Group 5 - Environmental Analysis - Apple

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BANKING ACADEMY

MAJOR OF BUSINESS MANAGEMENT

ASSIGNMENT
ON
PRINCIPLE OF MANAGERMENT

TOPIC: ENVIRONMENTAL ANALYSIS OF APPLE

Instructor : Nguyen Huong Giang


Group: 5
Class: K22CLCG

Hanoi, 2020
CONTENT
I. INTRODUCTION...........................................................................................3
1.1. Internal stakeholders..................................................................................3
1.2. External stakeholders.................................................................................3
II. ANALYSIS AND EVALUATION..............................................................3
2.1. Organization overview..............................................................................3
2.1.1. General information............................................................................3
2.1.2. Statement of recent and current state of business................................5
2.2. Introduction of environment analysis in Apple Inc....................................5
2.3. Environment Analysis...............................................................................6
2.3.1. Internal Environments.........................................................................6
2.3.2. External environment..........................................................................7
2.4. Evaluation................................................................................................16
2.4.1. Apple’s Strength................................................................................16
2.4.2. Apple’s Weakness..............................................................................16
2.4.3. Apple’s Opportunities........................................................................17
2.4.4. Apple’s Threats..................................................................................17
III. CONCLUSION..........................................................................................18
IV. LIST OF REFERENCE.............................................................................19

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I. INTRODUCTION
Environmental analysis is a strategic tool and it identifies all the external and
internal elements which can affect the organization’s performance. Corporations now
understand that they don’t need to rely only on their home market in order to be
sustainable, and increasing presence in other markets will increase sustainability because
failure in a specific market can be mitigated with a subsequent success in another
market. 
The organizational environments
Managers operate in two organizational environments, both made up of various
stake- holders. The two environments are internal stakeholders and external stakeholders
1.1. Internal stakeholders
Whether small or large, the organization to which you belong has people in it who
have an important stake in how it performs. These internal stakeholders consist of
employees, owners, and the board of directors
1.2. External stakeholders
The environment outside it, which consists of external stakeholders- people or
group in the organization’s external environment that are affected by it. This environment
consists task environment and general environment
The task environment consists of 11 groups that present you with daily tasks to
handle: customers, competitors, suppliers, distributors, strategic allies, employee
organizations, local communities, financial institutions, government regulators, special-
interest groups, and mass media
Beyond the task environment is the general environment, or macroenvironment,
which includes six forces: economic, technological, sociocultural, demographic, political-
legal, and international.

