1
2 External and Internal Environments
Mikia Dixon
Business Admin. Capstone BUS499
Professor Joseph Keller
November 11, 21
Apple corporation's general environment plays a significant role in influencing its working mechanisms both locally and internationally. External influences in the company distant or macro-environment have a direct impact on the company's performance. In the consumer electronics and information technology services industries, the company's performance is due to strategic management that exploits opportunities and defends the company from risks. Two of the most highly ranked general environment factors of the company include technology and economic environment factors.
Technology and technology breakthroughs are examined to identify company opportunities and dangers in the present and the future. Apple has a chance to grow by offering its technology services to a wider range of customers and institutions thanks to the growing importance of technology integration in business. For Apple to keep up with its competition, the company needs to release new goods more frequently. Apple's brand image and financial performance are negatively impacted by Apple's competitors' low-cost offerings of high-value technical products. Samsung, for example, has maintained its position in the PC market, whereas Apple has lost it. Competition from low-cost, high-tech rivals has contributed to this situation. Apple now has a big chance to take advantage of the growing demand for cloud computing services by establishing an extended cloud framework. The technological environment is likely to impact the future steps taken by the company because presently, this field is filled with numerous players who are all gearing towards competing with apple. With the new emerging trends in technology, the company is highly obligated to have working mechanisms that protect them from any threat from external sources such as competitors.
The economic environment impacts the working mechanisms of apple corporation in numerous significant ways. With the set-up of the modern global market dynamics, apple's success as a company relies on the sales made. For sales to be made, there must be markets that are dependent on good economies. According to MBA school Team (2021), Apple Corporation has numerous expansion opportunities. For instance, economic stability in industrialized countries, rapid economic growth in developing countries, and disposable income among target consumers. However, it is important to keep in mind all the competing factors in the worldwide marketplaces when investigating economic opportunities. In the context of major international corporations like Samsung and Huawei, these external strategic drivers represent growth opportunities for the company and its competitors.
Five forces of competition, also known as the Porter five forces analysis, are those elements that determine the success of a corporation through a comprehensive analysis of t ...
12 External and Internal Environments Mikia DixonBusiness
1. 1
2 External and Internal Environments
Mikia Dixon
Business Admin. Capstone BUS499
Professor Joseph Keller
November 11, 21
Apple corporation's general environment plays a significant role
in influencing its working mechanisms both locally and
internationally. External influences in the company distant or
macro-environment have a direct impact on the company's
performance. In the consumer electronics and information
technology services industries, the company's performance is
due to strategic management that exploits opportunities and
defends the company from risks. Two of the most highly ranked
general environment factors of the company include technology
and economic environment factors.
Technology and technology breakthroughs are examined to
identify company opportunities and dangers in the present and
the future. Apple has a chance to grow by offering its
technology services to a wider range of customers and
institutions thanks to the growing importance of technology
integration in business. For Apple to keep up with its
competition, the company needs to release new goods more
frequently. Apple's brand image and financial performance are
negatively impacted by Apple's competitors' low-cost offerings
of high-value technical products. Samsung, for example, has
maintained its position in the PC market, whereas Apple has
lost it. Competition from low-cost, high-tech rivals has
contributed to this situation. Apple now has a big chance to take
advantage of the growing demand for cloud computing services
by establishing an extended cloud framework. The technological
environment is likely to impact the future steps taken by the
2. company because presently, this field is filled with numerous
players who are all gearing towards competing with apple. With
the new emerging trends in technology, the company is highly
obligated to have working mechanisms that protect them from
any threat from external sources such as competitors.
The economic environment impacts the working mechanisms of
apple corporation in numerous significant ways. With the set-up
of the modern global market dynamics, apple's success as a
company relies on the sales made. For sales to be made, there
must be markets that are dependent on good economies.
According to MBA school Team (2021), Apple Corporation has
numerous expansion opportunities. For instance, economic
stability in industrialized countries, rapid economic growth in
developing countries, and disposable income among target
consumers. However, it is important to keep in mind all the
competing factors in the worldwide marketplaces when
investigating economic opportunities. In the context of major
international corporations like Samsung and Huawei, these
external strategic drivers represent growth opportunities for the
company and its competitors.
