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BANKING ACADEMY MAJOR OF BUSINESS MANAGEMENT ASSIGNMENT ASSIGNME NT ON PRINCIPLE PRINCIP LE OF MANA MANAGERMENT GERMENT TOPIC : ENVIRONMENTA ENVIRONMENTAL L ANALYSIS OF APPLE Instructor : Nguyen Huong Giang Group: Class: K22CLCG Hanoi, 2020 CONTENT I INTRODUCTION 1.1 Internal stakeholders stakeholders 1.2 External stakeholders stakeholders 3 II ANALYSI ANALYSIS S AN AND D EV EVALUATIO ALUATION N 2.1 Orga Organizat nization ion overv overview iew .3 .3 2.1.1 Gene General ral infor informati mation on 2.1.2 Stat Statemen ementt of rece recent nt and current stat statee of busin business ess 2.2 Introduction of enviro environment nment analysis in Appl Applee Inc Inc 5 2.3 Envi Environme ronment nt Anal Analysis ysis 2.3.1 Inte Internal rnal Envi Environme ronments nts .6 2.3.2 Exte External rnal envir environmen onment t 2.4 Evaluation Evaluation 16 2.4.1 Apple’s Strength 16 2.4.2 Apple’s Weakness 16 2.4.3 Apple’s Opportunities 17 2.4.4 Apple’s Threats 17 III CONCLUSION 18 IV LIST OF REFERENCE 19 I INTRODUCTION Environmental analysis is a strategic tool and it identifies all the external and internal inte rnal elem elements ents whic which h can affe affect ct the organ organizat ization’s ion’s performa performance nce Corpor Corporatio ations ns now understand that they don’t need to rely only on their home market in order to be sustainable, and increasing presence in other markets will increase sustainability because failur fai luree in a spe specif cific ic mar market ket can be mit mitiga igated ted wit with h a sub subseq sequen uentt suc succes cesss in ano anothe ther r market The organizational environments Managers operate in two organizational environments, both made up of various stake- holders The two environments are internal stakeholders and external stakeholders 1.1 Intern Internal al stakeho stakeholders lders Whether small or large, the organization to which you belong has people in it who have an imp have import ortant ant sta stake ke in how it per perfor forms ms The These se int intern ernal al stakeh stakehold olders ers consis sistt of employees, owners, and the board of directors 1.2 Exter External nal stakeho stakeholders lders The environment outside it, which consists of external stakeholders- people or group in the organization’s external environment that are affected by it This environment consists task environment and general environment The task environment consists of 11 groups that present you with daily tasks to handle han dle:: cus custom tomers ers,, com compet petito itors, rs, supp supplie liers, rs, dis distri tribut butors ors,, str strate ategic gic all allies ies,, emp employ loyee ee organizations, local communities, financial institutions, government regulators, specialinterest groups, and mass media Beyond the task environment is the general environment, or macroenvironment, which includes six forces: economic, technological, sociocultural, demographic, politicallegal, and international II ANA ANALYSI LYSIS S AND EVAL EVALUAT UATION ION 2.1 Organ Organizati ization on overview II.1.1 General information Apple Inc is an American multinational technology company that specializes in consumer electronics, computer software, and online services Apple is the world's largest technology company by revenue (totaling $274.5 billion in 2020) and, since January 2021, the world's most valuable company As of 2021, Apple is the world's fourth-largest PC vendor by unit sales, and fourth-largest smartphone manufacturer It is one of the Big Five Five Ame Americ rican an inf inform ormati ation on te techn chnolo ology gy com compan panie ies, s, alo along ng wit with h Ama Amazon zon,, Goo Google gle,, Microsoft, and Facebook Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976 to develop and sell Wozniak's Apple I personal computer It was incorporated by Jobs and Wozniak as Apple Computer, Inc in 1977, and sales of its computers, including the Apple II, grew quickly It went public in 1980 to instant financial success Over the next few years, Apple shipped new computers featuring innovative graphical user interfaces, such as the original Macintosh, announced with the critically acclaimed advertisement "1984" However, the high price of its products and limited application library caused problems, as did power struggles between executives In 1985, Wozniak departed Apple amicably, while Jobs resigned to found NeXT, taking some Apple co-workers with him As the market for personal computers expanded and evolved through the 1990s, Apple lost considerable market share to the lower-priced duopoly of Microsoft Windows on Intel PC clones The board recruited CEO Gil Amelio, who prepared the struggling company for eventual success with extensive reforms, product focus and layoffs in his 500-day