The Effect of the Environment on a Business
Introduction
I have been accepted onto a work placement to the Economic Development Unit (EDU) and I have
been asked to research and draft a report on a large business which trades in the EU. In this report, I
would look at a technology company which is Apple. This report aims to examine the business
environment in which it operates, also taking into consideration its business market. Furthermore,
looking at the business external and internal environment, the impact of COVID -19 on the business,
the business competitive environment, likewise looking at the influence of demand and supply on
this business, and the market structure in which it operates.
Indicative content to identify.
Apple introduction
External environment of Apple Using (PESTLE)
Apple internal cooperate social responsibility.
Competitive advantage and factors that affect apple
Condition of demand, supply, and price elasticity
Apple market structure and influence on demand and supply
Conclusion
References.
Apple introduction.
Apple a well know American multinational technology company, has been in the industry for 44
years year now since April 1, 1972. The company headquarters at Cupertino California, the company
was founded by three individuals Steve Paul Jobs Steve Wozniak and Ronald Wayne. Paul the former
CEO and chief executive chairman of Apple. The American business tycoon who is specialised in
industrial designs, who was also an investor and a media specialist. Steve Wozniak also one of the
Co-founders of Apple Inc. Is an American Electronic engineer, Philanthropist, Programmer and
Technology Entrepreneur, who also known to have contributed to the success of Apple Inc. the
company is known to be the world’s largest information technology company by revenue of
$274,515 (2020)[1]. Ronald Wayne, also one of apple’s co-founders who is currently a retired
American businessman. The elderly partnered with Steve and Paul by providing legislative oversight
and documenting new ventures. The organisation outlet in 510 location and has 137,000 employees
as of 2019[2].
External environment of Apple: The external environment influences on businesses and compasses
of several factors that affect a business and how it operates. These factors are used to analyse why
and how a firm is likely to be successful or unsuccessful. This tool is called PESTLE
Political- e.g., Government support, Tax policies, trade deals, levy.
Economic- e.g., Economy, interest rate, fiscal, inflation, exchange rate.
Social- e.g., Demographic Trends, consumer taste, income.
Technological- Research and development (RND), Automation, improvement
, Legal- e.g., companies act, legislations, charities legislation, government laws.
Environmental- e.g., Recycling, environment Cleanness, Carbon mission.
Source : Pearson business textbook p, 33-38
Political
As a business operating in a globalised environment, a business needs to be conscious of
different political factors that a country might have on its business. Apple operates in 510
location around the world and has its biggest market in America with two other countries China
and Europe having its biggest headquarters in Ireland (UK). Tax policy plays a key role in apple,
and they believe many enterprises have the responsibilities to pay the levy they owe. In the UK,
the (HRMC) is responsible for executing and collecting taxes. Apple is known to be the highest
Taxpayer in the world, they are also known to be the largest technology by revenue and these
taxes are paid in every location they operate. Years back 4 January 2011, the UK Government
changed its tax policy to increase government revenue by £13bn each year, the former
chancellor George Osborne made this announcement in the house of commons that there would
be an increase in taxation, increasing it from 17.5% to 20%. according to a report on Yahoo
finance, the technology company recorded £1.4bn in its sales in 2019 and paid just £6.2m in tax,
the report also shows that the America giant has 38 stores In the UK which also contributed to
the company revenue by boosting it by more than 15% in 12 months. Moreover, despite taking
its costs and other expenditure of approximately £1.35bn the tech giant had a leftover profit of
£37.2m, breaking down its tax bill significantly [3].
However, the UK has left the EU but still on the consideration of having a deal or not. According
to the BBC website the EU chief negotiator Michel Barnier has been in the UK (Brussels) for the
past four weeks to consider a deal or a no-deal with the European Union (EU) [4]. Brexit could be
of benefit for the company because it allows them to have a free trade agreement and if there’s
a trade deal it gives the UK opportunity to trade with other EU countries without having to pay
Tax (Known as tariff), but if there is no deal then apple would have to pay huge amount tax
which would result to increase in its costs of goods, also it will restrict the business from having
access to a different market and slow the flow of apple products in the UK.
Economical
Economic factor has a huge impact on a business either benefiting to its success or failure. In
the current situation with the COVID-19 which affected many businesses also leading to the
closure of high street stores. a report from the BBC website states that the UK economy is
expected to shrink by 11.3% by the end of this year and not be the way it is before [5]. However,
the tech giant was also affected by the virus resulting to many of its stores shutting down during
the first outbreak in china late January, which also led to the closing of one of it manufacturing
company in china and the government imposing travel restrictions allowing some businesses
operate on reduced hours, which also has affected the company sales allowing the price of its
product increase[6].