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II. ANALYSIS AND EVALUATION
2.1. Organization overview
II.1.1. General information
Apple Inc. is an American multinational technology company that specializes in
consumer electronics, computer software, and online services. Apple is the world's largest
technology company by revenue (totaling $274.5 billion in 2020) and, since January
2021, the world's most valuable company. As of 2021, Apple is the world's fourth-largest
PC vendor by unit sales, and fourth-largest smartphone manufacturer. It is one of the Big
Five American information technology companies, along with Amazon, Google,
Microsoft, and Facebook.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976 to
develop and sell Wozniak's Apple I personal computer. It was incorporated by Jobs and
Wozniak as Apple Computer, Inc. in 1977, and sales of its computers, including the
Apple II, grew quickly. It went public in 1980 to instant financial success. Over the next
few years, Apple shipped new computers featuring innovative graphical user interfaces,
such as the original Macintosh, announced with the critically acclaimed advertisement
"1984". However, the high price of its products and limited application library caused
problems, as did power struggles between executives. In 1985, Wozniak departed Apple
amicably, while Jobs resigned to found NeXT, taking some Apple co-workers with him.
As the market for personal computers expanded and evolved through the 1990s,
Apple lost considerable market share to the lower-priced duopoly of Microsoft Windows
on Intel PC clones. The board recruited CEO Gil Amelio, who prepared the struggling
company for eventual success with extensive reforms, product focus and layoffs in his
500-day tenure. In 1997, Amelio bought NeXT, to resolve Apple's unsuccessful operating
system strategy and bring back Steve Jobs, who replaced Amelio as CEO later that year.
Apple returned to profitability under the revitalizing "Think different" campaign,
launching the iMac and iPod, opening a retail chain of Apple Stores in 2001, and
acquiring numerous companies to broaden their software portfolio. In 2007, the company
launched the iPhone to critical acclaim and financial success. In 2011, Jobs resigned as
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CEO due to health complications, and died two months later. He was succeeded by Tim
Cook.
In August 2018, Apple became the first publicly traded U.S. company to be valued
at over $1 trillion and the first valued over $2 trillion two years later. It has a high level of
brand loyalty and is ranked as the world's most valuable brand; as of January 2021, there
are 1.65 billion Apple products in use worldwide. However, the company receives
significant criticism regarding the labor practices of its contractors, its environmental
practices, and business ethics, including anti-competitive behavior and materials
sourcing.
II.1.2. Statement of recent and current state of business
Apple today announced financial results for its fiscal 2021 third quarter ended
June 26, 2021. The Company posted a June quarter record revenue of $81.4 billion, up 36
percent year over year, and quarterly earnings per diluted share of $1.30.
“This quarter, our teams built on a period of unmatched innovation by sharing
powerful new products with our users, at a time when using technology to connect people
everywhere has never been more important,” said Tim Cook, Apple’s CEO. “We’re
continuing to press forward in our work to infuse everything we make with the values
that define us — by inspiring a new generation of developers to learn to code, moving
closer to our 2030 environment goal, and engaging in the urgent work of building a more
equitable future.”
“Our record June quarter operating performance included new revenue records in
each of our geographic segments, double-digit growth in each of our product categories,
and a new all-time high for our installed base of active devices,” said Luca Maestri,
Apple’s CFO. “We generated $21 billion of operating cash flow, returned nearly $29
billion to our shareholders during the quarter, and continued to make significant
investments across our business to support our long-term growth plans.”
Apple’s board of directors has declared a cash dividend of $0.22 per share of the
Company’s common stock. The dividend is payable on August 12, 2021 to shareholders
of record as of the close of business on August 9, 2021.
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Apple will provide live streaming of its Q3 2021 financial results conference call
beginning at 2:00 p.m. PT on July 27, 2021 at apple.com/investor/earnings-call. This
webcast will also be available for replay for approximately two weeks thereafter.
II.2. Introduction of environment analysis in Apple Inc.
Apple is one of the best-known tech companies all over the world. To obtain this
goal, Apple Inc. not only needs to understand deeply their company but also external
factors in the global market. For instance, Covid-19 has spread rapidly throughout the
world, prompting governments and businesses to take unprecedented measures in
response. Following the initial outbreak of the virus, the Company experienced
disruptions to its manufacturing, supply chain and logistical services provided by
outsourcing partners, resulting in temporary iPhone supply shortages that affected sales
worldwide. However, thanks to environmental analysis, the Company believes its
existing balances of cash, cash equivalents and marketable securities, along with
commercial paper and other short-term liquidity arrangements, will be sufficient to
satisfy its working capital needs, capital asset purchases, dividends, share repurchases,
debt repayments and other liquidity requirements associated with its existing operations.
To be more specific, Apple Ins. ascertains whether the goals defined are achievable or
not, with the present strategies. If is not possible to reach those goals with the existing
strategies, then new strategies are devised or old ones are modified accordingly.
Moreover, environmental analysis helps in the detection of threats even uncertainty at an
early stage which assists the organization in developing strategies for its survival. Adding
to that, it identifies opportunities, namely prospective customers, new products, segments
and technology to occupy a maximum share of the market than its competitors.
Even though it consists of such capabilities there occur various trends in the
general environment that causes the threats which pull down the progress and success of
the firm. These threats can be marginalized only with the help of appropriate planning
and suitable action which concentrates more on the value-added core competencies in the
business. This may lead the company to produce valuable products and services leads to a
mounting opportunity for the shareholders and customers.
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II.3. Environment Analysis
II.3.1. Internal Environments
The main internal stakeholders of Apple are the Board of Directors, executives,
employees, and shareholders. Its top executive positions are CEO, Senior Vice President,
Vice President, and Chief Operating Officer. Many analysists argue that effective
leadership has been a key to the global success of Apple. Steve Jobs’ leadership played a
big role in shaping the company’s future, though his leadership style was sometimes
branded as aggressive.
Apple has more than 80.000 full time employees all over the world whereas the
engaged people are more than 5 million. Apple employees the best human resources in
the world and provides them with the facility to improve their skills. Apple’s employees
also play a big role in growing success. Apple is world renowned for the aesthetic designs
of its products. Therefore, it can be easily imagined what role the design team plays. It is
worth noting that Apple is very secretive about its designs and the design team works
under very strict terms and conditions.
Apple has both individual and institutional shareholders. Some of its executives
have shares worth millions of dollars. Some of its top institutional shareholders are the
Vanguard Group, BlackRock, and Berkshire Hathaway… It is worth mentioning that
some of the largest shareholders of Apple are mostly former or current employees and
investment companies.
II.3.2. External environment
The Task environment
 Customers
Apple does not use customer behavior research in product development, the
research of behavior is their tool of marketing. Apple uses the information to gain
essential insight into the consumer and what directs the purchase behavior. The research
on consumers provides specific insight involving affect and cognition, customer behavior

