Apple's External Environment Analysis: Political, Economic, Social

This report provides a detailed PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis of Apple's external environment. The political section examines the impact of Brexit, European regulations, and US-China relations on Apple's sales and operations. The economic analysis discusses the impact of COVID-19, GDP, exchange rates, and economic growth on Apple's revenue and market share. The social factors include demographic trends, customer preferences, and the impact of social media. The technological analysis covers communication advancements, the App Store, and Apple's innovation. Environmental factors include recycling programs, pollution, and carbon emissions. Finally, the legal environment discusses privacy regulations. The report highlights both opportunities and threats, such as the increasing use of mobile access and social media versus lawsuits and environmental concerns, offering insights into Apple's corporate social responsibility and overall business strategy.

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

Competition:
LOCAL- Apple is operating in a very competitive environment. Apple has many local competitors
such as brands as Microsoft, Dell and Hp all American based company’s.
The competition between Microsoft and Apple has been a hard-fought battle that has influenced
customer to have hard decision in which PC’S to buy however, Apple made sure customers to
purchase their products due to, Mac computers are easier to repair which allows customer not have
a long waiting time for their products to be used again. Apple computers have fast software,
beautiful display screen and an impressive trackpad that allows customer to have an attraction of
design and due to fast software, it allows customer to have instant access of apps.
Reason why customers purchase Macs compared to buying dell is due to three reasons. Mac books
are lightning fast quick, customer have instant access of launching apps without any problems. Built,
the laptop is very light to carry and allows customers to bring it into work without any trouble.
Customer support, the service offered by Apple includes telephone support, online and support at
retail stores where you can book an appointment, allows customer to have assurance that they
option in which support the want.
The competition between HP laptops and Apple MacBook’s has been so tight that customers are
finding it difficult which one to buy however, Apple has influenced customer to purchase their
product due to, their build and designs, MacBook’s come with an aluminium unibody that allows
laptop to feel strong also, they are lighter in weight which allows customer to carry the product
without any difficulty.
INTERNATIONAL- Due to being a multinational business, Apple has competitors across the globe and
ultimately their biggest rivals are Samsung (South Korean company) and Lenovo (Chinese company)
The ultimate battle in which mobile device is better, the iPhone or Samsung? Apple has influenced
their audience to purchase the iPhone by reasons of, fast software. iPhone holds a A12 Bionic Chip in
which beats the Samsung device, faster software’s allows customer to be satisfied as apps have an
instant launch without any delay. Apple Pay is the most popular method for make mobile payment
therefore, if customer have forgotten their debt cards, they could simply use the app.
Factors influencing competitive advantage:
Differentiation- Apple is trying to increase market demand for its products through differentiation,
which requires its products to be unique and to attract consumers. The company's products have
always been designed to be ahead of their competitors. Apple succeeded in creating demand for its
products. The company controls prices through product differentiation, innovative advertising,
guaranteed brand loyalty, and hype about new product launches. By focusing on customers who are
willing to pay higher prices and maintaining a premium at the cost of unit volume, Apple also sets
artificial barriers to entry for competitors.
Brand recognition- The company has gained such a strong brand recognition and reputation through
its advertising and marketing capabilities. Apple's outstanding ability to create marketing campaigns,
advertising capabilities, high-quality products, and the ability to provide an excellence in customer
experience have enabled the company to establish the world's most powerful brand therefore,

retained their customers and for them to become loyal in which drove down competition and
increased Apples’ market share along with increased their revenues and sales.
Technology relationship with customers, market share and market leadership- Technology has
influenced the way Apple communicated with customers. It is important that they must interact
with customers on a regular basis to win their trust and win customers. Through the use of the
Internet and social online networks, Apple has interacted with consumers and answered questions
about the product. Establishing effective communication with customers can not only establish a
good relationship with customers, but also establish a good brand image. Good relationship allows
customer to be satisfied with Apple and more likely to be loyal therefore, decreases the chance of
them joining a rival’s firm, decreasing competition. It allows Apple to increase their market share as
more customer are becoming loyal therefore, shopping at Apple more often in which results for
them to dominate the technology market and having a stronger market leadership.
Technology relationship with employees- Technology has influenced the way employees work,
makes them more efficient. Being more efficient allows employees to increase productivity and
improves job satisfaction resulting in a good relationship between Apple and employees. Employees
could use online message such as email to communicate to other employees or mangers to address
their point instead of writing as it saves time and is quick and easy to use.
Technology relationship with suppliers- Apple can communicate to their supplier via emails or text
message and allows the suppliers to receive the message instantly therefore, no misunderstanding
can be placed and builds a healthy relationship as they are communicating effectively.
Maintaining a competitive advantage will allow Apple to drive profit. Building and maintaining
competitive advantage attracts customers, contributes to fair prices and generates loyalty. Apple
created a competitive advantage through low prices or differentiation. A benefit of competitive
advantage, allows Apple to maintain a fair price in which, if their prices are fair to their consumers, it
will attract them in order to shop for their organisation instead of their competitors therefore,
generates sales revenues and decreases competition. This is important as competitive advantage
keeps customers coming back over and over again and this allows customer to become loyal to the
organisation in which, represent a good image of the business therefore, more and more customers
will be purchasing an Apple product therefore, increase sales and allows Apple to maintain the
market leader. Another benefit to competitive advantage is that it allows Apple to go through
differentiation. This allows Apple to separate them from their competitors in which a unique selling
point proposition makes differences clear and compels them to give Apple a strong brand
consideration. Apple USP is there IOS and their app store therefore, makes consumer attracted to
them as Apple’s app stores is the largest.
C.P5
SITUATIONAL ANALYSIS:
5C’S:
Company- Apples’ business is all about satisfying their customers’ in which by supplying them with
state-of-the-art technology. Products likes of iPad, iPhone, Apple watch, Tv has allowed the business
to be the most successful organisation in the market.

