Tble of Contents
Abstract 3
Introduction. 3
PESTEL analysis. 4
Political factor. 4
Economic factor. 5
Sociocultural factor. 6
Technological
factor. 7
Cloud computing system.. 7
Integrated technology in business. 7
Reliable security. 7
The mobile market demands. 7
Increasing the other mobile business organization. 7
Environmental factor. 8
Energy reduction processes. 8
Legal factor. 9
Apple strategic organizational system and value chain
analysis. 9
Apple organizational system.. 9
Value chain analysis. 10
Apple Outbound operations. 12
Apple Service Center. 14
Challenges regarding implementing business knowledge
in report 14
Change management 15
Strategic organizational unit 15
PESTEL analysis. 15
Challenges regarding value chain analysis. 16
Conclusion. 16
References
Abstract
of Apple Technology
company
This report consists of the case study of the
world's leading organization Apple. Inc. the company is unique in many aspects
of the business aspects. The report
contains the many segments related to the business models of the organization.
the PESTEL analysis helps to identify the external factors of the company and
PESTEL analysis found that mostly the external factors are linked with the
opportunities of the business and it helps to expand the business the
organization, the second segment contain the strategic structural unit system
of the organization and how this will help to achieve the organizational goals,
the collaboration of the employees helps to promote the business in regional
and international level. The value chain analysis facilitates identifying the
operational activities within and outside the company. The operational
activities and marketing opportunities help to expand the business of the
organization. The value chain engages and retains the customers by providing
different high-class facilities.
Introduction
of Apple Technology
company
Apple
is an American based mobile manufacture IT Company, and it is known as the
leading brand among all the companies. It produces, designs, manufacture and
sells out mobile, computer and other IT gadgets all over the world (PHDE, 2019).
The
purpose of this report is to analyze the external or macroeconomic factors of
the company by applying the PESTEL analysis. It helps to evaluate the different
factors and their influence on the company’s performance.
The
other purpose is to analyze the strategic planning in the organizational unit
and applying value chain analysis to know the organizational performance and
its productivity
The
report is consists of the challenges that I have found to implement different
tools of the business management on Apple.
PESTEL
analysis of
Apple Technology company
Apple
is the leading brand and it is considered in the top four IT brands among other
IT companies such as Amazon, Facebook and Microsoft. The productivity of the
organization is highly recognized by its policies and business strategic
management. The company is multinational and it hard to manage all the external
factors of different countries with respect to increase the performance of the
company. There are many opportunities and threats present related to the
different I.T companies. PESTEL analysis is the analytic tool of business
management that evaluates the different parameters of the company with respect
to external factors such as Political, Economic, Socio and Culture,
Technological and Legal parameters related to the business (LOMBARDO,
2019).
Political factor of Apple Technology company
The
political factor is the kind of factors that relate to the government and its
policies' influence on the company. It comprises of many opportunities as well
as threat s for the business. Pastel
analysis helps to evaluate the different factors political factors that
influence the business of Apple. Inc. there are three main factors that affect
the business of the company
1. Free trade policies in different countries such as
China
The first factor is taken as an opportunity to
expand the business of APLLE in different countries, the free trade policies
facilities the foreign investor to invest the countries and increase business
opportunities. The trading helps to increase the company’s revenues as well as
the stock exchange market of the country.
2. Stability in political situations in the developed
world such as America.
In the developed world such as America, the
political situation is stable and predictable, it considers as the advantage
for the company to grow its business. In developed countries, the
organizational structure is stable and strong, and it does not affect the
business. If the political situation would be changed.
3. Cold wars between different countries affect trading
such as the cold relationship of America with their Rival China, Russia.
The cold war between countries affect the different
opportunities related to the business, and affects the relationship between
countries and miss the business opportunities. To overcome this major threat,
the company made many effective policies and business strategies to increase
the business.
Economic factor of Apple Technology company
The economic factor of the
country is the most important factor that enhances the different business
opportunities. Better economic conditions help to promote the business in a
different class of the people. There are three external economic factors
present related to the Apple BUSINESS.
The apple is the native
company of America and the economic conditions of its stable of the country
that helps to run the business more effectively.
