MACRO ENVIORNMENT: Macro environmental factors are those irrepressible external factors that affect the company’s decision making process. These factors include demographic, socio-cultural, economic, political-legal and also the natural factors. Demographic factors – Demographic factors include age, sex, religion, location, thickness, occupation etc. Apple Company has 217 stores in United Stated and about 273 stores worldwide. Apple Company has a total of about 36,800 employees.
This leaves Apple susceptible to significant political and economic risk both internationally and within the United States. As global economies adjust to political influence, threats of civil unrest and natural global disasters Apple will be affected by exchange rates, unemployment, supply shortages which impact on production costs, and ultimately a downturn in sales (Khan et al. 2015). At the same time Apple
Q1.a When talking about environment in general, we think of the surrounding things that have an ability to affect. Same is applied with marketing environment. Marketing environment is the collection of all of the surrounding actors and forces that have the power to affect the company 's ability to do its job in having good relationship with target customers and satisfying their needs (Kotler, Armstong, Tolba, Habib, (2011). Marketing environment consists of internal and external factors that have direct affect on the marketing program. Internal factors (or the microenvironment) are the ones closed to the company, for instance, the company, it 's suppliers, the marketing intermediaries, competitors, public and customers.
2.0 Situation Analysis 2.1 PEST Political Factors (CONS) Potential Impact of Legal Factors on Apple The recent entry of Apple in the highly regulated financial services sector and by offering financial services , could increase the level of regulation, government oversight and litigation . Reports of Apple planning to enter another highly regulated sector of automobile manufacturing could also increase regulatory, insurance and the cost of litigation. Apple is highly vulnerable to piracy and litigation due to their dependence on products such as software and music for its income. Economic Factors (PROS) Apple Drives Economic Growth Apple posted growth and record-setting revenue numbers during the most recent recession, being one of the few bright spots, it provides hope for many. During the past recession Apple has launched the iPod and iPad.
As in other multinational companies, Apple Inc. also have its Code of Conduct in managing its company. Apple is committed to ensure that its working conditions in the Apple’s supply chain are safe. In which situation that the workers are treated with respect and dignity. Besides, the manufacturing processes are in the condition where it operate as environmentally as responsible. Apple’s suppliers are required to operate in full compliance with the laws, rules, and also the regulations of the countries they are operate in all of their activities.
2. Threat of new entrants – Moderate or relatively low. Requires high investment and capital. In addition, Apple’s ability to continuously differentiate its products from other companies makes it hard to copy their success. Apple also produces at relatively low cost due to economies of scale of wide-spread
The larger firms if are possessing cost benefits and advantages to their smaller counterparts and internal scales are advantageously benefitted lead to imperfectly competitive environment. If external economies of scale are crucial than the company with a large industry base in that sector would flourish than a country with a small industry base. The external economies will play to the advantages of the industry and larger the industry the larger would be the advantages in servicing costs, operating and manufacturing and processing
that are peripheral to the corporation and are beyond the control of the business. The macro environment is the general environment and the market environment is the competitive environment and theses impact the business and the business will have to change their strategies. The market environment can impact the internal environment and it can be impacted by internal and macro environment. Swot analyse The swot analysis is made up of strengths, weakness, opportunities and threats and it is important for business to use this so that their business can run smoothly and efficiently and to its full potentials. It assesses the internal and external environments so that you are able to adjust or rethink your strategies.
The micro-environment of the company includes: “suppliers, intermediaries, competitors, customers, and publics.” The micro-environmental forces of the company contain “potential entrants”. Apple has to make sure to have a high barrier to enter the market and keep low cost of unit production to avoid new entrants to the market, so they can’t get a greater profit. Another force is competitors and “the competitive rivalry”. The biggest competitor of Apple Inc. is Samsung Company. They have very similar products.
All decisions made by a company affects the surrounding communities and therefore the stakeholders should ensure that they make decisions that are in favor of those communities. When making decisions, they should have in mind all the ethical considerations and ensuring that the communities are involved in local events. That way, the company creates for themselves a good image in the eyes of the customers and therefore encouraging them to use their products. Controversial corporate social responsibility concern associated with Apple Apple has been accused of conducting business with companies that have violated the law. For example, Foxcon are their suppliers and are known to violate the laws such as using poisonous chemicals.