Question

b. Explain with examples what type of organisation Apple Corporation currently is (e.g. partnership, public limited or private limited) and why the owners choose to start such an organisation.                                                                                                                           

c. Explain with examples THREE (3) internal and TWO (2) external environment factors of Apple Company.                                  

Answer 1

B)Apple corporation is a publically owned company,which means that people can subscribe to the shares of the company and can become a shareholder of it. A company like apply choose to be a public limited company as it offers a lot of help go it. Corporations which coose to be a pulic limited company , can raise money from the public and hence face no shortage go capital requirement. As it can issue shares, thus it can choose to get capital by issuing shares rather then taking a debt which pits fixed limitation to the company relating to fixed interest payments and repayment of the amount taken. As a compaby gets listed as public, the shareholder becomes the owner of the company. It thus helps to reduce and share the cost of risk if it arises in future.

C) Internal environmental factors-

1. Employee- employee are in integral part of the company, as they work on behakf of the company. Example- manages, auditors, wokers. They need to be managed effeciently for better service to the customers.

2. Physical assets- physical assets like manufacturing plans of apple corporation , machinery must be maintained, overhauled.

3. Financial capacity- it includes fund managenent and proper allocation of funds in different policies and schemes.

External environment factors-

1. Government rules and regulation-

Policies related to companies are changed in order to safeguard the interest of all related parties. In case of apple, customers who buy their products, want that product purchased will be safe to use. Such polies are to be applied by apple sk as to lessen the intervention by government.

2. Customers and supplier-

Customer and suppliers must are also important factor comprising the external environment. Suppliers want their payment must be on time and there is no breach in contract. As this is the era of globalisation, apple has many manufacturing units all over the world in different countries, it comes in contract for specific parts that it purchases from other organisation rather than manufacturing by its own. Hence those suppliers must be taken into consideration. Similarly customers must be given importancw and their grievence must be resolved.

Business environment comprises of many more related parties. For a growth of a company, say Apple it is must for Apple to maintain proper ethical norms to establish and keep running uts business.