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PESTEL Analysis
Political
Political factors and elements can have a direct and indirect impact on the business. This is seen
through the Apple and Its Suppliers Corporate Social Responsibility Case Study.
Policy Makings
Policymakers for the Apple and Its Suppliers Corporate Social Responsibility Case are in
all likelihood to intervene in the business surroundings. Commercial restrictions and
political stability are additionally integral factors that will determine the success or failure
of Apple and Its Suppliers Corporate Social Responsibility.
Taxation
Tax policy will influence the cost of doing business for Apple and Its Suppliers Corporate
Social Responsibility. An increase in organization taxation (on business profits) has a
similar impact as an expansion in expenses. Organizations can pass a portion of this
increase on to shoppers in more expensive rates, yet it will likewise influence the bottom
line of the business.
Government Support
The government helps organizations in two primary ways: monetary help and regulatory.
Apple and Its Suppliers Corporate Social Responsibility can use government assistance
and grants for purposes of growing the business, advancement, exporting, and innovative
work. Apple and Its Suppliers Corporate Social Responsibility can also be impacted by
when Governments modify regulations and laws.
Political Stability
Lack of political stability in a country impacts business task. Political stability is
particularly essential for the organizations which work globally, such as Apple and Its
Suppliers Corporate Social Responsibility. A forceful takeover could oust a legislature.
The takeover could prompt mobs, plundering and general issue in nature. These disturb
business tasks for Apple and Its Suppliers Corporate Social Responsibility. Purchasing
political risk insurance is a way for Apple and Its Suppliers Corporate Social
Responsibility to oversee political hazard. Organizations that have worldwide activities
utilize such as insurance to lessen their risk presentation. The soundness of a political
framework can influence the attractiveness of a specific nearby market for Apple and Its
Suppliers Corporate Social Responsibility.
Economic
The economic factors are one of the most important of PESTEL factors and can influence Apple
and Its Suppliers Corporate Social Responsibility in several ways.
GDP
Economic components have the most evident effect on the profitability and overall appeal
of Apple and Its Suppliers Corporate Social Responsibility. Even though GDP per capita
is a useful economic factor, GDP per capita gives just a fractional perspective on the
economic factors that may influence Apple and Its Suppliers Corporate Social
Responsibility. Higher GDP leads to higher disposable income and hence higher sales for
Apple and Its Suppliers Corporate Social Responsibility.
Inflation
Higher inflation will disintegrate the purchasing power of the consumer and the shopper
Higher inflation will also harm the costs of raw materials and other inputs that are
utilized by Apple and Its Suppliers Corporate Social Responsibility.
Interest Rates
Fluctuations in interest rates may translate into higher or lower costs for the purchase or
sale of items and administrations provided by Apple and Its Suppliers Corporate Social
Responsibility. Higher interest rates hurt the disposable cash of consumers.
Unemployment Rate
A high unemployment rate is also unadvisable as it dissolves dispensable income of
consumers, and will harm Apple and Its Suppliers Corporate Social Responsibility ’s
position. The high unemployment rate will lead to lower sales for Apple and Its Suppliers
Corporate Social Responsibility and impact its overall profitability and revenues.
Apple and Its Suppliers Corporate Social Responsibility can work towards building economies of
scale. Maintaining business costs and controlling the final price of the product can also help
Apple and Its Suppliers Corporate Social Responsibility fight economic instability. Apple and Its
Suppliers Corporate Social Responsibility can also work towards building a sustainably managed
workforce.
Social
Social influences will stem from social components of the macro environment. Under the
PESTEL Analysis, they can influence Apple and Its Suppliers Corporate Social Responsibility in
several ways:
Social patterns and consumer behaviour
Social patterns affect work trends and patterns and are directly related to the behaviours
of consumers. Social patterns also have a direct influence on buyer tastes and
inclinations, and the specific kind, structure, and volume of interest for an item or service.
Social patterns and changing consumer needs
The checking of social patterns will enable Apple and Its Suppliers Corporate Social
Responsibility to reposition its items or administrations to meet the changing desires and
needs of consumers.
