Apple Inc. is a USA Technology Company that operates both in the USA and many other parts of the world. The company manufactures and sells computer software and hardware and provides online services. So of the products that the company offers include personal computers, smartphones such as iPads and tablets among many others. The company operates in very many industries, namely electronics, digital distribution, computer hardware and software among others.
Apple External Environment of Apple Company
Technology advancement remains the most important environment for Apple Company in promoting its innovativeness in its production. A good example is the application of the technology is designing and developing smartphones. Also, Apple Company has considered using modern technologies in both production and marketing of the business. This has been two areas where the company can fetch many customers in the market. However, technology advancement presents Apple Company with various threats such as cybercrime which affects the operations of the business negatively.
On the other hand, the growth of technology has seen the emergence and development of the use of smartphones and tablets. These two devices have encouraged customers down their focus towards the use of smartphones and tablets. It is worth to note that customers have switched to the new technology devices that are easy and faster to operate, thus discouraging the use of personal computers. As a result, the demand for Apple Personal computers may keep on decreasing in the future leading to decreased sales revenue for the company (Gershon, 2013).
Also, modern technology also poses the challenge of duplication of products, thus affecting the competitiveness of the company. For instance, Samsung and other company in the same industry have the ease of imitating Apple Company products using the modern technology. This will lower the sales revenue of the company since it will become less competitive as compared to its competitor companies. A good example of such a scenario that faced Apple Company was the imitation of its Android Pay by Google making a similar one.
Such a move will see the company suffer reduced competitiveness in the market because there are substitutes for its products. Also, the new technologies will see some of the Apple Company’s products become obsolete due to the stiff competition existing in the market. For instance, it is worth to note that a product such as Apple TV may fail to have enough market.
Political Environment
Operations of business in various regions of the world expose such a company to many political issues. Many of the markets within which the company operates are politically stable such as the US market since the political official’s influence to business operations is very low. However, the level of stability changes from one nation to another. Apple Company operation in the international markets exposes it’s two different political issues that affect its operation success. A good example of a market where Apple Company operates and is subject to various issues is the Chinese Market. All the same, the company depends very much on the Chinese market, thus being subject to various issues that influence its production negatively. Issues like lack of transparency and corruption existing in Chinese market increase the cost of operation of a company, thus lowering its profitability (Mozur, 2013).
Also, the operation of Apple Company In international markets may lead to the creation of anti-Americanism and nationalism that may affect the marketing of the company negatively. For instance, the concentration of Apple Company in China may make it suffer from other markets such as USA, Europe, and Japan markets. This may occur if the nations feel that China is posing a threat due to its growth and development. Consequently, it may make Apple Company to lose market share in such nations of the world since they would isolate the products of the company from those of the companies.
Q2 Answer
There are many ways through which the company’s stakeholders may influence the financial position of the company. These ways may affect the financial position of the company positively or negatively. Customers of a company are very key stakeholders whose role towards the growth and development of the company is subject. The purchasing power levels of the customers determine the sales revenue of the company. If a company has a large customer base, then it can increase the financial position of the company. This is because there will be enough funds to allow the company to meet its obligations. The degree to which the company satisfies its customers plays a great role in influencing its financial position.
Secondly, the management of the company is another stakeholder who influences the financial position of the company. The management has the mandate to guide and direct the other employees in realizing the goals of the company. The contribution of the employees towards the financial position of the business is subject to the level of satisfaction of the employees. This is to imply that satisfied customers assist in promoting the financial position of the company. Proper guidance and direction of employees create a conducive working environment for employees, thus enhancing increasing the profitability of the company which influences the financial position positively (Brouthers & Arens, 2007).
Thirdly, the shareholders are other stakeholders whose influence on the financial position of the company is very high. The shareholders are the investors of the company implying that the contribute capital for business. They expect a given amount of returns from their investment at the end of every financial year. The profits that are distributed to the shareholders after every financial year have a great influence on the financial position of the company. For instance, if the company pays its stakeholders high amounts of dividends and fail to reinvest much in the company weakens the financial position of the company and vice versa.
Furthermore, employees are other stakeholders who have a major role in strengthening or weakening the financial position of the company. If employees are satisfied with the working environment of the company they are motivated to work extra hard to promote the performance of the company. In so doing, they increase the profitability of the company, thus strengthening the company’s financial position. Finally, the lenders are other stakeholders whose contribution to the financial position of the company is noticeable. Lenders strengthen the financial position of the company by providing the company with enough capital resource.
Q4 Answer
Foxconn’s case is one of the Apple’s corporate social responsibilities that can be said to be controversial. In the issue, the company is claiming to deal with suppliers who violate business practices against human rights. Corporate social responsibility of the company should be conscious and should respect the rights of the people. The main concern on the issue by the supplier is the provision of poor working conditions and minimal safety precautions. For instance, an explosion took place in Foxconn in 2012 killing four people and leaving many people injured who were working in the iPad room.
Besides, the employees working in the company also provided information that they work overtime without any compensation from the supplier. Nonetheless, the company also forced employees to clean iPad screens using poisonous chemicals which are detrimental to their health. Consequently, two employees died and many others injured due to the use of the chemical. Despite all these issues, Apple Company still transacts business with such a company which violates the human right provisions. Such an operation threatens the success of the company and contradicts the company’s move to enhance social responsibility.
References
Brouthers, K.D., & Arens, P. (2007). The influence of ownership on performance: Stakeholder and strategic perspectives. Schmalenbach business review, 59.
Gershon, R. A. (2013). Digital media innovation and the Apple iPad: Three perspectives on the future of computer tablets and news delivery. Journal of Media Business Studies, 10(1), 41-61
Mozur, P. (2013, April 24). Apple Faces Dilemma Over Strategy in China. The Wall Street Journal. Retrieved from http://www.wsj.com/articles/SB10001424127887324474004578441983184732950