Collaborators- Apple work with large number of suppliers from different countries likes NXP from
Netherlands, FOXCONN in Taiwan and GOERTEK in China. However, Apple and FOXCONN violated a
Chinese labour rule by using too many staff to manufacture iPhones.
Customers- Understanding customer’s needs, want and buying patterns is important to Apple as
they are the key source to their success. Apple has spent $16billion in RND in order to satisfy
customers towards their taste and their preference. Satisfying customers allows them to be more
likely loyal to their brand in which, decreases competition for Apple.
Competitors- Main competitors are likes of Samsung, Microsoft etc. These competitors could
influence customers to enter a rival’s firm as they undercut Apple price and offering a better deal in
order to increase their sales, market share and to put pressure on Apple.
Climate- Apple is affected by multiple macro-environmental factors. For instance, the trade war
between USA and China or the weak economic condition in which impact consumers spending
power.
SWOT:
Strength- Apples’ strength is that the brand presence of the company is one of the strong reasons
that makes it the most power organization in the world. Apple delivers their products across the
globe and have billions of customers. Apple products are in high demand due to the fact, their
ground breaking and advanced technology’s allows customer to have the best experience.
Weakness- Weakness is that Apple products are very expensive, and the products may-be exclusive
for mid-high incomers. Apple products do not support other software compared to the android in
which may influence customers towards android.
Opportunities-, rise in new customers allows Apple to increase their market share in the technology
market. Technology is the future for the world, artificial intelligence. Apple being a technology-based
organisation allows them to be prepared for the future as it allows the business to continually grow
and to dominate the market share.
Threat- Threat, existing competitors such as Samsung, Asus, HP, Microsoft, Sony etc are giving tough
competition towards the brand as these companies are giving the same features such as touch id,
face id etc. Apple not supporting other software’s may influence customers to buy an android device
as it compatible to many software’s therefore, Apple may lose their audience and competition to
increase as, customer enter their rivals’ firm. Firms may sell their products at a cheaper price
therefore, allows customers to purchase other rivals products in order to save their money, in which
allows Apple to lose out their revenue and their sales.
FIVE FORCES:
Competition- Level of competition for Apple in the technology market is high. The organisation
directly competes with likes of Samsung, Microsoft, Google and many more. All these companies sell
similar technology therefore, the competitive force is very high. To keep up with competition, Apple
uses marketing in order to highlight products that will satisfy their audience therefore, they can
retain their customers and for them to become loyal, as it grows the business, in which contributes
them dominating in the market share and beating their rivals.

Bargaining powers of buyers- Customers want the best technology they can get; Apple provides the
most advanced and ground-breaking technology in which allows their customers to have the best
product available. Customer have a low bargaining power towards Apple due to their advanced
technology, in which allows them to be satisfied towards Apple, as a result lead Apple to have many
loyal customers purchasing their product even if at a high price.
Bargaining powers of suppliers- Suppliers have a weak force of bargaining powers due to the fact, if
they charge their prices too high, Apple can simply reject the offer as well, due to having strong
brand the organisation can simply scout other suppliers who may sell at a cheaper price and offers
better supplies.
Threat of new entrants to the market- Threat is relatively low due to the fact, the market place runs
at such a high cost and for a new business to maintain that would be simply impossible, as new
entrants are competing at such likes of Apple, Samsung, Dell, Google, Sony and many more. New
entrants would also need to have a huge amount of capital to spend on RND and to manufacture
their products before even thinking to generate their sales and revenue.
Threat of buyers opting for a substitute product- Threat is relatively very low however there are
some threat. iPhone holds a camera feature in which customer can substitute the product of using a
digital camera to take pictures. Overall customers would use an iPhone due to the fact; it holds all
the features in one product for example, camera, phone calls, facetime, games and many more.
D.P6
DIFFERENT MARKET STRUCTURE
Market structure:
Imperfect competition- Apple operates in an imperfect competition. The organisation operates in an
oligopoly market. Oligopoly market entails a few large firms however, the main firm that competes
with Apple is Samsung. These two firms dominate the market in which Apple is the market leader in
the technology industry but closely behind are Samsung. The competition is relatively low due to a
high entry barrier therefore, new business will not be able to exist of such conditions. Apple can
charge higher prices towards their customer due to fact; there are only a few firms that compete in
the market therefore, allows Apple to maximise their profit however, needs to be careful as
Samsung can undercut their price and offer a better deal which can result in Apple losing their
audience and a loss of sales. Apple has responded in the changes of market such as the prices of the
product in which Apple have readjusted their prices to benefit their customer and retain their
audience therefore, to carry on dominating the technology industry. Responding in changes in the
market allows Apple to be up to date in the market and to carry out what is needed in order to
expand their business.
Features of different market structure:
Number of firms- Apple has around 500 firms across 25 countries and regions likes of, China, France,
Germany, England and many more, with the first location opening in May 2001. It has influenced
Apple to have more opportunities to expand as a business in which led them to increase their
revenue and their sales due to fact, it allowed the organisation to have new customer across the
globe and new customers to be loyal to the brand and for that, helped Apple to grow and allowed
them to increase their market share and increased their brand.

