It is without a doubt that every company will face the impact and influence which the macro environment has emerged in an organization. By using the PESTLE analysis which refers to politics, economic, social, technology, legal and environment. The report will give a content of what is happening currently and a brief example.
Political
First, going through the politic factors, Apple Company takes advantage of these political opportunities by the influence of organizations, such as the government, on business. The success of Apple’s presents opportunities gives a political stability of the landscape that is successful in many developed countries. This causes the effect of the business to expect minimal political issues (LOMBARDO, 2017). Although
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For example, Apple Company will face political unrest in Asia that could disrupt product manufacture. This is because the company will always have third parties manufacture in Asia to sell the products worldwide and in terms of that, this does not give the Apple headquarters a chance to take over things it can’t control such as natural and man-made disasters, information technology system failures, military actions or economic, business, labor, environmental, public health, or political issues. Since the headquarters are too far away from other third parties market place, there is no sight of control for it (Carlson, 2012).
Economic
As for the economic factors, it is important to understand how the unemployment rate, income level, disposable income, household income, changes in the economic environment, changes in interest rate, and inflation rate will affect the company. Firstly, the employment rate of Apple Company is fairly low. Despite the huge unemployment rate, only created 50 new jobs and the income of
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It is important to understand the laws and regulations implied to Apple Company. But how will the laws and regulations will affect the company of Apple? Since the beginning of the operation, Apple Company has always been a participant in various legal proceedings and claim (Slideshare, 2014). As for that with all the law and regulation, they are command to change. Changes for instance are restrictions on production, manufacture, distribution and use of devices. Apple’s products are needed to go through the process of the investigation of the Federal Trade Commission. The approval of the products can be extensive and can result in more testing, changes in product or even stop the company from selling the product. If Apple Company fail to meet any of the FCC’s demands, it will be forced to stop any production and will either cause loss in revenue. Not only that, the FCC has a strict role of the security of our nation’s communication infrastructure (Course Hero, n.d.). The Company is subject to risks associated with laws, regulations and industry-imposed standards related to mobile communications devices. Therefore the name of the law is AAPL. For example of the laws related to mobile communication device are AAPL 10-K 2009 and AAPL 10-Q 2008 (wikiinvest, 2007). Last but not least comes the environmental factors, the products are basically manufactured by Apple Company but it takes
In this segment we will discuss about the external forces of the company that are not controllable (Keegan and Keegan, 1989). PESTLE analysis will be an effective tool here to analyze the factors. 2.1.1 PESTLE Analysis PESTLE is a very effective macro environmental tool containing six important factor. Political Factors In India political factor is very vulnerable.
Pestle Analysis Political Factor Eataly operates in global environment with their operation spread all around the globe; the operation of the company is influenced strongly by political situation of the country where they are doing business. As Eataly have flexible policies to adjust in an unstable economy (Reijers & Mansar, 2005). Economic Factors The entire planet has witnessed the economic decline and hence the characteristic of purchasing products has been greatly affected all companies without exception Eataly. In addition, the income level of Europe is relatively uneven which makes some people fail to pay for products offered by the company (Chaffey, 2009).
Huawei, being a multinational company is affected by the external business environment. As such the impact of the external business environment factors on Huawei’s marketing strategy are explained by the PESTEL Model as follows: 1. Political Factors Political factors include laws and legislations which are of great importance due to the fact that they enclose many aspects of a company policy. Through regulatory bodies, the government implements policies that affect businesses in various ways (Vrontis and Pavlou, 2008).
Next, the three crucial economic factors that affect the company include inflation, recession and currency. As Apple products are commonly viewed as luxury products, and with inflation and
Apple Company Apple Inc. is a private company, and it is one of the world 's most famous technology and computer companies, located in the United States of America. It is a multi-national company. Its main business depends on specialization in manufacturing, producing, developing, improving and selling software, smartphones, computers; It has a series of electronic devices, such as iPad, iPhone and Mac. The origin of Apple Company Founded by Steve Jobs and his co-pilot Steve Wozniak, Apple Computer was able to design a computer in the form of the beginning of Apple computers in the time period Between the years 1981 to 1985; since 2005 until now, Apple has seen many developments; successive successes.
