Macro-Environment of the Apple Company - Essay Example

Political forces refer to the stability eminent in the political environment as well as the attitudes of political movements or parties towards the organization. This manifests in the government’s tax policies or the government’s involvement in the form of trade in which the organization is involved. Political factors are intertwined with legal aspects, for example, trade restrictions and regulations, national employment legislation, merger and monopoly rules, and consumer protection (Brookes & Palmer, 2004). The Apple Company, in 2005, made 52% of its sales outside of the United States (Jones, McCormick, & Dewing, 2012). The Apple Company possesses no control over its relations with other nations, mainly because of America's war against Terror. Apple produces a large number of its products in foreign countries. This is inclusive of countries such as China, the Czech Republic, Korea, and Ireland. Any form of political conflict with any of these nations will have a devastating effect on the Apple Company. Once more, the Apple Company possesses no control over wars, failed public relations, or failed communication with corresponding nations to the United States.

Economic factors refer to a wider economy and therefore, include levels of unemployment and employment, economic growth rates, the costs of raw materials, inflation, and exchange rates. The economic depression of 2009 had a severe impact on Apple sales as well as the growth and development of the company (Amb, Hair, & Mcdaniel, 2011). The Apple products were viewed as luxury products at that high inflation rate when income was low, and the rate of unemployment had heightened. This caused the company’s product sales to drop drastically. However, since Apple had purchased foreign currency when the dollar lost value, the corporation did not face an economic breakdown. Actually, the decline of the United States dollar increased the company’s revenue on the market.

Social factors in the PESTLE analysis represent the cultural arrangement of the society in which organizations operate. These include levels of education, age distribution, population growth rates, demographics, social classes, distribution of wealth, lifestyle, and living conditions. People's interactions around the world have been due to globalization. The world is currently how it is because of technology, and the Apple Company has contributed immensely to this (Doeeden, 2012). The company is the leading organization dealing in computers, cell phones, software, the reason being the designs and quality of its products. An additional factor for Apple’s outstanding success in the music industry, which has matured into the cyber world. The iTunes application is undoubtedly ahead of any competitor in its class. The only substantial threat in this aspect is web piracy, of which most countries have established laws against. The Apple brand name portrays an image of the modern person's way of life; the company is a leader in its own class and has become a renowned brand on a global scale. Therefore, positive social effects influence the success of business organizations.

The technological aspect of the PESTEL analysis refers to the rate of development and new inventions, changes in information technology, changes in e-commerce and the internet, or even the government input on technological research. There is a general focus on technological developments of digital products and the internet; however, more focus should be placed on new methods of manufacture, distribution and logistics, and material development. The technological condition for Apple's market has developed substantially over the past decade (Bettis, 2004:291). More specifically, in terms of computers and phones, which have become widely demanded commodities. Apple is a leader in its market for producing innovative products (Aydogan, 2009:189). Considering that the life cycle for these products is extremely short, it is inevitable that their sale will be recurrent. This increasing development in terms of technology is encouraging the company’s competitors to improve their own products, which in turn keeps the Apple Company improving.

Overall, Apple is remarkably well established with a firm grip on every section of the PEST analysis (Accardi-Petersen, 2011). Politically, the company is established by having a contingency plan in the occurrence of a situation that is out of their control. It is similarly maintaining success despite the harsh effects of the previous depression, indicating that the company is quite equipped with an exceptionally knowledgeable economics team. In addition, Apple takes advantage of the modern world’s conditions to frame its products and create a new design and ingenuity (Martin, 2009). The company generally seems to have the entire PEST base covered and may, therefore, continue to be a global leader in technology.