Social trends in education
Social trends of higher education have allowed firms like Apple and Its Suppliers
Corporate Social Responsibility to have access to a pool of higher skilled talent – but at
the same time, also face a more criticizing consumer base. Higher education has also
made consumers more aware of different product offerings by companies like Apple and
Its Suppliers Corporate Social Responsibility. Consumers are also more educated and
knowledgeable of different substitutes of a product, as well as become more readily
available at different touchpoints.
Social patterns make companies more consumer-centric
Companies like Apple and Its Suppliers Corporate Social Responsibility are expected to
become more consumer-centric than product-centric. Similarly, Market segmentation and
consumer grouping are dynamically moving towards measures of psychographics and
lifestyles to understand the consumer more.
Technological
The technological factors can influence Apple and Its Suppliers Corporate Social Responsibility
in several ways:
Innovation
The quick pace of technological change at Apple and Its Suppliers Corporate Social
Responsibility may be driven through innovation. Business leadership at Apple and Its
Suppliers Corporate Social Responsibility tries to push the limits of present limitations.
The advent of the internet and online retailing
The expansion of the Internet and online business has discarded many intermediaries.
Apple and Its Suppliers Corporate Social Responsibility can communicate and retail
directly to the consumers now, or through modern intermediaries such as eBay as well,
for example. Apple and Its Suppliers Corporate Social Responsibility may also use
current social networks to retail and use e-commerce to boost sales.
Social media and business growth
Apple and Its Suppliers Corporate Social Responsibility can make use of social media to
interact and reach with consumers. Social media can also be used to reach the target
market audience more effectively. Social media is cost-effective and strategically more
influential for Apple and Its Suppliers Corporate Social Responsibility
Improved value chain network
For Apple and Its Suppliers Corporate Social Responsibility, technological innovation
can be utilized to build on competitive advantage through several different ways. Apple
and Its Suppliers Corporate Social Responsibility can incorporate less expensive
production, improved access to clients, improved marketing, improvement in product
quality, and increased levels of business intelligence than the competition.
Managing technology and the future for Apple and Its Suppliers Corporate Social
Responsibility
To flourish in a business world that is quick paced and receptive to innovative change,
Apple and Its Suppliers Corporate Social Responsibility must stay cautious. It must be
always be updated on any technological developments in the business and industry.
Apple and Its Suppliers Corporate Social Responsibility should weary of how the
company are probably going to influence its future attractiveness and profitability.
Environmental
For Apple and Its Suppliers Corporate Social Responsibility, the environmental aspects of the
PESTEL analysis may include:
Environmental stability and business standards
Apple and Its Suppliers Corporate Social Responsibility may be expected to incorporate
maintainability standards into their business methodologies and to help resource
allocation choices. Apple and Its Suppliers Corporate Social Responsibility may also be
subject to environmental laws – which will impact and guide its operations to become
more environmentally friendly.
Environmental stability and budget allocation
Leadership in the Apple and Its Suppliers Corporate Social Responsibility must measure
the connection between natural activities and budgetary execution. Apple and Its
Suppliers Corporate Social Responsibility also strategically decides and assesses if the
organization have been estimating the monetary effect of natural and social activities.
Environmental sustainability
Apple and Its Suppliers Corporate Social Responsibility also distinguishes and
differentiates explicit zones of concern and impediments to the coordination of
environmental sustainability into corporate performance and strategy Apple and Its
Suppliers Corporate Social Responsibility also gives explicit direction concerning how
organizations can push toward a superior reconciliation of ecological and social activities
in their basic leadership procedures and tasks.
Environmental sustainability and business growth
Apple and Its Suppliers Corporate Social Responsibility may use environmental issues to
adjust financial, natural and social performance. Concerns towards the environment will
enhance the business image for Apple and Its Suppliers Corporate Social Responsibility.
Environmental sustainability within business goals and strategy will also reflect corporate
responsibility on the part of Apple and Its Suppliers Corporate Social Responsibility.
Environmental sustainability and improved consumer relations
Consumers will be more inclined towards the use of environmentally sustainable
products. Environmental sustainability in operations works towards improving the bottom
line and overall profitability for the business of Apple and Its Suppliers Corporate Social
Responsibility. Improvement of cost management and operations will be observed in the
business as well.