Nature of product- Apple is a business of designing, developing, producing, selling and marketing of
its products and service. Apple wants their customers to have ground-breaking and state of the art
technology and this has allowed their customers be extremely satisfied in which has influenced
Apples’ brand as in fact, customer became loyal to the firm in which has driven down competition in
the market and allowed Apple to increase their revenue and profit. It Led the company to be the
market leader in the technology industry and have the most shares in the market.
Relationship between demand, supply and price
Influences on demand:
Affordability- The affordability of the Apple product is quite high; the average price of an iPhone is
valued at $758 and the product may be targeted to families with relative steady income or higher.
Due to such a high price, you would normally think the demand of the product would be relatively
low due to the outrageous price tag however, Apple has retained their customer because of their
advanced technology in which, allows their audience to have the state-of-the-art technology and
lighting quick software which had a massive influence on customers to purchase an Apple product.
Many of the customers have become loyal to the brand in due to that reason, which has drove down
competition and allowed Apple to dominate the market.
Competition- Apple has a relatively low competition due to such a high entry barrier in the
technology market however, their biggest competition is Samsung. These two firms have been
competing in the market in order to convince customer on why they should buy their products.
Apple have used many techniques in order to convince customers to join their firms instead of their
competitors, such as:
- Releasing Air Pods, a wireless headphone. It allowed customers not to have a struggle of
untangling any wires in which customers can easily connect their Air Pods to ANY mobile
device.
- Due to connecting to any device with an Air Pod, allows the customer not to worry if they do
not have an Apple device in which they can still use the product and feel they are a part of
the Apple business.
- Facetime allows customer to connect to friends across the globe however, they must have
an Apple device.
- Apple Pay, customer can pay for numerous items with Apple pay and gives them flexibility of
choice of method of paying.
Apple have understood their customers’ demands and has changed the market completely
by placing an A7 chip inside an Apple software in which has allowed Apple product to be the
most advanced technology in the market which has beaten their rivals. Customer has
demanded numerous times of picture quality to be improved in Apple products. The
organisation has completely changed the market by having a dual camera system which has
a 12-megapixel wide lens and has improved the LED lens in which has allowed customer to
be satisfied with the camera quality.
Level of Gross Domestic Product (GDP)- Corona virus has impacted on Apple’s GDP massively; the
organisation has lost around $180 billion in the market and along with that it is the biggest loss for
any company ever. Apple had to respond in the change of the market in which led them to close
around 450 stores across 21 countries in order to minimise the spread of Covid-19. These factors

resulted in Apple to lose out sales in which has damaged their market as they could have been
growing as a business and to increase their rival’s competition in which could have allowed Apple to
continue to dominate the technology industry.
Influences on supply:
Competition for raw material- Competition for raw material for Apple is relatively low due to the
fact, high barriers to the entry market allows Apple to have a low competition therefore, not many
businesses are entering the market which has allowed competition of raw material to be low. On the
other hand, rivals such as Samsung could increase Apple competition due to the fact, they can offer
better prices to the suppliers which could influence the supplier to stop working with Apple which
could increase competition for raw materials and also increase competition between the two
businesses. Due to Corona virus it has led raw material to be supplied low, Apple had to respond in
the change in the market which they had to pay more in order to gain the raw martials and offering a
better price than their competitors as they were doing too paying a lot more.
Government support- Due to the Corona virus, it forced Apple to shut down 450 stores which left
millions of people without work however, due to the Government support of a holding a furlough
scheme, it has enabled employees to receive an income in which has allowed them not to feel
helpless and not to struggle.
Availability to produce profitable- Apples brand is known as a technology business in which sells
advanced technology and due to that reason, it has allowed the business to produce profitable. High
revenue in which Apple reported of a net revenue of $215.64 billion which is a substantial amount
along with that, Apples gross profit generated around $84.26billion in which has allowed the
business to produce profitable. These sales allow Apple to grow as a business and to continue on
manufacturing Apple devices in which allows the business to create more products and to generate
sales and revenue. Yet again Apple had to respond in the change in the market as they lost around
$180billion in revenue therefore, Apple had to slowly open some stores offering face mask and hand
sanitisers in order to protect customers and to slowly gain sales in order to respond the market
change.
Elasticity:
Price elasticity of demand- The demand of the iPhone has substantially increased. Demand for the
product is very high in which has allowed Apple to increase the products price. Customer were
impressed with Apple due to the their ground breaking products in which, has allowed consumer to
pay almost any price for the product in which has allowed customers to be satisfied with the product
and become loyal to the brand. The price of the original iPhone was valued at $499 and to this day,
an iPhone 12 is valued at $799 and the demand of the product has never been high as before.
Pricing and output decision:
Impact on pricing and output decision on different market structure- Apple being in the oligopoly
market, determine the output decision depending on the demand for their products. Apple has
allowed their products to have a high price tag due to the fact, the oligopoly market is shared by a
very small number of firms likes of Microsoft and Samsung, Apple’s main competitor. These firms
offer, close substitute hence they are a threat to the industry. Rivals can influence Apples price in
which, they can push their prices down and start to create a price war therefore, Apple needs to
readjust their price tag in order to retain their audience. Apple’s price tag on their product is high
because, there is only a limited number of firms who sell similar product to Apple and along with

