University Business Environment Analysis Report - Semester 1

This report provides an external environmental scan of Apple Inc., examining various factors influencing its operations. It begins with an overview of economic trends and factors, highlighting opportunities in developing countries and stable conditions in developed countries. Political factors, including free trade policies and stable conditions, are also considered. The report then addresses regulatory and legal factors, focusing on privacy regulations and telecommunication growth, followed by societal factors such as social media usage. Technological factors and geographic trends are also analyzed. The core of the report is Porter's Five Forces analysis, evaluating the threat of new competition, substitute products, bargaining power of customers and suppliers, and the intensity of competitive rivalry. The analysis concludes that Apple faces high levels of competition and must manage operations effectively for sustainability.

Running head: EXTERNAL ENVIRONMENT SCAN
EXTERNAL ENVIRONMENT SCAN
Name of the Student
Name of the University
Author Note

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EXTERNAL ENVIRONMENT SCAN
Table of Contents
Economic trends and factors..........................................................................................2
Political trends and factors.............................................................................................2
Regulatory and legal factors...........................................................................................2
Societal factors and trends.............................................................................................2
Technological factors and trends...................................................................................2
Geographic factors and trends........................................................................................3
Porter’s five forces that consists of the following aspects:............................................3
Threat of new competition.............................................................................................3
Threat of substitute products or services........................................................................3
Bargaining power of customers.....................................................................................3
Bargaining power of suppliers.......................................................................................4
Intensity of competitive rivalry......................................................................................4
References......................................................................................................................5

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EXTERNAL ENVIRONMENT SCAN
Economic trends and factors
The economic factors and trends are able to develop effective opportunities for the
operations of Apple Inc. The industry and market based conditions are thereby defined in an
effective manner with the help of proper analysis of these factors. Major opportunities that
are provided by the economic condition are based on the growth rates of the developing
countries and stable economic conditions that are depicted by the developed countries
(Brown, 2015).
Political trends and factors
The political factors are thereby based on the proper improvement of the free trade
based policies and the stable political conditions which have been formed in the developed
countries. The major aspect of the model which is able to affect the business operations of
Apple is based on policies which are developed by the governments in an effective way
(Apple.com., 2018).
Regulatory and legal factors
The legal factors are thereby based on the privacy based regulations that are formed in
the technological environment of different countries. The rapid growth in telecommunication
based services is also considered to be an important factor in effective operations of Apple.
Societal factors and trends
The sociocultural and social factors are considered to be important for the proper
analysis of expectations and behavior of the consumers. The growth which has been seen in
the usage of social media and mobile based access is able to act as an important factor in the
operations of Apple Inc. (Davcik & Sharma, 2016).

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EXTERNAL ENVIRONMENT SCAN
Technological factors and trends
The technological environment of different countries is able to play a major role in
development of the products of Apple. The levels of technological integration is thereby
considered to be an important part of the effective revenues and profitability of Apple in the
technology based industry. The company is thereby able to design the apps based on needs
and demands of consumers (Schmelz, Ramsey & Gassenheimer, 2011).
Geographic factors and trends
The environmental and geographic factors are able to influence the effective
operations of Apple in the industry. The maintenance of business sustainability is thereby
able to play the most important role in the production based process of Apple in different
countries.
Porter’s five forces that consists of the following aspects:
Threat of new competition
The entry of new organizations in the industry is a force which is able to affect Apple
in a moderate way. The high requirements of capital and high value of the brand are
considered to be important factors which restrict the new companies (Soo Hoo, 2016).
Threat of substitute products or services
The threats which are provided by the substitute products of Apple Inc. are quite low
in case of Apple as the organization is able to provide unique and innovative products to the
customers. The high levels of availability of the substitutes is a moderate force and on the
other hand, low performance which is depicted by the substitutes is a weak force (Peterson et
al., 2010).

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EXTERNAL ENVIRONMENT SCAN
Bargaining power of customers
The bargaining based power which is depicted by consumers or buyers in the industry
is quite high. The consumers are able to affect the prices of the products and the services that
are thereby offered by the company.
Bargaining power of suppliers
The supplier based force which is experienced by Apple in the technology industry is
weak in nature. The company has been able to develop huge number of dedicated suppliers in
the industry. This has been a major reason behind the ways by which the company is able to
dominate the suppliers in an effective manner. The prices of products are thereby not affected
by the suppliers of the company (Davcik & Sharma, 2016).
Intensity of competitive rivalry
The levels of competitive rivalry which is thereby faced by the company in the
technology industry are quite high. The levels of rivalry which have been depicted between
the organizations have been able to affect the effective levels of operations of Apple. The
highly competitive technology industry is thereby able to affect the levels of operations of
Apple
Inc. in the industry. The high levels of aggressiveness of the other technological
organizations have been an important part of the rivalry based levels which are faced by
Apple Inc. (Schmelz, Ramsey & Gassenheimer, 2011).
The analysis of the industry has been able to depict that Apple has faced huge levels
of competition from the organizations which operate in the technology based industry of
different industries. Apple Inc. thereby needs to manage the operations in such a manner
which will play a major role in its sustainability in the industry in an effective way.

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EXTERNAL ENVIRONMENT SCAN

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EXTERNAL ENVIRONMENT SCAN
References
Apple.com. (2018). Apple. Retrieved from https://www.apple.com/
Brown, R. S. (2015). Strategic Intent, Capabilities and Financial Performance: A Study of the
Pharmaceutical Industry. Journal of Management Policy and Practice, 16(1), 18-30.
Davcik, N. S., & Sharma, P. (2016). Marketing resources, performance, and competitive
advantage: A review and future research directions. Journal of Business
Research, 69(12), 5547-5552.
Schmelz, D. R., Ramsey, R. P., & Gassenheimer, J. B. (2011). Bleu Ribbon Chocolates: How
can small businesses adapt to a changing environment? Marketing Education
Review, 21(2), 177–182. doi:10.2753/MER1052-8008210207 (EBSCO AN:
63968062)
Soo Hoo, P. L. (2016). Exploring culture theory GLOBE in cross-cultural communication in
Asian business negotiations. International Review of Management and
Marketing , 6(7)
Peterson, M., Gröne, F., Kammer, K., & Kirscheneder, J. (2010). Multi-channel customer
management: Delighting consumers, driving efficiency. Journal of Direct, Data and
Digital Marketing Practice, 12(1), 10–15. doi: 10.1057/dddmp.2010.16.