tenure In 1997, Amelio bought NeXT, to resolve Apple's unsuccessful operating system strategy and bring back Steve Jobs, who replaced Amelio as CEO later that year Apple App le ret return urned ed to pro profit fitabi abilit lity y und under er th thee rev revita italiz lizing ing "Th "Think ink dif differ ferent ent"" cam campai paign, gn, launching the iMac and iPod, opening a retail chain of Apple Stores in 2001, and acquiring numerous companies to broaden their software portfolio In 2007, the company launched the iPhone to critical acclaim and financial success In 2011, Jobs resigned as CEO due to health complications, and died two months later He was succeeded by Tim Cook In August 2018, Apple became the first publicly traded U.S company to be valued at over $1 trillion and the first valued over $2 trillion two years later It has a high level of brand loyalty and is ranked as the world's most valuable brand; as of January 2021, there are 1.6 1.65 bil billio lion n App Apple le pro produc ducts ts in use wor worldw ldwide ide How Howeve ever, r, the com compan pany y rec receiv eives es significant criticism regarding the labor practices of its contractors, its environmental practices, and business ethics, including anti-competitive behavior and materials sourcing II.1.2 Statement of recent and current stat statee of business Apple today announced financial results for its fiscal 2021 third quarter ended June 26, 2021 The Company posted a June quarter record revenue of $81.4 billion, up 36 percent year over year, year, and quarterly ea earnings rnings per diluted share of $1 $1.30 .30 “This quarter, our teams built on a period of unmatched innovation by sharing powerful new products with with our users, at a time when using technology technology to connect people people everywhere has never been more important,” said Tim Cook, Apple’s CEO “We’re continuing to press forward in our work to infuse everything we make with the values that define us — by inspiring a new generation of developers to learn to code, moving closer to our 2030 environment goal, and engaging in the urgent work of building a more equitable future.” “Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO “We generated $21 billion of operating cash flow, returned nearly $29 billion to our shareholders during the quarter, and continued to make significant investments across our business to support our long-term growth plans.” Apple’s board of directors has declared a cash dividend of $0.22 per share of the Company’s common stock The dividend is payable on August 12, 2021 to shareholders of record as of the close of business on August 9, 2021 Apple will provide live streaming of its Q3 2021 financial results conference call beginning at 2:00 p.m PT on July 27, 2021 at apple.com/investor/ apple.com/investor/earnings-call earnings-call This webcast will also be available for replay for approximately two weeks thereafter II.2 II.2 In Intr tro odu duccti tio on of env nvir iron onme ment nt an anal alys ysis is in Ap Appl plee In Incc Apple is one is one of the best-known tech companies all over the world To obtain this goal, Apple Apple Inc not only needs to under understand stand deep deeply ly their company but also external factors in the global market For instance, Covid-19 has spread rapidly throughout the world, wor ld, pro prompt mpting ing gov govern ernmen ments ts and bus busine inesse ssess to tak takee unp unprec recede edente nted d mea measur sures es in respo respons nse e Fo Foll llow owin ing g th thee in init itia iall outb outbre reak ak of the the viru virus, s, the the Co Comp mpan any y expe experi rien ence ced d disrup dis ruptio tions ns to its man manufa ufactu cturin ring, g, supp supply ly cha chain in and log logist istica icall servic services es pro provid vided ed by outsourcing partners, resulting in temporary iPhone supply shortages that affected sales worldw wor ldwide ide How Howev ever, er, tha thanks nks to env enviro ironme nmenta ntall ana analys lysis, is, the Com Compan pany y bel believ ieves es its existi exi sting ng bal balanc ances es of cash, cash, cas cash h equ equiva ivalen lents ts and ma marke rketab table le securi securitie ties, s, alo along ng wi with th commer com merci cial al pap paper er and oth other er sho shortrt-ter term m liq liquid uidity ity arr arrang angeme ement nts, s, wi will ll be suf suffic ficien ientt to satisfy its working capital needs, capital asset purchases, dividends, share repurchases, debt repayments and other liquidity requirements associated with its existing operations To be more specific, Apple Ins ascertains whether the goals defined are achievable or not, with the present strategies If is not possible to reach those goals with the existing strate str ategie gies, s, the then n new str strate ategie giess are