that Apple products are known to be advanced technology in which has allowed the demand of the
product to be high and many numerous customers to be satisfied with the product and due to the
that reason, has influenced them to be loyal to the brand.
On the other hand, markets such as monopolistic competition, is where a large number of firms sell
similar products in which, competition is very high. Pricing in this market is important because, due
to large number of firms existing in the market it can influence customers to stop buying product
therefore, could damage the business as their sales will decrease and along with that, they can lose
their percentage in the market share as the customer are entering other business, increasing
competition and decreasing their outputs.
Reponses by business to pricing and output decisions of competitors in different market
structures-
Rivals can influence Apple’s price as they can create a price war in which, can influence customers to
enter the rival’s firm as they are offering a better value of price for a similar product. These factors
could damage Apple in which, they can lose out on sale revenue therefore, could damage their
market share. Ways of responding could be,
- Apple can strengthen their advertising method in which can influence customer to join their
firms instead of its competitors
- Strengthen their brand image, improving their brand image would allow customers to have
great satisfaction as they are built in confidence and is installed with trust therefore, they
may be influenced to be loyal to the brand.
- Readjust product price in which offer better prices than their rivals
If Apple respond back with these types of methods it allows the business to retain their customers,
increase their market share, improve their brand image and also, increase their output of product
due to the fact they have strengthen the ways of advertising a product. However, lowering prices
could show a desperate cry for help as it may show, your product is not being bought and it may be
looked as low standard of than other product.
Monopolistic, many firms exist in this environment that offer similar products in which, price can
majorly influence customer. Firms can find a better supplier in which offer a cheaper rate of
exchange therefore, if other firms are lowering their product prices, they too can lower their prices
and they would not make a loss as they are breaking even (due to finding a cheaper supplier at the
beginning they can lower price and would not make a loss to begin with.) and they are retaining
their customer as they are not leaving the business in which, allows the firm to still generate sales
into the business and to carry on gaining market share.
C.M3
Assess the effects of the business environment on a given business- Apple have a great deal of
control over the internal environment of the business, which covers day to day decisions. Apple
choose the supplies they purchase, which employees they hire, the product they sell and where the
product would be sold. Apple use their skill and resource to create goods and services in which will
satisfy their customer in order to retain them for the future and for them to be loyal to the brand.
On the other hand, the external environment is out of their control in which that affects a business
in which they had to adjust the market change.
Apple took a major setback in which they faced the Corona virus and not only Apple but every single
business regarding what they operate in. Apple took a $180 billion loss and had to close around 450

stores in which they lost out in and due to that, they lost some market share. Apple slowly reopened
some stores in which they had to supply face mask and hand sanitisers in order to protect customer
and employees in order to slowly generate revenue and to respond to the market change.
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 respond to the market
change by readjusting each products value by dropping their original price to suit the current
condition of the market to benefit their customers.
Other forces such as natural disasters, can also have an effect on the business as they would have to
close down stores and prepare for emergency vacation in which closing down stores it would hurt
Apple as they are losing out possible revenue and losing out in the market share.
Each of the businesses’ environment has led to be effective in which has allowed Apple to be in the
position they are in. Firstly, the external environment. External environment played a critical role in
shaping the future of Apple. It has allowed them to keep the business ahead of the competition, by
using PESTLE, it has allowed them to have a deeper understanding of what can affect the business
outside of their control such as, Apple could have overlooked the safety and consumer laws if they
have not undergone the analysis in which, could have had a bad image towards Apple as it can have
negative view of how safe they are it also, has allowed Apple to exploit opportunities as they have
researched the social and technological trends in which has allowed Apple to target their products to
their audience in which has allowed them to increase the sales, generate profit and beat their
competitors. On the other hand, the analysis of PESTLE, it cannot guarantee it will work it is only a
strategy for the business to take to ensure they understand in what can affect them in which helps
them have a strong start and along with that, some factors can change such as the political factor in
some countries therefore, Apple needs to make sure they are updated to the change.
Secondly, the internal environment. The internal environment has been effective due to the fact,
Apple controlled these factors in which has, allowed the company to have a strong structure and to
have great leadership within the business which has resulted in employees to be respected and to be
valued, this has allowed them to have great communication skills in which, has allowed the business
to run very smoothly in day-to-day basis. However, a disadvantage of the internal environment is
that it can cause some type of conflict that managers and employees can have in which could bring
in tension into the business, building an unhealthy and can lead to a toxic environment.
Finally, the competitive environment. The competitive environment has allowed Apple to have great
understanding towards how their competitors work and how they attract their audience. Apple have
done market research in which has allowed them to attract more of their audience as they have
gathered information in how they can attract them such as, through differentiation, which has
allowed Apple products to be unique and to attract consumers. The company's products have always
been designed to be ahead of their competitors such as the unique features of the iPhone, Face ID,
Touch ID, Mega pixel on the cameras, powerful focus lens and many more. Apple succeeded in
creating demand for its products. The company-controlled prices through product differentiation,
innovative advertising, guaranteed brand loyalty, and hype about new product launches. Another
reason of how effective the competitive environment is that it allowed Apple to gain awareness of
what their competitors are doing and has improved efficiency within the business.

