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UNIT 1 ASSIGNMENT 2
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Unit 1 Exploring Business
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Unit 1 assignment 2The Effects of the Environment on a Business
In this assignment I’ll be talking about external and internal environments of Apple and its
competitive environment.
Discuss the internal, external and competitive environment on a given organisation.
Intro: Apple is an American multinational technology company which was first founded on the 1st
April 1976 by Steve jobs and Wonzunak Ronald Wayne. Apple designs and sells electronics,
computer software and online services. Apple sell goods and provide services such as iCloud,
Apple pay and iTunes.
Internal Environment
Corporate Culture
1
Corporate culture refers to the beliefs and behaviours that determine how a company's
employees and management interact and handle outside business transactions. Apples culture is
seen as very diverse as shown on these results:
By its employees Apple is seen for its creativeness. 2 The company's cultural features focus on
maintaining a high level of innovation that involves creativity and a mindset that challenges
conventions and standards.
Corporate Social Responsibility
Corporate Social Responsibility is what can greatly influence the operations of a business. For
example, the pollution from manufacturing Apple devices in these factories could cause huge
problems with the environment as times go on. This could deeply influence Apple as a business
as customers may not want to buy such harmful devices to the environment.
Ethics
Ethics are 3a system of accepted beliefs that control behaviour, especially such a system based
on morals. Apples ethics is that 4 It bases its success on “creating innovative, high-quality
products and services and on demonstrating integrity in every business interaction.
,1 https://www.investopedia.com/terms/c/corporate-culture.asp
2 http://panmore.com/apple-inc-organizational-culture-features-implications
3 https://dictionary.cambridge.org/dictionary/english/ethic
4 https://danielsethics.mgt.unm.edu/pdf/Apple%20Case.pdf
External Environment
Pestle analysis is used in order to make decisions whether or not to operate in a certain country.
Pestle stands for Political, Economic, Social, Technological, Legal and, Environmental.
Political
One political factor that could affect Apple is an increase in tax. Tax is money that people have to
pay to the government. The government uses the money it gets from taxes to pay for things. This
could affect apple because an increase in tax on products could make importing and exporting
goods harder for the business. As importing goods from suppliers could make the price very
expensive which could dent the revenue of the business. Whereas with exporting you may lose
buyers as they may look for cheaper alternatives that don’t have tax.
Another political factor that could affect Apple is a change in government. A change in
government may mean a change in policy and new policies that may not favour certain
businesses. It may also mean that there is a new president or Prime minister. New policies mean
changes can be easily reducing profits for the businesses. With a change in government there
could be drastic changes that could affect apple as a business.
Economic
One economic factor that could affect Apple is the unemployment rates. Unemployment is a
situation where people are able to work and willing to work but have no job. This could affect
Apple because if the unemployment rate increases people will have less money to spend and
this will negatively affect sales and revenue for Apple.
Another economic factor that could affect Apple is Recession. Recession is when for two
quarters (six months) in a row the value of all goods sold in an economy falls. This can affect
Apple because during those two quarters the businesses revenue will be greatly impacted as it
will increase fast causing the business to not be able to grow. Which will also massively affect
the cash flow of the business.
Social
One social factor that could affect Apple is the cultural beliefs of the business. Social trends
relate to the value system beliefs and practices of a population. It shows how society is changing
in the long term. Business must take the cultural values of their customers into account to be
successful. For example, during Protests about race and sexuality if Apple isn’t seen as
supportive, they are going to lose customers as they will see the business in a negative light.
Another social factor that could affect Apple is social trends. Social trends can affect Apple
because there could be software updates for example iOS 14 which increase the popularity of
the mobile Apple as there were many different aspects to it making the phone experience much
better.
Technology
One technological factor that could affect Apple is Automation. Technology is science or
knowledge put in practical use to solve problems or invent useful tools. Automation is the use of
automatic equipment in manufacturing or other process or facility. Automation can affect Apple
as a business as the machines are more accurate and faster making it a lower chance of failure
in any of the products.
, Another technological factor that could affect Apple is improved communications. Good
communication is needed when running a business especially a large multinational business.
This can affect Apple because it helps information to be shared quickly and accurately. Which
helps the company be able to catch such big opportunities.
Legal
One Legal factor that could affect Apple is Employment Law. Legal factor refers to how the law
affects the way businesses operate and customers behave. This can affect Apple as a business
as employment law determines how well employees are treated in the business. If Employees
are treated unfairly that could affect the publicity of Apple will affect the sales of Apple
Another factor that could affect Apple is health and safety law. This can affect Apple as business
because employers are responsible for employee's safety. They need to protect their employees
whether that be making sure that the job and work environment is safe and has no health risks. If
Apples environment isn’t safe even for customers, the company will also look bad in the eyes of
the public which could affect the growth of the business.
Environmental
One environmental factor of Apple is carbon footprints. Environmental factors are those factors
outside of the business that no one has control over. This can affect Apple because 1Carbon
footprint is the amount of carbon dioxide released into the atmosphere as a result of the activities
of a particular individual, organization, or community. This can affect Apple because 2 by
minimizing the carbon footprint of your business, you can cut energy costs, improve employee
morale, build your brand's reputation as a leader in sustainability and even increase your bottom
line – all while protecting the resources and planet we need to operate and thrive
Another environmental factor is Pollution. This can affect Apple because in China the
manufacturing sites creates a high amount of pollution which is concerning for everyone. This
may affect the sales of Apple because customers may feel that using and buying these devices
may be damaging the environment more and more.
Competitive Advantage
In order to keep a competitive advantage, businesses must keep their eye to keep a competitor
are doing and try to anticipate what they plan to do.
Factors influencing competitive advantages are:
• Differentiation
• Pricing policies
• Market Leadership
• Reputation
• Market Share
• Cost Control
• Technology relationships with customers.
Apples main competition is Samsung, Microsoft, Dell Lenovo, HP, Sony, Asus, Xiaomi, Huawei,
and Oppo. Apple are ahead of their competitors because of its differentiation in its products.
Apple has its unique products for example its wireless air pods and its interactive software
updates e. ios 14. No other businesses like Apple have interactive ios software updates which
makes the business more unique making it easier for the brand to become more dominant and
hold a greater reputation.
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