Report on the Contemporary Business Environment of Apple Corporation

This report provides a comprehensive analysis of Apple's business environment, focusing on both internal and external factors. It begins with an introduction to the business environment and provides an overview of Apple's operations. The main body of the report includes an in-depth examination of internal audits, covering supply and demand dynamics, elasticity of supply and demand, and the concept of oligopoly. It then moves on to an external audit, utilizing PESTLE and SWOT analyses to assess political, economic, social, technological, legal, and environmental factors impacting Apple's business. The report also includes relevant diagrams to illustrate key economic concepts such as supply and demand curves, elasticity, cross-elasticity, and income elasticity of demand. Finally, it concludes by summarizing the key findings and implications of the analysis.

CONTEMPORARY
BUSINESS
ENVIRONMENT

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Internal Audit......................................................................................................................3
2. External Audit....................................................................................................................6
3. Limitations of Micro Economics......................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business Environment is a process of study the combination of internal and external
factors which has different impact on the organisation in the long run. . Companies are required
to make their strategies in the way which suits them and makes sure that goals and objectives are
achieved in an efficient way (Amankwah-Amoah and Wang, 2019). In this context, Apple
company is chosen for the assignment, which was founded in the year 1976 and is headquarter 1
Apple Park Way, Cupertino, California, U.S. This company provides their customers with
different types of products and services such as mobile and telecommunication services with the
help of which they can reach out the larger number of customer. the assignment will make its
focus on different models such PESTLE Analysis, SWOT Analysis and many more with the help
of which different factors impacting upon the working of this organisation will be known. Along
with this, the explanation will also be provided about the internal and external audit along with
limitations of microeconomics as well.
MAIN BODY
1. Internal Audit
Supply and Demand: The supply refers to the availability of product and services in the
market for which customer are willing to pay. The demand refers to how much customer are
willing to pay for the good and services in the market to fulfil their basic needs and want.
(Anđelković, 2016). It is important to know about the supply and demand in the market so that
the market could be stabilise and the situations of inflation and deflation could be avoided.
Supplier should know its target audience so that product and services are provided to selected
market and profits can be earned. Inflation is a situations where prices of product and services
are increase in the market whereas deflation occurs when the prices are decrease in the market.
Their should be prefect balance between the demand and supply of the product and services in
the economic.
Elasticity of Supply and Demand: Elasticity is a tool use to show the relationship between
quantity demand or supply and another variable such as price, income in the market. The
flexibility interest is the rate change in the amount of administration isolated by the rate change
in the cost. The value versatility of supply is the rate change in amount provided separated by
the rate change in cost (Baporikar, 2015).

Flexibilities can be classified into five general classes such as superbly versatile,
versatile, flawlessly inelastic, inelastic and unitary. Versatile inventory is one which has a more
flexibility in showing a high responsiveness to change in the cost. An inelastic interest is having
short flexibilities showing less responsiveness to value change. Unitary versatilities have relative
responsiveness of supply. It is important to know about the change as with the help of this the
change in the prices could along with the effect on price as well.
Superbly versatile and impeccably inelastic allude to the two boundaries of flexibility.
Consummately, versatile methods is a reaction to cost finished and any adjustment in value
brings the amount tumbling to zero. Impeccably inelastic refers to the situation where no
adjustment is made when value is changed.
Oligopoly: Oligopoly has very few number of firms in the market structure these firms has
different impact on the market. (Barr and et. al., 2018). The fixation is a proportion that
quantifies the piece of the overall industry of the biggest firms. A syndication has one firm,
duopoly include two firms and oligopoly has at least two firms. There is no higher maximum
cut-off to the quantity of firms in an oligopoly structure. however the number of firms must be
low enough so that the activities of one firm essentially impact the others. Oligopoly is the
market structure where few firms are present either in expressly or in implicitly. so as to
accomplish better then average market returns. Monetary, legitimate, and mechanical variables
can add to the arrangement and disintegration, of oligopolies. There is significant trouble that
oligopolies face is the detainer's difficulty in the every part of faces, which effect every part to
swindle. Government approach can demoralize or support oligopolistic conduct, and firms in
blended economies frequently look for government favouring for approaches to restrict rivalry.
It is important to analyse the market as a single mistake of the company could make it out of the
market. So the companies dealing in these type of markets are required to make proper and
timely analysis of their own products related to the products and services of their competitive
organisations in order to remain in the market.
Key Diagrams:
Supply and Demand Curve: the depiction of supply curve is being provided as under:

