Question

Business Strategic Management: Strategic Audit

Apple Inc.'s External Environment:

What are Apple's (1) Natural, (2) Societal, and (3) Task Environments?

(A large response would be great, needs to be very detail)

Answer 1

Answer:

Apple Inc. is an international American company that produces computer software, cell phones, personalcomputers and consumer electronic products. The well-known products of Apple include: the iPod, theiPhone, the Macintosh line of computers and the iPad. 301 retail stores in 10 countries are operated byApple in August 2010. The software of Apple consist on the Mac OS X operating system, iWork suite of productivity software, Final Cut Studio, Logic Studio a music production tool’s suite, iOS; a mobileoperating system, the iTunes media browser, the iLife suite of multimedia and creativity s oftware,Aperture; a professional photography package, AirPlay, Airprint, etc

Apple Company was developed on 1st April, 1976 by the co-founders named Steve Jobs and SteveWozniak in Cupertino, California. The first 30 years of the company was named Apple Computer Inc. butlater on January 9,2007, the word “Computer” has removed (Business Insider, 2013). They introducedApple I computer in 1976 which was a failure but in 1980, they launched Apple II which was successful.The IPO offered by the company in 1980 (Datamonitor, 2006).

The purpose of this assignment is to critically analyze the context within which the company operates byanalyzing the external and internal environment. In order to achieve this different analytical tools andmodels will be applied. Then the objectives and strategy of Apple will be identified and evaluated. Therewill be examples of the implementation of the strategy at the end.

External Environment: External business environment represent the uncontrollable factors, the external factors can be analysed using PESTEL and Porter’s five forces. Kotler argues that PESTEL analysis is an effective strategic tool for understanding market development and decline, business position, conceivable and direction for operations.

PEST Analysis:

To gain an understanding of Apple’s business potential, direction of operation and to know situation of future market, we will use PEST analysis.

1.Political Factors:

There are many problems which cannot be controllable by the company such as; geopoliticaluncertainties, war against terrorism, authority to work and health issues which can affect the sale of Apple’s product worldwide. As to reduce operating cost Apple has outsourced in different countries like Ireland, China, Korea, Czech Republic and Cork. If these countries face any political instability or any problem which causes to delay in manufacturing operations, will led to spoil the Apple likeness in theeye of consumers and its dealers (CNetnews 2012).

2. Economic Factors:

Purchasing power depends on the World’s economic conditions. According to past few years,unemployment rate is very high in many countries which cause to decrease the sale of Apple products.Another reason was increase in oil prices which causes inflation in world’s economy.  As a result of theseeconomic factors, purchasing power of people reduced which negatively affected the sale of Apple products due to its higher price. But now world’s economic conditions are getting better and companyhas purchased itself foreign currencies, so Apple revenue has increased in the global market (Apple Inc2012)

3. Social Factors:

Two factors always have been on forefront of Apple product throughout the history, the design and thequality. The purchasing of luxury products have gone up because the purchasing power of consumers hasrisen in different market across the world and people prefer to buy iPod, iPhones and latest technologyiPad. As music industry growth has increased which is the biggest social influence on Apple because themain essential music store is iTunes. Therefore, Apple has gained so much from social factors because it’s defining a individual’s modern lifestyle.

4.Technological Factors:

Apple always takes advantage because of its innovative and high technologies products. The large amount has invested in research and development field by Apple, that’s the reason Apple comes in top of the new innovative products.