customers and satisfy their all needs and wants
related to the commodity. Apple’s manager and leader have to consider this stakeholder
which they takes any business decision because customer always affected by changing
practices, policies, business activities, function etc. By delivers an effective and high
quality of product and services, apple can satisfy their needs and wants of the commodity.
In addition to this, by considering their requirement in the product and services, company
can keep satisfy them. Manager and leader should always consider their aspect while they
take any business decision.
 Employees- Employees are another major important stakeholder who required effective
working environment, salary pay off, incentive, flexible working policies, practices,
promotion, increment, fringe benefits etc. While management deliver all of mentioned
consideration to the human resource then employees can satisfy. While manager and
leader takes any business decision of the organisation then it is great responsibility to take
the participation of the employees in the business decision making (Dextras-Gauthier,
Marchand and Haines 2012). Employees can largely affected by the changing business
decision, policies and practices. In addition to this, while manager and leader takes any
business decision then they have to consider employees participation. It is great
responsibility of the organisation to keep employees satisfy and deliver all relevant
arrangement and condition related to working environment, health and safety, salary
package etc. In addition to this, employees always wanted to know the actual financial
condition and status of the organisation so company should always disclose the business
financial condition in front of them. While manager and leader takes the participation of
employees in the business decision making then their motivation level can also improve
as they can feel valuable and important for the company. By taking their participation in
the business decision, company can acknowledge their issue, conflicts opinion, views and
suggestion about the business decisions.
 Government- Government is another one of the important factor which can influence the
decision of manager and leader in the Apple Company. While company takes any
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decision about the business activities and function then it have to follow all rules,
regulation, legislation, policies, taxation norms etc which support to the organisation. If
company does not follow the imposed law and regulation which is imposed by the
government then there are some penalty decided by the government. Every activities of
business can influence by the government imposed regulation, legislation, norms, code of
conduct and policies (Farndale, 2014). Manager and leader of the Apple company must
takes the consideration of government and apply all of the imposed code of conduct,
legislation and policies in its business activities and decisions. It is great responsibility of
corporation to maintain effective relationship with government by follow all their
legislation, regulation, policies, practices etc. By follow all regulation and policies,
company can maintain healthy relationship with government and satisfy them in an
effective manner. In addition to this government also wants from the company that it
should pay the regular taxation according to their financial condition and disclose all fair
data and information about the business. While company effectively disclose all
information related to financial and profitability then government can effectively satisfy
from the company. Thus, it can be said that corporation should take the active
participation of government in the business decision making by following all their
legislation and regulation and also it should disclose its fair condition of profitability and
finance. It should pay the fair tax on the time to time.
 Investor- Investor is another one of the major stakeholder in the business enterprise
which have directly and indirectly connected and influenced with business decision
making. While leader and managers of the Apply Company takes any business decision
then investor also affected. Investors are those person who is investing their money in the
company in order to get effective return. It is great responsibility of the company to
disclose all financial condition of business to the investor and communicate the right
information to them on time to time. While company does not share the fair information
of business and finance then it may negatively affect the trust and loyalty of the investors.
While leader and managers takes any decision of the business then it is very important to
consider the interest of investor toward the business. Company should disclose all data
and information of business in front of the investors. In addition to this, company should
maintain an healthy and effective relationship with investors because they plays a very
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crucial role in the business enterprise. With help of their investment, firm can earn the
profitability and market share. While manager and leader takes any decision of business
then investor can directly and indirectly influence from the business decision. Thus,
leader and manager should always consider their participation in the business decision
making through which they can maintain healthy relationship with them and also keep
satisfy them.
 Suppliers- Suppliers are another one of the most effective and significant stakeholder of
the business enterprise. They are those persons who supply the raw material, finished
goods, semi finished good to the company. While leader and managers of the company
take the business decision then they have to take their activity participation in the
business decision making process. In addition to this supplier is directly and indirectly
connected with the company as company change the decision of business then supplier
can also influence in an effective manner. It have great responsibility of the organisation
to keep satisfy the suppliers by deliver right information about the financial condition of
business and pay their payment on the time. Suppliers major wants the effective and high
order of the product and services and get their payment on the time. If company does not
pay their payment on the time and does not do effective order then suppliers may
dissatisfy with company. While supplier are not satisfied with company then it can
negatively influence the performance of business enterprise. It is great responsibility of
leader and manager to take the consideration of supplier while they take any business
decisions.