Five forces of competition, also known as the Porter five forces
analysis, are those elements that determine the success of a
corporation through a comprehensive analysis of the role of
other players such as competitors, new players and customers.
The five forces of competition include the threat of new
entrants, the bargaining power of suppliers, the bargaining
power of substitute products, competition, and the bargaining
power of buyers. In the case of apple corporation, two of the
highly significant forces of competition include rivalry among
the different market players and bargaining power of the
consumers.
Market competition is a significant force towards the operations
of Apple corporations as a company. According to Fergusson
(2019), Samsung and Huawei are fierce competitors of Apple.
This competition is adversely manifested through rapid
3. invention, aggressive promotion, and Imitation has a significant
influence on the sector. Furthermore, there is a lack of product
differentiation, with most products serving the same objective.
For example, many famous Android and iOS apps are available
and cloud storage options from a variety of organizations. By
making it easy for customers to transfer suppliers or providers.
Conversely, because of the cheap switching costs, customers
can easily migrate from Apple to other brands depending on
price, functionality and accessibility issues, network
externalities and other relevant problems. However, on the other
hand, Apple has been instrumental in how they streamline their
competitive aspect. The company has been vibrant in creating
numerous new outsmarting their competitors by upgrading their
gadgets and software to give their customers new experiences
compared to their other competitors.
Consumers have an overall say towards highlighting the success
of apple corporation. Fergusson (2019) asserts that Changing
brands is easy for customers, making them powerful in
persuading corporations like Apple to keep their customers
happy. On the other hand, each customer's purchase is relatively
insignificant concerning the company's total revenue. Customers
are weak in this situation because of their weaknesses.
Customers can switch providers since they have access to
thorough comparative information about the features of
competing products. Using this external aspect, consumers can
exert a powerful influence on Apple and other firms. However,
to counter this challenge, apple corporation can choose to
ensure that they are in line with what makes the consumers want
to consume their products both in the long and short run. This
aspect entails having those strategies that will make consumers
not want to go to other companies like Huawei through working
on constant updates on their innovations and brands.
Apple corporation can improve its market forces by improving
various aspects of its competitive advantage and ensuring that
the consumers are pleased with its services. For example, the
company can ensure a strong competitive advantage in the
4. market through being extremely aggressive in their dealings,
having low differentiated products and low switching costs. For
example, through an elaborate product separation, the company
can ensure that they maximize on all these product lines instead
of having one product line. Secondly, Apple can evade
numerous consumer bargaining power through having only those
aspects needed by the consumers at specific times.
External threats of a corporation are those attributes emanating
from the outside environment and are likely to interfere with the
company's success in the long run. In the case of Apple
corporation, the two most significant external threats are
Aggressive competition from other large players like Samsung
and Microsoft. Presently apple competes in a market that is
widely considered to be open and accommodative of numerous
players. We have had companies like Samsung who have
rivalled apple in the global mobile phone market through their
Samsung galaxy series, which threatens the market stability of
the Apple iPhone. Secondly, Microsoft has also successfully
controlled a large market share in computer software programs
through innovations such as the windows 10 and windows 11
threatening the success of apple software, the IOS and iMac
(Prakruthi and Ramu, 2018). Secondly, the other threat likely
to be faced is the Imitation involving firms that compete based
on low prices. For example, we have numerous phone
manufacturers from China, such as Techno Mobile, who have
infiltrated numerous south Asia and African markets with
averagely low-quality products threatening the stability of apple
products.
Apple corporation has numerous avenues of opportunity towards
establishing their long term success. The first avenue of
opportunity is developing new product lines in consumer
electronics and online services. With the increase in
technological advancement, so is the necessity to develop new
ideas. Apple stands to benefit through harnessing new
development opportunities such as exploring band investing in
cloud computing. The second opportunity is on expansion on
5. other yet widely explored markets. For example, Apple still has
numerous opportunities to explore the African market, which is
mostly taken by low average Chinese products.
