Small Business Management and Entrepreneurship

Running head: SMALL BUSINESS MANAGEMENT AND ENTREPRENEURSHIP
Small Business Management and Entrepreneurship
Name of the Student
Name of the University
Author Note

1SMALL BUSINESS MANAGEMENT AND ENTREPRENEURSHIP
The increasing level of the business competition is one of the crucial factor
responsible for influencing the business organizations in incorporating the innovative
solutions in the products and the services that they offer to their customers. The application of
the modern technology and innovation in the products of the organization enables the
organizations in achieving the preferences of the customers and the requirements of the
customers in an efficient manner. The paper is focused in the elaboration of the Political,
Economic, Social, and Technological impact on the business operations of a chosen
organization, Apple and on their products such as I phone. Apart from this, the paper
conducts an environmental analysis with the application of the Porter’s five forces tool ad
depending on the findings of the above mentioned tools, a 6 step strategic planning is
introduced in the paper.
PEST Analysis:
Political:
The company is significantly dependent on China for their manufacturing as the
nation offers the scope of low cost manufacturing. The company is significantly affected with
the urge of the United States government in reducing the Chinese import for promoting
American manufacturing (Pokharel, et al., 2015). Hence it will be a major menace for the
selected organization in finding the alternatives that suits the costing of China. The
diplomatic position and the political relationship between the nations such as China, US and
Japan is considered to be a major concern for the selected organization.
Economic:
The increasing labour and employment charges in China has the potential of reducing
the cost advantage that the chosen organization experiences in introducing the products such
as I-phone. Apart from this, the increment in the strength of the US dollars has the potential

2SMALL BUSINESS MANAGEMENT AND ENTREPRENEURSHIP
of increasing the exchange rates and that can lead the organization to such a state where the
organization will be forced to increase he prices of the products such as I-phone in European
or Chinese market.
Social:
The company is expected to achieve the biggest market growth in consumer spending
in recent years in the African region as the familiarization of the people with the products of
the selected company, is notably increasing.
Adding to this, the increased ethical concerns that the selected company faced in
Chinese manufacturing is one of the major factor that is reducing the appeal of the products
to the socially concerned customers.
Technological:
The products and the services of the selected company lacks the incorporation of the
technology in making the products unique for the customers and that is pretty evident with
the fact that the organizations such as Google is able to introduce the duplicate of the Apple
pay within a significantly limited time (Google.com, 2019). Apart from this, the selected
organization is seen to use an operating system that notably limits the variety of the
applications available for the customers in their smartphone. Hence the incorporation of the
technological advancement is much needed in the improvement of the operating system.
Adding to this, the chosen organization is in need to improve the strength of their security in
order to protect their users from the threat of increasing cyber-crimes.
Porter’s Five Forces:
The selected organization is observed to face tough competition from the part of the
organizations such as HTC, Samsung, Sony and Nokia. The selected product of the company