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and customer environment that the company can reach their target market effectively. It
will lead to the development of sales and customer service.
Another one is feedback of customers. In 1997, the founder of Apple, Steve Jobs
spoke to attendees of Apple Worldwide Developer Conference where he clearly stated
that customer must be the center of the company. In recent years, Apple has concentrated
on customer satisfaction ranking. This is one of their sources for their products
innovation and development. Feedback surveys have proven to be a significantly useful
way for Apple to collect customer insight. One of the most important metrics for Apple is
Net Promoter Score. The feedback includes an Net Promoter Score, beside an open-ended
follow up question: “Anything else on your mind?”. Most recently, Apple has collected
NPS responses to measure customer satisfaction with its new Apple Watch. NPS research
has provided the company with valuable insights into its latest product.
By listening and considering customer needs, Apple can create and launch exactly
what they want and expect. It is one of the most reasonable answers for the question
“Why is Apple the industry leader?”.
• Supplier 
Apple does not manufacture by itself. It has over 200 suppliers that produce
components for its assembly. 
Apple is managing one of the most efficient supply-chain management systems on
the market. The supply-chain of Apple accounts for about 98% of its procurement. Some
prominent suppliers of the firm are: Foxconn - one of the oldest and largest suppliers,
Wistron, Pegatron in Taiwan; Goertek, Luxshare in China; Qualcomm, Intel in USA;
Murata Manufacturing Ltd. in Japan; Samsung in Korea… 
With its brand reputation and the global reach, Apple totally has high-quality
product demand and imposes stricter terms on its supply. By outsourcing its supply-chain
and assembly operations, Apple can focus on its product designs for a great multifunction
and friendliness to customers. 

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• Distributors
Apple has its own retail store system as Apple Store. The customers of the firm are
all over the world but there are only 510 stores in 22 countries. The system cannot meet
the demand and serve over the world. To solve the problem of distribution, Apple has
partnered with major retailers to sell their product in an official capacity called Apple
Authorized Resellers. These stores can offer Apple products with personnel trained on
basics to help customers to find what they want.
Apple Authorized Resellers play a prime role in Apple’s sale strategy and
represent  a large portion of sales of Apple products worldwide. 
• Competitor
Apple has innovated and developed many kinds of technology devices. It is the
reason why the operation has many competitors in different field. In the Computer
Manufacturers, Dell Technologies, Lenovo Group, HP Inc., Sony Corp. and ASUSTeK
Computer Inc. are primary competitors. In the Smartphone Manufacturers, the biggest
competitor of Apple is Samsung – the largest smartphone company accounting for 21.2%
of the global market.
As we can see here, most of Apple's competitors are the big companies in their
own field. This leads to the competition about the quality of products, the percentage in
the global market at the lowest cost… Apple needs to boost their quality to expand their
market target and improve the value of business by investing more in R&D and meet the
demand of users. The competition also help the industry development when every
company want to create their own competitive advantages.   
• Strategic Alliances
One of the most significant factors that is responsible for the development of a
firm is the strategic alliances. They help the firm in increasing the value of product in
minds of customer. Also, firms can easily access markets to offer their products and
services. Sharing expertise knowledge with each other can cover and acquire knowledge
in their operations. 2 partners can share the technological capabilities. Last but not least,
the firm’s financial can be strengthened so it can focus on new creation. 

