1. P E S T L E 1

2. Presentation Agenda
• Introduction
• PEST Analysis
• PESTLE Analysis
• Dimensions of the model
• Aim of the analysis
• Apple Inc – PESTLE Analysis
• Conclusion
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3. Introduction
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald
Wayne on April 1, 1976 to develop and sell personal computers.
It was named Apple Inc. on January 9, 2007 to reflect its shifted
focus towards consumer electronics.
Its best-known hardware products are the Mac line of
computers, the iPod media player, the iPhone smartphone, and
the iPad tablet computer.
Apple has continuously come up with innovative products
making it the most valuable company in the world and leaving
behind all its competitors.
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4. PEST Analysis
It is a simple and effective tool used in situation analysis to
identify the key external (macro environment level) forces that
might affect an organization.
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5. PESTLE Analysis
PEST
LE
PESTLE
Incorporating the Legal and Environmental dimensions in the
model makes it more comprehensive and gives better results.
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6. Dimensions of the model
• Government
stability
• Tax policy
• Trade control
• Import
restrictions
• Competition
regulation
• Tariffs
• Regulation/de-
regulation
• Bureaucracy
• Growth rates
• Inflation rate
• Interest rates
• Exchange rates
• Unemployment
trends
• Labor costs
• Stage of business
cycle
• Credit availability
• Stock market
trends
• Trade patterns
• Health
consciousness
• Education level
• Population
growth rate
• Lifestyles
• Buying habits
• Religion and
beliefs
• Age distribution
• Family size
• Minorities
• Life expectancy
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7. • Basic
infrastructure
level
• Rate of
technological
change
• Spending on
research &
development
• Legislation
regarding
technology
• Anti-trust law
• Discrimination
law
• Copyright,
patents /
Intellectual
property law
• Consumer
protection
• Employment
law
• Health & safety
law
• Weather
• Climate change
• Laws regulating
environment
pollution
• Air and water
pollution
• Recycling
• Waste
management
• Carbon
footprints
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8. Aim of the Analysis
Find out the current external factors
affecting an organization.
Identify the external factors that may
change in the future.
Exploit the changes (opportunities) or
defend against them (threats) better
than competitors would do.
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9. Apple Inc – PESTLE Analysis
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10. Political Factors
• It is reported that more than a half of sales of their
products come from countries other than America.
• Apple Inc manufactures a number of its parts and
products from outside the US, like Czech Republic, Ireland,
China, Korea and Cork.
• The bad political relations between US and the other
world have bad outcomes for the company.
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11. Economic Factors
Inflation, recession and currency are three important
economic factors that Apple noticed.
Since Apple Inc products were viewed as luxury products,
therefore customers started pending less on them.
US dollar value keeps fluctuating, however the company
has purchased itself foreign currencies and thus, the
economic effects on the company are minimized.
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12. Social Factors
Possessing these items are considered as status symbols in many
societies which have also increased the sales of Apple Inc products.
As the purchasing power of the common has risen in various markets
across the world the purchasing of luxury products have gone up.
As the world cannot be imagined without the gadgets, thus Apple
products have marked their presence on the international market.
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13. Technological Factors
• Technology has a short lifetime. That is why Apple needs
to upgrade their product more often so they will outdo
their competitors easily.
• Apple Inc has invested largely in its product research and
development field and thus its products are at the top of
the new innovative products ranking.
• One of the most innovative and technologically advanced
products is the iPod which marked the demise of
walkman.
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14. Legal Factors
Apple Inc has been a participant in various
legal proceedings and claims since it began
operation.
In October 2009, Nokia Corporation sued
Apple for Apple's infringement of Nokia's
patents relating to wireless technology
Apple has been in a number of patent
cases with players like HTC and Samsung.
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15. Environmental Factors
From reporting the entire carbon footprint to finding
ways to reduce that footprint, Apple takes a
comprehensive approach to environmental responsibility.
Apple’s commitment to the environment includes
properly disposing of electronic equipment at the end of
its useful life. It responsibly recycle your computers and
displays.
On track towards achieving an ambitious goal: to power
every Apple facility entirely with energy from renewable
sources — solar, wind, hydro and geothermal.
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16. Conclusion
PESTLE Analysis is one of the most comprehensive
models to study the effect of various forces present in
the environment and subsequently prepare oneself to
exploit the opportunities and defend against the threats.
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17. T H A N K
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Y O U