Price Elasticity: The diagram has been provided as under:
Cross Elasticity:
The diagram has been provided as under:

Income Elasticity of Demand: The diagram has been provided as under:
2. External Audit
PESTLE Analysis of Apply Company: The following analysis refer to know about the impact
of internal and external factors upon the working of an organisation either in positive or negative
way (Blahová, Palka and Haghirian, 2017). The reason behind this factor is related to knowing
about the impact that will be created with the help of external factors on the working of an
organisation. In case of negative effect, strategies could be made in order to make improvement
in the level of performance of the organisation and in case of positive effects, it will be possible

to provide the company with positive effects of these factors. The factors of this analysis is
explained as following:
Political Factors: The political external factors in Apple company has vast impacted on their
presents in the market. Under this part, government policy and various another policies effect the
business of the company. Their are various policies which can be benefit for the company such
as stable legislative issues which help in performing the activities for more efficient ways.
Sometimes these changes can have negative impact on the performance of the company for
example, if exchange debates rate changes between the countries which effect supply and
demand of the product and services. Under the commerce approaches Apple Inc. are able to
expand its operation from time to time.
This PESTEL recognizes the benefits the political changes in the environment of the countries
which make companies to make use of available resources in better ways. Regardless of these
patterns that present chances, the political outer factor of exchange debates, particularly between
the United States and China, makes a danger against the organization's potential development
and the worldwide deals incomes of its items, for example, purchaser gadgets.
Economic Factors: This part of the PESTEL investigation is a model that demonstrates the
market and industry conditions which can effect the performance of the firms. In this outer
examination instance of Apple Inc., there are various opportunities in the environment which
can be effect the working of the company. the accompanying monetary outside elements are the
hugest:
there are various Stable economies of created nations in the economic. (opportunity)
Quick development of emerging economic in the nations (opportunity)
they expect the a huge salaries among target clients (opportunity)
The economic factors of created nations make open doors for Apple's development (Cegliński,
2016). The quick development of creating nations is an increasing the huge financial outer
factor in this PESTEL investigation case, as far as help for developing the innovation business.
For instance, the high monetary development paces of Asian nations are open doors for Apple to
build its incomes through deals in these remote markets.
Social Factors: The social environment of the companies is effected by cultural patterns of the
customer. the Apple's business is dependent upon the impacts of social or sociocultural patterns.
This part of the PESTEL model focuses to the social outer components that impact the business