In conclusion. These environment factors have both advantages and disadvantages along with this,
had a major effect on Apple’s success in which has ended in positive note and has helped them to be
in the position they are currently in, market leader. Apple understanding each of this environmental
affect has allowed them to be ahead of their competition and has allowed them to fully understood
in what they cannot do and what they can do. It has allowed them to understand each environment
factor and the organisation has acted by doing strategies to keep ahead of competition.
D.M4
Assess how a given business has responded to changes in the market- Corona virus has challenged
all businesses into responding to changes in the market, likes of Apple had adapt to the challenge, in
which the organisation had to close many stores in which resulted in a massive loss of sales but had
to close down in order to minimise the spread of the virus. Supplies of raw material in the market
were more competitive, Apple had to pay a lot more than their original price due to the fact, the
demand of supplies was increasing therefore, rivals too were competing against Apple.
Apple stores were eventually opening however, the business had to provide sanitisation likes of
hand sanitizer and face mask in order to protect their employees and customers in which could
affect employee and customer to continue using these protections for the near future along with
that, customers entering Apple stores had to social distance in order minimise the spread of Corona
virus. Reopening stores allows Apple to readjust to the market and to carry on selling their product
in which allows the business to increase their sales and to grow as an organisation.
Apple has released promo codes in order to influence customer to purchase an Apple product. The
business sales were low due to how Corona has affected the market therefore, Apple reduced their
products price in order to generate more sales coming to the business in which has allowed the
organisation to be ahead of the competition from rivals and along with that has increased their
market share.
The market took a hit from the Corona virus in which, Apple stocks has drastically decreased due to
the fact, the supply demand of an Apple product is low due to COVID-19 and the stock may continue
to decrease in the near future in which the business has warned investors. Apple has responded to
the change by slowly opening stores in which has allowed investors to continue on buying Apple
stock therefore, allows Apple to generate revenue and to continue on expanding as a business.
Apple attempts to increase their online e-commerce capacity in which allows customer to use their
online page without entering their stores in which, allows customer and employee to feel much
safer and without worrying about getting COVID-19.
Apple have responded to the market change successfully. The organisation has reduced their carbon
footprint by 4.3 million metric tons in 2019 through design and recycled content innovations in its
products. The reason why Apple have reduced their carbon footprint is due to the fact, the level of
CO2 emission has reached record high in 2019 in which has affected the wildlife, increased
occurrence of destructive weather and has affected millions of people. Decreasing the level of CO2
emission will have its benefit such as; It allows level of C02 to be low in which will benefit the wild
life, the environment and the people. It allows Apple to have a good brand image in which, plays a
significant role in influencing consumer choice therefore, drives Apple sales as more people are
buying Apple products, reduces expenditure as it is a cost saving measurement in which Apple will
save on energy bills and finally it can boost employee morale as it can lead to the attraction of

valuable workers and due to energy savings, it can boost morale and productivity among workers as
the business is having a positive environmental impact on the world.
Another response to the market change in what Apple has responded too is that, the organisation
aims to stop mining raw materials and use those that are 100% recycled and to use parts from
discarded devices and with high quality recycled metals. This factor will allow Apple to have a
positive environmental impact due to the fact, using recycling products allows it to have a positive
impact on the environment, reduces the demand for raw materials and making products from
recycled materials requires less energy than making the from new raw materials, The reason why
Apple aim to stop mining raw materials is due to the fact, it releases many toxins such as mercury,
arsenic and lead in which can easily get released into lakes, streams and the ocean, killing fish and
contaminating drinking water. This will allow Apple to protect the ecosystem, the world and people.
On the other hand, some disadvantage of becoming a greener organisation is that, it often requires a
large initial cost. For example, if Apple installs a new roof or new insulation to keep heat from
escaping the organisation it would cost a large sum of money to get the work done. Apple willing to
use recycling their products could have downfall due to the fact, some recycled waste may not be
durable. These kinds of products can be overly utilized and fragile and makes products of recycled
waste less durable and low-priced.
With the social and technology trend showing that the use of social media will be rising the market
has already changed. Apple has responded to the changes in the market by producing products such
as the iPhone, iPad and Mac Books. This has allowed Apple to respond to the market change in order
to compete with other competitors and to be caught up in the market, which they are releasing
advanced technology for their audiences to use in which they can access social media such as
Snapchat, Instagram and many more. This is effective as it has allowed Apple 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 market will continue to
change as technology continues to improve. 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 in which will drastically increase the sale rate of an Apple product.
In order to respond to the change in the market, Apple closed down roughly around 450 stores and
attempted to increase their online- ecommerce therefore, the business could still support their
audience and try to generated more sales coming through in which would allow them to beat their
competitors and still be the market leader. The reason why this is effective is due to the fact, millions
of people can reach Apple and it saves them money as its low cost. Another factor of how effective it
is that, online presence allows Apple to provide more detailed information about their product in
which allows customer to be filled with extra knowledge. It also allows the spread of the virus be
contained and places their customer and employees to be safe.
In conclusion, Apple responding to the changes in the market has allowed them profit from it and
has granted them new opportunity in the market. It has allowed them to become an eco-friendly
business in which has increased and influenced new customer entering the business therefore, has
allowed them to drive their sales in order to maintain their market leadership. Whilst Apple being
affected from COVID-19 it has allowed Apple to think outside the box and gather new strategies such
as increasing their online e-commerce. Altogether, Apple responding to the market change has been
effective and a success.