The stable economic
situation of the developed world such as America
America is the superpower
in the world, the economic condition is better than other countries, it helps
to promote the IT business in the country. America is the world leading economy
of the world and it is consider as 6TH number in the world-leading
economy in the top countries. America has a GDP of $14,785 per capita in 2019 (CE, 2019).
2. The increasing economy
of the developing countries
The business of the I.T is
very much increasing in the developing world. Many Asian countries provide
opportunities for apple business to target their market. The rapid growth in
the economy of developing countries such as India promotes apple’s business.
Increase in the income of
their target customer
Apple is the leading brand
due to the unique features in their products. The elite and upper middle class
is the main target class of its customers. The gross income of this class is
increasing that provide to increase the sale of the business and enhance
business opportunities.
Sociocultural factor of Apple Technology company
The socio-cultural factor is the main of the society
that affects the business of the copay. The apple is the cooperate business. But
the cultural aspects of the customers influence the business.
There are many social and cultural norms regarding
apple business class., but the three are most important to promote the
business.
·
Increasing the
use of I.T gadgets.
The use of I.T tools is increasing day by day. It
produces many opportunities for a different mobile manufacturing business.
·
Increase the
implementation of digitalization in the world.
The increase in digitalization help to increase the
business of Apple all over the world because apple is the leading brand and the
reliability index is higher than other I.T companies.
·
The anti-Apple
approaches used by the competitors against the apple company.
Apple is considered the leading brand and it is
worldwide famous. The rival of the company belongs to the other countries,
portraits he negative image of the apple among their target customers. Strategic
planning is done to improve the business.
Technological
factor of
Apple Technology company
Technology is the main factor
in the PESTEL analysis of the business.
This factor is the most important factor that influences the market of
I.T. apple believes sin the innovation and improve the previous technological
factors for promoting their business. The technology introduced in the apple
i.t gadgets is unique and popular in all over the world. These are the main
technological determinant that increases business opportunities for apple (AI, 2018).
Cloud computing
system
Cloud computing is a unique feature in the
apple i.t system. It helps to store a large amount of the data in online
archives. It helps to restore data. The data is secure and can be obtained by
the customer. The increasing demand of the cloud system promotes the apple
business.
Integrated technology in business
Many organization transforms their system on
digital technology, the integrated approaches are used in the I.T system, and
it creates the opportunity for the different business.
Reliable security
Apple is a world famous brand (AR, 2019). The security system
is hard and strict. It increase the Reliability of the customers and enhance
the business opportunities for customers.
The mobile market demands
The usage of mobile has become an essential tool
for survival in the digital society, the demand is increasing all over the
world, and it increase the different opportunities for apple class.
Increasing
the other mobile business organization.
The new entrepreneurs in
the I.T industry are the challenge for the previous business. The competitors
of Apple provide economic mobile phones and target the middle and lower class.
It increases the threat of apple cooperation. Effective strategic planning is
necessary to overcome this threat.
Environmental factor
of Apple Technology company
Environmental issues are
hot topics all over the globe. The challenges are present in every
organizational activity. The consequences related to the environmental disaster
are unmanageable. It create awareness among the world to take step for reducing
the negative impact on the environment. There are many kinds of protocols are
designed to decrease the impact of different organizational on the environment (Jenning,
2018).
Sustainable approaches
business sustainable approaches are the main and popular approach hat design to
reduce the impact of organizational activities on the surrounding and over all
environmental conditions. By implementing the sustainable approaches to the
business of Apple to increase and strengthen the cooperate image of the
organization. The apple maintained its business on the cooperate basis, his
point help to increase the ore business opportunities.
Energy reduction processes of Apple
Technology company
Apple is believing in the
sustainable approaches in the business, the organization implements the latest
operational tools in the organization to make the organization energy
efficient. The product is manufactured on the basis of energy efficiency. It helps
to reduce the footprint of the organization in the overall environment (AR, 2019).
Legal factor
of Apple Technology company
Legal factors and
regulation are the main obstacles that limit business opportunities. PESTEL
analysis finds out that the increase in the strict policies in the legal
framework impacts the business operations and market value in a negative way.
