How environment influences business

Effect of External and Internal Environment Introduction Organizations have both an internal and external environment. To begin with, the forces or circumstances within the borderline of the organization are the components of the internal environment. Notably, the internal environment comprises for the most part of the owners, employees, board of directors, stakeholders, and the corporate culture. On the other hand, factors that are extrinsic to the organization are the components of the external environment.

It is imperative to note that these are elements that the organization bears no control of as they impact the entire the industry and therefore the organization cannot influence how such aspects will shape up (Nieuwenhuizen, Badenhorst-Weiss, and Rossouw, 2008). On the other hand, factors within the internal environment are those that the organization can control and have an effect on how they will turn out to be. The external environment is categorized into the general environment and the task environment.

On the one hand, the general environment encompasses factors that may have an instantaneous direct impact on operations but nonetheless impact the organization’s activities. On the other hand, the task environment comprises of factors that have a direct impact and are also impacted by the operations of the firm (Nieuwenhuizen, Badenhorst-Weiss, and Rossouw, 2008). The main objective of this paper is to extensively analyze the effect of the internal and external environment on Apple Inc. Brief Background of the Company Apple, Inc.

is one of the most renowned and successful companies in the markets. The prevalent company with a market capitalization of $656 billion is pervasive. Since its advancement by Steve Jobs, Apple has come to be one of the largest companies in the market and barely needs an introduction. Apple Inc.’s business operations encompasses the manufacturing and retailing of iPhones, iPads, and a sequence of unveiled laptops and desktops such as the Mac and the MacBook and MacAir.

In addition, the company also manufactures the software that is employed in the running of these devices and its business also takes into account a variety of media such as movies, music, e-books, in addition to software applications. Most of all, the company has also integrated a cloud storage service in recent ties and an electronic apple payment processing system (Yahoo Finance, 2018). PESTLE Analysis Pestle analysis is delineated as a tool employed in the analysis and monitoring of the external environment of an organization.

It is a framework that facilitates the comprehension of the external influences on an organization. These external factors or influences comprise of political, economic, social, technological, environmental, and legal aspects. Pestle analysis is beneficial in the appraisal practice of the dynamic and competitive business setting. It encompasses an evaluation of each of the fundamental factors, which directly and indirectly have an impact on the business performance (Zanoni, 2011). Political The political environment is linked with government policies and engagements. The magnitude to which Apple Inc.

is capable of accomplishing its key objective of profit maximization is reliant on a variety of political factors comprising of government stability, corruption, extent of bureaucracy and also freedom. In the contemporary, the most significant political aspect that has influenced Apple’s operations is the company’s encounter with the United States Federal Bureau of Investigations (FBI).

In particular, the company’s disagreement with the agency took into account the aspect of whether Apple should have been obligated to hack an iPhone account that has been utilized by one of the terrorists during the 2015 San Bernardino mass shooting. Subsequently, this emanated into a political deliberation splitting the general public into advocates and antagonists of the company (Tibken, 2017).

This significantly impacted the company in that it had to incur costs as high as $5.46 million in the last financial year and also the revenue generated by the company declined from $58 billion to $50 billion owing to the decreased number of iPhone sales from $61.2 million to $51.2 million in the similar financial period (BBC News, 2016). Economic The economic environment takes into account financial performance, the level of demand and supply within the marketplace, levels of employment, and also consumer base levels.

It is imperative for organizations to be economically sound in order to prosper. There is an extensive variety of economic factors that impact Apple Inc. both directly and indirectly. One of the key economic factors is the exchange rate in the market. It is imperative to note that Apple generates more than 60 percent of its entire sales from the global markets and for this reason its revenues are adversely impacted by the prevailing inclination of strengthening the dollar.

In the 2014 financial year, chief executive officer (CEO) of Apple, Tim Cook, espoused an approach of hedging the currency with the main objective of easing the adverse impacts of the dollar becoming stronger. Nonetheless, these practices can solely recompense the losses incurred owing to the exchange rate to a certain extent and therefore it is expected that Apple will continue to face foreign exchange rate risk (Adinolfi, 2015). Another economic factor impacting the operations of Apple is costs incurred by the company.

For a long time now, Apple has instituted its manufacturing facilities in China and outsourcing its operations there in order to attain cost efficiencies in terms of resources and also cheaper labor. However, in recent years, this has come to be considerably more challenging owing to the fact that the wage rates in China have experienced a 64 percent increase in the past five years to $3.60 hourly wage rates. This increase in costs has resulted in a decline in the profits generated by the company.