McKinsey’s 7 frameworks
The major objective of this framework of McKinsey is to ensure that all part of the company
work in harmony. This model is useful for various situation in the company like for improve the
performance of business, determine how best to implement a proposed strategy, examine the
likely effects of future changes within a company etc. It can apply in the elements of the team
and project as well (Lynch and et.al., 2012). In this model, major seven factors and elements ae
included which is categorised as either hard and soft elements. In the hard elements includes the
strategy, structure and systems. On the other hand in the soft elements included shared values,
skills, styles and staff. In the context of hard element are easier to defines or identify and
management can directly influence them. These are strategy statements that are organisation
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charts, reporting lines and formal processes and IT systems. On the other hand in the context of
soft elements which help in become the organisation successful. With help of these model, leader
and manager can easily understand the situation of the organisation and develop such path
through which it can get success. The elements of this model can affect the decision of leader
and managers. In this McKinsey framework, major strategy, structure, system, shared value,
staff, skill and style are included. While leader and managers of the Apple company takes the
decision of business then these element of the McKinsey model can influence their decision.
Following are systematic analysis of these elements which affect the decision of the leader and
manager in the Apple company-
 Strategy- It is one of the most important elements of the McKinsey model which affect
the company decision. While company develop some policies and practices then it have
to design some specific strategy (Harrison, 2013). It is that element which helps in
developing competitive advantage of the corporation. Business strategy can always
affected the decision of manager and leader of the company. While they are planning to
change something within the business then they have to develop some strategy which
should favourable for the company future and success.
 Structure- It is the way the organisation is structured and who reports to whom. While
company takes any decision about the business activities and function then it is huge
element which affect the performance of the business unit. Leader and manager have to
take the consideration of structure while they take the decision. According to the structure
of company, very business decision can take by the management (Dickinson, Gentry and
Burns, 2014). It is a platform by which company can get an effective success and
objective. With help of excellent structure of company, firm can make its high outcome.
 Systems- System is the daily activities and procedure of the company that staff members
engage in to get the job done. While manager and leader of the company takes any
decision of the business unit then system of the organisation can affect it into the large
manner. With help of effective system of the business enterprise, management can attain
its huge success and determined objective.
 Shared value- It is another one of the major element in the business model which helps
to the company in developing impressive outcome of the business unit. While leader and
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manager of the Apple company takes the decision of business then shared value can
hugely influence.
 Style- Style is another major element of the mentioned framework which can affect the
business activities and functions. While manager and leader of the Apple takes the
business decision of the company then style of the business should be considered by
them. In additional to this, While business style is effective then company can improve its
existing performance.
 Staff- Staff means the human resource of company and their general capability. While
leader and managers of the organisation take the decision of business then company staff
member and their capability is hugely influenced their decision because no activities and
function of the business unit can take place in the absence of human resources.
 Skill- Skills is another one of the significant element in the business enterprise which
help to the company in addressing its right object at the right time. With help of excellent
skill, company can easily address its right outcome. It is actual skills and competencies of
the human resource working in the organisation.
B External and internal environment factors which can affect the Apple company
In order to survive in the competitive business environment, business enterprise have to
analyse various component of the business environment which is directly and indirectly
affect its business activities and functions (Chavis, Klapper and Love, 2011). While business
enter into the market or carry out its business function in the competitive business
environment then there are various kinds of components which affect the business activities
and success. Business environment is consist with several components such as political, legal
, social, environmental, cultural factors. These all factors can largely affect the business
functions and operation. Following are some major external environmental components
which can influence to the Apple company and its various business decisions-
Political factor- This is one of the major component which can influence the business
activities and function of the Apple company. In this factor include the governmental rules,
regulation, code of conduct, legislation etc. While any organisation enters in the market then
political factor can largely influence the business activities because every company have to
follow the rules and regulation of the government related to the activities and functions. In
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addition to this, taxation policies of the government have also followed by the Apple
Company.
Social and cultural factor- Social and cultural factor is another component which can
influence to the apple business activities and functions. While Apple Company delivers its
new product and services in the market then it have to consider the social values and culture
of the people (Budhwar and Debrah, 2013). In this component includes the customer taste,
preferences, culture, social values etc. While company launch new product and services then
company have to focus on the taste, preferences, occupation, education etc of the customer.