Privacy and data security
of the customers
The privacy of the data and
the organization is good enough to increase the business. But the new
legislation with respect to privacy and adapt security in the US creates many
difficulties to obtain the data of the customer and affect the business. But on
the other hand, the company is facing the different legal challenges in the
different countries of the world, such as China and Australia. The legal
framework increases the battle against the apple and the involvement of the
third parties creates many obstacles to run the business. Effective planning is
required to reduce these challenges.
Apple
strategic organizational system and value chain analysis
Apple organizational system
Apple organizational system
is defined as the hierarchical system, this system was established by the ex
CEO and the co-founder Steve Jobs. Leadership plays a vital role in the
organizational system, the transformational and transactional leadership style is
very effective for running the organization in an effective manner. The recent
CEO of Apple Tim cook believes in the decentralized leadership in the
decision-making process, he delegates his power to a certain extent to their
colleagues and organizational employees. it would help him to encourage them to
create innovative ideas and implement them in the organization for value chain
analysis is the business tool that facilitates identifying the different
organizational activities of the business, how these activities assembled and
create the business opportunities for increasing the business. It helps to
understand the organizational activities (Adams, 2017).
Value chain analysis of Apple Technology company
Value chain analysis is the business tool that facilitate to
identify the different operational activities of the organization and how it
will help to promote the business and increase the revenue.
Primary activities of Apple
Inbound Logistics
Inbound logistics are the basic
activity that is defined as obtaining and storing the raw material for the
manufacturing of the products. Apple has a large system of suppliers around the
globe and it is organized in a very effective supply chain system to manage
their organization. Apple does not believe in the Just- in time rule in inbound
basic logistics. The international technology company obtains its requirements
over the 150 days of the time period. Tim cook the CEO of the organization
consider the different parameters of the suppliers and purchase the raw
material on the basis of the specific qualities, he believes in the quality not
in quantity. That’s why the total number of the supplier is decreased after 2011.
Outline of the apple’s operational activities
Apple Outbound
operations
Apple's organizational activities are segmented into different
countries.
America: the region includes North and South America. About 42% of the
net set is grounding 2017 and 2018.
Europe: This region contains about 24% of the net sale of Apple,
China the region contain china, Hong Kong and Taiwan and it comprises
about 20% of the total sale in 2018 and 2019.
Pacific countries contain 7% of the total sale of Apple.
About 132,000 employees have conducted operations all over the world.
The manufacturing process of the apple is done near the raw material supplier
location, it helps to reduce the cost of the operation and effectively managed
the supply chain system. About some model of Apple is manufactured in USA,
whereas the majority of the products rebuild in the Asian countries. Outbound
resourcing is included the warehouse and distribution outlets of the company,
which provide the variety of the products to the customers, these products
include the iPhones, iPads, and the range of different models of Mac computer.
The company provides its products to the different outlets of the company to
their effective shipping. The outbound provides the facility to the deliveries to
different wholesalers and retailers.
The digitalization and
globalization impact the shopping style of the customers, the online shopping
or e-commerce increase the productivity of the company the apple implement the
e-commerce and online shopping the organization to upgrade the shopping
experience for the customers. Due to the effective e-commerce management, apple
is considered as the third retailer in the US, after the Amazon and Walt mart,
the sale through e-commerce is 5% of the company and the worth is $12 billion
US dollars. The effective strategies of the organization penetrate the market
of different regions of the world such as China, Asian countries. E-commerce
contributes to increase in the sale of the company all over the world (UE, 2018).
Marketing and Sales
Opportunities
There are
many marketing and business strategies regarding the increase in business
opportunities. The marketing plays an important role to increase the business,
the proper planning is done to make the marketing more effective, the Value
chain helps to launch the new product into the market in different strategies.
There are seven kinds of marketing are done regarding Apple marketing. These
segments of the market are wholesalers, retailers, Apple retail stores, apple
online stores, value-added resellers and direct sales. This marketing channels
helps to promote the sales the domestic sales was 37% and the international
sale is 63% in 2018. Apple is increasing the main opportunities of the sales by
expanding the indirect and direct sales (Budeva &
Mullen, 2014).