Nonetheless, not all economic factors negatively impact an organization. Another economic aspect that impacts Apple is the rate of taxation. All corporations are mandated to pay taxes, which diminish the earnings generated. However, in the past years, the tax reforms that were propositioned by President Donald Trump to facilitate the level of competitiveness of the companies in the United States in the international market are beneficial.

The main objective of decreasing the mandatory corporate taxation rate from 35 percent to 20 percent is bound to positively impact the profits generated by Apple (Thrush and Rappeport, 2017). Social The social factor of the framework takes into account the social impacts on the behavior and expectations of consumers with respect to products, services, and organizations on a whole. One of the key social factors impacting Apple Inc. encompasses the significant and progressively increases in the use of mobile accessibility.

In the present day, there is the inclination of the rising popularity of mobile access across the globe, which presents a prospect for Apple to continue with the provision of easy to use mobile devices. It is imperative to note that Apple has already taken substantial measures to capitalize on this prospect through the unveiling of such devices like the iPhone, iPad, MacBook, and Apple Watch. In addition, the company has continued to increase its expansion across the world to reach a more extensive consumer base.

Secondly, the major rise and adoption of the internet and social media has and continues to have an impact on Apple. This is a major prospect for the company owing to the reason that it leads to an increase in the demand levels for digital products such as those manufactured and retailed by Apple (Lombardo, 2017). Technological The technological factor of the PESTLE framework takes into account the manner in which prevailing technologies and technological transformations have an impact on business circumstances.

These technological aspects are not only an opportunity to the company but also a threat to its business operations. In the contemporary, one of the key technological factors that has largely impacted Apple is the predisposition of cloud computing. Imperatively, cloud computing had advanced to become prevalent amongst both individuals and organizations. In this regard, Apple has capitalized on the prospect and unveiled the iCloud for increased user storage. However, the company should continue making the most of this change by creating and unveiling devices and applications that are cloud-oriented.

Another aspect that has an impact on Apple’s operations is technological integration and assimilation. One of the major trends in the present day amongst consumers is the demand for devices that can be integrated in terms of use. This far, Apple has been able to capitalize on this demand by unveiling the Apple Watch that is in sync with the iPhone for ease in use and also with Nike Plus to aid consumers such as sports professionals to track their activities (Lombardo, 2017).

Advancement in technology has also prompted the growth of the apps market. In the contemporary, there are apps for just about every activity ranging from social connectivity, cooking and fitness, to music, religious, educational and also productivity apps. In this regard, Apple has the prospect of further developing and growing its Apple Store with such apps to increase the number of consumers. However, the technological factor has also presented a number of hurdles for the company.

One of the perceptible ones has been patent wars with rival companies such as Samsung over the technological components of the product offerings. This has resulted in a constant battle that necessitates a huge amount of money in legal costs over the years (Jinjin, 2013).

In order to rival other companies and sustain its relative competitive advantage, it is imperative for Apple to manufacture and unveil products that stay in touch with and are in correspondence with the cut-throat level of innovation within the industry and at the same time stimulating consumer demand. There continues to be prospects within the industry for the reason that a consideration percentage of consumers demand for the trendy and cutting-edge products, the most recent technology and the novel features that guarantee proper functionality of the products.

Bearing this mind, the main challenge that Apple faces is being correspondent with these inventions and development of software that facilitates prevailing technologies to undertake more. In this regard, Apple sustains an emphasis on research and development and at the same time impels frequent and systematic upgrades by means of opportune releases of fresh models and ensuring such processes and smooth sailing for its consumers (Investopedia, 2018). Environmental The environmental factor within the model points to the ecological apprehensions and their impacts on business.

From an ecological point of view, one of the key aspects that is impacting Apple’s business operation is business sustainability and corporate social responsibility. In the contemporary, corporate social responsibility is a measured integration of social and environmental efforts into corporate strategies and activity as well as company’s relationship with stakeholders like consumers, personnel, local community, and society as whole (Katavic, 2014). This is undertaken to facilitate competitive advantage and business sustainability. Presently, Apple Inc.

is taking into consideration the prospect of preserving business sustainability by means of reprocessing and associated programs. What is more, the corporation is incessantly in search of novel technological solutions to enhance the energy efficacy of Apple products, for instance by means of augmented batteries, process as well as constituents that release a decreased amount of heat. Furthermore, there has been increased lobbying against companies to decrease the amount of pollution and emissions from their manufacturing processes.

