Stakeholder Analysis: Apple's Business Environment Report (MGT501)

This report provides a comprehensive analysis of Apple's business environment, focusing on the identification and evaluation of both internal and external stakeholders. It begins with an executive summary and introduction, outlining Apple's position in the competitive technology market and its mission. The report identifies various functional areas within Apple, such as communication, engineering, finance, design, and marketing, detailing their roles and contributions to the company's strategic objectives. Furthermore, it meticulously identifies and categorizes internal stakeholders, including investors, the board of directors, managers, and employees, along with their respective roles and influence. External stakeholders like suppliers, customers, retailers, distributors, government, and competitors are also examined. The report then delves into the nature and degree of stakeholders' interests, highlighting potential conflicts and their implications. The level of influence of each stakeholder group is assessed, and a stakeholder matrix is presented to visualize their relationships. A comparison with another industry provides additional context. The report concludes with a summary of findings, emphasizing the importance of stakeholder management for Apple's success. References are included to support the analysis.

Running Head: APPLE 0
Business Enviroment

APPLE 1
Executive Summary
 In the dynamic and complex market situation, multiple stakeholders are surrounded to
the company having their operations in various markets and countries.
 It is necessary for Apple to identify the varied interest and level of influence of each
of the stakeholder.
 Apple is selected for this project and it is one of the best technology company known
for its product innovation and premium segmentation.
 This report outlines external and internal stakeholders having a significant impact on
the key decisions of the company.

APPLE 2
Table of Contents
Introduction and Background Information.................................................................................3
Identification of the functional areas of Apple..........................................................................3
Identification of internal and external stakeholders and their roles...........................................6
Identification of the nature and degree of main stakeholders’ interests, and implications of
Conflicting interests...................................................................................................................8
Identification of the level of main stakeholders’ influence......................................................10
Stakeholder matrix...................................................................................................................11
Comparison with another industry...........................................................................................12
Conclusion................................................................................................................................12
References................................................................................................................................13

APPLE 3
Introduction and Background Information
With an increase in mobile communication and computerized device being on
demand from individual level to business, Apple is doing great while competing in highly
competitive personal computer industry. The company is known for its constant innovation
and improved product design over year to year (Johnson et al, 2008). The company is having
presence in more than 25 countries worldwide. Steve Jobs, Steve Wozniak and Ronald
Wayne initiated the corporation back in 1976.
Apple mission is to pass the best personal computing experience to business,
professionals, customers and apprentices over the world with the help of its hardware,
innovative software and internet offerings. The company is serving from more than 40 years
and currently, they have 13000 plus employees making it one of the biggest tech company all
over the world. Apple has experienced year on year growth in relation to its revenue,
reporting annual revenue totalled $265 billion for the 2018 fiscal year (statista.com, 2019).
This makes Apple world most Valuable Corporation.
The company has 500 plus retail stores across 24 countries including 272 in the US
only and 234 elsewhere (macrumors.com, 2018). The list of top competitors of Apple
includes Dell, Huawei, Samsung, Microsoft, Google and Hewlett Packard.
Identification of the functional areas of Apple
Considering organisation structure, functional areas are key components of the
enterprise structure. The success of the enterprise objectives and business strategies grounded
in the corporate ability to formulate strategies as per various operational plans that can be
executed at the functional level of management (Maon, Lindgreen & Swaen, 2009). Usually,
functional areas can be seen in every strategic business unit to help the organisation in
achieving its particular purpose and objectives. Apple has various functional areas that assist
them to serve strategic business units across nations.

APPLE 4
Communication
This function has been obligate of informing all Apple stakeholders to promote
various initiatives together with the introduction of new products to the market and the
important priorities of the enterprise from time to time.
Engineering
Engineering function present in each business unit; the smartphone device to innovate
and build new products generally involved with facilities management, manufacturing and
packaging development (Hill, 2017).
Finance
This function worlds in align and coordination with other functional areas in the
enterprise to support market innovation, product innovation, organisation development and
achieving competitive edge.
Global Service
This function ensures that Apple employees gain necessary skills so that they can
positively world in any area of the world’s where the company has established its operations.
Design
This function is related with development of new products and software’s that meet
the user’s needs and nurture the business competitive edge (Hill, 2017). Many individuals
from different backgrounds formed and support this functional area.
The General Administration
With this function, it can be ensured that each and every activity is properly
synchronised with developing accessibility to resources and people, aligning schedules and
objectives while fully optimizing the corporate technologies.
Facilities
This functions check and assess the cost efficiency safety and quality of the working
environment all over the structural places. It includes various services like operations,
cleaning, catering, logistics and environmental safety.

