Question

In: Accounting

Your mini-term project should be approximately 2 pages, Times New Roman, 12-point font, 1” top, bottom...

Your mini-term project should be approximately 2 pages, Times New Roman, 12-point font, 1” top, bottom and side margins, double-spaced.

The topic for the mini-term project: (i) conduct PESTLE analysis (Political, Economic, Social, Technological, Legal, and Environmental) for your product or service to enter into Vietnam (ii) justify why you choose this product.

You can choose an existing product or service, or create a completely new one for your project

Please help and try yours best on it

Thank you!!

Solutions

Expert Solution

(1) PESTLE ANALYSIS - APPLE

Apple is a renowned brand in the world . It’s smartphones , PC’S , tablets , music players and TV’s are very popular. Although it is an expensive brand people still go for it as it adds luxury to the life style.

Let us take a look   at PESTLE analysis example of apple.

1. POLITICAL FACTOR:

· Apple manufactures its products in vietnam because of lower cost manufacturing charges. Hence any political rift between US and china may affect its operations. But finding an alternative is not easy as it is expensive.

· You can also not deny that the company is in dominant position . It is able enough to deal with some political pressure.

2. ECONOMIC FACTOR :

· Apple has to keep in mind that its manufacturing costs will increase if Vietnam    increases labour costs.

· A decline in   middle class income may also decrease apple’s market.

· So it may help apple to earn good profits in Vietnam.

3. SOCIAL FACTOR :

· Although apple is popular around the world it still has not tasted success in areas like Africa.In the US low income people are against it as it is expensive

· So the appeal of apple is not much in Vietnam due to ethical concerns

· Apple needs to make people aware of its new features.     

4. TECHNOLOGICAL FACTORS :

· Google and Samsung have copied some of the features of apple products and services.

· So, increase in use of smartphones and tablets may also decrease the demand for the apple products.

5. LEGAL FACTORS :

· Recently apple has started a highly regulated service through apple pay

· According to some of the reports   apple may start an automobile manufacturing. It may increase insurance regulatory costs and legal proceedings for apple .

6. ENVIRONMENTAL FACTORS :

· Disposal of non working electronic devices is biggest environmental issue for apple .

· Disposal of lithium batteries cost is high.

· Vietnam is much concerned   about environment and pollution. It will limit use of fossil fuels and green house and increase electricity cost. So manufacturing cost will increase .

JUSTIFICATION :

As apple is most popular brand all over the world and has inspired many youngsters to go for this brand and due to high security features.

  


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