Apple has taken proper measures to ensure that such activities are in line with the global emission requirements and augment consumer perception regarding its products. Legal The legal aspect within the PESTLE model points out the effect of laws or regulations on business operations. One of the fundamental legal external factors impacting Apple is that of privacy regulations both nationally and internationally. In the contemporary, governments are coming to the realization of issues dealing with privacy associated to the use of digital technology.

For this reason, policies and codes of practice have been incessantly deliberated upon giving rise to the imposition of increased privacy regulations on companies such as Apple Inc. Imperatively, this factor is a major threat for the business owing to the reason that it generates fresh challenges for the company in the development of products and services that encompass the relaying of private information. For instance, Apple Inc.

faced a great deal of battle with the FBI owing to the demand for revelation of private consumer information through the hacking of an iPhone. The main argument provided by Tim Cook is that Apple as a company has given guarantees to consumers that their information will be private and treated with the utmost confidentiality and therefore rendering such personal data and information to other parties is in breach of the contract and trust shared (Tibken, 2017). Secondly, there is the legal external factor of amassing telecommunications regulations.

In the present day, the U.S governments as well as other administrations internationally are imposing more stringent telecommunications rules and regulations, which continue to be a substantial threat to Apple’s business operations owing to the reason that they could prospectively have a restricting impact on greater use of Apple product offerings. For instance, the Trump administration is presently in an endeavor to begin the process of being able to control internet speeds and also social media.

Furthermore, from a legal standpoint, there is also the concern regarding the treatment of the outsourced workforce, who at times are considered to ensure harsh working conditions. The labor rights inclination is affecting the international business setting and Apple has not been spared. However, the company has already taken measures to address the prospect to augment the perspective of consumers regarding its products and services by enhancing employment practices all the way through its supply chain.

Taking this into account, it is key for Apple to may emphasis on privacy protection and regulatory amenability of all its products in order to sustain its leadership in different marketplaces across the globe (Yoffie and Baldwin, 2015) SWOT Analysis SWOT analysis is an implement utilized to conduct the evaluation of a company’s competitive position by ascertaining its strengths, weaknesses, opportunities, and threats.

In particular, SWOT analysis is an introductory model of assessment that measures when an organization is able or unable to do and its prospective opportunities as well as threats (Witcher and Chau, 2010). By utilizing data from both the internal and external environment to assess the position of an organization, a SWOT analysis makes a determination of what helps the entity in realizing its objectives, and what hurdles it has to overcome or diminish to accomplish desired outcomes.

Basically, the analysis delineates where the organization is in the contemporary and the direction it might take (Investopedia, 2018). As aforementioned, SWOT analysis encompasses four elements. First, strengths delineate when a firm thrives at and distinguishes it from the competition. Such aspects comprise of distinctive technology, strong brand name and image, strong financial position, and also a loyal consumer base. Secondly, weaknesses hinder a firm from performing at its optimal or peak level. These are areas where the firm necessitates improving in order to sustain its competitiveness.

Some of these weaknesses can include lack of capital and also high debt levels. Third, opportunities take into account auspicious external factors that an entity can utilize to hand it a competitive advantage. Lastly, threats encompass factors that have the capability of adversely impacting the firm. Some of these threats comprise of increased competition levels, increasing costs of inputs and also diminished supply of labor (Investopedia, 2018). The following table and subsequent discussion delineates the SWOT analysis of Apple. Strengths Weaknesses 1. Renowned for cutting edge technology 2.

Several retail stores across the world 3. Competent and efficient management team 4. Remarkable trademark and brand image 5. Properly managed supply chain 6. Hybrid strategy of differentiation and cost leadership 1. Poor compatibility in software and hardware 2. High prices compared to rival products from IBM and others Opportunities Threats 1. Advancement in technology brings the prospect for innovation 2. The company’s customer-oriented services strategy is in line with the demands of the prevailing socio-cultural wave 3. The upcoming generations are embracing digitalization and innovation 4. Prospect of expansion to emerging markets 1. Emergence of substitute products 2.

Intense rivalry in the market 3. Patent wars Strengths 1. Renowned for cutting edge technology One of the main aspects that Apple is acknowledged for in the market is by incessantly unveiling innovative products. This is linked to the technological factor of the PESTEL analysis owing to the fact that the groundbreaking technology impacts not only Apple Inc. but also the industry as a whole. From its inception, the company has rolled out innovative products time and again.

