Environmental Analysis And Strategies Business Essay Example
Environmental Analysis And Strategies Business Essay Example

Environmental Analysis And Strategies Business Essay Example

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  • Pages: 8 (2120 words)
  • Published: October 18, 2017
  • Type: Case Study
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This assignment will examine how Apple Inc. applies its skills and abilities to its surroundings, as well as the impact of societal, environmental, ethical, and corporate governance factors on the company. It will also explore how Apple manages these factors in order to achieve its corporate goals. Founded on April 01, 1976 by Steve Jobs and Steve Wozniak, Apple Computer has become a globally admired brand with Woz as an engineer and Jobs as the visionary behind it. Today, Apple is a multinational corporation based in the United States that designs and sells advanced and stylish products in various countries including the United Kingdom, Australia, Japan, China, Italy Germany Canada Switzerland. Their product range includes both simple and luxurious options such as MacPro MacBook Air iPod touch iPhone iTunes QuickTime ILife iWork among others. Additionally selling accessories like Apple Television Magic Mouse keyboards Cinema Displays.They have recently introduc

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ed the advanced iPad to meet personal consumer demands.The target segments primarily consist of professionals students corporate users entrepreneurs.This assignment uses secondary information from sources like internet internal reports books journals media publications.A SWOT analysis can serve as a strategic tool for assessing Apple's current position defining their strategy.This analysis aids in identifying strengths,minimizing threats,and seizing opportunitiesApple uses this information to establish a strong competitive position and gain a better understanding of their rivals. One of Apple's strengths is their technical expertise and ability to integrate with Microsoft products and Intel processors, showing their willingness to cater to diverse customers. Furthermore, Apple's financial stability allows them to withstand market pressures by reducing costs and forming strategic alliances. Additionally, their strong brand loyalty can be attributed to trendy design,

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fashionable advertising, and innovative technology offerings. Apple's Research and Development Department provides high-quality and innovative products globally. They have the exclusive license for hardware that utilizes the user-friendly Mac OS interface simplifying complex technology. However, there are weaknesses that Apple needs to address. While historically dominating in the US education sector, budget constraints and market saturation may require quick adaptation and price adjustments. In China, they face fierce competition from Samsung in the smartphone market. Apple's venture into social networking with "Ping" did not meet expectations due to its lack of integration with non-music iTunes media and popular social networks like Facebook – something competitors such as Android devices and Microsoft's Windows Phone have already achieved.Despite the noticeable absence of Steve Jobs, a key strength for Apple, stakeholders who relied on his expertise must now find other sources of guidance. However, depending solely on Jobs was never a healthy long-term plan for success. Nevertheless, there are still opportunities waiting to be explored by Apple. The company has already made significant progress in the consumer electronics market with products like the iPod and iTunes. This opens up possibilities for strategic partnerships with peripheral manufacturers and media transmission giants such as Disney, TBS, and Verizon.

Furthermore, Apple has entered the personal computer hardware and software market by challenging the dominance of Windows-based PCs through their Intel-based processors and iMacs. To overcome its reputation primarily associated with desktop publishing, Apple needs to establish itself as a reliable player in business desktop applications to gain stability and dependability. By partnering with more carriers, iPhone sales could potentially receive a boost that encourages consumers to explore other Apple products.

However, there are

also several threats that require consideration. One such threat is the legal risks associated with patent and copyright violations as the market evolves rapidly. Instances of infringement will continue to occur as long as operating systems and support software can be easily copied. Another threat comes from competition in both computer hardware/software and consumer electronics sectors—particularly from Samsung Electronics Co Ltd.Apple's innovative and well-designed products require continuous differentiation and cost-effective strategies to maintain competitiveness. The PEST analysis model, according to Kotler (1998), helps understand market growth, business position, and potential opportunities for operations. It is especially useful when entering new markets or establishing business operations in a new country as it allows for addressing assumptions and adapting to the realities of the new environment. Moreover, PEST ensures that a company's performance aligns positively with influential forces of change in the business environment (Porter, 1985).

In terms of political/legal influences, Apple's reliance on international sales makes it vulnerable to negative impacts from international relations issues, wars, and terrorism. This vulnerability is further exacerbated by sourcing hardware components and products from various countries including Ireland, Czech Republic, Korea, and China. Conflicts between nations can have significant negative consequences for companies like Apple.

A notable example is Apple's legal action against Microsoft in the late 1980s when they claimed that Windows copied Mac's design and functionality. Instead of direct competition, Apple chose litigation but ended up losing the case which resulted in a decline in their market share. However, on August 24th, 2012, a Tokyo court dismissed Apple's claim against Samsung for patent infringement – highlighting another legal battle faced by the company.The text highlights a shift towards using patents

more for litigation rather than protection, emphasizing the need for clear strategies in such situations. The economic depression has impacted Apple significantly as inflation rates rise and consumer income remains stagnant. To mitigate the effects of inflation and protect itself financially, Apple has implemented measures like purchasing foreign currency. Interestingly, despite these challenges, the depreciation of the US dollar has actually boosted Apple's revenue in international markets. Globally, globalization and technology have become pivotal factors, with computers, mobile phones, and the internet being essential devices recognized worldwide. Apple is acknowledged as a global leader due to its quality and design. Technology has also shaped the music industry through platforms like iTunes. Despite concerns about web piracy, most governments penalize this behavior, reflecting Apple's reputation for combining functionality with design to appeal to modern lifestyles. Consequently, social influences have positively impacted Apple. The advancements in technology have intensified competition in the market for computing machines and mobile phones. Although slipping to fifth place in China, Apple maintains its leading position due to its investments in research and product development.
Apple has implemented advanced protection codes in its software to prevent copying and infringement. The impact of societal, environmental, ethical, legal, and administrative issues on Apple is significant. There is an ongoing debate about corporate administration systems, with the Anglo-American system being considered more advanced and efficient compared to European and Asian models (Hansmann and Kraakman, 2001; McCahery et al., 2002; Hamilton and Quinlan, 2005). Corporate administration acts as a socially constructed force-field that influences a company's strategic behavior (Lewin, 1951) within the larger institutional framework governing relationships between executives and stakeholders with vested interests in the company's

