BTEC U1 CD.
C.P4- discuss the internal, external and competitive on given businesses.
Apple
External environment-
A. (Political)
Value added tax (VAT) is a tax on value added consumption It is concerned with the value of
goods at each stage of the production or delivery process Value-added tax is applied to Apple
goods and services sold in countries where value-added tax (VAT) is required There are
differences in VAT rates between states At the time of sale, Apple includes VAT in the total price
of the item This shows that the listed prices of Apple items often include VAT for customers
Apple's corporate tax on its profits is called income tax Like all companies, Apple must comply
with the tax regulations of the countries in which it operates A company's revenue, expenses, and
applicable tax rate are just some of the variables that affect the amount of tax payable Apple has
previously been criticised for its tax policies, accused of using tax havens and complex business
structures to avoid taxes However, the company said it pays its debts and complies with all
applicable tax regulations The legal minimum wage that employers must pay their employees is
called the national minimum wage For Apple, compliance with minimum wage regulations is
essential to its international business While its compensation programs often exceed these
minimum standards, Apple generally ensures that workers receive at least the legal minimum
wage This ensures that employees receive fair compensation for their efforts, consistent with
Apple's commitment to ethical labor standards and corporate social responsibility.
B. Economic
During an expansionary period of fiscal policy, taxes are reduced, which can boost business
profits. On the other hand, contractionary fiscal policy calls for higher taxes and reduced
spending. This has a direct impact on a business's bottom line. Moreover, Apple has to pay more
corporate taxes, further dampening its capacity to expand or recoup profitability by increasing
prices. At such times, Apple tightens its spending, going into austerity and frugal engineering.
When tax regimes are lax, the tech firm experiences more demand and can expand. As one of the
world's most valuable company, Apple's influence extends across the global economy, impacting
thousands of suppliers and generating employment opportunities for millions in countries such
as the US, China, Vietnam, and India. As also their economic growth has increased as Apple's
annual revenue quadrupled in the last ten years. The external environment, also known as the
macroeconomic environment, plays a crucial role in shaping the economic landscape within
which Apple operates. Several factors influence Apple's economic performance, and
understanding these external elements is vital for strategic planning and decision-making. Here's
a detailed exploration of key aspects of the external economic environment for Apple:
Global Economic Conditions, Apple's economic performance is closely tied to global economic
conditions. Economic trends such as GDP growth rates, inflation, and global trade dynamics
impact consumer purchasing power and overall demand for Apple products. Economic
, downturns may lead to decreased consumer spending on premium products, affecting Apple's
sales and revenue.
Exchange Rates and Currency Fluctuations, As a multinational company, Apple is exposed to
currency exchange rate fluctuations. Changes in currency values can impact the cost of
production, pricing strategies, and ultimately affect the company's profitability. Apple's revenue
from international markets is subject to variations in exchange rates, influencing its financial
performance.
Trade Policies and Tariffs, Trade policies and tariffs have a significant impact on Apple's global
supply chain and manufacturing costs. Changes in international trade agreements, imposition of
tariffs, or trade tensions between major economies can affect the cost of importing components
and products, influencing Apple's pricing strategies and profit margins.
Regulatory Environment, the regulatory environment, including tax policies, antitrust regulations,
and intellectual property laws, can significantly impact Apple's economic position. Changes in
tax laws, for instance, can affect the company's profits, while antitrust regulations may influence
its market dominance and competitive landscape.
C. Social
By apple using the ability to recycle the company recovered over 2000 pounds of gold from old
devices which are worth over 40 million dollars and apple has used this money for future
upcoming projects and investment to the government. Apple has also a low net dept to the
EBITDA with a ratio of only 0.38. Apple's target audience consists of middle-class and upper-
class users who can pay higher for products that provide them with an incredible user
experience. This means that these users have a higher disposable income and are willing to pay
more for as high-priced products as their electronics. Apple are committed to demonstrating that
business can and should be a force for good. Achieving that takes innovation, collaboration, and
a focus on serving others. It also means leading with their values in the technology they make,
the way they make it, and how they treat people and the planet we share. The social external
environment significantly influences Apple's operations, as it reflects the cultural, demographic,
and societal aspects that shape consumer behaviour and preferences. Understanding the social
landscape is crucial for Apple to effectively market its products and align them with evolving
societal trends. Here's a detailed exploration of key aspects of the social external environment
for Apple:
Demographic factors, such as age, gender, income levels, and population distribution, impact
Apple's target market. Understanding demographic trends helps the company tailor its product
features, pricing strategies, and marketing messages to specific consumer segments. For
example, the preferences of younger consumers may differ from those of older demographics.
Social Trends and Lifestyles, Apple's success is intertwined with prevailing social trends and
lifestyles. The company's ability to identify and respond to changes in how people work,
communicate, and entertain themselves is crucial. For example, the growing emphasis on
remote work and digital communication has implications for the demand for Apple devices and
services.
