[SOLVED] GLOBAL STRATEGIC MANAGEMENT
GLOBAL STRATEGIC MANAGEMENT
Part 1: External environment analysis (850 words)
This part should detail the external environment relevant to the company (Apple Inc.) your team has chosen. Given the future focus of this unit, you need to understand not just current opportunities and threats but where opportunities and threats will arise in the future. Any images or graphs relied on should be paraphrased and sourced – no images are to be used in the analysis.
Company for this assignment: APPLE INC.
It must include:
1. A PESTEL analysis.
2. An industry competition analysis.
3. Conclusions about the external current and future situation of the company
All written assignments must be referenced using the Chicago 17th Edition Author-Date Referencing Style.
Minimum 4 references.
Written assignments must also be formatted with size 12 font (either Arial or Times New Roman), 1.5 line spacing, justified alignment.
MY OWN RESEARCH FOR YOUR REFERENCE
Manufacturing of Apple products is in China; however there are conflicts between USA and China, and restrictions on the importation of the USA manufacturing businesses have been imposed.
With restrictions imposed, Apple’s dependency on Chinese manufacturing and marketing makes it vulnerable, leading to political unrest in that country.
The trading disputes between both USA and China will become a threat to Apple Inc’s expansion.
Increased labour expenses in China may erode some Apple goods’ cost advantage.
Stagnant middle-class salaries in certain industrialised countries, notably the USA, may limit the potential market for higher-end consumer items like Apple’s.
A strong dollar might raise the exchange rate, making doing business in crucial areas like Europe and China more expensive for Apple.
Rising usage of mobile devices/access is an opportunity for Apple Inc to grow its revenues as the demand for smartphones and tablets increases.
Increased dependence on digital systems poses an opportunity for Apple to increase their sales based on higher demand for the gadgets.
Apple is facing the social threat of opposition against its business operations due to Anti-Apple sentiments rising to question its business practices, such as the lawsuit against third-party external repair services for products like MacBook or iPhone.
Apple is one of the most established electronic and technology manufacturers. Technology plays a part in the company’s expansion and future progression.
It remained one of the top electronic brands with its best-designed tools for the years. It was an opportunity for them as it has established and associated them with being the most innovative enterprise. A strong security system is one of the best characteristics. With the rise of technology and the digital world, keeping data safe has faced threats with viruses such as malware that could easily allow people to hack into the computer system. The security function has become one of the most recognised functions by apple users and creates an opportunity as it minimises any issues that arise from a cyber security attack. For continuous improvement, developers and software engineers are under tremendous pressure to develop new and unique ideas to surpass their previous innovations. Apple faces intense competition from Google and Samsung. Some of apple’s signature products are easy to be replicated. Such products can become a threat as their function are no longer unique. It will not be a strong point for Apple to keep itself to differentiate from its competitors.
Industrial emissions from manufacturing outlets in China are an issue for Apple as China is implementing stricter emission laws.
Disposing of Apple’s products and parts such as lithium batteries can have a high cost.
Apple may also start automobile manufacturing in the future, and this can cause an increase in insurance, regulatory costs, and legal proceedings for Apple.
Apple also has to have music licenses for their own iTunes / Apple Music.
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