In order to met the actual demand of the customer, company must have to consider this factor
of the business environment.
Economical factor- Economic factor is another one of the major factor which is related to
the economic condition of the country. In this factor includes inflation, recession, interest
rate, pricing policies etc. While company enter into the market and launch the new product
and services then economic condition of the country should always consider by the
organisation (Botha, Kouri and Snyman, 2014). According to the economic condition of
country like inflation, recession, interest rate etc firm have to set its pricing strategy of the
product and services. Company always set its pricing strategy according to the economic
factor of the country so it can be said that economic component can largely affect the
organisation’s business activities and functions.
Environmental- Environmental factor is another one of the significant factor which can
influence the decision of the business unit. Each activities of the company can influence by
environmental factor. In this component includes environmental condition like weather,
climate, natural resources such as fuel, water , air etc. According to the changing condition of
environment, company’s activities can also influence.
Technological factor- Apple is a technical company which delivers the telecommunication
services to its customer in the market. In the present time, there is huge change and
development occurs in the technological environment due to which various effects can occurs
in the business activities and functions (Biggs and Kelly 2006). This is one of the most
crucial factor which can affect the business activities and function of the Apple company. In
every department of the company have connected with technology like human resource,
administration, operation, production marketing etc. These all department have huge
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requirement of the technology. In absence of the technology these department cannot proceed
its activities and function. Due to the regular changing technology, corporation’s activities
can largely affected like production, manufacturing, distribution and marketing. Thus it can
be said that by technological component of business environment, cited venture can largely
affected.
Legal factor- This is another one o the major factor of the business environment which can
influence to the business activities and function. In this factor includes the legislation, norms
and system which is imposed by the government in favour of the business, employees,
customer and society (Ahmad and et.al., 2010). There are some legislation which is related to
the customer, employees and business which have to follow by the organisation in order to
protect its all stakeholder. For instance, apple has to follow employees and customer right for
protecting its customer and employees from the illegal and unethical thing.
As per the above discussion it has been analysed that there are various kinds of the
external business environmental factor which can influence to the company in large manner.
In addition to this , there are various internal environmental factor which can also influence
to the company in large manner. The major difference between the internal and external
business environment is that internal environment factor controllable which can control by
the business unit. On the other hand external business environment is uncontrollable factor
which cannot control by the company. Following are some internal factor of the business
environment which can influence the business activities and functions-
Customer- Apple’s manager and leader have to consider this stakeholder which they
takes any business decision because customer always affected by changing practices,
policies, business activities, function etc. By delivers an effective and high quality of product
and services, apple can satisfy their needs and wants of the commodity.
Employees- Employees can largely affected by the changing business decision, policies
and practices. In addition to this, while manager and leader takes any business decision then
they have to consider employees participation. It is great responsibility of the organisation to
keep employees satisfy and deliver all relevant arrangement and condition related to
working environment, health and safety, salary package etc.
Suppliers- While leader and managers of the company take the business decision then
they have to take their activity participation in the business decision making process. In
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addition to this supplier is directly and indirectly connected with the company as company
change the decision of business then supplier can also influence in an effective manner.
TASK 3
Key approaches to operation management and role of leader and manger
Operation management can be defined as that management which make sure that there is
proper control and process are included in the production of process. It works to bring efficiency
in organisation.
Apple requires keeping continuous eye on their operation management so that they can
identify the area where it lacks and can take right measure to overcome different problem its
facing. To maintain the quality of product its necessary that Apple Inc. have proper review of
their process. This will help them in gaining competitive advantage in market. It will also reduce
the operational cost of firm which they can use for other activity. It also enhances the overall
revenue of firm. Key approaches of operational management are used to review this activities
few of which are mentioned below (Cotton and et.al, 2016).
Six sigma approach
Its help in identifying the drawback in current strategy or the way in which firm works. It
also helps in coming up with good strategy through which this lacking point can be covered. Six
sigma is widely accepted approach because its analysis are based on proper statistics. Quality
management is part of this process. From time to time quality management approach is used by
firm in order to measure the quality of its product and take appropriate measures to improve it.
Regular management of quality help entity in gaining the favour of client which increase their
satisfaction. It also helps in reducing waste and increasing the overall profitability of business.
