Apple business environment can competently assay using following business environment:
1). Internal Business Environment:
Internal environment reflects the internal factor of the business which organisations can control and can adapt or alter from time to time. The best way of explain internal business environment of any organisation is use of SWOT and Porter’s value chain analysis. SWOT and Porter’s value chain analysis explained the internal environment of Apple UK, hence it will help to understand the current and future position of organisation. SWOT (strength, weakness, opportunities and threats) analysis of Apple shows the strength of company the factors which Apple are doing its best, weaknesses explained the factors which Apple do not provide its best, opportunity explained the factors what Apple can achieved using its resources and threats shows the factor which can damage the profitability and growth of Apple. SWOT analysis shows the strength of Apple is very strong to protect its image, the weakness Apple has they can do more research and development to overcome those weaknesses, Apple must utilise its opportunities to make its brand strong and if Apple can work on their weaknesses and opportunities its threats will be overcome or may be reduce. The Value chain analysis show the business culture and business operating system which shows that Apple Value chain is valuable because their product assembled in China with low cost and they have their UK operating system and human resource follows the required environment as in United Kingdom.
2)External Business Environment:
External business environment represent the uncontrollable factors, the external factors can be analysed using PESTEL and Porter’s five forces. Kotler argues that PESTEL analysis is an effective strategic tool for understanding market development and decline, business position, conceivable and direction for operations. . Apple’s external factors were analysed using PESTLE and Porter’s five forces. PESTLE analysis focused on political, economical, social, technological, legal and environmental factors of Apple UK. However Apple does not have any controlled over them but Apple can change it with them, recently the current United Kingdom government increased VAT rate to 20% from 17.5% this will result in product prices it will go up. Apple can reduce its price to keep customers happy or offered them some incentive. Most of the organisations have pressure from environmental organisation about environment pollution Apple can produce its recycled packaging. Apple has to keep considering social and economical factors and do research and development to cope with them. Porter’s five forces helps to gain competitive advantage, Apple have many competitors around but it has strong brand value and name and competitive advantage from its competitor. Apple have to keep analysing five forces of Porter and find its best place in the market and carry out more research and development to bring new ideas and innovations.
In conclusion, apple internal business environment was analysed by using SWOT and Porter’s value chain analysis. SWOT analysis focused on strength, weaknesses, opportunities and threats which explained Apple’s strength give it a strong hold against its competitors, weakness and threats would overcome by research and development, opportunities will bring more strength to organisation. Porter’s value chain analysed Apple business system which is valuable but they to consider it to cut the prices of its product. Apple external environment was analysed using PESTLE and Porter’s five forces the external factors are uncontrollable factors that Apple do not have any controlled over them but it cannot resist them but change with them effectively to maintain its growth and profitability. Organisational culture represents the nature of organisation Hofstede cultural dimension helps to analyse culture.
1). Internal Business Environment:
Internal environment reflects the internal factor of the business which organisations can control and can adapt or alter from time to time. The best way of explain internal business environment of any organisation is use of SWOT and Porter’s value chain analysis. SWOT and Porter’s value chain analysis explained the internal environment of Apple UK, hence it will help to understand the current and future position of organisation. SWOT (strength, weakness, opportunities and threats) analysis of Apple shows the strength of company the factors which Apple are doing its best, weaknesses explained the factors which Apple do not provide its best, opportunity explained the factors what Apple can achieved using its resources and threats shows the factor which can damage the profitability and growth of Apple. SWOT analysis shows the strength of Apple is very strong to protect its image, the weakness Apple has they can do more research and development to overcome those weaknesses, Apple must utilise its opportunities to make its brand strong and if Apple can work on their weaknesses and opportunities its threats will be overcome or may be reduce. The Value chain analysis show the business culture and business operating system which shows that Apple Value chain is valuable because their product assembled in China with low cost and they have their UK operating system and human resource follows the required environment as in United Kingdom.
2)External Business Environment:
External business environment represent the uncontrollable factors, the external factors can be analysed using PESTEL and Porter’s five forces. Kotler argues that PESTEL analysis is an effective strategic tool for understanding market development and decline, business position, conceivable and direction for operations. . Apple’s external factors were analysed using PESTLE and Porter’s five forces. PESTLE analysis focused on political, economical, social, technological, legal and environmental factors of Apple UK. However Apple does not have any controlled over them but Apple can change it with them, recently the current United Kingdom government increased VAT rate to 20% from 17.5% this will result in product prices it will go up. Apple can reduce its price to keep customers happy or offered them some incentive. Most of the organisations have pressure from environmental organisation about environment pollution Apple can produce its recycled packaging. Apple has to keep considering social and economical factors and do research and development to cope with them. Porter’s five forces helps to gain competitive advantage, Apple have many competitors around but it has strong brand value and name and competitive advantage from its competitor. Apple have to keep analysing five forces of Porter and find its best place in the market and carry out more research and development to bring new ideas and innovations.
In conclusion, apple internal business environment was analysed by using SWOT and Porter’s value chain analysis. SWOT analysis focused on strength, weaknesses, opportunities and threats which explained Apple’s strength give it a strong hold against its competitors, weakness and threats would overcome by research and development, opportunities will bring more strength to organisation. Porter’s value chain analysed Apple business system which is valuable but they to consider it to cut the prices of its product. Apple external environment was analysed using PESTLE and Porter’s five forces the external factors are uncontrollable factors that Apple do not have any controlled over them but it cannot resist them but change with them effectively to maintain its growth and profitability. Organisational culture represents the nature of organisation Hofstede cultural dimension helps to analyse culture.