Ranging from the Apple II, to dissimilar products such as the Macintosh, the desktop, the iPhone, the iPad, and the Apple watch, a fundamental aspect that Apple has been celebrated for is introducing groundbreaking products in the market. Apple has also had a competitive advantage for typically designing its products right from the beginning, making the most of unique chips, disk drives, and monitors.

This has set the company apart from the rivals in the market owing to the reason that consumers are swayed by their inimitable products (Yoffie and Baldwin, 2015). Apple has been renowned for groundbreaking technology. This affects decision making because the company wants to maintain this status and also ensure that the brand image, consumer base and high revenues remain intact. 2.

Several retail stores across the world Since its inception, Apple has been able to expand its business operations not only locally in the United States and also regionally, but also internationally. This is associated to the social and economic factors within the PESTEL model. This is owing to the fact that the expansion of the company is linked to its financial and economic performance and opening a greater number of retail stores is associated to increased acceptance of product offerings by societies.

In actual fact, a greater percentage of the company’s revenues emanate from the global markets. One of the key strong suits facilitating this great level of success is associated to the fact that the company has been able to open numerous retail stores across the globe. In addition, the company deals with numerous vendors and dealers, which facilitates is reachability to the consumers. For instance, the company sets deals with companies such as Best Buy and Wal-Mart to retail its products.

Increase in retail stores of a company affect decision making because the company seeks to ensure the products reach the end users easily. However, at the same time, the stores have to be situated in strategic positions. 3. Competent and efficient management team Effective leadership and management within a corporation are pivotal aspects that can determine its success or failure within the market. This is associated to the economic factor in the PESTLE model. The financial and economic performance of a firm is reliant on the proficiency of the management team.

One of the key strong suits of Apple is that it has incessantly had competent and efficacious leaders and management teams. From Steve Jobs to Tim Cook, the company has marveled from the knowledge, insight and novelty put out by these leaders. They have facilitated not only the rise but also the continued dominance of the company throughout the years. For instance, Steve Jobs was able to diminish the 15 different product lines operated by the company to solely 4. This took into account portable Macs and desktops for consumers and professionals.

An additional significant move that was undertaken by Jobs as the leader of the company was to bring a halt to the Macintosh licensing program. Consequently, Apple Inc. eradicated any prospect of clone makers or imitators being given licenses to sell any new Apple technology or new Apple-warranted proprietary designs (Wired, 1997). What is more, the company unveiled a website in which consumers would be able to purchase the products offered. On the other hand, through his expertise, Time Cook took over the company and streamlined the company's supply chain.

Imperatively, not only has Cook generated more innovative products, he has also been able to sustain the corporate culture of Apple and steered it to further success (Yoffie and Baldwin, 2015). The management of a company affects decision making because they are the ones that determine the strategies implemented and the direction to be taken by a company. 4. Remarkable trademark and brand image The trademark and brand image of Apple Inc. have ensured that its products have constantly been trending.

This strength is associated to the economic factor in the PESTLE model. This is in the sense that when a company conducts business operations in the right manner it creates a positive brand image and creates a trademark. In the contemporary, it is possible to distinguish an Apple product by an initial look. This is largely for the reason that Apple products are unique in appearance, which is a component of its brand and its appeal. Secondly, Apple has a distinctive product design.

The Apple logo is renowned everywhere and this has made it possible for the company to unveil unique products and also for consumers to notice the brand. Moreover, it has made it difficult for rivals to clone or mimic the products unveiled by the company. What is more, the prices of several of Apple's devices and media services are set at a premium to its rivals and integrate premium components, for instance aluminum rather than plastic casing for devices such as phones, tablets and laptops.

The main purpose for this is to differentiate Apple products as being premium and strengthens the high-class notion and perception (Investopedia, 2018). In the similar manner, numerous prevalent applications and software programs are created and designed exclusively for Apple and therefore a user is required to have an Apple device to access them. Subsequently, there is also the strategy of cross-branding, for instance with Hermes and Apple Watch or Nike Plus.

In tandem, these branding creativities operate with the Apple ecosystem to generate an “Apple universe,” and to have products and systems extrinsic to this context is deemed as missing out or being a scapegoat. In that regard, consumers are hooked to the Apple brand and pay premium prices to have their products (Investopedia, 2018). Brand image affects the decision making of Apple Inc. because by having a tarnished or soiled brand image in the market can diminish the consumer base and number of sales 5.

