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Challenges That the Company Faces - Essay Example

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This essay will highlight the macro and micro environments in which Apple is operating and the challenges it is facing in its business. The essay will also focus on the profit maximization practices of Apple and the considerations followed by this company for operating in global market…
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Download file to see previous pages This study stresses that the company believes in innovating new types of products and services. Apple sells its products and services in different parts of the world. The company deals in electronic equipment industry. It is one of the strongest players in this industry. As per market capitalization Apple Inc became largest public trading company in 2014. In the electronic equipment industry new products and services are continuously developing. The companies in this industry use advanced technologies for developing innovative products. Apple wants to provide best experience to its customers by incorporating modern technology in its business and products.From this discussion it is clear that Apple uses MR and MC for deciding the amount of goods it requires to produce. When the company thinks that MR is greater than MC then it produces one extra unit of output for getting additional revenue at a lower cost. But if the additional unit incurs more cost than the revenue it generates, then the company prefers not to produce the extra unit of output (Hoag & Hoag, 2006). This condition arises when MR is less than MC. When MR=MC the company feels satisfied because at that stage it earns maximum amount of profit. This basic rule of profit maximization is followed by Apple. This profit maximization theory helps the firm in creating its strong position in the monopolistic market. Apple Inc operates its business in different parts of the world and in various markets. ...Download file to see next pagesRead More
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