Introduction
I have been accepted onto a work placement to the Economic Development Unit (EDU) and I have
been asked to research and draft a report on a large business which trades in the EU. In this report, I
would look at a technology company which is Apple. This report aims to examine the business
environment in which it operates, also taking into consideration its business market. Furthermore,
looking at the business external and internal environment, the impact of COVID -19 on the business,
the business competitive environment, likewise looking at the influence of demand and supply on
this business, and the market structure in which it operates.
Indicative content to identify.
Apple introduction
External environment of Apple Using (PESTLE)
Apple internal cooperate social responsibility.
Competitive advantage and factors that affect apple
Condition of demand, supply, and price elasticity
Apple market structure and influence on demand and supply
Conclusion
References.
Apple introduction.
Apple a well know American multinational technology company, has been in the industry for 44
years year now since April 1, 1972. The company headquarters at Cupertino California, the company
was founded by three individuals Steve Paul Jobs Steve Wozniak and Ronald Wayne. Paul the former
CEO and chief executive chairman of Apple. The American business tycoon who is specialised in
industrial designs, who was also an investor and a media specialist. Steve Wozniak also one of the
Co-founders of Apple Inc. Is an American Electronic engineer, Philanthropist, Programmer and
Technology Entrepreneur, who also known to have contributed to the success of Apple Inc. the
company is known to be the world’s largest information technology company by revenue of
$274,515 (2020)[1]. Ronald Wayne, also one of apple’s co-founders who is currently a retired
American businessman. The elderly partnered with Steve and Paul by providing legislative oversight
and documenting new ventures. The organisation outlet in 510 location and has 137,000 employees
as of 2019[2].
External environment of Apple: The external environment influences on businesses and compasses
of several factors that affect a business and how it operates. These factors are used to analyse why
and how a firm is likely to be successful or unsuccessful. This tool is called PESTLE
Political- e.g., Government support, Tax policies, trade deals, levy.
Economic- e.g., Economy, interest rate, fiscal, inflation, exchange rate.
Social- e.g., Demographic Trends, consumer taste, income.
Technological- Research and development (RND), Automation, improvement
, Legal- e.g., companies act, legislations, charities legislation, government laws.
Environmental- e.g., Recycling, environment Cleanness, Carbon mission.
Source : Pearson business textbook p, 33-38
Political
As a business operating in a globalised environment, a business needs to be conscious of
different political factors that a country might have on its business. Apple operates in 510
location around the world and has its biggest market in America with two other countries China
and Europe having its biggest headquarters in Ireland (UK). Tax policy plays a key role in apple,
and they believe many enterprises have the responsibilities to pay the levy they owe. In the UK,
the (HRMC) is responsible for executing and collecting taxes. Apple is known to be the highest
Taxpayer in the world, they are also known to be the largest technology by revenue and these
taxes are paid in every location they operate. Years back 4 January 2011, the UK Government
changed its tax policy to increase government revenue by £13bn each year, the former
chancellor George Osborne made this announcement in the house of commons that there would
be an increase in taxation, increasing it from 17.5% to 20%. according to a report on Yahoo
finance, the technology company recorded £1.4bn in its sales in 2019 and paid just £6.2m in tax,
the report also shows that the America giant has 38 stores In the UK which also contributed to
the company revenue by boosting it by more than 15% in 12 months. Moreover, despite taking
its costs and other expenditure of approximately £1.35bn the tech giant had a leftover profit of
£37.2m, breaking down its tax bill significantly [3].
However, the UK has left the EU but still on the consideration of having a deal or not. According
to the BBC website the EU chief negotiator Michel Barnier has been in the UK (Brussels) for the
past four weeks to consider a deal or a no-deal with the European Union (EU) [4]. Brexit could be
of benefit for the company because it allows them to have a free trade agreement and if there’s
a trade deal it gives the UK opportunity to trade with other EU countries without having to pay
Tax (Known as tariff), but if there is no deal then apple would have to pay huge amount tax
which would result to increase in its costs of goods, also it will restrict the business from having
access to a different market and slow the flow of apple products in the UK.
Economical
Economic factor has a huge impact on a business either benefiting to its success or failure. In
the current situation with the COVID-19 which affected many businesses also leading to the
closure of high street stores. a report from the BBC website states that the UK economy is
expected to shrink by 11.3% by the end of this year and not be the way it is before [5]. However,
the tech giant was also affected by the virus resulting to many of its stores shutting down during
the first outbreak in china late January, which also led to the closing of one of it manufacturing
company in china and the government imposing travel restrictions allowing some businesses
operate on reduced hours, which also has affected the company sales allowing the price of its
product increase[6].
