Analysis of the micro and macro environmental elements
Analysis of the micro and macro environmental elements that may prevent the business from achieving its goals should be done while developing operational plans (Therese, 2012). PEST model analysis is the method most frequently used to examine an organization's macroenvironment. The political, economic, social, and technological aspects that affect an organization's performance can be discovered using this model. An overview and PEST study of Apple, INC. are the goals of this research work.
A description of the company
The American multinational company Apple Inc. is focused on designing and producing various kinds of devices and closely related software products. Since its founding in 1970, Apple has been selling a variety of products and aims to continue expanding its line of production (Therese, 2012). Some of its products include personal computers, mobile phones, and music players. Its most popular hardware products include Macintosh for personal computers, Ipod for media players and Iphone. Apple operates more than 400 stores in different countries and uses outstanding marketing strategies to surpass its competitors. Some of the aspects which have assisted it to attain a competitive advantage include proper product differentiation, segmentation and target markets.
Apple is committed to establishing the greatest computing experience to educationalists, learners, the innovative professionals and all consumers across the world through its advanced software, hardware and internet offerings (Therese, 2012). This company applies both proactive and retroactive approach in its product strategy. Essentially, it develops most of its products based on the existing products of its competitors but improves them by integrating differentiation features and eliminating all detrimental qualities.
PEST analysis
Political
There are various political factors which impact the operations of this company. Some of these factors include tax implications and governmental structure (Therese, 2012). Because this is a multinational company, almost half of its revenue is generated outside the United States. Therefore, various factors like bad international relations, political instability, war or terrorism would have an adverse effect on its operations.
Economic
The national growth rates and prices of raw materials are some of the economic aspects which impact Apple (Therese, 2012). These factors determine the global sales and demand of its products in the market. Other economic issues which influence the performance of this company include global economic recession, inflations, changes in interest rates and the strengths of consumer spending.
Social
The needs and lifestyle of electronics users are always changing. Most of the consumers want phones and personal computers with excellent graphic sounds and better processing power (Therese, 2012). They are also in need of smaller, lighter tablets and laptops. These social factors have had a positive influence on this company as it is viewed as the 'king of technology' because of quality, design, and functionality. Other social factors which affect the performance of Apple include population growth rates, religion perceptions towards electronics and culture.
Technological
The advancements of internet and broadband facilities across the world have an impact on this company. As these services continue to advance, Apple also improves its products to ensure its customers get the best experience from their cell phones, personal computers, tablets, and other products.
Conclusion
Apple Inc. is a successful organization with a strong brand name. From the PEST analysis, it is clear that irrespective of being a successful company, there are various external factors which impact its operations. Some of these factors are uncontrollable, and they influence the performance of this company in either a positive or negative way.
Reference
Therese. M. (2012). Fair Trade Electronics: The Recent, Promising Events around Working Conditions in Apple’s Factories Are Hopefully Leading toward a New Definition of “Shareholder Value.” The Journal (Technological Horizons in Education), 39(2), 90-123