of the companies at large. (DĂDÂRLAT and DUMITRAŞCU, 2015). the sociocultural patterns
are very critical part of the companies to attract the customer from time to time.
Their is a Rising utilization of portable access in the market. (opportunity)
It is a framework expanded on the computerized way.
They is Universal enemy of Apple estimations in the market. (threat)
The apple company has a versatile access to develop its income. Their are various gadgets such
as cell phones and tablets which can affects the demand and supply in the market. Hostile to
Apple notions are mounting, addressing strategic approaches, for example, Iphone and Macbook
are the best for the organisation to attract the market.
Technological Factors: These factors involved the new technology established in the target
market. In this part of the PESTEL/PESTLE system, current innovations and mechanical patterns
are dependent on their impact on business conditions (Grant, 2016). Their are various
opportunities that are new in the market, which can be used by companies to make profits in the
long run.
Their are various channels for distributing the computing request in the market. (opportunity)
Expanding innovative joining in organizations (opportunity)
It helps in Developing portable market for the firm in the target audience. (opportunity)
Developing innovative capacities of different firms (risk)
This PESTEL/PESTLE examination of Apple Inc. recognizes the developing interest for
distributed computing as a chance to develop the business. The organization presently offers
cloud administrations, in spite of the fact that to a restricted degree. In abusing this chance,
together with help from Apple Inc's. corporate structure, building up an extended cloud
framework could augment the gainfulness of the business in offering distributed computing
administrations. In connection, the outer vital factor of expanding innovative combination shows
the chance to upgrade the organization's administrations and develop the business by offering its
mechanical merchandise and enterprises to more clients, including associations.
Legal Factors: The legal factors refers to rules and regulation of the particular countries which
has different impact on the working condition of the company. This part of the
PESTEL/PESTLE examination structure shows the effect of laws or guidelines on organizations
(Hicks, 2018). A Apple company has the most critical legal outer components which are decided
below:

Their are Expanding security guidelines for the companies which needs to be taken care in the
market.
Their are various another legal issues which can be difficult for the company to implement in the
work place. whereas it is important on other hand to have a proper legal procedures so that work
can be performed effectively.
This PESTEL/PESTLE investigation recognizes a similar outer factor as a pattern that introduces
the open door for Apple to help its business through upgrading the protection measures in the
work place. This helps company to achieve the goals on time and in efficient way. F
Environmental Factors: These factors refers to micro and macro environment factors which can
effects the working condition of the company. They are internal and external factors presents in
the company and environment of the company. They can be favourable or unfavourable
depending upon the needs of the particular company. The Apple company has various
opportunities present in the environment which can be beneficent for company as well as for
the customer. This part of the PESTEL/PESTLE investigation model features environmental
patterns and their effects on business (Ionescu and Bolcaş, 2016).
They have a business maintainability pattern in the market (opportunity)
In this PESTEL/PESTLE investigation of Apple Inc., such an environmental pattern offers the
chance to reinforce the organization's corporate picture in the new way. What's more, the vitality
proficiency pattern is a biological outer factor that advances the reception of more up to date and
increasingly effective innovations among organizations and clients. Apple has the chance to
improve its operational cost efficiencies in such manner, while offering progressively appealing
items to an inexorably earth mindful client populace.
SWOT Analysis of Apple Company: The following analysis is used to know about the
strengths and weaknesses of an organisation along with the available opportunities and threats to
the company for the achievement of their goals and objectives. The reason behind conducting
this analysis is related to knowing about the potential opportunities and threats of the company
that could impact upon them and their working. With the help of this consideration, it will be
possible to make improvement in the working of organisation and the only reason behind
conducting this analysis (Jean-Vasile and Alecu, 2017Jean-Vasile and Alecu, 2017Kasemsap,
2015). The application has been provided as under:

Strengths: This part of the SWOT examination system recognizes the qualities that empower the
organization to defeat shortcomings, make the most of chances, and withstand dangers in its
business condition. These qualities are inner variables explicit to the conditions inside the
business association (Makojević, 2016). For this situation, coming up next are the most
prominent qualities of Apple Inc.:
Solid brand picture
High net revenues
Viable quick improvement forms
Apple is one of the most significant and most grounded brands on the planet. With regards to this
SWOT examination, the organization is fit for presenting beneficial new items by goodness of its
solid image picture. Likewise, Apple's promoting blend or 4P includes the superior estimating
technique, which accompanies high net revenues. This inward key factor is a significant quality
since it boosts benefits, in any event, when deals volumes are restricted.
Weaknesses: In this part of the SWOT examination, the accentuation is on the shortcomings or
insufficiencies of the organization. Shortcomings are interior factors that are deterrents to
business development (Matijević, Vrdoljak Raguž and Filipovıć, 2015). The accompanying
business shortcomings are the most eminent on account of Apple:
Constrained circulation assembles
High selling costs
Reliance of offers on top of the line advertise sections
Apple Inc. has a constrained circulation arrange on account of the organization's strategy of
elatedness. For instance, the organization cautiously chooses the approved venders of its items.
The SWOT investigation structure considers this restrictiveness methodology as a factor that
points of confinement advertise reach. This shortcoming exists in spite of restrictiveness'
preferences, for example, Apple's solid control on the appropriation of items. Furthermore, as a
result of its top notch evaluating methodology, the organization has the shortcoming of the
reliance of offers on very good quality market fragments. Significant expenses pull in clients
from the centre and high-levels of pay, while keeping clients from low-levels of pay to
effectively buy the organization's products.
Opportunities: This part of the SWOT investigation of Apple Inc. pinpoints the most huge open
doors that are accessible to the business. Openings are outer variables dependent on the business