dev devise ised d or old one oness ar aree mod modifi ified ed acc accord ording ingly ly Moreover, environmental analysis helps in the detection of threats even uncertainty at an early stage which assists the organization in developing strategies for its survival Adding to that, it identifies opportunities, namely prospective customers, new products, segments s egments and technology to occupy a maximum share of the market than its competitors Even though it consists of such capabilities there occur various trends in the general environment that causes the threats which pull down the progress and success of the firm These threats can be marginalized only with the help of appropriate planning and suitable action which concentrates more on the value-added core competencies in the business This may lead the the company to produce va valuable luable products and servic services es leads to a mounting opportunity for the shareholders and customers II.3 Environment Analysis II.3.1 Internal Environments The main internal stakeholders of Apple are the Board of Directors, executives, employees, and shareholders Its top executive positions are CEO, Senior Vice President, Vice Presi Vice Presiden dent, t, and Chi Chief ef Ope Operat rating ing Of Offic ficer er Man Many y ana analysist lysistss ar argue gue tha thatt eff effec ectiv tivee leadership has been a key to the global success of Apple Steve Jobs’ leadership played a big role in shaping the company’s future, though his leadership style was sometimes branded as aggressive Apple has more than 80.000 full time employees all over the world whereas the engaged people are more than million Apple employees the best human resources in the world and provides them with the facility to improve their skills Apple’s employees also play a big role in growing success Apple is world renowned for the aesthetic designs of its products Therefore, it can be easily imagined what role the design team plays It is worth noting that Apple is very secretive about its designs and the design team works under very strict terms and conditions Apple has both individual and institutional shareholders Some of its executives have shares worth millions of dollars Some of its top institutional shareholders are the Vanguard Group, BlackRock, and Berkshire Hathaway… It is worth mentioning that some of the largest shareholders of Apple are mostly former or current employees and investment companies II.3.2 External environment The Task environment Customers Apple App le doe doess not use cus custom tomer er beh behavi avior or res resear earch ch in pro produc ductt dev develo elopme pment, nt, the research of behavior is their tool of marketing Apple uses the information to gain essential insight into the consumer and what directs the purchase behavior The research on consumers provides specific insight involving affect and cognition, customer behavior and customer environment that the company can reach their target market effectively It will lead to the development of sales and customer service Another one is feedback of customers In 1997, the founder of Apple, Steve Jobs spoke to attendees of Apple Worldwide Developer Conference where he clearly stated that customer must be the center of the company In recent years, Apple has concentrated on cust custom omer er sa sati tisf sfac acti tion on rank nkin ing g Th This is is on onee of thei theirr sour source cess for for thei theirr prod produc ucts ts innovation and development Feedback surveys have proven to be a significantly useful way for Apple to collect customer insight One of the most important metrics for Apple is Net Promoter Score Score The feedback iincludes ncludes an Net Promoter Promoter Score, beside aan n open-ended follow up question: “Anything else on your mind?” Most recently, Apple has collected NPS responses to measure customer customer satisfaction with its new Apple Apple Watch NPS rese research arch has provided the company with valuable insights into its latest product By listening and considering customer needs, Apple can create and launch exactly what they want and expect It is one of the most reasonable answers for the question “Why is Apple the industry leader?” • Supplier Apple does not manufacture by itself It has over 200 suppliers that produce components for its assembly Apple is managing one of the most efficient supply-chain management systems on the market The supply-chain of Apple accounts for about 98% of its procurement Some prominent suppliers of the firm are: Foxconn - one of the oldest and largest suppliers, Wistron, Pegatron in Taiwan; Goertek, Luxshare in China; Qualcomm, Intel in USA; Murata Manufacturing Ltd in Japan; Samsung in Korea… With its brand reputation and the global reach, Apple totally has high-quality product demand and imposes stricter terms on