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Apple has partnered with different companies in different fields. In consulting and
systems integration, Accenture supports Apple to transform how enterprise clients match
with customers using iPhone and iPad. In addition, Deloitte maximized Apple devices
such as iPhone and iPad by providing EnterpriseNext two-week solution – focused
workshops and EnterpriseNext Value Map. Last but not least, IBM – one of the oldest
partners of Apple, help the business transform global business through their custom
mobile app by using IBM Garage Methodology, Apple dedicated Garage and Studios,
IBM Solution for Apple and the cutting-edge of Apple tool. In the area of enterprise
business apps, Salesforce is innovating their client experience on iPhone and iPad by
mixing the world’s number one CRM with the world’s most advanced mobile operating
system for business. Besides, SAP supports core business processes on the Apple
platform from their employees to customers experience. The last partnership of Apple is
in Networking, Security and Collaboration with Cisco. The company provides leading,
networking, security and collaboration solutions for Apple products.
• Labor unions
The Big Tech companies like Apple have limited recognition of worker
organtiations. Apple does not recognize any trade union in the USA, but the company
recognizes some unions and work councils in Europe, and a union in Japan.
However, in 2011, an employee of an Apple Store – Cory Moll created the Apple
Retail Workers Union in San Francisco, referring to compensation, pay, benefits and
hiring processes as motivation.
Lately, a Twitter account was created under the name #AppleToo by a group of
Apple employees to require a workplace condition improvement. The staff of Apple are
encouraged to email appletoo@protonmail.com if they want to join the effort. The group
is where people told their story when working at a company and showed what they
expected Apple to change. In a conversation with a media organization, they are planning
to create a formal union which could collectively bargain for legally enforceable changes
at Apple.

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• Local communities
Local communities claimed that the living space of people and their homes were
destroyed by the factories. It resulted from the pollution of the process producing the
business products and how they worsened the climate change. The carbon footprint of the
production could affect the environment and do harm to people's health. With this matter,
Apple may have difficulty getting the land to build their plant. This may affect
productivity and cause media attention. When the media investigate and report, the
problem could have a bad effect on Apple reputation and their sales.
Besides, Apple had problems with the community about their advertisement. Some
governments think that showing a good feature can attract children and cause problems to
their parents although children were not the target of this marketing approach. Some
others think that what Apple advertises about their products is not true. This unrealistic
situation may prevent people from purchasing the products, reducing the business’s profit
and sales. 
• Financial institutions
According to a report of KPMG in 2018, 26% of financial institutions were
already partnering with one or more technology giants such as Google, Apple and
Microsoft. This represented a remarkable change for the industry. 
In the Apple Event in March, 2019, Apple had a surprise announcement of Apple
Card, a credit card that Apple would be offering partnership with Goldman Sachs Group
Inc. Jennifer Bailey, vice president of Apple Pay, put it much better at the event: “Apple
Card is designed to help customers lead a healthier financial life, which starts with a
better understanding of their spending so they can make smarter choices with their
money, transparency to help them understand how much it will cost if they want to pay
over time and ways to help them pay down their balance.” 
“The security features on Apple Card make it attractive for customers to stop
lodging third party cards with Apple Pay and use Apple Card instead, while the perks on
Apple Card include preferential cash back rates for purchases made using Apple Pay. If
Apple users start adopting Apple Card as their preferred payment method, Goldman