, Health and Wellness, Increasing awareness of health and wellness influences consumer
preferences for technology products. Features related to fitness tracking, health monitoring, and
overall well-being have become significant in consumer electronics. Apple's consideration of
these trends impacts the development and marketing of products like the Apple Watch and
health-related apps.
Environmental Awareness, The rising importance of environmental sustainability and social
responsibility influences consumer choices. Apple's commitment to eco-friendly practices,
recyclability, and reducing its carbon footprint aligns with the growing societal emphasis on
environmental concerns. Consumer perception of Apple's social responsibility practices can
impact brand loyalty.
Social Media and Communication, The prevalence of social media has transformed
communication and marketing strategies. Apple leverages social media platforms to engage with
consumers, receive feedback, and promote its products. Social media trends and preferences
influence how Apple maintains its brand presence and interacts with its audience.
D. Technological progress
The Macintosh was released in 1984 and was the first personal computer to use a graphical user
interface (GUI). It was a groundbreaking innovation that made computers more accessible and
user-friendly. The Macintosh was a huge success, and it helped establish Apple as a major player
in the tech industry. Apple also utilises several strategies in its communication with external
audiences, including keynote addresses, product launches, and interviews with executives.
These strategies have helped engage external audiences and present concepts clearly and
succinctly. Apple's marketing strategy is the style with which it presents and advertises its
products: it does not describe their characteristics but uses storytelling to explain how products
can allow the audience to achieve the status they aim to. Apple strategically uses social media to
create buzz and anticipation around product launches. The company shares teasers, behind-the-
scenes glimpses, and exclusive content to generate excitement among its followers. The
technological external environment is a pivotal factor influencing Apple's operations, product
development, and competitive landscape. As a technology-focused company, Apple is deeply
affected by the rapid pace of technological progress and innovation. Here's a detailed exploration
of key aspects of the technological external environment for Apple:
Innovation and Research and Development (R&D), Technological progress is at the core of
Apple's success. The company invests heavily in research and development to drive innovation in
hardware, software, and services. Apple's ability to introduce groundbreaking products, such as
the iPhone, iPad, and Mac, is closely tied to its commitment to staying at the forefront of
technological advancements.
Emerging Technologies, Monitoring and adopting emerging technologies is crucial for Apple's
competitiveness. This includes advancements in areas such as artificial intelligence (AI),
augmented reality (AR), virtual reality (VR), and machine learning. Apple's incorporation of
technologies like facial recognition (Face ID) and AR capabilities in its devices exemplifies its
responsiveness to emerging tech trends.
C.P4- discuss the internal, external and competitive on given businesses.
Apple
External environment-
A. (Political)
Value added tax (VAT) is a tax on value added consumption It is concerned with the value of
goods at each stage of the production or delivery process Value-added tax is applied to Apple
goods and services sold in countries where value-added tax (VAT) is required There are
differences in VAT rates between states At the time of sale, Apple includes VAT in the total price
of the item This shows that the listed prices of Apple items often include VAT for customers
Apple's corporate tax on its profits is called income tax Like all companies, Apple must comply
with the tax regulations of the countries in which it operates A company's revenue, expenses, and
applicable tax rate are just some of the variables that affect the amount of tax payable Apple has
previously been criticised for its tax policies, accused of using tax havens and complex business
structures to avoid taxes However, the company said it pays its debts and complies with all
applicable tax regulations The legal minimum wage that employers must pay their employees is
called the national minimum wage For Apple, compliance with minimum wage regulations is
essential to its international business While its compensation programs often exceed these
minimum standards, Apple generally ensures that workers receive at least the legal minimum
wage This ensures that employees receive fair compensation for their efforts, consistent with
Apple's commitment to ethical labor standards and corporate social responsibility.
B. Economic
During an expansionary period of fiscal policy, taxes are reduced, which can boost business
profits. On the other hand, contractionary fiscal policy calls for higher taxes and reduced
spending. This has a direct impact on a business's bottom line. Moreover, Apple has to pay more
corporate taxes, further dampening its capacity to expand or recoup profitability by increasing
prices. At such times, Apple tightens its spending, going into austerity and frugal engineering.
When tax regimes are lax, the tech firm experiences more demand and can expand. As one of the
world's most valuable company, Apple's influence extends across the global economy, impacting
thousands of suppliers and generating employment opportunities for millions in countries such
as the US, China, Vietnam, and India. As also their economic growth has increased as Apple's
annual revenue quadrupled in the last ten years. The external environment, also known as the
macroeconomic environment, plays a crucial role in shaping the economic landscape within
which Apple operates. Several factors influence Apple's economic performance, and
understanding these external elements is vital for strategic planning and decision-making. Here's
a detailed exploration of key aspects of the external economic environment for Apple:
Global Economic Conditions, Apple's economic performance is closely tied to global economic
conditions. Economic trends such as GDP growth rates, inflation, and global trade dynamics
impact consumer purchasing power and overall demand for Apple products. Economic
, downturns may lead to decreased consumer spending on premium products, affecting Apple's
sales and revenue.
