Analysis of Apple Inc. in the Business and Economic Environment

This report provides a comprehensive analysis of Apple Inc.'s business environment, examining its organizational structures, including private, public, and voluntary sectors, and their respective purposes and legal frameworks. It delves into the scope and size of various organizations, highlighting Apple's position as a large private sector entity. The report explores the interrelationship between different organizational functions such as human resources, marketing, and finance, emphasizing their coordination in achieving business objectives. It also investigates the positive and negative impacts of the macro environment on business operations, alongside internal and external analyses to identify strengths and weaknesses. Furthermore, it discusses the interplay between these strengths and weaknesses and external macro factors, culminating in an examination of how macro and micro factors influence business objectives and decision-making. The report uses Apple Inc. as a case study, providing real-world examples and insights into the dynamics of the business world.

Business and the Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different types and purposes of organisations with their legal structures.......................1
P2. Scope and size of a range of different types of organisations..........................................4
D1...........................................................................................................................................6
TASK 2............................................................................................................................................7
P3. Relationship between different organisational functions and their link with set objectives
and structure of firm...............................................................................................................7
TASK 3............................................................................................................................................8
P4. Negative and positive impacts the macro environment has upon business operations....8
P5. Internal and external analysis to identify strengths and weaknesses.............................11
P6. Interrelation of strengths and weakness with external macro factors............................14
D2. Impacts of macro and micro factors upon business objectives and decision-making...15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Business environment consists of internal and external factors. Both create a huge impact
on the business and operations of organisation. An internal environment can be controlled by the
management while, on the other hand, external environment cannot (Al-Swidi and Al-Hosam,
2012). There can be negative as well as positive impacts on the productivity and growth of an
enterprise. Apple Inc. is a multinational and also a telecommunication business organisation
which is chosen for the present study. Mainly, this company deals in manufacturing and selling
the computer software, electronics and the online services along with hardware products such as
iPhones, Mac Book, iPod, etc. In this, types and the sizes of different types of organisations will
be explained. Also, there will be a discussion on the relationship among various functions of
organisations and their interrelation. Further, negative and positive impact of macro environment
on business will be given here.
TASK 1
P1. Different types and purposes of organisations with their legal structures
The three different types of organisations and their purposes are given below as below:
Private sector- These are the organisations where government does not play any
important role. Generally, these business firms are owned and managed in the partnership, sole
proprietorship, joint venture, etc. This sector is the necessary part of economic system of country
(Avramenko, 2012). In the private sector, minimum number of partners can be 2 and the 20
persons are maximum. Main aim of this sector is to increase the profit level and expanding its
business in new areas. The private sector consists multinational and corporate business
enterprises.

Apple is a private business organisation and its main objective is to increase the telecom
services with providing new and unique quality of its electronic products as well as different
applications and specifications. Some of the purposes of firm are:
 Main purpose of this company is to enhance its sales to the consumers who do not use the
products and services of Apple (Bansal and Hoffman, 2012).
 It major objective is to enhance its suppliers and the distribution channel.
 This business organisation wants to make improvement in the accuracy estimation related
to all the projects of software.
 The owner of this company wants to expand its business more in new areas mainly in
China.
 Main motive of this business organisation is to increase its level of profit or maximize the
business.
 It wants to enhance its market share and the growth rate.
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Legal Structure- The legal aspects of the private sector are sole proprietorship, private
limited company, partnership. In the sole proprietorship the business is conducted by the one
person and sole trader provide jobs to the waged workers their liability is unlimited.
Partnership- In this, two and more than two people running the business. Profit is divided
among the partners is equal.
Private limited company- It is a type of joint stock firm and it has a separate legal entity.
Public sector- This sector is under controlled the government. The main focus of these
types of organisations are satisfactory the needs and demands of people. These are mostly work
for the society and the people of society. It works for increasing the economic level of country.
The government provide the money to the small business in this sector so that they can conduct
their business activities and also increase them in the private sector includes the government
hospitals, schools, military, transit etc.
Like Vodafone Romania is a public limited business organisation and it is a multinational
telecommunication organisation (Bill Pasmore PhD and CMC, 2010). It operates and also
conducts its telecommunication related business in to new sectors. It provides the network
related to the mobile phones. It is the seventh largest subsidiary company in all over the world.