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could quickly seize a large part of the personal credit card market. That, without question,
is its goal”, according to Forbes.
• Government regulators
CEO of Apple, Tim Cook appealed to the United State to develop privacy laws
like what Europe did with the GDPR data privacy laws after the scandal with Facebook
data leak and the increase of cyberattack across USA in 2019. Cook claimed that
technology needs to be regulated by the government because the current laws are not
working.
Not just the privacy, Apple and government has concerned about the energy and
safety problems. The U.S. Food and Drug Administration have regulation about the
amount of radiofrequency energy that a mobile phone releases. If a device produce too
much this energy, this organization can get the firms to take back and fix or replace. In
addition, The Federal Communication Commission published a regulation about the base
tower of mobile phones. Texting messages or answering a call while driving can lead to
serious injury. As a giant tech, Apple need to respond to the government regulations. The
company need to improve or innovate the technology to produce their mobile devices to
limit the amount of radio energy emission. Besides, connecting the cellphones with hand-
free devices on car should be taken to avoid the undesirably accident. 
• Special interest groups
Apple joined in a special interest group called FAANG companies – which
consists of Facebook, Amazon, Apple, Netflix and Google. Meanwhile the company
avoided political battle, Apple still engaged Washington on concern that the firm claimed
were vast social and financial essence. Tim Cook was a leader in high-level lobbying
activity to create close relationship with the President – Donald Trump and his
administration. This effort at first brought the benefit to the business when government
did not put the punishment on Apple during the trade war with China. On the other hands,
Trump required Apple to repay the benefit for FBI to “unlock”, or break the iPhone
encryption protocols. 
• Mass media