its supply By outsourcing its supply-chain and assembly operations, Apple can focus on its product designs for a great multifunction and friendliness to customers • Distributors Apple has its own retail store system as Apple Store The customers of the firm are all over the world but there are only 510 stores in 22 countries The system cannot meet the demand and serve over the world To solve the problem of distribution, Apple has partnered with major retailers to sell their product in an official capacity called Apple Authorized Resellers These stores can offer Apple products with personnel trained on basics to help customers customers to find what they w want ant Appl Ap plee Au Auth thor oriz ized ed Re Rese sell ller erss pl play ay a pr prim imee role role in Ap Appl ple’ e’ss sa sale le stra strate tegy gy and and represent a large portion of sales of Apple products w worldwide orldwide • Competitor Apple has innovated and developed many kinds of technology devices It is the reason why the operation has many competitors in different field In the Computer Manufacturers, Dell Technologies, Lenovo Group, HP Inc., Sony Corp and ASUSTeK Computer Inc are primary competitors In the Smartphone Manufacturers, the biggest competitor of Apple is Samsung – the largest smartphone company accounting for 21.2% of the global market As we can see here, most of Apple's competitors are the big companies in their own field This leads to the competition about the quality of products, the percentage in the global market at the lowest cost… Apple needs to boost their quality to expand their market target and improve the value of business by investing more in R&D and meet the demand dem and of use users rs The co compe mpetit tition ion als also o hel help p the ind indust ustry ry dev develo elopme pment nt whe when n eve every ry company want to create their own competitive advantages • St Stra ratteg egic ic Al Alli lian ance cess One of the most significant factors that is responsible for the development of a firm is the strategic alliances They help the firm in increasing the value of product in minds of customer Also, firms can easily access markets to offer their products and services Sharing expertise knowledge with each other can cover and acquire knowledge in their operations partners can share the technological capabilities Last but not least, the firm’s financial can be strengthened so it can focus on new creation Apple has partnered with different companies in different fields In consulting and systems integration, Accenture supports Apple to transform how enterprise clients match with customers using iPhone and iPad In addition, Deloitte maximized Apple devices such as iPhone and iPad by providing EnterpriseNext two-week solution – focused workshops and EnterpriseNext Value Map Last but not least, IBM – one of the oldest partners of Apple, help the business transform global business through their custom mobile app by using IBM Garage Methodology, Apple dedicated Garage and Studios, IBM Solution for Apple and the cutting-edge of Apple tool In the area of enterprise business apps, Salesforce is innovating their client experience on iPhone and iPad by mixing the world’s number one CRM with the world’s most advanced mobile operating system sys tem for bus busine iness ss Bes Beside ides, s, SAP sup suppor ports ts cor coree bus busine iness ss pro proces cesses ses on the App Apple le platform from their employees to customers experience The last partnership of Apple is in Networking, Security and Collaboration with Cisco The company provides leading, networking, security and collaboration solutions for Apple products • Labor unions Thee Big Th Big Te Tech ch comp compan anie iess li like ke Ap Appl plee have have li limi mite ted d re reco cogn gnit itio ion n of wo work rker er organtiations Apple does not recognize any trade union in the USA, but the company recognizes some unions and work councils in Europe, and a union in Japan However, in 2011, an employee of an Apple Store – Cory Moll created the Apple Retail Workers Union in San Francisco, referring to compensation, pay, benefits and hiring processes as motivation Lately, a Twitter account was created under the name #AppleToo by a group of Apple employees to require a workplace condition improvement The staff of Apple are encouraged to email appletoo@protonmail.com if they want to join the effort The group is where people told their story when working at a company and showed what they expected Apple to change In a conversation with a media organization, they are planning to create a formal union which could collectively bargain for legally enforceable changes at Apple 10 • Local co communities Local communities claimed that the living space of people and their homes were destroyed by the factories It resulted from the