UNIT 1 TASK 2-
EXPLORING BUSINESSES
APPLE
,Table of Contents
APPLE........................................................................................................................................................... 3
EXTERNAL ENVIRONMENT............................................................................................................................ 3
POLITICAL FACTORS................................................................................................................................................3
ECONOMY............................................................................................................................................................4
SOCIAL FACTORS................................................................................................................................................... 4
TECHNOLOGICAL FACTORS.......................................................................................................................................5
LEGAL FACTORS.....................................................................................................................................................5
ENVIRONMENT FACTORS.........................................................................................................................................6
INTERNAL ENVIRONMENT............................................................................................................................. 6
CORPORATE CULTURE.............................................................................................................................................6
CORPORATE SOCIAL RESPONSIBILITY..........................................................................................................................7
Clean energy...................................................................................................................................................7
Energy saving products..................................................................................................................................7
COMPETITIVE ENVIRONMENT....................................................................................................................... 7
INNOVATIVE PRODUCTS..........................................................................................................................................8
STRONG INTEGRATED SUPPLY CHAIN.........................................................................................................................8
PREMIUM PRICING STRATEGY..................................................................................................................................8
FACTORS INFLUENCING COMPETITIVE ADVANTAGE.......................................................................................................9
Differentiation................................................................................................................................................9
Pricing Policy...................................................................................................................................................9
Market leadership..........................................................................................................................................9
Reputation......................................................................................................................................................9
Market share................................................................................................................................................10
Cost control...................................................................................................................................................10
4PS MARKETING......................................................................................................................................... 11
APPLE’S PRODUCTS..............................................................................................................................................11
PLACE/ DISTRIBUTION..........................................................................................................................................12
PROMOTION.......................................................................................................................................................13
PRICES/ PRICING STRATEGY...................................................................................................................................14
SWOT ANALYSIS.......................................................................................................................................... 15
STRENGTHS........................................................................................................................................................ 15
WEAKNESSES......................................................................................................................................................16
1
, OPPORTUNITIES...................................................................................................................................................16
THREATS............................................................................................................................................................17
PORTER’S FIVE FORCES................................................................................................................................ 18
COMPETITIVE RIVALRY OR COMPETITION WITH APPLE................................................................................................18
BARGAINING POWER OF APPLE’S CUSTOMERS/ BUYERS..............................................................................................19
BARGAINING POWER OF SUPPLIERS.........................................................................................................................20
THREAT OF SUBSTITUTES OR SUBSTITUTION..............................................................................................................20
THREAT OF NEW ENTRANTS OR NEW ENTRY............................................................................................................21
MARKET STRUCTURE................................................................................................................................... 22
APPLE’S ORGANIZATIONAL STRUCTURE TYPE AND CHARACTERISTICS.............................................................................22
SPOKE AND WHEEL HIERARCHY..............................................................................................................................23
PRODUCT BASED DIVISIONS...................................................................................................................................23
WEAK FUNCTIONAL MATRIX..................................................................................................................................24
APPLE’S CORPORATE STRUCTURE- ADVANTAGES AND DISADVANTAGES..........................................................................24
Strong Corporate Control.............................................................................................................................24
Limited Organizational Flexibility.................................................................................................................24
APPLE’S CORPORATE STRUCTURE................................................................................................................ 25
APPLE’S ORGANIZATIONAL CULTURE AND CHARACTERISTICS......................................................................25
TOP-NOTCH EXCELLENCE.......................................................................................................................................26
CREATIVITY.........................................................................................................................................................27
INNOVATION.......................................................................................................................................................27
SECRECY............................................................................................................................................................ 27
MODERATE COMBATIVENESS.................................................................................................................................27
APPLE’S CORPORATE STRUCTURE- ADVANTAGES AND DISADVANTAGES..........................................................................28
Advantages and Disadvantages...................................................................................................................28
Drawbacks and Weaknesses........................................................................................................................28
MARKET STRUCTURE................................................................................................................................... 28
THE PRICE ELASTICITY OF DEMAND AND SUPPLY......................................................................................... 31
PRICING AND OUTPUT DECISIONS...........................................................................................................................32
2
, Apple
Apple is a prominent hardware and software company best known for its series of
personal computers, the iPod, and its innovative marketing strategies for its
products.
External Environment
The external environment impacts on businesses and is comprised of many factors.
These factors are often used by businesses to analyse how and why they will be
successful or unsuccessful, this analysis is known as PESTLE which stand for:
Political
Economic
Social
Technological
Legal
Environment
Political Factors
Several political factors are linked to the types of government in each country and
the global political climate as well as the kind of tax laws, policies and tariffs a
government sets over trade. For example, tax laws, policies, and tariffs are key
factors for a country planning. There are many opportunities within Apple's macro-
environment: the most important external political factors are improving trade policies
and too stable politics in developed countries. More and more free trade policies are
created, especially with developing countries. Apple's opportunities are increased as
they can distribute more of their various products around the world because of new
free trade policies.
