Apple Inc. Pest

APPLE INC.

INTRODUCTION

Established in California on the 1st of April 1976, Apple Inc., formerly known as Apple Computers Inc., is mainly in the business of designing, manufacturing and marketing of personal computers, related software and hardware, services, peripherals and networking solutions. Apple revolutionized the media industry with the introduction of the iPod and iPhone to the market. Additionally, they run an online media store name “iTunes Store” which can be accessed via iTunes software.

PESTEL Analysis on Apple Inc.

In analysing the macro-environment, it is important to identify the factors that might influence the organisation’s demand and supply levels and its cost (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). A PESTEL is one of the frameworks that help to understand market growth or decline, business position, potential and direction for operations (Kotler, 1998). PESTEL analysis is also useful when entering a new market or starting business operations in a new country and helps to tackle mere assumptions and adapt quickly and effectively to the realities of the new environment. PESTEL also ensures that company’s performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985).

Political Factors

Political factors that Apple Inc., might have to take into consideration when launching a new product or entering a new market might be laws and regulation like the Employment law, Consumer protection Law, competitive regulations, inter-country relationships, terrorism, taxes and government structures. For example, in some countries it is illegal to employ people under a certain age without proper approval by the guardians. Also some countries enforce importance of local employment before employing a foreign person.

In January 2007, Apple Inc. was accused of backdating stock options after an internal investigation. Backdating stock options in the U.S could lead to violation of federal regulations of Security and Exchange Commission (SEC) if properly not accounted.

Apple Inc., joined Information Technology Industry Council (ITI) to help the company achieve its objectives and to improve relations with foreign government