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It is not denied that the current success of Apple has the great support of the
media, especially in the brand image and marketing. The BuzzFeed had a title in 2017
that the best product of Apple was its media strategy. According to a survey conducted by
Reuters, 43% journalists responded that Apple News was important to their organization.
The company created their own platform for users like @AppleSupport if you
have any problem. One of the biggest advantages of this way is that there will not be any
complaint or negative comment about the firm on its social media account. This may help
them to protect the reputation. You may have seen a post about Apple on Facebook or
Twitter or maybe Instagram, but who knows if it could be true or not. 
However, it does not mean that Apple does not take advantage of mass media.
They still need the media to promote their product. For example, they ran a campaign
“Give the Gift of Go with Apple Watch” during the holiday on Facebook. In addition,
Apple combined with Twitter to advertise their Apple event by creating a “Retweet for
updates from Apple”. If users want to know more about the event information, they need
to retweet and Appl could market their events. One interesting thing about Apple media
strategy is how it builds the Instagram account. The account of Apple is not about the
company, it is about the customer of the company. Each post or story in this account is a
content of user-generated or commissioned. Thus, as you can see, Apple does not use
social media to advertise, but also to connect with customers. 
The general environment
Despite Apple’s considerable resources and capabilities, various trends within the
General Environment pose considerable threats to the ongoing success of the firm. Proper
planning and action will allow the firm to marginalize these threats while leveraging core
competencies to take full advantage of emerging opportunities to create value for
customers and shareholders.
 Economic Environment:
While the economy in the United States has shown some improvement and there
are signs of full recovery looming the outlook is not certain currently. Apple’s premium
pricing position leaves the firm at a disadvantage to less expensive competing products.
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However, when consumers directly feel the improving economy and spending increases
Apple will well positioned. Consumers seeking to “treat” themselves following the
economic upturn may be attracted to Apple’s premium portables, viewing them as luxury
goods. Apple, known for its quality, dependable machines, and excellent customer
service may also be seen as presenting a better value than the competitors with fewer
frills at lesser prices.
 Demographic Environment
Over the past several years the American middle class has experienced increasing
costs across many indicators including, healthcare costs and the CPI, but wages have
remained relatively stagnant. Apple’s high prices may send potential customers into the
hands of competitors when they are unable to justify Apple’s high price tags. Counter-
intuitively Apple’s perceived value has directly benefited them during the economic
downturn, they’ve continued to experience growth while other competitors suffered.
 Political- legal Environment:
Changing the way the Internet operates may deincentivize new innovation which
could reduce future value to be derived by Apple. New and innovative technologies are
routinely iterated on by hardware companies who strive to offer the best methods of
integration in their new products. Reducing this innovation may stifle new value creation
for Apple. Healthcare reform: The push for modernization of the American healthcare
system in proposed reform legislation would provide government money for
infrastructure development and implementation by care providers. Adaptability of
Apple’s key protables in innovative health-centric ways could provide new sources of
revenue.
 Technological Environment:
The possibility that ordinary personal computers (and portable personal
computers) will become less relevant through increased device convergence is very real.
Apple’ products laptops will be less important in users’ daily use as their multi-function
devices meet most of their needs. Apple stands currently as a leader in innovation and
portable technology. They are conveniently positioned to become a market leader in
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convergence devices by iterating on their current portable devices and mobile devices
like the iPod Touch and iPhone.
An ever increasing pressure to innovate because of shortening product life cycles
could result in missed opportunities due to market entry times and losses on obsolete
inventory. Apple’s lean manufacturing value chain is adapted to rapid turnover and can
be leveraged to combat the threat of inventory obsolescence. Apple currently invests
billions of dollars in research and development which can be leveraged to position Apple
at the head of industry innovation, staying ahead of competitors in lifecycle shifts.
 Socio Cultural Environment
The importance of the Internet and connectivity is driving a demand for access
anywhere, using high-speed wireless technologies. Smartphones, and other ultra-portable
“connected” devices, that allow users to carry access to the Internet wherever they go are
fast-growing compared to traditional personal computers. Apple and other manufactures
face a loss of relevance in the new technological landscape, driven by consumer
preference. Again, Apple’s substantial investment in research and development in highly
popular devices like the iPhone place Apple at the forefront of this transition.
The production and shipment of Apple’s devices are considerable sources of
carbon emissions and pollution, which may come under scrutiny as consumer concern for
the environment continue to grow. Apple has already made commitments to “greener”
manufacturing practices as well implementing the use of eco-friendly components, and
packaging. This proactive step can be used as a marketing tool to garner greater respect
from concerned customers.
 Internaltional Environment:
The Chinese economy continues to grow despite worldwide economic contraction.
As the economy becomes more developed, increased wages nationwide will increase the
costs of production for Apple and its OEM partners. The increase in quality of life and
disposable income to Chinese critizens will provide a larger customer base for Apple to
tap into.

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It is possible that Copenhagen talks will result in real commitments from the
international community regarding emissions caps and taxes. Strict Carbon emissions
regulations will impose a considerable financial burden on the production of Apple’s
products, driving up costs and shrinking margins. Again, Apple’s initiative in
implementing “green” practices sets them apart from many competitors who will also feel
the burden of regulation.
II.4. Evaluation
2.4.1. Apple’s Strength
1. Globally iconic: Apple is one of the most reliable companies when it comes to
personalized advanced computers and smart technology devices. It has millions of loyal
customers with steady increment.
2. Top technology: Apple was the first to introduce some of the most innovative
products that have changed the world. Apple is still determined to build and craft better,
more proficient technology devices.
3. Brand of choice: It is not big news that Apple is a demanded brand in corporate
offices. Apple has a specific business page that offers top quality technology solutions for
every corporation’s needs.
4. Proficient research: Apple puts dedication into its product designs. Careful
study is initiated and further research is performed to help understand customer needs and
requirements.
2.4.2. Apple’s Weakness
1. High priced products: Apple’s products can be considered a luxury due to their
premium prices. The products are priced for middle and high income consumers. Low
income consumers cannot afford Apple products.
2. Limited advertisement and promotions: Apple has solidified their grounds by
establishing loyal customers, even with limited advertising resources. Apple marketing
relies heavily on its iconic and flagship retail stores. Because of their success, Apple does
not feel the need to have too much spending towards advertisement like other big brands.

