I need you to use Apple electronic for the whole chosing organization. And do the work Document Preview: Contemporary Developments in Business and Management AssignmentsChoose an organization or...

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Contemporary Developments in Business and Management
Introduction
Apple is an elusive brand and the products offered by Apple are known for their exclusivity and
newness. Despite bringing out products defying the product life cycle theory, Apple has been
able to sustain its operations not only in the hyper competitive market and the entry of China as
a very strong competitor but also, extend its product base to include students too.
 Outline the main external, internal, task and general environment factors which
would need to be considered by the potential outside investor when making a major
investment decision;
The external an internal and environment factor that one has to consider when taking a very
important investment decision to invest in Apple is by conducting a SWOT analysis of Apple.
This will determine if Apple has the necessary capacities to invest in potential avenues.
Expansion of Apple will bring in the necessary ROI’s to the business and hence this added by
new product development will definitely increase the revenues of Apple and this will be well
secured by
 Strengths of Apple:
1. The strong brand image gives the necessary edge for Apple over its competitors.


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2. The very strong financial performances aided by new products has not only built up
investor’s confidence but also has made the necessary capital for all future endeavors.
3. Its corporate governance and CSR charters are so typically followed that they have set bench
marks in the industry.
4. The new product development and quick new product releases with new features has been
powered by very heavy investment in research and development and also aided in
consolidating the market position.
 Weaknesses:
1. There are many propriety suits pending against the company
2. Patent infringement cases may have a telling impact on financial and may have a very
crucial effect on operations.
3. The recent cases of product recalls may have a serious impact on heavy costs in delivering of
warranties and fulfilling of the sails terms.
 Opportunities:
1. The growth of the Smartphone and its varied applications powered by the recent conditions
for innovations in the same has made possible exclusivity to apple products.
2. Growth opportunities through the development of the mobile market and the tremendous
features of instant connectivity of the different applications on Apple phones.


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 Threats:
1. The rise in demand and popularity of the Google Android may create a dent in the market
share of Apple.
2. The intense competition of the market may lead to loss of revenues and profitability
3. Excessive dependence on a few suppliers is the greatest threat.
 In relation to the industry chosen, explain in general terms on how PESTLE-C
categories applies and please give at least an example
Political factors – political factors are those factors that are related to political situation of
the country, like: government policy, government stability, degree of government
intervention in economy, taxation policy, policy regarding subsidy, government relationship
with other countries, industrial policy, government preference for different category of
product or services, etc. These factors are important for the functioning of business as they
influence infrastructure of the economy, health and stability of the economy, and education.
There is high intervention of government in the computer and mobile industry
Economic factors – these factors are related to economy variables, like: interest rates,
exchange rates, disposable income, economic growth, unemployment level, business cycle,
inflation, etc. The economic condition in US was crossing through the sub-prime mortgage
crisis. Slowly economy is recovering from the crisis. Unemployment rate is also increasing.


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Cultural and Social factors – it includes factors like population demographics, lifestyle
changes, level of education, attitude towards pleasure and work, social mobility etc. Change
in the factors related to cultural and social dimensions has important impact on various
product or services.. Further, the consumers are stressing more on new styles of apple
products and sleek applications which Apple is known for.
Technological factors – technological factors, in case of macro environmental analysis
includes an new discoveries, the rate of obsolescence, spending and attitude towards research,
government attitude, speed of transfer regarding technology, etc. Technology can be said as a
critical factor in the environmental analysis. This is for the reason that it helps in improving
the way of conducting business; achieving better quality, reduce cost and continuous
innovations. This will help the firm to reach people who are not easily accessible i.e. mass
coverage etc.
Environmental factors– it includes changes in weather, climate, temperature; environmental
awareness etc has impact on the business of the industry. US government and consumers
have become more concerned about user friendly products and those which cause least harm
to the users.
Legal factors – these factors relates to legal environment and law where organizations’
operate their business. Recently, more and more laws where enforce regarding consumer


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protection, employment law, competitions, any employment discrimination done on the basis
of color, nationality, age, origin, disability, etc. Most of the government has taken utmost care
related to safe, secure and eco-friendly products.
 Briefly explain the forces in Porter‟s Five Force Analysis and illustrate your answer
with the industry-specific examples
1. The barriers of new entry: For other firms it is said to be difficult in entering a market and
more likely the existing firms can make relatively high profits. The entry costs are said to be
high, if heavy investment is required in marketing. There are advantages to firms having been
operating in the industry in terms of their experience and understanding of how the market of
the existing brands have a high level of loyalty. The barrier of entry here means that APPLE
needs to understand that there are already many brands of computers that are sold in the market.
The competition is very heavy and very tough so will Apple’s idea of expanding into a new
market help him sustain operations.
2. The power of buyers: The power of buyers in an industry is more likely to be able to force
down prices and reduce the profits of firms providing the product. Big buyers are said to be
very important to the firm as the buyers can easily switch to other providers so that they need to
provide a high quality service at a good price. Apple sells his unique line of computers and


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mobile products which are exclusively priced . But Computer accessories products are totally
under the influence of the buyers as it is very price sensitive market and highly competitive and
buyers have great powers of bargaining. Market cannot remain insensitive to buyer’s powers.
Can Apple be able to withstand the very sensitive price market and the power the buyers exert
in bringing down prices ? Can Apple sustain his operations and be cost effective?
3. The power of suppliers: The power of suppliers in an industry is more difficult for firms to
make a profit because suppliers determine the terms and conditions which business is
conducted. They are relatively few of and switching to another supplier is difficult as well as
expensive. Apple supplies come from one supplier, hence the supplier who gets the custom
made products is relatively known to Apple. This may also lead to Apple making wrong choice
of suppliers the terms of suppliers need to be attended to very carefully and their collective
powers of bargaining are very high. So, Apple needs to understand that suppliers of the regular
parts and products have great bargaining powers and Apple has to very carefully strategize his
move in choice of suppliers.
4. The degree of rivalry: This measures the degree of competition between existing firms. The
higher the degree of rivalry the more difficult it is for existing firms to generate high profits.
There are a large number of similar sized firms competing with each other for customers and


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the costs of leaving the industry are high and the level of capacity utilization. There is little
brand loyalty so customer is likely to switch easily between products. The rivalry in the
computer and mobile market is very high. Apple’s entry will mark another entrant to the
already saturated market. This rally will design the prices and other very important and key
determinants of Apple’s new acquisition knowing that there is intense rivalry , Apple will have
to make some very important strategic moves to create a market for its products and keep
going along with excellent quality . The degree of rivalry will position the competitive
strengths and abilities of Apple’s product pitted against competitor’s products. So Apple will
have to create that niche for his products.
5. The substitute threat: This measures the ease with which buyers can switch to another
product that is the ease of switching depends on what costs would be involved and how similar
customers would perceive the alternatives to be. There are many substitutes to the products that
Apple is planning to sell hence, the market is filled with substitute and low priced products.
Apple should also make a note of the fact that if there are exclusivity in design and delivery, the
threat of substitutes may not happen but the other expansion lines could well be threatened by
substitutes in which case Apple will lose heavily if customers do not buy the product. So,
Apple will have to create some uniqueness in Computer accessories .


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 Explain how some of the major operational / operational environment factors
impact on functional areas within the industry chosen
Apple strongly focuses on the concept of evangelism, in which the company focuses on
promoting their products, the evangelists are not only the employees but even the loyal
customers of the company, and with a focus on this the company is able to form a “Mac Cult”
culture. The company has a decentralized or flat corporate structure, which helps in building up
a strong environment and communication in the organization which helps in fostering
innovation. The...