P6 & M3: Apple and Adidas
Describe/Analyse how political, legal and social factors are impacting upon the business activities
of the selected organisations.
For this assignment I am going to Describe and Analyse how political, legal and social factors are
impacting upon the business activities of the selected organisations and their shareholders. For this
assignment I have chosen the two business Apple and UNICEF. Apple is technology producing
company headquarted in California and Adidas is a profit company headquarted in Herzogenaurach.
Political Factors: are factors which impact a business directly from the government. Politicians are
constantly making important discussions, with each decision having an impact on a business in some
sort way. The US is governed by the Republican Party which is led by President Donald Trump.
Appel is very depended on lower cost manufacturing in China. Political unrest in China could disrupt
manufacturing or increase manufacturing costs in China. President Trump wants to limit Chinese
imports to the US to boost American manufacturing. Finding an alternative for Chinese
manufacturing will cost Apple a lot of money. This could mean that Apple will need to increase the
prices of their products. The US government could also decide to set a strong U.S Dollar which means
there will be an increase in exchange rate making it expensive for Apple to do business in key
markets like China and Europe. The American government can also decide to increase the tac rate
this would have an impact on Apple because Apple will have to ask a higher price for their products
because they are paying more tax to the government.
Adidas supplies, ships and distributes their products worldwide. This requires them to extend
international supply chains and follow political procedures when selling products online. The
company also uses political forces as methods of intervention of fake products. Each country has
their own taxation system. Adidas is required to accept the rules of that county for each sale and
each product distributed. Adidas wants to outsource the development of their product to third world
countries, because the manufacturing costs will be low but communities don`t allow these types of
businesses. Adidas must follow the following rules: International Trademark Agreement, Product
Safety Laws, Labor Laws and Consumer Safety Product, Regulations.
Social Factors: help a business know the social environment of the market by finding out the
customers demographic, cultural limitations, lifestyle attitudes and education. Business do this to
understand their customer`s needs and what brings the customers to marketplace to purchase their
products.
Apple has made changes in two main factors: Design & Quality to satisfy the consumer and the
customer. With this change in education, lifestyle and buying the wish of purchasing expensive Apple
products has increased in the most markets. Apple is defining an individual’s modern lifestyle and the
increased demand of Apple’s products has assisted in formulating strategy to open franchises and
make investments in developing countries.
Adidas changes the designs of products. Designs match the interests of consumers. Products are
often available for any age, gender or lifestyle. But their core focus group are health buyers with a
love for sport. They must keep up with the latest health trends to give their customers. The social
factors impact on Adidas very much for example if the environment wants to reduce carbon
footprints this will be bad for Adidas because they will have to make investments in a alternative.
Legal Factors: are the rules and regulations that are given by the government and that apply to every
business. These are certain laws mainly effect business environment. In a certain country. Which
mainly focus on the consumer laws, safety, labor and health.
Describe/Analyse how political, legal and social factors are impacting upon the business activities
of the selected organisations.
For this assignment I am going to Describe and Analyse how political, legal and social factors are
impacting upon the business activities of the selected organisations and their shareholders. For this
assignment I have chosen the two business Apple and UNICEF. Apple is technology producing
company headquarted in California and Adidas is a profit company headquarted in Herzogenaurach.
Political Factors: are factors which impact a business directly from the government. Politicians are
constantly making important discussions, with each decision having an impact on a business in some
sort way. The US is governed by the Republican Party which is led by President Donald Trump.
Appel is very depended on lower cost manufacturing in China. Political unrest in China could disrupt
manufacturing or increase manufacturing costs in China. President Trump wants to limit Chinese
imports to the US to boost American manufacturing. Finding an alternative for Chinese
manufacturing will cost Apple a lot of money. This could mean that Apple will need to increase the
prices of their products. The US government could also decide to set a strong U.S Dollar which means
there will be an increase in exchange rate making it expensive for Apple to do business in key
markets like China and Europe. The American government can also decide to increase the tac rate
this would have an impact on Apple because Apple will have to ask a higher price for their products
because they are paying more tax to the government.
Adidas supplies, ships and distributes their products worldwide. This requires them to extend
international supply chains and follow political procedures when selling products online. The
company also uses political forces as methods of intervention of fake products. Each country has
their own taxation system. Adidas is required to accept the rules of that county for each sale and
each product distributed. Adidas wants to outsource the development of their product to third world
countries, because the manufacturing costs will be low but communities don`t allow these types of
businesses. Adidas must follow the following rules: International Trademark Agreement, Product
Safety Laws, Labor Laws and Consumer Safety Product, Regulations.
Social Factors: help a business know the social environment of the market by finding out the
customers demographic, cultural limitations, lifestyle attitudes and education. Business do this to
understand their customer`s needs and what brings the customers to marketplace to purchase their
products.
Apple has made changes in two main factors: Design & Quality to satisfy the consumer and the
customer. With this change in education, lifestyle and buying the wish of purchasing expensive Apple
products has increased in the most markets. Apple is defining an individual’s modern lifestyle and the
increased demand of Apple’s products has assisted in formulating strategy to open franchises and
make investments in developing countries.
Adidas changes the designs of products. Designs match the interests of consumers. Products are
often available for any age, gender or lifestyle. But their core focus group are health buyers with a
love for sport. They must keep up with the latest health trends to give their customers. The social
factors impact on Adidas very much for example if the environment wants to reduce carbon
footprints this will be bad for Adidas because they will have to make investments in a alternative.
Legal Factors: are the rules and regulations that are given by the government and that apply to every
business. These are certain laws mainly effect business environment. In a certain country. Which
mainly focus on the consumer laws, safety, labor and health.