pollution of the process producing the business products and how they worsened the climate climate change The carbon footprint footprint of the production could affect the environment and harm to people's health With this matter, Appl Ap plee ma may y have ve di diff ffic icul ulty ty ge gett ttin ing g th thee land land to bu buil ild d thei theirr plan plant t Th This is ma may y af affe fect ct productivity and cause media attention When the media investigate and report, the problem could have a bad effect on Apple reputation and their sa sales les Besides, Apple had problems with the community about their advertisement Some governments think that showing a good feature can attract children and cause problems to their parents although children were not the target of this marketing approach Some others think that what Apple advertises about their products is not true This unrealistic situation may prevent people from purchasing the products, reducing the business’s profit and sales • Fi Fina nanc nciial in inst stiitu tuti tion onss According to a report of KPMG in 2018, 26% of financial institutions were alread alr eady y par partne tnerin ring g wit with h one or mor moree te techn chnolo ology gy giant giantss suc such h as Google Google,, App Apple le and Microsoft This represented a remarkable change for the industry In the Apple Event in March, 2019, Apple had a surprise announcement of Apple Card, a credit card that Apple would be offering partnership with Goldman Sachs Group Inc Jennifer Bailey, vice president of Apple Pay, put it much better at the event: “Apple Card is designed to help customers lead a healthier financial life, which starts with a better understanding of their spending so they can make smarter choices with their money, transparency to help them understand how much it will cost if they want to pay over time and ways to help them pay down their balance.” “The security features on Apple Card make it attractive for customers to stop lodging third party cards with Apple Pay and use Apple Card instead, while the perks on Apple Card include preferential cash back rates for purchases made using Apple Pay If Apple users start adopting Apple Card as their preferred payment method, Goldman 11 could quickly seize a large part of the personal credit card market That, without question, is its goal”, according to Forbes • Go Gove vern rnme ment nt rreegu gullat ator orss CEO of Apple, Tim Cook appealed to the United State to develop privacy laws like what Europe did with the GDPR data privacy laws after the scandal with Facebook dataa lea dat leak k and the in incre crease ase of cyb cybera eratt ttack ack acros acrosss US USA A in 201 2019 Coo Cook k cla claime imed d tha thatt technology needs to be regulated by the government because the current laws are not working Not just the privacy, Apple and government has concerned about the energy and safety problems The U.S Food and Drug Administration have regulation about the amount of radiofrequency energy that a mobile phone releases If a device produce too much this energy, this organization can get the firms to take back and fix or replace In addition, The Federal Communication Commission published a regulation about the base tower of mobile phones Texting messages or answering a call while driving can lead to serious injury As a giant tech, Apple need to respond to the government regulations The company need to improve or innovate the technology to produce their mobile devices to limit the amount of radio energy emission Besides, connecting the cellphones with handfree devices on car should be taken to avoid the undesirably accident • Sp Speecial cial iint nter ereest g gro roup upss Apple App le joi joined ned in a spe specia ciall int intere erest st gro group up cal called led FAAN FAANG G com compan panie iess – whi which ch consists of Facebook, Amazon, Apple, Netflix and Google Meanwhile the company avoided political battle, Apple still engaged Washington on concern that the firm claimed were vast social and financial essence Tim Cook was a leader in high-level lobbying ac acti tivi vity ty to cr crea eate te cl clos osee re rela lati tion onsh ship ip wi with th th thee Pr Pres esid iden entt – Do Dona nald ld Tr Trum ump p and and his his administr admi nistration ation This effort at first brought the bene benefit fit to the business when gover government nment did not put the punishment on Apple during the trade war with China On the other hands, Trump required Apple to repay the benefit for FBI to “unlock”, or break the iPhone encryption protocols • Mass media 12 It is not denied that the current success of Apple has the great support of the media, especially in the brand image and marketing The BuzzFeed had a title in 2017 that the best product of Apple was its media strategy According