Apple corporation boasts of significant strengths when it comes
to global market dominance. The first significant strength is the
brand name. Apple has created a strong brand name that is i n
line with convincing the market to stick to its products. The
second strength of the company is that it has a chance for
effective rapid innovation processes that makes them viable to
expand their spheres of operations. However, the company is
also likely to face numerous weaknesses in its operations. For
example, compared to other market players, Apple products are
known to fetch higher prices. These weaknesses can make
consumers want to buy from other providers. The second
weakness is that the company depend on sales in high-end
market segments. This aspect involves the company over-
relying on customers who are perceived as rich while not
considering the impacts that the poor consumers can have.
Apple corporation has always ensured to use strategies to
enhance their strengths and abilities to control the market. For
example, the company has used the tactic of avoiding price wars
with other companies. Secondly, the company has figured out
how to appeal to their consumers' holistic needs by providing
almost all needed aspects of their user experience. For example,
a consumer can have the iPod for music, the iPhone for
communications and the MacBook for computer duties. These
two strategies have worked to build the strengths of the
company on a different aspect. Apple corporation has also used
tactics that have led to their weakness. For example, they have
the strategy of pricing their products expensively, which has not
served the purpose of their "poor" customers.
With a vibrant working mechanism, apple corporation has built
resources, capabilities and numerous core competencies. The
company's available resources include business process
automation, competitive employee compensation packages,
human resource capabilities that has enhanced innovation and
6. the element of product mix diversity (Newton, 2021). Some of
the companies' capabilities include artificial intelligence
capabilities, vibrant global distribution network, access to user
information, a system for rapid innovation and numerous
complementary products.
Sources
Ferguson, E. (2019). Apple Inc. Five Forces Analysis (Porter's
Model). Panmore Institute February 22 2019.
http://panmore.com/apple-inc-five-forces-analysis-porters-
model-case-study
MBA Skool Team (2021). Apple PESTLE Analysis. January 26,
2021.
https://www.mbaskool.com/pestle-
analysis/companies/17944-apple.html
Newton, V. (2021). Apple Inc. VRIO Analysis – Core
Competencies & Competitive Advantages. Rancord Society
February 10 2021. https://www.rancord.org/apple-inc-vrio-
analysis-core-competencies-competitive-advantages
Prakruthi, A and Ramu, M. (2018). A Study on SWOT Analysis
with special reference to
the Apple Company. International Journal of Pure and
Applied Mathematics Vol 119 No. 17.
https://acadpubl.eu/hub/2018-119-17/1/17.pdf
1
Impacts of Globalization and Technology on Apple Corporation
Name
Course
Institution
Date
7. Globalization and technology have played a crucial aspect in
defining most modern business enterprises. This definition has
been realized through globalization, influencing numerous
factors contributing towards any business success. For example,
technology has reshaped the relationship between customers and
most enterprises by making it easier for the two to interact
through e-commerce platforms and interactive feedback through
various social media platforms. Secondly, globalization has
defined many business activities by influencing their long-term
success by making it possible for different forms of
stakeholders in the name of investors from different parts of the
world to buy stakes. One of the companies that have been
greatly impacted by globalization and technology is Apple
Corporation. This discussion explores how apple corporation
has been impacted by technology and globalization. Secondly, it
highlights how the corporation could earn above-average returns
through resource models, vision and mission statements, and
stakeholder influence success.
Globalization and technology have played a crucial impact in
defining some of the success mechanisms of Apple corporation.
According to Eroe Consulting (2017), one of the major
influences of globalization on apple company is the aspect of
free trade. Through Free trade that has been brought about by
trade blocs and friendly exchange of goods, Apple has been able
to expand its territories to other markets such as Africa, Asia
and the European Union. Secondly, information influx as a form
of globalization has also greatly influenced the success of apple
corporation. Through information movement, the company has
8. been able to know the needs of various markets and consumers.
This aspect has led to the company developing those products
that satisfy the specific needs of a given customer base.
Technology has also played a significant impact on the
successes of apple as a company. According to Lombardo
(2019), the increasing need for technological integration has
played a crucial part in influencing some of the innovations
made by apple. For example, the company has numerous
suppliers who make crucial parts needed by apple. For instance,
Intel, the largest semiconductor chip manufacturer by revenue,
has a great business partnership with apple that benefits both
companies. Secondly, the growing demand for mobile phones as
a technological factor has also steered apple corporation
towards success. Presently, apple ranks as the largest mobile
phone manufacture and seller in the United States. The company
also has a diverse market presence in other parts of the world,
such as Europe, Australia and Asia, where there is a high
demand and usage for their famous iPhone mobile gadgets used
for communication. Through technology and globalization,
apple corporation has been able to rank as one of the biggest
global players in the mobile phone gadget industry.