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3. Mismatch with other software: When a customer buys an apple product, they
access the Apple universe. Apple’s products do not support other software or
technologies making them mismatched with other devices. Customers have to exclusively
purchase Apple apps or accessories to continue using their Apple products.
4. Allegations of tracking: Tracking users undermines trust. Apple has been
accused of using tracking apps in its phones, which revealed the precise location of users.
Even though the latest version of Apple’s phones gives users the right to decline the
tracking, trust is difficult to regain once it is lost.
5. Lack of green technology: Apple is yet to launch products that are created using
green technology. The company has not yet implemented or participated in creating
sustainable technology that is eco-friendly.
2.4.3. Apple’s Opportunities
1. Consistent customer growth: Apple has been dominating the technology sector
for years now. They provide top quality and cutting-edge technology that offers a
breakthrough in customer experience. Apple can always rely on the power of the internet
for future opportunities to gain new customers and form new alliances.
2. Qualified professionals: Apple's developers, researchers, and product specialists
are a team of highly qualified professionals that have years of experience in branding
consumer products. With the expansion of their team, Apple can continuously build new
opportunities.
3. Expansive distribution network: Apple has the opportunity to expand its
distribution network. Currently, the distribution network that Apple has is very limited
and leaves room for minimal growth. Apple can generate higher revenue and sales if it
focused on creating an expansive distribution network. Furthermore, the company can
benefit from diligent marketing and promotions.
2.4.4. Apple’s Threats
1. Coronavirus outbreak: Apple is highly dependent on China for its
manufacturing and supply chain. The outbreak has significantly affected and may
continue to disrupt Apple’s sales in the fiscal year 2021.
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2. Apple bullied by counterfeits: Apple has become vulnerable to third world
countries illegally utilizing the brand image to sell counterfeit products. The illegal
dealers sell Apple counterfeit products at the same value as an original Apple product.
3. Increasing competition: Although Apple as a brand has solidified itself, it still
faces threats from competitors. As the competition is getting stronger, Apple either has to
introduce new technologies of revise its pricing policy to stay ahead of its competition.
4.Backdoor mechanism: Apple has been under constant pressure by government
agencies to unlock the iPhone via a backdoor, which means unlocking the encryption of
the iPhone and giving access to its data. In several instances, Apple has denied providing
the backdoor mechanism because it can be exploited by the bad guys, which eventually
exposes the security of millions of iPhone users.

 III. CONCLUSION
Internal factors to the organization must be assessed to ensure all stakeholders are
satisfied and they agree with the strategies. To ensure that decisions are accepted by all
parties, all stakeholders must be involved in the decision-making process. Strategic plans
are developed for the welfare of all stakeholders and they should be used to add value.
When making business decisions, the company's management should solicit input from
all internal and external stakeholders. The majority of external factors in Apple's remote
or macro-environment provide opportunities, according to the PESTLE analysis. Given
its current industry position, the company can exploit these opportunities to expand its
reach in the global information technology goods and services market. However, Apple
must develop suitable strategies to effectively address the threats identified, especially
those in the legal dimension of its remote or macro-environment. Based on this PESTLE
analysis, it is expected that Apple will remain in its strong industry position. Nonetheless,
the dynamics of the market and the presence of aggressive competitors could drastically
change the company’s strategic position. In this context, it is of critical importance to
further improve the strengths identified in the SWOT analysis of Apple Inc.

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III. LIST OF REFERENCE

Apple is an American multinational technology company.


Born in 1976 by 3 founders Steve Jobs, Steve Wozniak, and Ronald Wayne/
Nowaday, it is the world largest….. fourth-largest…. Fourth-largest….
Through its history, Apple had many milstone
1977-1980: Computer
Think different

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