to a survey conducted by Reuters, 43% journalists responded that Apple News was important to their organization The company created their own platform for users like @AppleSupport if you have any problem One of the biggest advantages of this way is that there will not be any complaint or negative comment about the firm on its social media account This may help them to protect the reputation You may have seen a post about Apple on Facebook or Twitter or maybe Instagram, but who knows if it could be true or not However, it does not mean that Apple does not take advantage of mass media They still need the media to promote their product For example, they ran a campaign “Give the Gift of Go with Apple Watch” during the holiday on Facebook In addition, Apple combined with Twitter to advertise their Apple event by creating a “Retweet for updates from Apple” If users want to know more about the event information, they need to retweet and Appl could market their events One interesting thing about Apple media strategy is how it builds the Instagram account The account of Apple is not about the company, it is about the customer of the company Each post or story in this account is a content of user-generated or commissioned Thus, as you can see, Apple does not use social media to advertise, but also to connect with customers The general environment Despite Apple’s considerable resources and capabilities, various trends within the General Environment pose considerable threats to the ongoing success s uccess of the firm Proper planning and action will allow the firm to marginalize these threats while leveraging core compet com petenc encies ies to ta take ke ful fulll adv advant antage age of eme emergi rging ng opp opport ortuni unitie tiess to cre create ate val value ue for customers and shareholders Economic Environment: While the economy in the United States has shown some improvement and there are signs of full recovery looming the outlook is not certain currently Apple’s premium pricing position leaves the firm at a disadvantage to less expensive competing products 13 However, when consumers directly feel the improving economy and spending increases Apple App le wi will ll wel welll pos positi itione oned d Con Consum sumers ers see seekin king g to “tr “treat eat”” themse themselve lvess fol follow lowing ing the economic upturn may be attracted to Apple’s premium portables, viewing them as luxury goods goo ds App Apple, le, kno known wn for its qua qualit lity, y, dep depend endabl ablee mac machin hines, es, and exc excell ellent ent cus custom tomer er service may also be seen as presenting a better value than the competitors with fewer frills at lesser prices Demographic Environment Over the past several years the American middle class has experienced increasing costs across many indicators including, healthcare costs and the CPI, but wages have remained relatively stagnant Apple’s high prices may send potential customers into the hands of competitors when they are unable to justify Apple’s high price tags Counterintuitively Apple’s perceived value has directly benefited them during the economic downturn, they’ve continued to experience growth while other competitors suffered Political- legal Environment: Changing the way the Internet operates may deincentivize new innovation which could reduce future value to be derived by Apple New and innovative technologies are routinely iterated on by hardware companies who strive to offer the best methods of integration in their new products Reducing this innovation may stifle new value creation for Apple. Healthcare reform: The push for modernization of the American healthcare sy syst stem em in prop propos osed ed re refo form rm legi legisl slat atio ion n wo woul uld d prov provid idee go gove vern rnme ment nt mo mone ney y for for infras inf rastru tructu cture re dev develo elopme pment nt and imp implem lement entati ation on by car caree pro provid viders ers Ad Adapt aptabi abilit lity y of Apple’s key protables in innovative health-centric ways could provide new sources of revenue Technological Environment: Thee po Th possi ssibi bili lity ty th that at or ordi dina nary ry pe perso rsona nall comp comput uter erss (a (and nd po port rtab able le pe pers rson onal al computers) will become less relevant through increased device convergence is very real Apple’ products laptops will be less important in users’ daily use as their multi-function devices meet most of their needs Apple stands currently as a leader in innovation and portable technology They are conveniently positioned to become a market leader in 14 convergence devices by iterating on their current portable devices and mobile devices like the iPod Touch and iPhone An ever increasing pressure to innovate because of shortening product life cycles could result