Legal
Legal components can influence Apple and Its Suppliers Corporate Social Responsibility
directly, and can likewise influence the instruments through which an organization buys its stock
or connects with the client. The Apple and Its Suppliers Corporate Social Responsibility should
be mindful, for example, of the following legal aspects:
Labour law
Labour law refers to the guidelines in regulations that set up minimum and benchmark
conditions. These include identifying with the work of people. Labour laws include
aspects of minimum working age, least time-based compensation, etc. Apple and Its
Suppliers Corporate Social Responsibility must be mindful of these laws in routine
business tasks such as hiring, for example.
Discrimination law
Under the discrimination law, Apple and Its Suppliers Corporate Social Responsibility
must ensure to avoid episodes of unequal or uncalled for treatment based on an
individual's age, inability, sex, national source, race, religion, and sexual orientation.
Apple and Its Suppliers Corporate Social Responsibility should train its human resource
management team in ensuring that there is no: Unequal hiring, Discrimination in
recruitment, Internal discrimination in talent management, Bias in training opportunities,
Unfair compensation systems, or Prejudiced promotions and succession management.
Health and safety laws:
Under this, Apple and Its Suppliers Corporate Social Responsibility is required to give a
protected work environment to their workers. Working environment security and
wellbeing laws build up guidelines intended to dispense with individual wounds and
injuries from happening in the work environment. All operations of Apple and Its
Suppliers Corporate Social Responsibility should be designed to physically and
emotionally safeguard and protect the employees and the labour force employed.
SWOT Analysis
Strengths
Strong brand image
Apple and Its Suppliers Corporate Social Responsibility is one of the world's most
premium, well known and most famous brands.
The organization has a developing populace of steadfast clients, which adds to the
soundness of the business.
International distribution network
In the SWOT analysis model, the global distribution network through directly owned
subsidiaries, or contracts with third-party agents further strengths Apple and Its
Suppliers Corporate Social Responsibility by supporting activities.
For instance, the organization has a worldwide system of providers that are
deliberately chosen dependent on criteria relating to quality, for example, of raw
materials as has been discussed in the value chain - primary and supporting activities.
Strong investment in research and development, and high focus on innovation
The focus on innovation not only keeps the company apart but also facilitates its
industry leadership.
The internal core strengths and competent variables recognized in this section of the
SWOT analysis of Apple and Its Suppliers Corporate Social Responsibility
demonstrates that the business has qualities that advance strength through expansion
and a worldwide production network.
Focus on market research
Additionally, the organization steadily expands its business
This is done through contracts with offshore agents and licenses. Also, the company
continues to broaden its portfolio by adding new products based on market research
and consumer data.
Weaknesses
Premium prices for most portfolio products
Apple and Its Suppliers Corporate Social Responsibility has a premium brand image
attached, and thus all its products in the portfolio are priced highly
This expands overall revenues yet decrease the affordability of its items.
This internal key factor is a shortcoming since it confines the organization's share of
the overall industry, particularly in territories with generally lower disposable
earnings
Generalization
Likewise, this SWOT analysis highlights that generalized standards for all portfolio
products may be a weakness because it restrains the adaptability of these products and
items in the business.
Imitability
What's more, numerous Apple and Its Suppliers Corporate Social Responsibility
items are imitable.
Several items in the portfolio have been imitated by completion, and are also being
provided by them at different price points.
Though the quality is unique to Apple and Its Suppliers Corporate Social
Responsibility, the competing players have also developed close enough, and
acceptable products.
This business condition engages competition, as has been highlighted already.
Fighting the challenge of imitation
The internal factors in this section of the SWOT analysis of Apple and Its Suppliers
Corporate Social Responsibility demonstrate that the business must create qualities to
diminish the unfavourable impacts of impersonation and the impact of high value
focuses on the organization's share of the overall industry in the international and
local business.
Opportunities
Green business products
With an increased focus and awareness of health and wellness lifestyles by
consumers, it is important that Apple and Its Suppliers Corporate Social
Responsibility recognizes this as a viable business opportunity.