APPLE 5
Human Resource
This functional area is diversified into acquisition of right talent, career development,
talent management, benefits and compensation so that to ensure that organisation has retained
the best HR resources in the respective industry.
Legal
Apple corporate transactions and legal affairs like mergers and acquisitions,
intellectual property law is managed by this functional area (Hill, 2017). In addition, it also
assists various other activities of the enterprise like marketing and promotion in fulfilling of
legal requirements of each nation of operations.
Public Affairs
This functional area has the role of developing relation of the enterprise with the
external stakeholders and characterises the organisation to network and public.
General Management
Considering each business unit, it is the strategic functional area that helps business
unit in the growth. It also fosters a clear goal and vision so that to help management in
framing significant strategies. It drives business units to produce beyond scale with sharing of
inspiring vision and attaining the essential resources in order to achieve it.
Information Technology
This function offers IT support to all the business units of Apple so that the enterprise
process can be undertaken smoothly and effectively.
Marketing and Sales
This functional area checks whether Apple products has reached its target market and
identify key activities comprising identification of markets, building plans related to growth
of market share.
Research and Development
This functional area helps in bringing timely innovation as per the change in market
trends and customer preferences. For instance, Apple's research and development spending
increased from $1 billion in 2009 to $13 billion in 2019.

APPLE 6
Regulatory Affairs
The major function of this area is to assess that Apple complies with all necessary
product associated regulations in the industry. This functional area directly develops contact
with government agencies and other regulatory while developing necessary goals and
objectives.
Quality Assurance
It ensures that the products developed by Apple attain the high-quality standards in
the personal computing and smartphone industry.
Operations and Procurement
It ensures a continuous flow of raw materials and finished products from suppliers to
the organisation and then to the ultimate users. This function helps the enterprise while
assisting their innovation projects and cost cutting in the whole supply chain of the enterprise.
Strategic Planning
This functional area is responsible for long term and short term strategic planning for
the business to achieve the mission of the organisation.
Identification of internal and external stakeholders and
their roles
Internal Stakeholders
The list of Apple most important stakeholders includes investors, board of directors,
managers and employees. Apple has 130000 plus employees globally and through its
innovation and personnel’s, Apple has been successfully dominated the technology industry
with its advanced and premium products (apple.com, 2018). In Apple, the employees also
differentiate with its unique culture of commitment and innovation. The company also ensure
that each personnel needs are duly fulfilled in relation with the hierarchy of needs theory.
In Apple, the managers are known to be as senior supervisor or employees that
control bigger activities in comparison with other ordinary employees. They can also

APPLE 7
influence corporate executives through their stand and responsible for directing and sharing
company vision to all other employees. They also act as link between whole organisation and
the board of directors and ensure that Apple mission and vision is attained.
Apple is a public entity and thus various investors who are interested invest fund in
the corporation as represented by the board of directors (Cummings, 2012). These investors
offer the necessary equity to Apple that helps the company to diversify and develop its
product line and also do expansion in new countries. In addition, they also analyse the
various activities of enterprise to ensure that the value of their wealth is developing and
influence Apple competency to invest in new markets or function with certain stakeholders.
In relation with internal stakeholders, the boards of directors are also build an
important part of the organisation whose primary role is to build vision and mission of the
company and share it to the employees, divisions and various business units for the purpose
of realization (Katzenbach & Smith, 2015). They run the whole corporation and thus
represent the shareholder's interest to the senior management of the enterprise.
External Stakeholders
The main external stakeholders of Apple include suppliers, customers, retailers,
distributors, government and competitors. Apple operates various sourcing strategies for
different types of raw materials uses in production. Suppliers provide raw materials and
knowledge exploit in the process of production. Apple can improve its competitive edge in
the market by developing effective and long term relationship with the suppliers. The first
AAPL suppliers list consisted of 150 companies. Over the past few years, Apple has limited
the list to its top 200 suppliers (moneymorning.com, 2019).
Apple produced different kinds of products showing different needs to the customers.
The list of customers to the company includes tech users and other customers who use the
finished products of the organisation. This includes men and women, professionals, student
and the other general population. Apple now has 1.3 Billion Active Devices Worldwide and
so its associated customers (Gozalvez, 2017).
Apple distribution system depends upon its retailers and wholesalers. The company
also achieve its sale targets through these wholesalers and retailers. However, most of the
Apple products now can purchase easily through online network ad e-commerce sites. This