in missed opportunities due to market entry times and losses on obsolete inventory Apple’s lean manufacturing value chain is adapted to rapid turnover and can be leveraged to combat the threat of inventory obsolescence Apple currently invests billions of dollars in research and development which can be leveraged to position Apple at the head of industry innovation, staying ahead of competitors in lifecycle shifts Socio Cultural Environment The importance of the Internet and connectivity is driving a demand for access anywhere, using high-speed wireless technologies Smartphones, and other ultra-portable “connected” devices, that allow users to carry access to the Internet wherever they go are fast-growing compared to traditional personal computers Apple and other manufactures face face a lo loss ss of re rele leva vanc ncee in th thee ne new w tech techno nolo logi gica call la land ndsc scap ape, e, driv driven en by cons consum umer er preference Again, Apple’s substantial investment in research and development in highly popular devices like the iPhone place A Apple pple at the forefr forefront ont of this transition The pro produc ductio tion n and shi shipme pment nt of Apple’ Apple’ss dev devic ices es are consid sidera erabl blee sou source rcess of carbon emissions and pollution, which may come under scrutiny as consumer concern for the environment continue to grow Apple has already made commitments to “greener” manufacturing practices as well implementing the use of eco-friendly components, and packaging This proactive step can be used as a marketing tool to garner greater respect from concerned customers Internaltional Environment: The Chinese economy continues to grow despite worldwide economic contraction As the economy becomes more developed, increased wages nationwide will increase the costs of production for Apple and its OEM partners The increase in quality of life and disposable income to Chinese critizens will provide a larger customer base for Apple to tap into 15 It is possible that Copenhagen talks will result in real commitments from the international community regarding emissions caps and taxes Strict Carbon emissions regulations will impose a considerable financial burden on the production of Apple’s products, driving up costs and shrinking margins Again, Apple’s initiative in implementing “green” practices sets them apart from many competitors who will also feel the burden of regulation II.4 Evaluation 2.4.1 Apple’s Strength Globally iconic: Apple is one of the most reliable companies when it comes to personalized advanced computers and smart technology devices It has millions of loyal customers with steady increment Top technology: Apple was the first to introduce some of the most innovative products that have changed the world Apple is still determined to build and craft better, more proficient technology devices Brand of choice: It is not big news that Apple is a demanded brand in corporate offices Apple has a specific business page that offers top quality technology solutions for every corporation’s needs Proficient Proficient resea research: rch: Apple puts dedication into its product designs Careful study is initiated and further research is performed to help understand customer needs and requirements 2.4.2 Apple’s Weakness High priced products: Apple’s products can be considered a luxury due to their premium prices The products are priced for middle and high income consumers Low income consumers cannot afford Apple products Limi Limited ted adver advertise tisement ment and prom promotion otions: s: Apple has solidified their grounds by establishing loyal customers, even with limited advertising resources Apple marketing relies heavily on its iconic and flagship retail stores Because of their success, Apple does not feel the need to have too much spending towards advertisement like other big brands 16 Mismatch with other software: When a customer buys an apple product, they acce access ss th thee Ap Appl plee un univ iver erse se Ap Appl ple’ e’ss pr prod oduc ucts ts no nott supp suppor ortt othe otherr soft softwa ware re or technologies making them mismatched with other devices Customers have to exclusively purchase Apple apps or accessories to continue u using sing their Apple product products s Alle Allegati gations ons of trac tracking: king: Tra Tracki cking ng use users rs und underm ermine iness tru trust st App Apple le hass bee been n accused of using tracking apps in its phones, which revealed the precise location of users Even though the latest version of Apple’s phones gives users the right to decline the tracking, trust is difficult to regain once it is lost Lack of green technology: Apple is yet to launch products that are created using green technology The company has not yet implemented or participated in creating