Properly managed supply chain Apple Inc. has an extensive nationwide distribution network. The company has a wide-spread coverage backed by a massive Point of Sales network in the United States. In addition, the company is dominant across old-fashioned as well as present-day trade encompassing thousands of retailers, select distributors, hypermarkets and supermarket. Ranging from the manufacturing point of its chips in China to assembling, packaging and retailing of the products, the company has an efficacious system that guarantees timely operations.

A key strength of the company is that it has built strong, loyal and cooperative business affiliations with both native and international suppliers that enable Apple Inc. to have a steady supply of raw materials at economical prices. In addition, the company’s suppliers are aware of the company’s codes of practices and its policies and are expected to be in compliant with them at all times (Lombardo, 2017).

The supply chain is important as it affects decision making in its impact on other functional aspects of the company such as finance, marketing and strategic operations. 6. Hybrid strategy of differentiation and cost leadership Porter made a distinction between two kinds of strategies being the differentiation and cost leadership strategies. On the one hand, differentiation comprises of differentiating the product or services offered by the company, which generates something that is seen by consumers as being distinctive. This is accomplished through product design, customer service, brand image and features.

On the other hand, cost leadership takes into account the organization of an entity’s resources around the production of both goods and services at the least cost possible. Imperatively, by having the least costs linked with providing the products, it becomes conceivable for the business to be in a distinct position of having the capability to charge its consumers the lower price in the armlet for such product offerings (Hassan, 2015).

One of the key strengths of Apple is that it employs a hybrid strategy that assimilates both differentiation and cost leadership. Apple strives to increase market demand for its product offerings through differentiation, which encompasses making its products distinctive and appealing to consumers. Products unveiled by Apple have at all times been designed to be in advance of the curve in comparison to its peers in the market.

In spite of the high level of competition, the company has prospered in generating demand for its products, handing Apple superiority over prices through product differentiation, innovative marketing, guaranteed brand loyalty and publicity encircling the unveiling of new products. At the same time, Apple makes use of the cost leadership strategy. For starters, Apple utilizes a retail approach referred to as minimum advertised price, which hinders resellers or vendors from advertising a manufacture’s products lower than a particular minimum price (Nielson, 2014).

What is more, Apple sustains the admiration of its high-priced products by solely offering sellers like Best Buy or Walmart a marginal comprehensive discount. This price approach is efficacious insofar as it precludes dealers from contending directly with Apple’s individual retail stores, and it also makes certain that no individual reseller has a lead over another. For this reason, Apple is able to maintain its distribution channels unsoiled in addition to generating additional funds on its direct sales.

Furthermore, going back to the vision set by Steve Jobs for the company, Apple has constantly created premier products that are cutting-edge and also charge premium prices (Nielson, 2014). This affects decision making for Apple because cost leadership and differentiation are important in providing sustained competitive advantage in the industry. Weaknesses 1. Poor compatibility in software and hardware This shortcoming of the company is linked to the technological factor of the PESLE model. This is largely for the reason that software and hardware of a company are associated to technology.

Technological devices such as smartphones, laptops and personal computers run on operating systems. The shortcoming of Apple in recent times is the lack of increased compatibility in terms of both software and hardware. A fundamental basis as to why Apple tussles in the PC industry is the establishment’s sustained practice of vertical and horizontal integration (Lombardo, 2017). Fundamentally, the corporation relied on its individual original design and refused to license its software to third parties. This gave rise to one of the company’s shortcomings.

Different from Apple, one of the key rivals in the market, International Business Machines Corporation (IBM) employed a strategy that took into account the utilization of an open system that other corporate product offerings could replicate. For this reason, IBM has managed to attain a considerably greater market share in the PC market and has also established a standard for the industry.

Regardless of the fact that since then Apple has went on to manufacture and unveil the Mac and also MacBook, the lack of compatibility with software and hardware has limited its sales from soaring (Yoffie and Baldwin, 2015). In contrast, IBM unveiled PCs with perceptible features such as the DOS operating system from Microsoft and the CPU from Intel. What is more, these PCs were retailed at a cheaper price in comparison to the PCs that being retailed by Apple.

For this reason, Apple has continued to face struggles in terms of competition with other personal computer models released and retailed by other rival companies in the market like Lenovo, Hewlett-Packard, and Dell. The close system relied upon by Apple largely restricted the capability for the users and this negatively impacted its sales and market share in the industry (Grant, 2016).

This affects decision making for the Apple because despite the fact that they endeavor to increase compatibility of products, they also have to ensure that they sustain their uniqueness and distinctiveness in the market. 2. High prices compared to rival products from IBM and others This is associated to the economic factor of the PESTLE model. Prices of a product are a key financial and economic factor in the market. The strategy used by Apple compared to other market rivals is largely dissimilar.