PESTEL analysis is a tool that is used to analyse an organisation’s macro-environment. Political Environment The incident of 9/11 has affected the airline industry adversely. The number of tourists to different countries has immensely decreased due to the fear of safety and security issues. On the other hand countries have put measures in place such as strict visa policies and border controls in an effort to combat terrorism attacks.
PESTEL ANALYSIS Pestel is a strategic analysis tool used by organizations to scan the macro-environment in which they operates, helps to identify external factors that can affect the organization's business activities and performance (Gockeln 2014). Macro-environmental factors are those that affect clothing industry and the industry have no control over rather than adapting to it. By so doing, it gives ability to differentiate themselves from potential competitors and sustain performance. Table 2 depicted, (PESTEL) Political, Economic, Social/ Cultural, Technological, Environmental and Legal external factors. Political factors: these are examined from the political stability point of view, which covers government policy intervention in the economy, deregulation, taxation changes, as well as the attitude of political parties on the government policy.
In this way, the sale of products in world-wide market will increase. • Increased labor costs in China could take away the cost advantage of some Apple products. • Decaying middle-class incomes in some developed countries, including the United States, could shrink the potential market for higher-end consumer goods such as those marketed by Apple. • A strong U.S. dollar could increase exchange rates, making it more expensive for Apple to do business in key markets like Europe and
Apple is one of the well-known electronics brand in the world. Millions of people were waiting in the line to get their new phone devices at the Apple store. This tiny device has many impressive characteristics that attract consumers. Every year the company comes out with new device features with a new advertisement to catch the consumer attention. According to the official website, the first iPhone advertisement was released in 2001.
. STUDY OF ENVIRONMENTAL FACTORS a. PEST Analysis: i. Political: L 'Oreal faced issues in the dermatology branch led by Galderma due to new legislations governing drugs. The EU law affects L 'Oreal and restricts their use of certain kinds of carcinogenic chemicals, such as Phthalates. L 'Oreal is obligated to produce safe products that do not contain any harmful substances.
1. INTRODUCTION Apple Inc. Official, a famous IT company in the world, began with a computer. They produce electronic gadgets with a good quality and attractive over the year. With their massive success, however, they are actually having problems, regardless internal or external problems.
Further, the growth of the world’s economy was also very slow in 2012 and was expected to be same in 2013-14 as obvious. Apple has been affected by a crisis such as the change in American regional sales for the current year was 9% in 2012-13 compared to 50% of 2011-12, in Europe, 4% in comparison to 31% and in greater China 13% in comparison to 78% (Apple INC, 2012). The unemployment rate in U.S was 7.9 during 2012- 13, 4.1 in China and 4.6 in Japan, was one of the significant causes of the downturn in sales growth (Trading Economics, n.d). Euro crisis, U.S fiscal problems and hard landing of large developing countries will likely continue in the coming couple of years leading Apple to more toughen economic situations (IMF, 2013). Moreover, stringing dollars had also source of problem for Apple product prices, transportation cost and profit margins (Apple INC, 2012).
Then, this company started specializes in much more than just computers. Apple Company invented new products such as iPad in 2001. Therefore, this is a reason that Apple becoming the superiority market leader in music players. In 2007, Apple joined the phone industry with the iPhone. Apple is a huge consumer goods company that evaluating its value requires understanding
The company’s products and services include the infamous iPod, iPad, iPhone, Mac, and Apple TV. Apple has a collection of consumer software appliances, various operating systems, and a variety of other services. (apple.com, 2014). Within this research paper, we will discuss Apple’s internal and external reports along with factual examples to support the reasoning provided. Introduction Apple Inc. is an American international association headquartered in Cupertino, California.
PESTLE analysis is include of political, economic, social, technological, legal and environmental factors. PESTLE is a business tool that used by companies to track and analyse the macro environment in which the company operate. This tool is very useful which help in overall growth and development of organization after learning from the past mistake and working for future. The first factor is political factor which include such as law of land, taxation policies, rules and regulation, trade restriction and so on.