Apple corporation as a company can earn the above returns
should the company choose to apply the organization and
resource-based model. According to Poudel (2016), the
industrial organization model dictates that firms can research
the external environment successfully. This aspect will give
them the foundation for choosing an attractive industry and
implementing the appropriate strategy to earn above-average
returns. For the case of apple corporation, a study of the
external environment will lead to the company considering the
economic welfare of their customers when it comes to making
their products. This aspect will lead to producing those products
that are likely to be afforded by all segments of their target
market, thereby influencing an increased sale. For example, the
company can employ an industrial organization model in
increasing its sales in either the African or Asian markets to
9. rival Chinese and Korean players such as Samsung and Huawei.
On the other hand, the resource-based model stipulates that the
success of a firm depends on its unique resources rather than on
industrial characteristics. In this aspect, maple companies can
choose to influence their returns by harmonizing their resources
to target more consumers instead of other players. For example,
the company can venture into other products apart from the
mobile phone and gadget industry. Through the different aspects
of innovation, say, acquisition of an e-commerce retail chain,
apple corporation can earn above-average returns because they
will have diversified their services and product line.
The mission and vision statement of apple corporation has a
direct impact on its success. Apple mission statement reads " to
bring the best personal computing products and support to
students, educators, designers, scientists, engineers,
businesspersons and consumers in over 140 countries around the
world.""" this mission statement touches on the possibilities of
an emerging changing landscape of the business. For example, it
shows that the company is ready to recognize some of the trends
in the consumer electronic industry, thereby ensuring that every
time there is a need to try new things, the company will not
hesitate. The company's vision statement reads, "to make the
best products on earth, and to leave the world better than we
found it.""" this statement gives the company the crucial social
responsibility that it needs to create in the eyes of the
consumers. Through this credibility, it becomes easier for most
consumers to want to associate with the company than others,
thereby influencing its success positively.
Stakeholders of the company also impact the overall success.
According to David (2020), the company has two categories of
stakeholders- internal and external. The main internal
stakeholders include shareholders, employees, the board of
directors and the company executives. The company executives
and the directors are charged with creating policies that are
favorable to the working conditions and mechanisms of the
company. These are the people who will determine w hether the
10. employees and the shareholders will stick with the company's
objectives. The employees are the ones charged with
implementing and executing the necessary policies to steer the
company ahead. The employees' input through innovations,
designing, and marketing have ensured that the company is on
good terms with its customer base, thereby creating a positive
rapport that leads to success. Any slight change or mistake on
the side of the stakeholder along the chin is likely to have a
devastating consequence on the company's overall success. For
example, suppose the executives develop a policy that will
negatively limit innovation by the employees. In that case,
products entering the market will not be desired by the
customers, thereby giving leeway for other players to invade
Apple’s market niche. The external stakeholders include
customers, suppliers, competitors, pressure groups, local
communities, and the government (David, 2020). This group
also plays a crucial aspect in influencing numerous ways the
company stands to gain success. For example, it is the
customers who have the final say on the success of the company
through buying the company’s products. The government plays
a crucial part in this success by providing a favorable working
environment in the form of policies that enable the company to
work without interference or disturbances. The suppliers such as
intel provide for the needed raw materials while the local
community ensures that the company is in line with corporate
social responsibility.
Globalization and technology have played a crucial aspect in
defining most modern business enterprises. Apple corporation
remains one of the companies that have benefited from these
two essential aspects of the contemporary world, which have
positively redefined their success. By blending technology with
their stakeholder roles, mission and vision, and the working
model, the company has realized a great stride that few
companies can match.