activities (Pfeffer and Salancik, 1978). The corporate structures and institutional frameworks in Anglo-American, European, and Asian corporate endeavors have evolved differently. In the Anglo-American model, shareholders' interests take precedence with a Board of Directors primarily composed of non-executive managers elected by shareholders. These non-executive managers hold important positions such as audit and compensation committees. In the United Kingdom, it is common for the CEO not to also serve as Chairman of the Board; however, in the United States this dual role is more prevalent. The U.S. plays both public and government oversight roles in corporate governance matters.
The Board of Directors at Apple plays a vital role in ensuring the company's competent and ethical operation on a daily basis. They oversee senior management and protect the long-term interests of shareholders. Managers are expected to uphold high standards of responsibility and ethics for business success. The Board has established committees, guidelines, articles of incorporation, and bylaws as part of their governance framework to promote ethical actions, effective decision-making, compliance oversight, and performance monitoring. However, Apple has received criticism regarding its corporate governance practices. Concerns have been raised about relying too heavily on independent reporting rather than being transparent themselves. There have also been critiques about how they handle their corporate image and a general lack of transparency. Additionally, Apple has faced criticism for not releasing a sustainability report or responding promptly to CDP studies until recently. Only recently have they started disclosing supplier names and allowing independent scrutiny into working conditions within their supply chain. Apple's tight control over information about upcoming products has raised questions about its corporate governance as it can lead to differing views

on legal actions taken by the company, such as patent lawsuits from Samsung in Tokyo. Legal victories often result in negative perceptions of arrogance and insecurity for multinational companies.
Apple prioritizes concerns about future conflicts with competitors, as former CEO Steve Jobs believed that providing the public with superior technology is paramount. In addition to focusing on good governance and ethical statements, Apple conducts business in a more open and ethical manner. According to Apple's 2012 Environment Report, they have actively worked towards reducing greenhouse gas emissions since 2006 by decreasing energy and water consumption, as well as waste production. The report also aims to communicate their environmental, wellness, and safety policies and plans. The Supplier Responsibility 2012 Progress Report commits Apple to maintaining high standards of social responsibility within its supply chain while addressing issues related to human rights abuses or poor working conditions among suppliers. This includes emphasizing safe working conditions, respectful treatment of workers, and environmentally responsible manufacturing processes in all locations where Apple products are made. However, during Tim Cook's visit to China in March 2012, an activist group released an open letter demanding fair working conditions at all Apple suppliers due to accusations of low wages and excessive forced overtime by Students & Scholars Against Corporate Misbehaviour.Employees at Apple often feel like they are merely going through the motions, performing repetitive tasks day after day. The New York Times has reported that despite Apple's progressive code of conduct, their suppliers often resort to cutting corners in order to make minimal profits. This can involve using cheaper alternatives or pressuring employees to work longer and faster. However, failing to actively engage with

stakeholders puts Apple's long-term survival at risk.

Apple has a history of being hesitant when it comes to engaging with stakeholders. They have been known to withhold information from organizations such as Greenpeace and initially ignore Chinese environmental groups investigating pollution within their supply chain. This lack of engagement creates uncertainty during times of significant organizational changes and can lead to negative behavior.

As the world's most valuable company, Apple is expected to prioritize trust, openness, and integrity. Fortunately, their success in the global market gives them the ability to address these issues internally. They have implemented corporate programs aimed at monitoring compliance for more than 700,000 workers throughout their supply chain. In July, they achieved a 97% compliance rate with the 60-hour work week limit set out in their code - an improvement from the previous month's rate of 96%.

Recent media coverage indicates that Apple's new CEO has announced a vision for the company which includes Corporate Social Responsibility (CSR) initiatives. These initiatives involve developing a strategy based on defined character virtues such as unity, empathy, and passion.The effective coordination and implementation of this approach are crucial. These new CSR initiatives offer an opportunity for both Apple and its new CEO to promote unity and distinguish themselves from Steve Jobs' leadership style. Similar to updating an iPhone or iPad, addressing their CSR approach will contribute to Apple's ongoing commitment to providing exceptional computing experiences worldwide through advanced hardware, software, and internet offerings for students, educators, creative professionals, and consumers alike. The company aims to ensure that clients are experts in their products and employees understand the company's vision. Systems have been established to facilitate customer interaction,

with objectives set for continuous progress and strategies implemented to achieve these objectives. Appropriate marketing, financial, and operational structures are in place to implement these strategies (8.0 Decisions and Recommendations). Through my research on Apple's operations and global strategies, I gained insights into their ability to stay competitive by consistently introducing innovative products promptly. It is also crucial for Apple to strengthen relationships among employees, managers, and the board of directors while promptly addressing corporate governance and ethical issues. In conclusion, significant investment in research and development is necessary for Apple while maintaining a substantial number of patents and copyrights.If Apple does not continue to innovate and maintain attractive profit margins, it may face market challenges and competition from companies that infringe on its intellectual property. Delaying the adoption of new technologies, like Samsung did, could harm Apple's competitive advantage and financial standing. This delay might hinder their efforts to regain dominance in the market and negatively impact their operational outcomes.

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