sustainable technology that is eco-friendly 2.4.3 Apple’s Opportunities Consistent customer growth: Apple has been dominating the technology sector for yea years rs now now The They y pro provid videe top qua qualit lity y and cut cuttin ting-e g-edge dge tec techno hnolog logy y tha thatt off offers ers a breakthrough in customer experience Apple can always rely on the power of the internet for future opportunities to gain new customers and form new alliances Qualified professionals: Apple's developers, researchers, and product specialists are a team of highly qualified professionals that have years of experience in branding consumer products With the expansion of their team, Apple can continuously build new opportunities Appl plee has has the the op oppo port rtun unit ity y to expa expand nd it itss Exp Expans ansive ive dis distr tribu ibutio tion n net networ work: k: Ap distribution network Currently, the distribution network that Apple has is very limited and leaves room for minimal growth Apple can generate higher revenue and sales if it focused on creating an expansive distribution network Furthermore, the company can benefit from diligent marketing and promoti promotions ons 2.4.4 Apple’s Threats Coron Coronav avir irus us out outbr brea eak: k: App pplle is high highly ly depen epende dent nt on Ch Chin inaa for it itss manufa man ufactu cturin ring g and sup supply ply ch chain ain The out outbre break ak has sig signif nifica icantl ntly y aff affect ected ed and and may continue to disrupt Apple’s sales in the fiscal year 2021 17 Apple bullied by counterfeits: Apple has become vulnerable to third world countries count ries illegal illegally ly utili utilizing zing the brand image to sell counterf counterfeit eit products The ille illegal gal dealers sell Apple counterfeit products at the same value as an original Apple product Increasing competition: Although Apple as a brand has solidified itself, it still faces threats from competitors As the competition is getting stronger, s tronger, Apple either has to introduce new technologies of revise its pricing policy to stay ahead of its competition 4.Backdoor 4.Bac kdoor mech mechanis anism: m: Apple has been under constant pressure by government agencies to unlock the iPhone via a backdoor, which means unlocking the encryption of the iPhone and giving access to its data In several instances, Apple has denied providing the backdoor mechanism because it can be exploited by the bad guys, which eventually exposes the security of millions of iPhone users III CONCLUSION Internal factors to the organization must be assessed to ensure all stakeholders are satisfied and they agree with the strategies To ensure that decisions are accepted by all parties, all stakeholders must be involved in the decision-making process Strategic plans are developed for the welfare of all stakeholders and they should be used to add value When making business decisions, the company's management should solicit input from all internal and external stakeholders The majority of external factors in Apple's remote or macro-environment provide opportunities, according to the PESTLE analysis Given its current industry position, the company can exploit these opportunities to expand its reach in the global information technology goods and services market However, Apple must develop suitable strategies to effectively address the threats identified, especially those in the legal dimension of its remote or macro-environment Based on this PESTLE analysis, it is expected that Apple will remain in its strong industry position Nonetheless, the dynamics of the market and the presence of aggressive competitors could drastically change the company’s strategic position In this context, it is of critical importance to further improve the strengths identified in the SWOT analysis of Apple Inc 18 III LIST OF REFERENCE Apple is an American multination multinational al technology company Born in 1976 by founders Steve Jobs, Steve Wozniak, and Ronald Wayne/ Nowaday, it is the world world largest… fourth-large fourth-largest… st… Fourth-largest… Through its Computer history, Apple had many milstone 1977-1980: Think different 19 ... continue to disrupt Apple? ??s sales in the fiscal year 2021 17 Apple bullied by counterfeits: Apple has become vulnerable to third world countries count ries illegal illegally ly utili utilizing... world To solve the problem of distribution, Apple has partnered with major retailers to sell their product in an official capacity called Apple Authorized Resellers These stores can offer Apple. .. to sell counterf counterfeit eit products The ille illegal gal dealers sell Apple counterfeit products at the same value as an original Apple product Increasing competition: Although Apple as
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