11. References
David, J. (2020). Stakeholders of Apple (Analysis of Apple's
stakeholders). How and What, September 19, 2020.
https://howandwhat.net/stakeholders-apple-analysis-apples-
stakeholders/
Eroe Consulting (2017). Evaluation of Pros and Cons of
Globalization. Updated March 5, 2017. https://www.eroe.co/
Lombardo, J. (2019). Apple Inc. PESTEL/PESTLE Analysis &
Recommendations. Panmore, June 9, 2019.
http://panmore.com/apple-inc-pestel-pestle-analysis-
recommendations
Poudel, P. (2016). The Resource-based model or I/O model.
Which model is the best to choose your personal strategy?
Linked In March 1 2016.
https://www.linkedin.com/pulse/resource-based-model-io-
which-best-choose-your-personal-pratik-poudel/
Rowland, C. (2020). Apple Inc.’s Mission Statement and Vision
Statement (An Analysis). Panmore September 23,
2020.http://panmore.com/apple-mission-statement-vision-
statement
1
Figures title: 7Week 8 Business-Level and Corporate-Level
Strategies Assignment
Student’s Full Name
BUS499 Business Administration Capstone
Professor’s Name
Date
Template Instructions (delete this page before submitting)
This template is provided to help you meet the assignment
requirements.
This page should NOT be submitted with your assignment, as it
is not part of an academically written paper. Note the “Clarity,
writing mechanics, and formatting requirements” section of the
12. grading rubric.
HOW TO USE THIS TEMPLATE
· Read the explanations provided in the template for each
section of your paper.
· The explanations are in blue font below.
· You should have already read the assignment instructions in
Blackboard.
· Type your response to each of the assignment requirements
within the designated sections.
· Each assignment requirement is identified using a section
Heading that is in black font
· DO NOT add extra spaces between sections.
· DO NOT change the margins.
· You are required to have a heading for each of the sections in
your paper.
· The required headings have been provided for you.
· DO NOT delete, alter, or add anything to the section
Headings.
· DO NOT type the assignment instructions into the sections.
· After typing your responses, change the font color to black
and make sure it is not in bold.
· Be sure to change the font color on the title page to black after
typing your name, professor’s name, and date.
· Everything in blue font below should be deleted and replaced
with your responses.
· DELETE this entire page before you submit your assignment
to avoid losing points. Do not leave a blank page here.
REMINDERS
· The assignment is due in week 8. Late submissions negatively
impact your grade.
· Use the same public corporation you used for assignments in
Week 3 and 6.
· Do not copy content from previous assignments in this class or
13. others.
· Include at least 6 full and complete academically written
pages that address the requirements. The title page, this
instruction page, and the source page do not count.
· Use at least 3 quality sources, one of which MUST be the
course textbook.
· Strayer uses SafeAssign – an automated plagiarism checker. It
is advised that you do your own writing and use external
resources to support what you have written in your own words.
Week 8 Business-Level and Corporate-Level Strategies
Assignment
Write your introduction to this 6 page paper here. Include one
paragraph (not more than 6 lines of text) that explains what
your paper will discuss. Much of your introduction may be
taken from the assignment instructions (in your own words).
Read all assignment resources to understand what should be
included in your paper. Be sure to review the assignment
instructions in Blackboard, the grading rubric, and relevant
course announcements to understand the requirements. Do not
exceed 6 lines of text in this introduction. There should be no
direct quotes in this section. After reading these instructions,
replace this blue text with your introduction and change the font
color to black.Business-Level Strategies
Analyze the business-level strategies for the corporation you
chose to determine the business-level strategy you think is most
important to the long-term success of the firm. You will also
need to determine whether or not you judge this to be a good
choice (Note: in this step you need to choose and write about
only one business-level strategy from the text book (not
Google). Hint: See Figure 4.1 in the textbook. Include a
thorough justification for your choice that is backed by facts
and sound judgement. For background, be sure to research and
explain the industry in which your selected corporation
operates. You could also briefly (1 – 2 sentences) define the
14. business-level strategy (cite your sources) you are writing about
using the textbook/Learn, as an introduction to your analysis.
Read Chapter 4 in the course textbook. Review the Week 4
Learn Reading for supporting content. Your response here
should demonstrate that you understand the key concepts
regarding the selected business-level strategy and can apply
them to a real-world corporation. Keep in mind that this is a 6
page paper and as such your analysis should thoroughly address
the concepts discussed in the course. Avoid unsubstantiated
statements, extended introductory commentary, direct quotes,
and unrelated content. Strive for about 1 ½ to 2 pages of well -
constructed, in-depth analysis in this section.
