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Apple Inc.’s Macroenvironmental Analysis Essay

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Introduction

Apple is among the globally renowned organizations. It has continued to record remarkable performance levels, thanks to the company’s capacity to efficiently manage external forces available in its macro-environment. Apple’s leader, Tim Cook, has steered efforts to implement approaches that have helped this company to identify prospective ideas while at the same time securing it from potential risks. Conducting a PEST analysis can reveal key external elements that business managers may need to incorporate when implementing strategies for managing the prevailing macro-environment. The issue of uncertainty is also presented as good for business.

PEST Analysis

Apple operates in an environment dominated by politics. However, the available political factors are beneficial to this company. For instance, the current free trade policies and the friendly political atmosphere in industrialized states have favored its global operations (Liu 2017). Regarding external economic forces, Apple enjoys the high pace of growth among emerging economies that are expected to boost its clientele base. It also benefits from operating in stable industrialized nations such as the U.S and Singapore (Liu 2017). The prevailing socio-cultural atmosphere presents an opportunity for this organization. Presently, the number of people who deploy cell phones, iPhones, and iPads is increasing. In addition, the need for joining Internet-facilitated social media platforms has pushed customers to seek the company’s digital gadgets. Regarding technology as an external force, Apple operates in an environment that is currently marked by increasing demand for cloud-computing services in many companies. Moreover, this organization stands to gain from the booming apps business.

PEST analysis is vital for business administrators, especially those who operate in the technology sector. In particular, business managers rely on it to understand various changes that are being witnessed in various markets. Such forces may operate against a company by interfering with its prevailing business networks or promotion techniques. Hence, organizational administrators can deploy findings from PEST analysis to implement the most appropriate decisions before such counterproductive issues happen.

Uncertainty

Many businesses plan ahead of time by developing strategies that can help them to deal with any uncertainties. According to Antonczyk and Salzmann (2014), such efforts indicate the extent to which they view uncertainties as counterproductive to their day-to-day operations. Specifically, companies that embrace this perception argue that the improbability of the future has the potential of interrupting their valuations (Antonczyk & Salzmann 2014). However, scholars such as Browne (2017) present a different perspective whereby some organizations, including Wolters Kluwer, regard uncertainty as to good for business.

I agree with this perspective because this company’s CFO captures the client as the most important resource that a business can have. While organizations that share a contrary opinion focus more on the impact of uncertainty on their assets, they fail to realize that without customers, such wealth would be nowhere. In fact, the study by Senn, Thoma, and Yip (2013) supports the CFO’s viewpoints by depicting clients as valuable possessions. In my opinion, preparing customers to deal with an uncertain future is a crucial step that not only safeguards their loyalty to particular companies but also saves them from making inappropriate financial decisions. Hence, uncertainty becomes an essential business element when viewed from the perspective of clients.

Conclusion

Businesses that wish to remain operational in the present-day competitive environment deploy tools such as PEST analysis to find out forces that may be acting against them. This tool is important for managers because it helps in proper decision-making, especially regarding ways of managing potential threats. The issue of uncertainty is viewed from diverse viewpoints. While some companies regard it as counterproductive, I agree with the CFO of Wolters Kluwer when he depicts this aspect as good for business. In my opinion, failing to prepare customers to face difficulties brought by the uncertain future may compromise their loyalty to particular companies and, consequently, profitability.

Reference List

Antonczyk, R & Salzmann, A 2014, ‘Corporate governance, risk aversion and firm value’, Applied Financial Economics, vol. 24, no. 8, pp. 543-556, Web.

Browne, R 2017,, CNBC, Web.

Liu, G 2017, ‘International business analysis empowered with research’, Online Searcher, vol. 41, no. 5, pp. 42-46, Web.

Senn, C, Thoma, A & Yip, G 2013, ‘Customer-centric leadership: how to manage strategic customers as assets in B2B markets’, California Management Review, vol. 55, no. 3, pp. 27-59, Web.

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IvyPanda. "Apple Inc.'s Macroenvironmental Analysis." December 13, 2020. https://ivypanda.com/essays/apple-incs-macroenvironmental-analysis/.

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IvyPanda. 2020. "Apple Inc.'s Macroenvironmental Analysis." December 13, 2020. https://ivypanda.com/essays/apple-incs-macroenvironmental-analysis/.

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IvyPanda. (2020) 'Apple Inc.'s Macroenvironmental Analysis'. 13 December.

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