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External Environmental Scan Paper - Essay Example

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is an American multinational company that designs, produces and sells consumer electronics, personal computers, and software. It also provides other related services and accessories. From 2001, the business had experienced tremendous growth particularly when it…
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External Environmental Scan Paper
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Download file to see previous pages The analysis of the external environment has made Apple has spread its operations to different parts of the world like Korea, Cork, China, Ireland and Czech Republic (Hassan, 2013).  The most important external environmental factor in the remote, industry, and external operating environments of Apple include political, economic, social, and technology.
By operating in different parts of the world, political factors normally affect the operation of Apple. A country with stable governance systems like UK and the US provides the company with a favorable environment for the operation because such countries hold an enviable and strong position in global politics. However, there are risks posed by terrorist elements that hinder their operation. The current political challenges that affect the company are, therefore, the sagging popularity of some countries like the UK and the increasing terrorist threats (Newlands & Hooper, 2009).
Economically, the company has been greatly affected by the economic downturn experienced throughout the world. This has affected the financial systems of many countries as it has resulted into fluctuation in exchange rate particularly when dealing with their foreign trade. The global crisis has also led to slow economic growth that has reduced the profit margins for the company particularly in weak economies (Hassan, 2013). 
These factors have massively contributed to the companys success in terms of increased sales volume. Increased education levels and increased the number of people, institutions and companies that buy through the internet has resulted in the tremendous increase in growth of the company.
Another factor that has greatly impacted the company is a technology. Due to fast technological changes and heavy competition, the company has increased its expense on research and development so as to be ahead of their competitors by improving their design and performance continually (Hassan, ...Download file to see next pagesRead More
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