are all the economic factors. The ability of people or purchasing power of Apple products is targeted from medium to high class. Economic factors effect Apple Company’s business process as Apple is recognized internationally. The products components that the company gets from foreign suppliers play an important role because of the exchange rates and currency differences. For example, the sales of Apple products in US will decrease if there is a rise in the US.
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
During the past recession Apple has launched the iPod and iPad. Apple reinvigorating the software industry for computers is a point that tends to get overlooked, done by way of apps, but also occurring with desktop and notebook software as well. The iOS design and development has made 210,000 jobs and increasing in the U.S.. The impact Apple has in the U.S. is powerful (CONS) Potential Impact of Economic Factors on Apple Increased labor costs in China, stagnating middle-class incomes in developed countries and the increase of a U.S. dollar could withdraw the advantage of cost, reduce the potential market for higher-end consumer goods and cause it to be more costly for apple to do business
in The Economist examines the profit margins and extremely successful business strategies of Apple Inc. This article focuses on the economics based and financial aspects of this powerful enterprise. The main idea of this article can be “Apple’s soaring success in the market due to the sales of the iPhones may not be profitable for them in the long run.” This argument or thesis tries to answer the question “What has contributed to Apple’s rapid growth in the market? What are the business risks that Apple Inc. must take into account for this continued success?” The article provides sufficient evidence of Apple’s success by providing facts about the company’s profit and revenue such as “…it had made $18 billion in its latest fiscal quarter…” and “…sales of its hugely popular iPhone, which accounted for over two-thirds of its $74.6 billion revenue.” It also speaks of Apple’s success in China, where Apple’s competitors have failed to establish a clear market, by mentioning “Apple’s revenue from the Greater China region, which includes Taiwan and Hong Kong, soared 70% to just over $16 billion.” The article also briefly mentions Apple Inc.’s progress in relation to its competitors such as Google, Facebook etc. The article also sheds light on some business risks such Apple’s over-dependency on its popular iPhone devices and how it might not be sustainable in the future.
Volkswagen has Corporate Social Responsibility embedded into its company’s culture and values. This leads them to regularly conduct projects displaying this responsibility towards society on a regular basis and they ensure to do so across the globe. Although it is part of the law and compliance for companies to serve the society as a way of giving-back to them, Volkswagen takes an extra step in actively getting involved and engaged with the community. They have had numerous projects and a selection of them is described in the following
Trainings and seminars that are company sponsored help motivate employees to be better and aspire to grow within the company. They also create the impression that the company is people focused and values its employee’s growth. Many employees at Apple attested to one feature that they loved about the company; fun. That made it worthwhile to go to work even if the pay was not at a rate that they approved of or competition in the market was fierce. Apple has singled itself out as a company that embodies creativity and the ability to have fun.
Introduction Macro environment comprised of the larger forces that affect the microenvironment such as demographics, natural, technological, economic, political and cultural forces (Kotler and Armstrong, 2014). The changing forces in the macro environment can be often turbulent to companies as it pose threats and shape opportunities. Some can be anticipated and handled through skilful management. However, others are uncontrollable and unforeseeable. Hence, to survive in the midst of ever-changing business world, firms should recognize the underlying importance of environmental scanning and take into account relevant environmental impacts in the decision-making processes.
The corporate additionally has environmental programs for utilization and accountable sourcing to handle customers’ demands for business property. Thus, Apple’s company social responsibility efforts satisfy the interests of consumers because the prime stakeholders of the
The conditions that the economy environment included, that is, the inflation, employment, monetary and fiscal policy… in a specific sector or region. The macro environment is closely linked to the general business cycle, as opposed to the performance of an individual business sector. -Physical factors: municipalities growth, population go to the regions are more developed, so we have to considerer what are these areas to create there our business. Climatic diversity, Zara knows this diversity so the clothes that it produces will be linked with the climatic of the region, for example, the North is cold, so the winter´s season arrives before. -Economy factors: world economic crisis that resulting in a change in the consumer income, if the
It adopted a series of acquisitions and mergers. It was performing good in its home market till mid-1980s. However, profit started declining despite increasing efficiencies and product quality due to market maturity in US. In other markets it could hardly do well. From exhibit 5, we can see that there was a decline of sales from 1996 to 1997 for North America (-0.89%), Europe (-6.05%) and Asia (-13.23%).