APPLE 8
returns Apple for better terms of supply and premium quality products help in raising
inventory turnover.
Apple other key stakeholders include competitors that influence the company strategic
decisions and competitive strategy and also directly influence Apple market share and
profitability. The list of top competitors of Apple includes Dell, Huawei, Samsung,
Microsoft, Google and Hewlett Packard.
In last, government is also considered as Apple external stakeholder who regulates
company operations in every country. In every nation, it is mandatory for Apple to comply
with various regulations frame by these government bodies in relation with marketing,
promotion, manufacturing and environment. The international expansion of Apple also raises
its exposure to certain government regulations on licensing and taxation (Mudambi, Navarra
& Delios, 2013).
Identification of the nature and degree of main
stakeholders’ interests, and implications of Conflicting
interests
Employees
Apple identifies its employees as one of its most significant asses and considering
Maslow hierarchy theory, the employee’s nature and interests are varied. Accordingly, every
individual staff depends on the enterprise to fulfil their certain level of needs. Matching
rewards with employees needs is recommended as by Vroom's expectancy theory so as to
raise productivity (Nimri, Bdair & Al Bitar, 2015). In the similar way, ensuring motivation
and job satisfaction among personnel increases productivity as per two-factor theory. Apple
may conflict with employees when it fails to deploy it strategies mainly in relation with
compensation and rewards, expressively influencing its competitiveness.
Managers
The investment decisions of the enterprise are influenced by managers as they choose
the markets and products the enterprise should exploit. Such decisions may create risk to
shareholders capital resulting in interest conflict between investors and managers. It is

APPLE 9
necessary for the board of directors to manage such conflicts amid shareholders and
managers
Shareholders
They contribute to the essential capital for the functioning of corporate. Shareholder
decision is influence by return on investment so that to invest in the business. Make
coordination between business development and investors interest is important to attract
necessary funds for the growth of business.
Customers
Apple customers are known to be as most influential external stakeholders and Apple
always aims to maximise their money value by offering high quality and safe products.
Various iPhone owners sue Apple over its apps under antitrust laws leading to several court
fines (Remneland-Wikhamn et al, 2011). It showed that customers drive the profitability of
Apple with demand for its product therefore very influential stakeholders. In the same way,
these customers also have various alternatives in relation with competitors in the industry
forcing corporation to pay close attention to their demands.
Government
The government expects firms in this industry to act responsibly by manufacturing of
safe products and revealing all necessary information about the product that has direct
influence over consumers. Government also ensures that employees are getting adequate
wages and working environment.
Competitors
Rivals in the technology industry aim at gaining every opportunity to guard and raise
their market stand. Hence, outpacing other companies in the industry in relation with
innovation and diversification in product line is highly preferred. For example, Apple partner
with Sunpower's China to provide solar power to the Environmentally-preserved ABA region
(Paskaleva, 2018).
Suppliers
Market competitiveness and profitability of Apple considered as its strategic
advantage to the supplier in the personal computing industry. For Apple, suppliers are also
critical to bring sustainable innovation and reducing the costs of the products. The interest of

APPLE 10
Supplier's many conflicts with Apple in considering that they may prefer long lead times to
perform the agreement and shorter periods of payment.
Media
They are considered as another important stakeholder which has both financial and
non-financial interests. The media observes the firm activities to report to the public both
through breakdowns and breakthroughs driven by the organisation.
Identification of the level of main stakeholders’
influence
The employee level of influence can be said to moderate stated that the corporation
can easily attract very talented employees. However, Apple needs to establish and coordinate
positive relationship with employees so as to create positive corporate image. On the other
hand, managers and shareholders highly influence the business as they regulate key decisions
in the enterprise impacting its ability to remain competitive specifically in long period.
Consumers in the personal computing and technology industry are highly protected by
law and consume group and thus they raise their influence over Apple through their power to
switch to rival in the industry (Tidd & Bessant, 2018). On Apple, government also has strong
and direct influence as company needs various timely approvals relating to new product
launch, licensing and protecting the projects that increase the products demands.
Due to market competitiveness and growth rate, competitors also poses a great
influence over Apple. However, the power of supplier is low but poses high interest. Due to
this Apple can effectively switch suppliers and gain strategic advantage to all suppliers in the
interest
Apple future direction can highly be influenced by the media in relation with
corporate image. For instance, the Apple brand image can be diminished due to bad publicity
and so they require to observe each and every aspect while working closely with media.

APPLE 11
Stakeholder matrix
P
o
w
er
Interest
Governments
Shareholders/
Customers
Competitors
Employees
Manager
LOW INTEREST, LOW
Suppliers
HIGH POWER, HIGH
HIGH INTEREST, LOW POWER
HIGH POWER, LOW
Board of
Media
Distributors
Retailers