Increased numbers of consumers are shifting to the green lifestyle of consuming
environmentally friendly and organic products.
Apple and Its Suppliers Corporate Social Responsibility should focus on the
expansion of the product portfolio: inclusion of green products and environmentally
sustainable services are suggested.
Expansion in emerging markets
Apple and Its Suppliers Corporate Social Responsibility can expand its income
streams through expansion and developing presence in emerging markets – such as
Brazil, China and India.
This opportunity draws consideration far from the U.S. region, where the majority of
the organization's incomes are created.
Business enhancement
Likewise noteworthy in this SWOT analysis of opportunities is the opportunity of
business enhancement and further business development.
This can help improve the long-term position of Apple and Its Suppliers Corporate
Social Responsibility.
For instance, through higher diversification of the portfolio and the overall business,
the Apple and Its Suppliers Corporate Social Responsibility organization can
diminish its reliance on its present enterprises, and along these lines work towards
improving its general income development.
Partnerships with different firms
Diversification through Partnerships
Diversification is right now a minor strategy as can be observed from Apple and Its
Suppliers Corporate Social Responsibility ’s competitive strategy and its overall
directive strategy as well.
The business environments likewise display the chance to enhance the organization's
competencies and strengths
This will also increase its share of the overall industry through the association’s s
with different firms. For example, a partnership with real retailers improves
dispersion.
Development of corporate clientele
The company can also formulate new B2B relations and contracts with other
companies and corporate entities.
The external key factors in this section of the SWOT analysis demonstrate that Apple
and Its Suppliers Corporate Social Responsibility can improve its industry position by
building up its activities to make use of the opportunities in the international business
markets.
Threats
Price wars by competition
Apple and Its Suppliers Corporate Social Responsibility competes with a wide
assortment of firms in the local as well as the international market.
For instance, the organization competes against significant premium companies as
well as against cheaper companies that offer cheap priced items and products.
This external but important factor in the SWOT assessment undermines Apple and Its
Suppliers Corporate Social Responsibility because such competing players can lessen
the organization's share of the overall industry by competing based on low prices and
overall low costs of production.
Increased competition
Additionally, this SWOT assessment also analyses increased competition as a
noteworthy threat against the business.
In light of the organization's shortcomings, the risk of imitation includes firms that
attempt to duplicate the taste, look and feel of Apple and Its Suppliers Corporate
Social Responsibility items.
Saturated market place and industry can also lower sales of the organization and
shrink its share of the overall pie
Increased competition can also lead to the increased cost of doing business for the
organization if they bring innovative processes, and implement novice systems to
control costs
Independent players
The industry environment and profitability are liable to invite independent
developments, and small-scale players.
These players may not have high levels of integration and may be retailers and
marketers for items produced during backward integration.
Strategic marketing techniques and promotional communications are expected to
neutralize the impacts of these patterns.
Conclusion & Recommendations
1. Strengthen distribution network
Control
This is an important strategic recommendation as it will allow higher control to the
company over its products in different markets. The company will be able to control
where its products are placed, and thereby, will also be able to enhance the accessibility
and easy availability of its products.
Higher penetration
This strategic recommendation will help the company reach a higher number of
consumers and penetrate deeper into target consumer groups. Also, this strategy will
allow the company to increase trial and consumption and sales of its products.
Market expansion
Another strategic recommendation for Apple and Its Suppliers Corporate Social
Responsibility is to expand into newer regions and markets. This can be done by
expanding into new markets, firstly. This expansion will give the company exposure to
new consumer groups. Increase the overall consumption rate, as well as diversify income
streams. Also, it will give the company related expansion exposure regionally as well as
internationally.
Product diversification
Another means of expansion is through product diversification. By adding new products,
the company will be Abe to penetrate deeper into existing markets bye exploring new
consumer groups, and new target consumer groups. This will also diversify income
streams for the company, and increase its overalls hare of the market.
By strengthening the value network further, and by adding quality and enhanced elements
at different stages, the company will be able to maintain competitive advantage, as well
as put off new players from the industry by increasing barriers to entry. This will allow
the company to maintain sustainable competitiveness over other players, as well as
maintain a possible leadership position in the local and international markets and
industry.