Apple Service Center
The facilities that have been provided to the customers by the apple is
exceptional in every aspect. Apple is committed to providing world-class
facilities to its customers. In the value chain, the main stakeholders of the
company are the customers, the feedback received by the customers helps to
increase the innovation process and manage their al activities in an effective
way. The customer service center hires young people and trained them to provide
the best services to the customers. The
company provides the maintain ace warranty to the different products, the
maintenance center improve the reliability index as well as the retain the customers.
the product can be returned to the company after the 14 days of the purchase if
it can directly buy the retail stores of the apple.
the value chain helps to promote the innovation and recreation of the
products and make the operations timely and less costly. It involves all
stakeholders directly in the company to make it more progressive for the
company business plan.
Challenges
regarding implementing business knowledge in report
There are many challenges
found to make the report on the organizational activities of the company and
implementing the knowledge that I obtained from the module.
Apple is the largest in the
leading organization in the world that starts its business at a small scale,
the case study of the apple elaborate the effective management tools in the
organization,
Change management
The concept of change
management is easily reflected in the business model of the apple. Inc. the
change is the continuous and progressive step toward the success of the
organization the theories of the change management such as Kotter’s change
model help to analyze the change management in the Apple, by applying the
change in the technology and different organizational operations, the company
leadership help to make effective management with respect to the change.
Strategic
organizational unit
In the case Apple, the gathering of the data
on the organization was hard, the strategic unit of the organization helps to
analyze the decision –making the process in the organization. The delegation of
power helps to increase the innovation in the company.
Leadership style
According to the module,
for the successive progress of the business, the leadership style of the head
plays very vital role. I found difficult to analyze the leadership style of
Steve Jobs and recent CEO Tim cook in the organization, by studying critically,
I found that the leadership style of Tim Cook is transformational.
PESTEL analysis
of Apple Technology company
The challenges, I found in
implementing the pestle analysis were that to understand the different economic
and other factors information with respect to the regional and global
opportunities of the businesses.
Challenges
regarding value chain analysis
The collection of valid
information and analyze the inbound and outbound activities are the main
challenges for the value chain analysis.
Conclusion
of Apple Technology
company
Apple is the largest company and the company
increasing its business by effectively manage and implementing the different
business models. The leadership’s style and different strategic planning play
vital role to increase the revenues and overcome the challenges for the
organization. The report identifies the main challenges in the way of business
opportunities, PESTEL analysis identifies the main external factors that
influence business opportunities. The organizational structure of the company
increase the efficiency of the business and value chain analysis evaluate the
different activities related to the business markets and the whole structure to
collect the raw material and the manufacturing operation related to the regions
and the market strategies to increase the business and it contains the customer
care service of the organization.
References of Apple Technology company
Adams, R., 2017. 10
Marketing Strategies to Fuel Your Business Growth. [Online]
Available at: https://www.entrepreneur.com/article/299335
AI,
2018. Annual Report. [Online]
Available at: https://investor.apple.com/investor-relations/sec-filings/default.aspx
[Accessed 2019].
AR,
2019. Truly innovative products leave their mark on the world instead of
the planet.. [Online]
Available at: https://www.apple.com/environment/
[Accessed 2019].
Budeva,
D. G. & Mullen, M. R., 2014. International market segmentation:
Economics, national culture and time. European Journal of Marketing, 48(7-8),
pp. 1209-1238.
CE,
2019. United States (USA) GDP - Gross Domestic Product. [Online]
Available at: https://countryeconomy.com/gdp/usa
Jenning,
R., 2018. Why These Contractors Had To Help Apple Cut Air Pollution In
China. [Online]
Available at: https://www.forbes.com/sites/ralphjennings/2018/07/31/why-these-contractors-had-to-help-apple-cut-air-pollution-in-china/#493bba943e07
[Accessed 31 July 2018].
LOMBARDO,
J., 2019. Apple Inc. PESTEL/PESTLE Analysis & Recommendations. [Online]
Available at: http://panmore.com/apple-inc-pestel-pestle-analysis-recommendations
[Accessed 9 June 2019].
MES,
2018. MEDIA AND ENTERTAINMENT SPOTLIGHT. [Online]
Available at: https://www.selectusa.gov/media-entertainment-industry-united-states
PHDE,
2019. Introduction to the APPLE company. [Online]
Available at: https://phdessay.com/introduction-of-apple-company/
UE,
2018. SOFTWARE AND INFORMATION TECHNOLOGY SPOTLIGHT. [Online]
Available at: https://www.selectusa.gov/software-and-information-technology-services-industry-united-states