There are some of the effective purposes of this sector mentions:
 The main motive of this sector is to provide large number of job services to the people. It
will be helpful in enhancing the economic level.
 It primary purpose is to increase the living standard of the local people.
Legal aspects of the public sector- This sector formulates the financial data and statement
in their own manner. The legal authority of this sector is the government.
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Central government- It includes all the departments related to the administrative of some
central agencies and the state. They all are responsible to cover up the economic territory.
Local government- It includes all the public administration types and their responsibility
is to cover-up the part of the local economy.
State government- It is a separate and also different unit of an organisation and this this
government has some important functions and there is also the support of the local government.
Voluntary sector- It is a non-profit sector. This sector works for the welfare of society
not for earning the profit. It includes volunteers, funders, donations, charitable trusts and also
NGO's.
Like- NHS is a charitable trust or NGO. It provides the medical services and many other
facilities to the diseased and the unhealthy people. The purpose of this sector mention below:
 The main objective of this sector is to work for the benefit of society by the help of
volunteers, donors and many other people (Boons and Lüdeke-Freund, 2013).
 It gives all the facilities to the local people and also the old people.
P2. Scope and size of a range of different types of organisations
The purpose, structure and the size of every sector or organisation is different. In regards
to this, there are public, private and the voluntary organisations mentions. The size of every
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organisation is depend upon its structure. Like the Apple is a big private organisation and it deals
in the telecommunication sector. The size of this company is large.
Private sector- The private organisations are generally managed, owned and controlled through
the sole proprietorship and also with the partnership. This type of organisations are always try to
develop the positive goodwill in front of customers.
Size- The main motive of Apple business firm is to provide the unique and the additional
services in its products as comparison to the other company goods. This company has total 498
stores and in this organisation there are 116,000 staff members are working (Gebauer, Paiola,
and Edvardsson, 2010).
Scope of private Sector-
 It operates by one person and any one can start with this.
 There is a minimum requirement for incorporating the private sector companies
is to 2 members and maximum can be varied as per the firms size.
 It is easy to operate and any one can incorporate under this sector and run their
business.
 There is a minimum requirement of finance to incorporate to this sector as
comparison to others.
Stakeholders- Its important stakeholders are its clients, employees, suppliers,
shareholders and the customers.
Purposes:
 The objective of this business organisation is to make improvement in the quality of its
products and also features.
 It uses the new and the latest technology and also machineries in its manufacturing
process.
 It contribute some money or profit in the welfare of the society.
 The aim of Apple business organisation is to expand its business in to new sectors or
areas.
Public sector- This sector works for the benefit of the people. Under this, the
government plays an important role and also provides the funds to the public sector companies.
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The government control and managed all the operations and also the activities of the public
sector organisations (Gharajedaghi, 2011).
Size of Vodafone Company- It is a big multinational company and in this firm there are
large number of staff members are working. The scope of public company is that there is
government role and there is also the 50% intervention of government in this sector.
Stakeholders- Its stakeholders are legal advisors, government.
Objectives-
 Its motive is to inverse the standard of living of local people.
 It conduct many activities for the society.
Scope:
 There is a need of license.
 To incorporate a business, there is a more requirement of funds.
 With out the permission of government, no one can incorporate and run its
business.
Voluntary sector- It is mainly the not for profit organisation. Under it includes donors, funders,
volunteers etc. It works for the welfare of the people by giving them good treatment.
Size of NHS- It is the biggest public health centre. In this there are 107 million people are
working and they all are working to make improvement in the health of people.
Objectives:
 Its objective is to provide good treatment to the unhealthy people and also take care their
health.
 It provides the good treatment to diseased people from the expert doctors.
D1
According to Reinhardt and Stavins, 2010, different organisations has entirely distinct
structure as when there are a number of operational levels it makes it difficult to manage the
same. Such as voluntary organisation complexity come in the matter of funding. The investor or
fund provider can deduct the amount any time they want and there is no certainty of income. In
the private sector complication falls while establishing the company as because it become more
costly process to from a company and the tax amount they pay is higher than others. The major
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drawback for public limited companies is any activity implication will require a large process of
agreement and require a lot of paper work.