C.D2
Evaluate the extent to which the business environment affects a given business, using a variety of
situational analysis techniques- External environment has affected the business due to many
reasons such as how the business should operate and how they may respond outside of the
business. PESTLE, the political factor such as, the UK leaving the EU, has enabled Apple shares to
decrease by 2.8%. The value of the British pound subsequently dropped. These factors have hugely
damaged Apples sales and may continue on harming them in the future and also their revenue too.
The economic factors such as exchange rate of the value of the British pound, other known as
Sterling has dropped quicker than ever (Due to COVID19 currently). 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. The stock market of Apple price may even decrease in
the near future. Due to the economy to be low it has resulted in customer not buying Apple product
in which they have lost $180 billion is revenue and may continue on carrying on the next year also,
Apple may not see large amount of customer entering their stores due to COVID-19 in the near
future and may harm their sales. Social factor likes of customer taste and preferences has enabled
Apple to spend 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. Technology, has allowed Apple to
change the world due to their advanced development of understanding technology and
communication has benefited billions of people across the globe. Customer could use these types of
communication such as Facetime to communicate to others and currently due to Corona virus, has
enabled them not to feel lonely in which, minimise the spread of the virus. AI is the next big thing in
which Apple is prepared for the future due to the fact, operating in high advanced technology
market they already have knowledge in what is expected from are prepared. ENVIROMENTAL
factors, likes of recycling an Apple product has enabled the business to reduce the amount of waste
therefore, in the future the business has reduced the amount of pollution harming the world and by
reducing carbon emission. LEGAL factors, government having stricter rules of privacy in which the
business has enabled to strengthen the privacy therefore, customer can be built with confidence and
trust as their date is not being breached. Customer outside of the business could be influenced to
join the organisation as they protecting their client in which, more customers in the future can allow
Apple to increase sales and decrease competition.
SWOT. Apple STENGTH is that they have a substantial and credible brand image that has influenced
millions of customers joining their firms in which has resulted the organisation to grow and to
dominate in the technology industry and to beat its competitors therefore, in the future,
competition would be low. Apples organisation structure is flat and this because the business can
have effective communication as there are fewer layers and along with that fewer layers allows the
business to save money. Apple had a straight forward mission, thanks to Bill Gates in which was to
supply the most advanced and state-of-the-art technology to their customers in which has allowed
the business to strive in success. Apple products have a unique ability to design and develop
hardware (iPhone etc), software (IOS), application (iTunes and App store) and services (Apple pay,
iCloud and Apple music). WEAKNESS is that Apple products are not compatible with other devices
therefore, customers in the future may leave the firm and enter a firm that has products that are
compatible with another device likes of Samsung. OPPERTUNITES, rise in new customers allows
Apple to increase their market share in the technology market in which has enabled them to beat it