According to some sources the effect of Brexit could pave the way for a major boost
for the UK’s apple industry, as joining the single market was hugely damaging to de
domestic sector. Apps created for the iPhone and other Apple products have helped
created hundreds of thousands of jobs, the company says. Across Europe, more
than 1.7 million jobs have been created and supported by Apple products. That's
3
EXPLORING BUSINESSES
APPLE
,Table of Contents
APPLE........................................................................................................................................................... 3
EXTERNAL ENVIRONMENT............................................................................................................................ 3
POLITICAL FACTORS................................................................................................................................................3
ECONOMY............................................................................................................................................................4
SOCIAL FACTORS................................................................................................................................................... 4
TECHNOLOGICAL FACTORS.......................................................................................................................................5
LEGAL FACTORS.....................................................................................................................................................5
ENVIRONMENT FACTORS.........................................................................................................................................6
INTERNAL ENVIRONMENT............................................................................................................................. 6
CORPORATE CULTURE.............................................................................................................................................6
CORPORATE SOCIAL RESPONSIBILITY..........................................................................................................................7
Clean energy...................................................................................................................................................7
Energy saving products..................................................................................................................................7
COMPETITIVE ENVIRONMENT....................................................................................................................... 7
INNOVATIVE PRODUCTS..........................................................................................................................................8
STRONG INTEGRATED SUPPLY CHAIN.........................................................................................................................8
PREMIUM PRICING STRATEGY..................................................................................................................................8
FACTORS INFLUENCING COMPETITIVE ADVANTAGE.......................................................................................................9
Differentiation................................................................................................................................................9
Pricing Policy...................................................................................................................................................9
Market leadership..........................................................................................................................................9
Reputation......................................................................................................................................................9
Market share................................................................................................................................................10
Cost control...................................................................................................................................................10
4PS MARKETING......................................................................................................................................... 11
APPLE’S PRODUCTS..............................................................................................................................................11
PLACE/ DISTRIBUTION..........................................................................................................................................12
PROMOTION.......................................................................................................................................................13
PRICES/ PRICING STRATEGY...................................................................................................................................14
SWOT ANALYSIS.......................................................................................................................................... 15
STRENGTHS........................................................................................................................................................ 15
WEAKNESSES......................................................................................................................................................16
1
, OPPORTUNITIES...................................................................................................................................................16
THREATS............................................................................................................................................................17
PORTER’S FIVE FORCES................................................................................................................................ 18
COMPETITIVE RIVALRY OR COMPETITION WITH APPLE................................................................................................18
BARGAINING POWER OF APPLE’S CUSTOMERS/ BUYERS..............................................................................................19
BARGAINING POWER OF SUPPLIERS.........................................................................................................................20
THREAT OF SUBSTITUTES OR SUBSTITUTION..............................................................................................................20
THREAT OF NEW ENTRANTS OR NEW ENTRY............................................................................................................21
MARKET STRUCTURE................................................................................................................................... 22
APPLE’S ORGANIZATIONAL STRUCTURE TYPE AND CHARACTERISTICS.............................................................................22
SPOKE AND WHEEL HIERARCHY..............................................................................................................................23
PRODUCT BASED DIVISIONS...................................................................................................................................23
WEAK FUNCTIONAL MATRIX..................................................................................................................................24
APPLE’S CORPORATE STRUCTURE- ADVANTAGES AND DISADVANTAGES..........................................................................24
Strong Corporate Control.............................................................................................................................24
Limited Organizational Flexibility.................................................................................................................24
APPLE’S CORPORATE STRUCTURE................................................................................................................ 25
APPLE’S ORGANIZATIONAL CULTURE AND CHARACTERISTICS......................................................................25
TOP-NOTCH EXCELLENCE.......................................................................................................................................26
CREATIVITY.........................................................................................................................................................27
INNOVATION.......................................................................................................................................................27
SECRECY............................................................................................................................................................ 27
MODERATE COMBATIVENESS.................................................................................................................................27
APPLE’S CORPORATE STRUCTURE- ADVANTAGES AND DISADVANTAGES..........................................................................28
Advantages and Disadvantages...................................................................................................................28
Drawbacks and Weaknesses........................................................................................................................28
MARKET STRUCTURE................................................................................................................................... 28
THE PRICE ELASTICITY OF DEMAND AND SUPPLY......................................................................................... 31
PRICING AND OUTPUT DECISIONS...........................................................................................................................32
2
, Apple
Apple is a prominent hardware and software company best known for its series of
personal computers, the iPod, and its innovative marketing strategies for its
products.
External Environment
The external environment impacts on businesses and is comprised of many factors.
These factors are often used by businesses to analyse how and why they will be
successful or unsuccessful, this analysis is known as PESTLE which stand for:
Political
Economic
Social
Technological
Legal
Environment
Political Factors
Several political factors are linked to the types of government in each country and
the global political climate as well as the kind of tax laws, policies and tariffs a
government sets over trade. For example, tax laws, policies, and tariffs are key
factors for a country planning. There are many opportunities within Apple's macro-
environment: the most important external political factors are improving trade policies
and too stable politics in developed countries. More and more free trade policies are
created, especially with developing countries. Apple's opportunities are increased as
they can distribute more of their various products around the world because of new
free trade policies.
According to some sources the effect of Brexit could pave the way for a major boost
for the UK’s apple industry, as joining the single market was hugely damaging to de
domestic sector. Apps created for the iPhone and other Apple products have helped
created hundreds of thousands of jobs, the company says. Across Europe, more
than 1.7 million jobs have been created and supported by Apple products. That's
3