Six sigma had produce two methods that is DMAIV and DMADV through which the business
operation of corporation can run smoothly and effectively (six sigma, 2017).
DMAIV uses checklist to identify the drawbacks in the current process of firm and
suggest appropriate measure require for overcoming it. It also helps in understanding the need of
customers through which company can enhance their product. Relevant data produce by this
strategy help manager to come up with a strategy that can cover the weak point where business
lacks. Other than total quality management, quality control, zero defects etc. can also be used by
the cited firm.
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Illust
ration 1: Six sigma approach
(source: six sigma, 2017.)
Dynamic approach
In this dynamic market its crucial of organisation to make continuous effort in the
improvement of different operation so that they can maintain their stability in market. Apple Inc.
has always remained up to date with time and changing trend. The cited firm has adapted
dynamic approach in their way of working. This approach focuses on four major elements;
learning, knowledge, contingencies and resolution of problems. Apple focuses on this four
element to bring effectiveness in their working and efficiency in their performance. It focuses on
increasing the knowledge of technology enhance improvement rate and people easily adapt to
new change (Scaria, 2016).
Leaders role in operational management
Leader plays significant role in operational management. It acts as motivator and provide
vision to its subordinate. It encourages their peers by words and guide them by providing
creative and innovative idea which help them in moving right direction. This motivation and
guidance help them in completing their task in right time with great efficiency. Leader monitor
and assess their team worker and coordinate with them so that they can all work in harmonious
way. Leader try to find strength and weakness of each member so that he can encourage them in
such a way so that they can enhance their performance and work better contributing to the
success of firm. Leader of Apple set vision and time limit for their employee so that they can
work efficiently even under the pressure. They covert a simple plan into strategic planning so
that the main objectives of organisation could be achieved.
Manager role in operational management
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Employees are important assets to organisation and in Apple Inc. it's the job of manager
to see that these people remain satisfy with the working of firm. Satisfied workforce perform
better which play major role in bringing the efficiency in overall performance of firm. Manger
act as a monitor. It monitors different activity of firm and organise different activities through
which the performance of an individual can be improved (Stewart and Shamdasani, 2014).
Operation manager see to it the product produce by firm not only meet the need of client but also
satisfy them. It also ensures that thorough out the process the quality of product do not get
sacrifice and service user can have good experience.
Importance and values of operational management.
The main aim of Apple is to expand their business and enhance the profitability of firm.
Other than this company wants to introduce new products and innovative idea in market so that
they can increase their customer base and provide them with the best service possible. The
growth or success of any firm depends upon the way they manage their activities and different
operations. Its important to look after the operation management of firm as it helps in carrying
out important operation within the firm, without it firm will not be able to achieve its objectives
easily. In case firm is not paying attention to its operational activity will affect the firm
adversely. It will increase the waste and overall production cost of firm to such a extent that it
will start affecting the revenue and profitability of firm.
Its responsible for the delegation of role and responsibilities among employee. It ensures
that each staff get a task on the basis of its skill, knowledge and competency in the way it
finishes a task. Proper distribution of roles help worker in performing better and provide good
result which can contribute in the success of corporate. To make sure that no confusion is created
at the time of production it pays special attention on the structure of the operation and on the
designing of production process. This also help them in providing better services to customer. It
works to create healthy working environment which promote ethical values and create positive
environment for staff to work (Wu and et.al, 2017).
It helps in reducing the operational cost of firm and use that money in other activities so
that it can improve their performance. It helps in proper management of resources so that it can
be utilize to its maximum potential. Operational management is design in such a way through
which proper management of resources can be done by reducing the operational cost of firm.
Reducing operational cost in all activities and using resources in correct form will help firm in
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enhancing their revenue. Apple Inc. will be able to achieve its goal and objectives. It also help in
producing valuable service to customers.
Operation management is responsible for TQM (Total quality management) in firm.
TQM help firm in achieving its long term goals which add to the success of firm and also aid in
satisfying the need of customer. There are many parts of organisation which is required to work
obtain the desire goal of firm. TQM make sure that activity in all this place are well maintained
and only the best quality product is moving upward. Through this the weak point of firm could
be find and appropriate measures can be taken to overcome this problem.