competitors. In the future it is believed that AI will be dominating the market therefore, Apple being
a technology business has allowed them to be prepared for the future. THREAT, existing competitors
such as Samsung, Asus, HP, Microsoft, Sony etc are giving tough competition towards the brand as
these companies are giving the same features such as touch id, face id etc. Apple not supporting
other software’s may influence customers to buy an android device as it compatible to many
software’s therefore, Apple may lose their audience and competition to increase as, customer enter
their rivals’ firm. Firms may sell their products at a cheaper price therefore, allows customers to
purchase other rivals products in order to save their money, in which allows Apple to lose out their
revenue and their sales.
5C’S. Company, Apples’ business is all about satisfying their customers’ in which by supplying them
with state-of-the-art technology. Products likes of iPad, iPhone, Apple watch, Tv has allowed the
business to be the most successful organisation in the market. Collaborators, Apple work with large
number of suppliers from different countries likes NXP from Netherlands, FOXCONN in Taiwan and
GOERTEK in China. However, Apple and FOXCONN violated a Chinese labour rule by using too many
staff to manufacture iPhones. Customers, understanding customers needs, want and buying
patterns is important to Apple as they are the key source to their success. Apple has spent $16billion
in RND in order to satisfy customers towards their taste and their preference. Satisfying customers
allows them to be more likely loyal to their brand in which, decreases competition for Apple.
Competitors, main competitors are likes of Samsung, Microsoft etc. These competitors could
influence customers to enter a rival’s firm as they under cut Apple price and offering a better deal in
order to increase their sales, market share and to put pressure on Apple. Climate, Apple is affected
by multiple macro-environmental factors. For instance, the trade war between USA and China or the
weak economic condition in which impact consumers spending power.
The external environment has allowed Apple to have a general knowledge of how it can affect the
organisation. External environment has played a critical role in shaping the future of the Apple and
has allowed the business to be ahead of the competition and mangers within Apple, has used many
strategies to reflect the environment in which the business operates. For example, PESTLE. The
Political analysis, Apple has considered legal framework and the trade regulation in how that can
affect the business and without undergoing the analysis, Apple could have been unaware of what
they can do, in which, can result in Apple being heavily fined and brings and bad image of the
business. The economic analysis, Apple have discussed the types of the economic system in the
countries that the company operates in which, involves amount of government intervention in the
market, the skill level of the workforce or the labour cost. Therefore, knowing these factors, it
allowed Apple to have background knowledge and understand on how they can operate. Social
analysis, Apple look into the demographics, the social trend, for example the rise of smartphone
usage and the increase of social media. These values have benefited Apple as they have exploited
the gap in order to minimise competition. Technology becoming the latest trend has allowed Apple
to have an opportunity to increase their sales due to the fact, upgrading their products to the latest
technology allowed them to have increase of customer as they are known to sell ground breaking
technology in which gave their consumers an excellent experience and also, technology has allowed
Apple to improve their security in which, has kept their private information safe. The environment.
Apple understands the importance factor of protecting the world and this allowed Apple, to become
eco-friendly as their products are easily recyclable therefore, brings a good image of the workforce,
protects the environment and has influenced customer rate of purchasing their products. Finally, the
legal work. This allows Apple to understand the law such as partnership legislation or the
competitive regulation, it has allowed Apple to knowledge in what they can do and cannot do.

The advantage of understanding the external environment by using PESTLE analysis allows Apple to
have the opportunity to beat their competitors and gives them the competitive advantage in which
they will knowledge in what can have an effect to their business. It can enable the organisation to
anticipate future business threats and take action to avoid and to minimise their impact. It can
enable Apple to spot business opportunities and exploit them fully.
On the other hand, a weakness to this it cannot guarantee it will work it is only a strategy for the
business to take to ensure they understand in what can affect them and along with that, some factor
can change such as the political factor and the economic factors in some countries
The competitive environment. The advantage to this has allowed Apple to have great understanding
towards how their competitors work and how they attract their audience. It has allowed Apple to
have an understanding of their competitors strengths and weaknesses therefore, Apple can utilise
this in order to understand their competitor’s skill therefore, can have greater understanding about
their competitors in which, allowed Apple to have opportunities to exploit them in order to beat
them off. Another opportunity is that the rise in social media will allow Apple to drive their sale
therefore, rise in new customers allows Apple to increase their market share in the technology
market. In the future it is believed that AI will be dominating the market therefore, Apple being a
technology business has allowed them to be prepared for the future. Apple too can also highlight
what level of threat their competitors are such as Samsung in which, their products could cheaper
than Apple or their, product is more advanced in which would hurt Apple as they are known to sell
the most powerful devices.
A disadvantage is that, competitors can easily change the way they work and can easily re-strategies
in order to gain a working method in order to beat their competitors.
Finally, the internal environment which is, composed of various element within the business that can
have an effect of the decisions of Apple. Example of this is, employees. Employees, the most
important element within Apple, they are the first exposure to the customers. Apple have trained
and managed their staff therefore, it has allowed it to positively affect the business by luring in more
and more sales by their excellent customer service skills in which, has resulted in more customers
becoming loyal to the brand and within the organisation, the workforce would be high and they have
been more motivated to work. Another one is the leadership skill and the communication. Apple
have strong leadership skills due to fact, mangers within the firm want to strive in success and with
their strong communication towards staff and other mangers it has allowed Apple to build a strong
workforce, boost efficiency and motivation. These factors of the internal environment have allowed
Apple to have a healthy and strong working culture in which, has allowed them to be in the position
they are in.
a disadvantage of the internal environment is that it can cause some type of conflict that managers
and employees can have in which could bring in tension into the business. Finally, the competitive
environment.
In conclusion, I believe that, these environment factor have had a great importance of shaping Apple
and the future of the business, it has allowed the business to be successful and along with this in my
opinion I believe that the advantages do outweigh the disadvantages and has been very effective in
which has allowed Apple to become the market leader and become the first organisation to reach a
worth of trillion-dollar company.