In this section, you could research and identify the core
competencies your chosen firm uses to implement its business-
level strategies and discuss their effectiveness. You could also
demonstrate from your research how the firm uses its core
competencies to create and sell its products in the marketplace.
Consider the actions & choices your firm has made to compete
in individual product markets. Review Chapters 4-9 for
specifics on the business-level strategies. Your response should
clearly identify the one business-level strategy from the
textbook that you think is most important to the long-term
success of the corporation. Your response must also include a
clearly stated and justified judgement on whether that strategy
is a good choice. Include enough content and depth to
demonstrate a thorough analysis of your selected corporation’s
business-level strategy. Remember that this is a 6 page paper
and as such, you will need to dig deep. After reading these
instructions, replace this blue text with your analysis and
change the font color to black. Corporate-Level Strategies
Analyze the corporate-level strategies for the corporation you
chose to determine the corporate-level strategy you think is
most important to the long-term success of the firm. You will
also need to determine whether or not you judge this to be a
good choice. (Note: in this step you need to choose and write
about only one corporate-level strategy from the text book (not
15. Google). Hint: See chapter 6 in the textbook. Include a thorough
justification for your choice that is backed by facts and sound
judgement. You could also briefly (1 – 2 sentences) define the
corporate-level strategy (cite your sources) you are writing
about using the textbook/Learn, as an introduction to your
analysis. Read Chapter 6 in the course textbook. Review the
Week 6 Learn Reading for supporting content. Your response
here should demonstrate that you understand the key concepts
regarding the selected corporate-level strategy and can apply
them to a real-world corporation. Keep in mind that this is a 6-
page paper and as such your analysis should thoroughly address
the concepts discussed in the course. Avoid unsubstantiated
statements, extended introductory commentary, direct quotes,
and unrelated content. Strive for about 1 ½ to 2 pages of well -
constructed, in-depth analysis in this section.
Your response should clearly identify the one corporate-level
strategy from the textbook that you think is most important to
the long-term success of the corporation. Your response must
also include a clearly stated and justified judgement on whether
that strategy is a good choice. Include enough content and depth
to demonstrate a thorough analysis of your selected
corporation’s corporate-level strategy. Remember that this is a 6
page paper and as such, you will need to dig deep. After reading
these instructions, replace this blue text with your analysis and
change the font color to black. Competitive Environment
Analyze the competitive environment to determine the
corporation's most significant competitor (this will require
research outside of the course material). Compare their
strategies at each level and evaluate which company you think
is most likely to be successful in the long term. Justify your
choice. Hint: read chapters 1 through 10 in the course textbook
as they provide a solid background for this section. Review the
Week 1 through 8 Learn readings for supporting content.
Remember that this is a 6 page paper and requires a thorough
competitive analysis. Strive for about a 1 ½ to 2 pages of well -
constructed, in-depth analysis in this section. Cite your sources
16. and avoid the use of direct quotes. After reading these
instructions, replace this blue text with your analysis and
change the font color to black.Market Cycles
Determine whether your choice from Question 3 (Competitive
Environment section above) would differ in slow-cycle and fast-
cycle markets. It would be a good idea to briefly explain what
the slow-cycle and fast-cycle markets are from the textbook
(cite your sources) as a short introduction to your
determination. Hint: read Chapter 5 in the course textbook.
Remember that this is a 6-page paper and therefore each section
requires a thorough response that demonstrates your
understanding of key concepts covered in the course and your
ability to apply them to a real-world corporation. Cite your
sources and avoid the use of direct quotes. After reading these
instructions, replace this blue text with your response and
change the font color to black.
Sources
1. Michael A. Hitt. 2020. Strategic Management: Concepts and
Cases: Competitiveness and Globalization 13th ed. Cengage
Learning.
2. Author. Publication Date. Title. Page # (written as p. #). How
to Find (e.g. web address)
3. Author. Publication Date. Title. Page # (written as p. #). How
to Find (e.g. web address)