Apple has taken up a premium strategy by retailing its product offerings at a higher price compared to similar products in the marketplace. This has significantly impacted Apple’s business operations. According to research, it has been shown that Windows 10, which is an operating system offered by Microsoft is four times popular compared to the OS X or the mac OS offered by Apple (White, 2017).

This is linked to the fact that Windows 10 is accessible on progressively more laptops and tablets compared to the OS X or the mac OS and with increased options for budget models (White, 2017). Owing to the premium pricing strategy, it is simpler to own manifold Windows 10 devices on a budget in comparison to notebooks, smartphones, and notebooks offered by Apple. For instance, in accordance to White (2017), the MacBook and Macbook Pro both begin at $1,300, whereas a Dell Latitude 3000 series begins at $439 and the Lenovo ThinkPad L series begins at $728.

These retailing prices of the product offerings give the suggestion that Windows 10 PCs are cheaper and economical. Based on a marketing perspective, pricing is a significant factor in decision making for any company. For this reason, the management of Apple has to make certain that the set price is not substantially higher to the extent that the consumers shift to other rivaling products in the market. Opportunities 1. Advancement in technology brings the prospect for innovation In the present day, there continues to be a significant advancement in technology.

This is associated to the technological aspect of the model as innovation is a pivotal aspect in the advancement of technology. This places Apple Inc. in a great position to seize this opportunity owing to the fact that it has in previous period utilized it to generate innovative products. Technological progressions such as the rise of cloud computing, assimilation of technological functionalities and increase in mobile apps present a great prospect for the company to improve its operations.

The company will be able to increase its competitive advantage through products that are matchless, trailblazing and superior to those of the competitors in the market. Imperatively, Apple Inc. ought to ceaselessly carry out the outsourcing approach and in the similar manner increasingly validate economies of scale in its supply chain to reduce costs and boost innovation. What is more, Apple ought to uplift not only prevalent competencies to compete in the consumer electronics market, but at the same time conceptualize new competencies to cater to the majority.

For that reason, it is imperative for Apple to continue to come up with newer products such as Apple Pay and Apple Watch and reduce its reliance on the iPhone success to (Jacobides, 2010). Technology facilitates superior products and services in the market. This will affect Apple’s decision making in the sense that management will seek to ensure that its products and services offered to consumers are of the cutting-edge technology. 2.

The company’s customer-oriented services strategy is in line with the demands of the prevailing socio-cultural wave One of the main approaches to success for companies is being in tandem with the changes taking place and being in touch with consumer preferences. This is traced back to the social factor of the model in the sense that the social perspectives and inclinations within the community are a determining factor on the path taken by a company.

One of the key opportunities that Apple presently faces is that the company’s customer-oriented services strategy is in line with the demands of the prevailing socio-cultural wave. In the present day, from a socio-cultural perspective, consumers are demanding not only proper customer satisfaction but are also in pursuit of companies that are in tandem with their changing preferences.

Apple has thus far been able to keep in line with such inclinations such as through the unveiling of Apple Pay, Apple Watch, Nike Plus and also more advanced versions of the iPhone, iPad, and Mac. In this regard, the company has the chance to increase its consumer base and brand loyalty by ensuring that these demands are met (Yoffie and Baldwin, 2015).

This aspect significantly determines decision making for Apple for the reason that failure to satisfy the consumer needs and preferences means that they will easily shift and switch to the other companies in the marketplace. 3. The upcoming generations are embracing digitalization and innovation Technology, innovation and digitization are terms that are associated with Apple Inc. Digitization and innovation are important elements of technology and therefore this point is associated to the technological factor of the PESTLE model.

At the same time, these are aspects that are being espoused by the upcoming generation of millennial who demand products to be advanced and easy to use. Over the years, Apple has been able to unveil products that the consumers did not know they want but without a doubt needed. This can be perceived through the unveiling of products such as the iPad, iPod and also the iPhone. More than ever, owing to the significant advancement of technology, majority of the upcoming generation are embracing innovation.

For instance, a huge proportion of youth not only in the United States are using smartphones and accessing social media platforms such as Facebook and Instagram. This is a great opportunity for Apple Inc. to capitalize on this target market (Johnson, Whittington and Scholes, 2015). This affects the decision making of the company because as time progresses, the young generation will constitute the greatest proportion of consumers for the company. As a result, the company has to.