D2: Apple
Evaluate how future changes in economic, political, legal and social factors may impact on the
strategy of a business.
For this assignment I am going to evaluate how future changes in economic, political, legal and social
factors may impact on the strategy of a business. The business I have chosen for this assignment is
Apple. Apple is a profit company headquarted in California.
Political
A political factor that has a large effect on Apple is: a rise in taxation for VAT and Corporation Tax. if
the tax raises this will mean that Apple will make less profit increasing the tax will also have an
impact on every department of Apple, first on the higher positions need to change their operations
so they are able to make profit to cover their losses, Also the employees will be paid less money
because the business is not making enough money they are paying too much tax, so they don`t have
enough money to pay their employees. Also, the customers will be affected if the tax increases
because Apple will have to raise the prices of their products because Apple is not making enough
profit the customers will not be happy to hear that Apple has increased the prices of their products,
so they will take their buying’s to another company for example to Apple`s biggest rival Samsung.
Legal
A Legal Factor that may have an impact on Apple`s operating in the future can be the rise of the
minimum wage (minimum amount of money an employer needs to pay its employees during a given
period), this will have a huge impact on Apple because their labour costs will increase and their
business will have to pay more to their employees. An increase of $2 will not have an impact on
Apple but for the 116.000 employees worldwide this will have a huge impact on the profit of Apple,
Apple may have to increase their products prices if their labour costs are too high to combat it. In the
future Apple may have to cut out employees inside their business to reduce the business costs. If
apple cuts out employees from their business to reduce the costs this will mean that the production
in the future of their products will be slow because their employees are cut out this will also impact
the stakeholders of Apple because they cannot invest their money in to apple business and that will
affect their sales, profit and reputation.
Social
An example of a future social change that can impact Apple is; decrease on money the government
gives to education. If less people can finish their university then less people have better
qualifications. This means that Apple will have to lower their expectations. If the government support
on education decreases Apple can also recruit less people as it will be harder for them to find fully
qualified employees. This can impact the people that are applying for a job position in a department
of Apple because they are nor well qualified, so this will reduce the chances of them getting a job.
Apple could combat the decrease in government support for education by giving their new
employees lessons for example of how to deal with a customer by their self but also this will have an
extra cost for Apple.
Economic
An example of a future economic change that can impact on Apple is; The rise of the inflation rate.
The current US inflation rate is 1.9% the US government expects that the inflation rate in 2020 will be
2.6%. This will have an impact on Apple because when an inflation rate increases the prices of goods
increase too and the people in the US will have less money to spend on products. This means Apple
Evaluate how future changes in economic, political, legal and social factors may impact on the
strategy of a business.
For this assignment I am going to evaluate how future changes in economic, political, legal and social
factors may impact on the strategy of a business. The business I have chosen for this assignment is
Apple. Apple is a profit company headquarted in California.
Political
A political factor that has a large effect on Apple is: a rise in taxation for VAT and Corporation Tax. if
the tax raises this will mean that Apple will make less profit increasing the tax will also have an
impact on every department of Apple, first on the higher positions need to change their operations
so they are able to make profit to cover their losses, Also the employees will be paid less money
because the business is not making enough money they are paying too much tax, so they don`t have
enough money to pay their employees. Also, the customers will be affected if the tax increases
because Apple will have to raise the prices of their products because Apple is not making enough
profit the customers will not be happy to hear that Apple has increased the prices of their products,
so they will take their buying’s to another company for example to Apple`s biggest rival Samsung.
Legal
A Legal Factor that may have an impact on Apple`s operating in the future can be the rise of the
minimum wage (minimum amount of money an employer needs to pay its employees during a given
period), this will have a huge impact on Apple because their labour costs will increase and their
business will have to pay more to their employees. An increase of $2 will not have an impact on
Apple but for the 116.000 employees worldwide this will have a huge impact on the profit of Apple,
Apple may have to increase their products prices if their labour costs are too high to combat it. In the
future Apple may have to cut out employees inside their business to reduce the business costs. If
apple cuts out employees from their business to reduce the costs this will mean that the production
in the future of their products will be slow because their employees are cut out this will also impact
the stakeholders of Apple because they cannot invest their money in to apple business and that will
affect their sales, profit and reputation.
Social
An example of a future social change that can impact Apple is; decrease on money the government
gives to education. If less people can finish their university then less people have better
qualifications. This means that Apple will have to lower their expectations. If the government support
on education decreases Apple can also recruit less people as it will be harder for them to find fully
qualified employees. This can impact the people that are applying for a job position in a department
of Apple because they are nor well qualified, so this will reduce the chances of them getting a job.
Apple could combat the decrease in government support for education by giving their new
employees lessons for example of how to deal with a customer by their self but also this will have an
extra cost for Apple.
Economic
An example of a future economic change that can impact on Apple is; The rise of the inflation rate.
The current US inflation rate is 1.9% the US government expects that the inflation rate in 2020 will be
2.6%. This will have an impact on Apple because when an inflation rate increases the prices of goods
increase too and the people in the US will have less money to spend on products. This means Apple