Exchange Rates and Currency Fluctuations, As a multinational company, Apple is exposed to
currency exchange rate fluctuations. Changes in currency values can impact the cost of
production, pricing strategies, and ultimately affect the company's profitability. Apple's revenue
from international markets is subject to variations in exchange rates, influencing its financial
performance.
Trade Policies and Tariffs, Trade policies and tariffs have a significant impact on Apple's global
supply chain and manufacturing costs. Changes in international trade agreements, imposition of
tariffs, or trade tensions between major economies can affect the cost of importing components
and products, influencing Apple's pricing strategies and profit margins.
Regulatory Environment, the regulatory environment, including tax policies, antitrust regulations,
and intellectual property laws, can significantly impact Apple's economic position. Changes in
tax laws, for instance, can affect the company's profits, while antitrust regulations may influence
its market dominance and competitive landscape.
C. Social
By apple using the ability to recycle the company recovered over 2000 pounds of gold from old
devices which are worth over 40 million dollars and apple has used this money for future
upcoming projects and investment to the government. Apple has also a low net dept to the
EBITDA with a ratio of only 0.38. Apple's target audience consists of middle-class and upper-
class users who can pay higher for products that provide them with an incredible user
experience. This means that these users have a higher disposable income and are willing to pay
more for as high-priced products as their electronics. Apple are committed to demonstrating that
business can and should be a force for good. Achieving that takes innovation, collaboration, and
a focus on serving others. It also means leading with their values in the technology they make,
the way they make it, and how they treat people and the planet we share. The social external
environment significantly influences Apple's operations, as it reflects the cultural, demographic,
and societal aspects that shape consumer behaviour and preferences. Understanding the social
landscape is crucial for Apple to effectively market its products and align them with evolving
societal trends. Here's a detailed exploration of key aspects of the social external environment
for Apple:
Demographic factors, such as age, gender, income levels, and population distribution, impact
Apple's target market. Understanding demographic trends helps the company tailor its product
features, pricing strategies, and marketing messages to specific consumer segments. For
example, the preferences of younger consumers may differ from those of older demographics.
Social Trends and Lifestyles, Apple's success is intertwined with prevailing social trends and
lifestyles. The company's ability to identify and respond to changes in how people work,
communicate, and entertain themselves is crucial. For example, the growing emphasis on
remote work and digital communication has implications for the demand for Apple devices and
services.
, Health and Wellness, Increasing awareness of health and wellness influences consumer
preferences for technology products. Features related to fitness tracking, health monitoring, and
overall well-being have become significant in consumer electronics. Apple's consideration of
these trends impacts the development and marketing of products like the Apple Watch and
health-related apps.
Environmental Awareness, The rising importance of environmental sustainability and social
responsibility influences consumer choices. Apple's commitment to eco-friendly practices,
recyclability, and reducing its carbon footprint aligns with the growing societal emphasis on
environmental concerns. Consumer perception of Apple's social responsibility practices can
impact brand loyalty.
Social Media and Communication, The prevalence of social media has transformed
communication and marketing strategies. Apple leverages social media platforms to engage with
consumers, receive feedback, and promote its products. Social media trends and preferences
influence how Apple maintains its brand presence and interacts with its audience.
D. Technological progress
The Macintosh was released in 1984 and was the first personal computer to use a graphical user
interface (GUI). It was a groundbreaking innovation that made computers more accessible and
user-friendly. The Macintosh was a huge success, and it helped establish Apple as a major player
in the tech industry. Apple also utilises several strategies in its communication with external
audiences, including keynote addresses, product launches, and interviews with executives.
These strategies have helped engage external audiences and present concepts clearly and
succinctly. Apple's marketing strategy is the style with which it presents and advertises its
products: it does not describe their characteristics but uses storytelling to explain how products
can allow the audience to achieve the status they aim to. Apple strategically uses social media to
create buzz and anticipation around product launches. The company shares teasers, behind-the-
scenes glimpses, and exclusive content to generate excitement among its followers. The
technological external environment is a pivotal factor influencing Apple's operations, product
development, and competitive landscape. As a technology-focused company, Apple is deeply
affected by the rapid pace of technological progress and innovation. Here's a detailed exploration
of key aspects of the technological external environment for Apple:
Innovation and Research and Development (R&D), Technological progress is at the core of
Apple's success. The company invests heavily in research and development to drive innovation in
hardware, software, and services. Apple's ability to introduce groundbreaking products, such as
the iPhone, iPad, and Mac, is closely tied to its commitment to staying at the forefront of
technological advancements.
Emerging Technologies, Monitoring and adopting emerging technologies is crucial for Apple's
competitiveness. This includes advancements in areas such as artificial intelligence (AI),
augmented reality (AR), virtual reality (VR), and machine learning. Apple's incorporation of
technologies like facial recognition (Face ID) and AR capabilities in its devices exemplifies its
responsiveness to emerging tech trends.