D.D3
Evaluate how changes in the market have impacted on a given business and how this business
may react to future changes- Corona virus has taken a big toll on Apple as they lost around $180
billion in revenue. They had to close around 450 stores worldwide. As the spread of Corona virus has
been slightly controlled, Apple reopened their store in order to generate sales.
Due to the economy to be low, customer are not buying Apple products however, Apple have
offered promo codes for their products, which has encouraged customer to buy an Apple device in
which has allowed Apple to respond to the change and has influenced customer to buy an Apple
device resulting in increase of sales. The business may need to continue using these types of
methods in the future to encourage consumer in buying an Apple device however, consumers may
see the business to be desperate and could show a negative view of the organisation
The business has had to respond to the changes in the market such as, Apple attempts to increase
their online e-commerce capacity in which allowed customer to use their online page without
entering their stores in which, allows customer and employee to feel much safer and without
worrying about COVID-19. The business has encouraged customers not to enter the firm and to use
the online web page to order product or to head over to customer enquiries. Customer may have to
use the online page a lot more frequently in the future as the Corona virus is still spreading.
The business had to provide sanitisation likes of hand sanitizer and face mask in order to protect
their employees and customers in which could affect employee and customer to continue using
these protections for the near future along with that, customers entering Apple stores had to social
distance in order minimise the spread of Corona virus. Reopening stores allows Apple to readjust to
the market and to carry on selling their product in which allows the business to increase their sales
and to grow as an organisation.
The market took a hit from the Corona virus in which, Apple stocks has drastically decreased due to
the fact, the supply demand of an Apple product is low due to COVID-19 and the stock may continue
to decrease in the near future in which the business has warned investors. Apple has responded to
the change by slowly opening stores in which has allowed investors to continue on buying Apple
stock therefore, allows Apple to generate revenue and to continue on expanding as a business.
Apple responding to the market change has allowed them to reduce the carbon footprint emission in
which has allowed them to become eco-friendly business. The advantage of this has allowed them to
reduce the emission of the CO2 level in which, will reduce globalisation therefore, will benefit the
wild life, people and decreases harsh weather conditions. Another advantage of this 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.
Another response to the market change is that, the business is aiming to use 100% recycled
materials and to use parts from discarded devices and with high quality recycled metals. The
strength of this has allowed Apple to save money due to the fact, the organisation has used recycled
materials instead of purchasing raw materials and this has allowed the business to protect the
ecosystem because, in order to use the raw materials for their product it must be extracted in which
releases toxins that can cause harm to workers and to the ecosystem. By deciding to use recycled
material it will allow Apple to protect worker lives, the ecosystem and allows employees to be more

motivated as they understand that Apple are looking after the environment and they are trying to
have a positive impact.
On the other hand, some disadvantage of becoming a greener organisation is that, it often requires a
large initial cost. For example, if Apple installs a new roof or new insulation to keep heat from
escaping the organisation it would cost a large sum of money to get the work done. Apple willing to
use recycling their products could have downfall due to the fact, some recycled waste may not be
durable. These kinds of products can be overly utilized and fragile and makes products of recycled
waste less durable and low-priced.
Apple could react to future changes such as, the business could source their goods and services from
sustainable suppliers. Green procurement is another easy way to transform carbon footprint as a
business. This not only makes Apple greener, but depending on where they source, they can help
foster collaboration with local suppliers. Meaning these goods and services are produced in a
sustainable way and include these goods becoming non-toxic, recyclable and made from renewable
materials. Another one can be Apple to replace old appliances with energy efficient ones or, use
alternative energy sources for power such as, solar, wind power and water power in which, helps
them save money.
Due to COVID-19, Apple has had to close down their stores in which has affected them financially
and could have a long term affect in the near future. Whilst restriction has eased, stores gradually
opened however, Apple had to take a measurement in order to protect their audience and their
employee by proving hand sanitiser and face mask. These measurements could still be taken in place
or can be changed in the future by holding a stricter measurement such as only a total amount of
people to enter the store. Advantage of this has resulted in Apple to increase their online e-
commerce.
In conclusion, I believe that Apple responding to the market change has been a success and has
given a lot of opportunity for the organisation such as, becoming an eco-friendly business important
due to the fact, it has allowed the business to protect the eco-system, the world and the people and
due to this, has given them opportunity of attracting more consumer in which helped Apple to drive
their sales in which beats their competitors. Responding to changes in the market has also allowed
Apple to stand out to their competitors and due to this, has allowed them to maintain their market
leadership. It has allowed Apple to have many advantages of responding to the market change in
which they have been finically rewarded and has allowed them gain a lot more opportunity’s.
REFERNECES
(Apple, n.d.) (Dilger, 2016) (Jasinski, 2020) (Jobs net, n.d.) (Maestri, 2020) (NIcas, 2020) (Ogleby,
2018) (Staff, 2020) (ashraf, 2020) (businessteacher, 2020) (castellano, 2020) (decluttr, n.d.) (gailie,
2015) (gradefixer, 2018) (independent, n.d.) (kolakowski, 2020) (lawaspect, n.d.) (leswing, 2020)
(marshall, 2013) (note, n.d.) (note, n.d.) (spoonular, 2019) (villa, 2018) (wiley, 2020) (Dilger, 2016)
(the gurdian, n.d.)