According to Marino, 2014 the interrelationship among the different structure is high as
the function of one department has its effect on the other too. It is due to the reason that various
activities are inter connected and if one of any section do not give the desired results the
efficiency of other department also gets affected.
TASK 2
P3. Relationship between different organisational functions and their link with set objectives and
structure of firm
In the Apple business organisation, there are many different departments are working
such as Human resource, Technology, marketing, finance, manufacturing etc. These all
departments implement different types of activities to accomplish the main objectives of the
business organisation. It is necessary for the of the Apple business organisation is to make
coordination among all the functions. The work of all the departments are different but their
motive is same (Hall, 2011). So in context to achieving the common organisational goals. All
departments are working together by contributing their skills and abilities. The manager of this
business organisation are interrelated with each other. Some of the different departments given
below:
Human resource- It is the backbone of the company and the main objective of this
business organisation is to hiring and selecting the most capable and the suitable staff members,
payroll, motivation, etc. The functions of the human resource management also impacted by the
organisational activities like in the large size companies there will be the need of more
employees and implement all the business related activities. And on the other hand the small
firms needs the small number of employees and in this there will be a need of limited finance. I
(Kulkarni and Agrawal, 2014).
Marketing- The main responsibility of this function is to make new designs of products,
techniques related to introduces of new product at market place, effective promotional strategies
etc. like for an instance the Apple company enhance its sales by making the good policies. With
the help of this the sales of new products will be enhanced and the goodwill or productivity of
company will also be enhanced.
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Operations department- Its main motive is to manufacturing the goods and services by
making the effective plan. For the productivity of the business the products plays an important
role and also offer to the customers that is effective for the business. The activities and the
operations of this process is impacted by the size of an organisation.
Information Technology- The main work of this function is to work on the advanced
technology and also enhancing the difficult businesses have enhanced voice, data, text messages
inside a company. This department works for the betterment of company. It provides the relevant
information to all departments which is necessary in doing the business work.
Finance- The work of this department is to gathered and also collect the funds for
running the business activities or any tasks. The people of finance department arrange money for
operations and activities of company, so that all employees can work well and also achieve the
goals and objectives of company in particular time period.
TASK 3
P4. Negative and positive impacts the macro environment has upon business operations
The performance level of the Apple Inc. is high and it is linked to the effectiveness and
the efficiency of the company to determine the macro factors. The success and the productivity
of this business organisation is impacted by the many factors and it is necessary for the
management to determine all the issues and problems so that company can overcome from all
these. In the macro factors consists technological, social, economic, environmental, political and
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legal. Apple have to identify the external market scenario for which they have to organise Pestle
analysis. The negative as well as positive effects of the macro environment of Apple given below
as above:
Political factors- It is the number one technology company in the telecommunication but
in the China the sales of this company is less (Reinhardt and Stavins, 2010). From the
government instability the business is impacted more. Because from changing the government,
their rules and regulations are also changes. Its impacts is bad ion business. So in context to this,
with the help of this factor company can make improvement in its trading policies and it can also
conduct its business related activities in an effective and efficient manner. Government
instability affect the working and operations of Apple. Thus before starting any project in other
country management have to determine their political stability properly.
Economic factors – These factors involves interest rates, unemployment, poverty, bank
rates etc. If the economic condition of the country is not good then it will influenced purchasing
power of customers. Apple is a multinational organisation which deals in branded products. Due
to lower income level and unemployment customers are not capable to UK's public will not be
spend more money on buying of luxurious products and services. This will also affected sales
and profits of business organisations. Apple have to determine the economic condition of a
country as well before commencing their operations over there. This support them in increase
their profitability and productivity in an adequate manner.
Social- The negative impact of this factor is that if the Apple business organisation harm
the society from, its business operations and also if it is not provide the attractive and quality
services to its customers. The demand of Apple products is high in the Africa. The younger
people uses the apple mobiles phones and it is good for the business. At last Apple have to
identify the impact of their product on society so that they can increase their profit margin in
more adequate manner.
Technological factors- This macro component can be positively as well as negatively
effect on the business related activities and also operations. This company is a technical giant
and it is also impacted by the changes in the technology. From the rapidly changes in the
technology impacts the business environment (Marino, 2014). The negative impact of the
technology on the Apple is that because of technological changes it losing its competitive
position from Google. On the other it has many strong competitors and in the field of
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