Factors impacting operation management and decision making
With the abundant use of technology the software market are becoming more and more
competitive. There are many new companies that are emerging with great success in the
technology industry. Apple is facing lot of competition. To survive in this environment its vital
that company looks at different internal and external factor that can affect the operation and
decision making process of entity.
Internal factors
There are many internal factors that affects the functioning of operation this factors
emerge within the firm and affect the production and working of firm.
Value system: Every firm has its own set of rules and regulation that each and every employee of
the firm need to follow. Operation management get significantly impacted by this system. Firm
faces many problems when workers disregard this system, rules and regulation. If not follow
properly it creates confusion among people which not only affects the performance but also the
productivity and profitability of firm (Antony, 2014).
Financial strength: Economic operation have major impact on the various operation of firm. If
apple doesn't have enough fund to support their activity it will affect the quality of their product
and also the performance of business entity.
Relationship between employees and employers: Employee relation play major role in the
performance of entity. Firm with good relationship are able to carry out different activities
smoothly. If there is weak bond between this two than they will not be able to communicate
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properly which lead to misunderstanding and confusion that affects the overall performance of
firm.
External Factors
Ethical: Customer preference keep changing with time. Its necessary for firm to have proper
research before so that their products can meet the need of customers .
CSR: There are many activities which undergoes within the firm which require proper planning
and implementation. If CSR is not done effectively than it create negative image on the brand
name of firm. It also impacts the performance of firm (Nir and et.al, 2016).
Sustainability: To sustain in market its necessary for firm to come with such strategies that make
them different from other firm producing same products. For attracting customer firm uses
different strategies which provide them better visibility and also help in attracting a lot of
customers.
Role of leader and manger
Leaders and manager play important role in bringing the efficiency in Apple Inc. They
both are responsible for the working of human resource of company and contributing in the goals
of cited firm. They support and motivate the workforce of firm by providing them with reward
and recognition. This boost the confidence of employee and they perform better. This also help
in retaining valuable employee to firm. Motivate employee perform better and increase the
efficiency of the operation to a great extent (Chanda and et.al, 2016).
This both work in smoother working of firm. Leaders innovative idea and manager time
management strategy help Apple in achieving its desire goals. This both tactics help firm in
reducing their production cost without compromising with the quality of product. Well
communication between manager and leader help in identifying the need of employees and
necessary steps are taken to fulfil their demand which help in satisfying the employees.
PEST analyse to determine the factors affecting business environment
Pest analysis are done to measure the impact of political, economical, social and technological
factor have on the business activity of apple.
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Political: Apple is one of the leading brand of technology in AMERICA but inequality in
income has become major issue which impact the working of firm. The entity is highly
dependant on lower cost manufacturing in china, any disrupt in its political condition have direct
impact on the working of firm. In addition to it firm can also become the target of anti-
Americanism in china.
Economic: Increased in labour cost will directly increase the production cost of firm. The
potential market of firm in danger in developing countries because stagnating middle class
income. Strong US dollar can also lead to increase in exchange rate.
Social: In coming year Africa is predicted to be people with high spending rates but people in
this area are still unaware of Apple. There is no attachment of people towards the product which
affects the sales. Apple manufacturing in china affects its appeal among people who are socially
conscious (Stewart and Shamdasani, 2014).
Technology: With increase in technology apple uniqueness is decreasing companies like google
and Samsung are producing similar product at much lower price with great quality. Apple lack in
variation for e.g. Apple TV have limited market and offering. Growing use of smartphone and
tablets are affecting the popularity and sales of Apple products. Its essential that cited firm keep
this all factors in mind and come up with different strategy that can help them in sustaining in
market.
Operational management is quite useful in bringing the efficiency in firm approaches like
six sigma and time quality management help in continuous growth of firm. External factors such
as political and economical have major impact on the Apple. Its crucial for firm to modify its
operation so that they can work efficiently in changing environment.
Operational management is helpful to Apple in following way.
 It helps in identifying needs of customer so that their product can satisfy them.
 It aids in developing strategies for future. Through which they can tackle different
problem and can find stability in market.
 Human resource are important part and operation management help in correct allocation
of this resource for maximum profit (Antony and et.al, 2016)
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CONCLUSION
From above report it can be concluded that operation management play major role in
bringing the efficiency in the working of firm. It helps in reduction of waste and extra cost
production which add to the revenue of firm. It assists in allocation of employees which enhance
their efficiency and productivity of firm.
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