condition. These elements impact the key bearing of business associations (Namada, 2018). For
Apple's situation, coming up next are the most critical chances:
Development of the dispersion arrange
Higher deals volumes dependent on rising interest
Advancement of new product offerings
Apple Inc. has the chance to extend its dispersion organize. Such open door straightforwardly
identifies with the shortcoming of the organization's restricted dissemination arrange. This
SWOT investigation underlines the requirement for the organization to change its dissemination
system. An extended conveyance system can assist Apple with arriving at more clients in the
worldwide market. In connection, the organization has the chance to expand its business volumes
through forceful promoting, particularly for portable items. This open door is connected to the
rising interest for portable access, as outlined in the PESTEL/PESTLE investigation of Apple
Inc. Moreover, the organization has the chance to investigate new product offerings.
Threats: In this part of the SWOT investigation, the emphasis is on the dangers that the
organization encounters from different sources, for example, contenders. Dangers are outer
elements that confine or decrease the money related execution of organizations (Nikitina and
Lapiņa, 2019). For Apple's situation, the accompanying dangers are the most critical:
Forceful challenge
Impersonation
Rising work cost in different nations
Extreme challenge in the business is incompletely a direct result of the forcefulness of firms.
Apple contends with firms like Samsung, which additionally utilizes quick advancement. With
regards to this SWOT investigation, forceful challenge limiting affects Apple Inc. As a result of
the forceful practices of contending firms, it is important to have solid basics for keeping up
upper hands. What's more, the organization faces the danger of impersonation. This danger is
critical in view of the enormous number of local and global firms that emulate the plan and
highlights of Apple's products.
3. Limitations of Micro Economics
Pay As You Go Model: Pay More only as costs arise (PAYG) is an utility registering charging
strategy that is actualized in distributed computing and designed for associations and end clients.

A PAYG client is charged for acquired, as opposed to real, processing assets. The PAYG
component is gotten from utility processing (Phillips and Moutinho, 2018).
PAYG is otherwise called Pay and Go, Pay Per Usage, Pay Per Use or Pay-As-You-Use.
PAYG enables a client to scale, redo and arrangement registering assets, including programming,
stockpiling and advancement stages. Asset charges depend on utilized administrations, versus a
whole foundation.
Open cloud assets approach and apply the PAYG model in an unexpected way. For instance, a
client provisioning a committed cloud server is commonly charged by server power and
utilization and on a repetitive premise. Programming as a Service (SaaS) works correspondingly,
where a client leases programming and redid highlights. Capacity as a Service (SaaS) charging
turns consistently on the grounds that capacity necessities increment is generally liable to
steadily expanded evaluating (Prowle and Lucas, 2016).
CONCLUSION
From the above data it has been concluded that it is important for the company to make
analysis of the external factors which impacts upon the working of their organisation with the
help of which it will be possible to know about the possible impact and the ways with the help of
which it could be reduced could be known. In addition to this, the conclusion has been drawn
about the internal analysis which provides about the knowledge to the company about the ways
with the help of which the company could achieve their goals and objectives in an effective and
efficient way.

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