ipl-logo

Macroeconomic Factors Affecting Apple Company

2241 Words9 Pages

MACRO ENVIORNMENT: Macro environmental factors are those irrepressible external factors that affect the company’s decision making process. These factors include demographic, socio-cultural, economic, political-legal and also the natural factors. Demographic factors – Demographic factors include age, sex, religion, location, thickness, occupation etc. Apple Company has 217 stores in United Stated and about 273 stores worldwide. Apple Company has a total of about 36,800 employees. 2,500 are temporary employees and 34,300 are full time employees. According to a research, 69% of iPod users are between the age group of 13-24. 31% iPhone users are between the age group of 35-50. IPhone users over the age of 25 are about 74%. Apple Company’s …show more content…

are all the economic factors. The ability of people or purchasing power of Apple products is targeted from medium to high class. Economic factors effect Apple Company’s business process as Apple is recognized internationally. The products components that the company gets from foreign suppliers play an important role because of the exchange rates and currency differences. For example, the sales of Apple products in US will decrease if there is a rise in the US. Because of this the purchasing power will also decrease. Hence the sales will be reduced. Hence, to reduce the rise effect, Apple has purchased itself foreign currency. In this way, the sale of products in world-wide market will increase. • Increased labor costs in China could take away the cost advantage of some Apple products. • Decaying middle-class incomes in some developed countries, including the United States, could shrink the potential market for higher-end consumer goods such as those marketed by Apple. • A strong U.S. dollar could increase exchange rates, making it more expensive for Apple to do business in key markets like Europe and …show more content…

After these companies go about developing products, which may be product modification or it may be a completely new product. Product offerings are increasing every year as consumers are looking for more and more variety of products. Companies which are unable to churn out new products fall back on competition and suffer the consequences. Companies face danger not just from competitors but consumer needs, technology, and product life cycle. New product development has its share of challenges. Organizational set up has to be favourable to support new product development. Foremost companies must allocate funds for research and development, the conventional way is the percent of sales technique. Others chose to allow employees dedicate a certain amount of work time on new product development. Companies next have to organize the process of development. This can be done by product managers with new product development experience or by cross functional team with members chosen from various departments having the knack of developing new products. Nowadays, companies are following stage process for product

Show More
Related
125 Words | 1 Pages

What causes a weak "American Dollar"? The strength of an American dollar depends on the value and strength against other currencies in the foreign exchange market. A weak dollar can be exchanged for only a small or decreasing amount of foreign currency. A weak dollar is usually seen as a bad thing because it does not stretch as far internationally as it once did. When we have a weak dollar foreign currencies buy more of our goods and services than we can buy of theirs.

Read More
642 Words | 3 Pages

Of that 12.6%, as of 2015, over half (51.1%) were individuals in the working age, between 18 to 64. 41% of individuals were 65 and older, while 7.2% made up children and youth. Only 0.4% of individuals were 5 years or younger, as of 2015 (annual report).

Read More
1808 Words | 8 Pages

But product differentiation requires a lot more efforts in research and development as

Read More
680 Words | 3 Pages

These factors include external influences such as cultural

Read More
1514 Words | 7 Pages

Apple introduces the most technologically advanced products before other companies can, giving them more business and establishing them as an innovator. These days, there are not many other places to go to buy a better product, so the consumer has to either buy iPhones at higher prices or do without them. There are few other competitors because of high barriers of entry. Since apple has so much market power and economy of scale, they can make almost a full profit on the selling price, making the company billions of dollars richer each year.   SOURCES OF MARKET POWER 1.

Read More
784 Words | 4 Pages

Also making sure the research is relevant to what the product must achieve. Start planning the process journal and keep up with it. Fri.

Read More
1306 Words | 6 Pages

Exchange rate between different countries differs on their economy. 3. Social factors Social factor is related to growth of population. Increase in population growth creates demand in automobile industry and the sale of Mercedes Benz will increase.

Read More
2743 Words | 11 Pages

Paradigms/theories A relatively new theory for product development had emerged and that is the theory for the inclusion of virtual teams. Virtual teams work across the boundaries of time and space via utilizing modern computer driven technologies. The term is used to cover a somewhat wide range of activities and forms of technology-supported working (Anderson e t al., 2007, qtd. in Ebrahim, Nader and Ahmed, 2653). Virtual teams involve members who are situated in more than one physical location (Ebrahim, Nader and Ahmed, 2653).

Read More
1879 Words | 8 Pages

Most of them in the UK and the US are using apple Co. products from iPod to the iPhone. 3. Factor Influence Apple’s Consumer Buying Behaviour 3.1 PSYCHOLOGICAL FACTORS 3.1.1 One of the major factors that influence consumer buyer behaviour is psychological factors. Psychological factors can be distribute into five categories, that is motivation, perception, learning ,beliefs and attitudes and this all can influence a person’s buying choices.

Read More
1746 Words | 7 Pages

It is important to understand what kind of ways cited organisation have to be adopt so they can give their best and quality product to the organisation. Tesco is the largest retail store in UK so it is important forb them to produce that kind of product which helps to attract the different customers. For facilitating the innovation and creativity cited organisation is involved their various employees by conduct activities such as open door policy and suggestion box in which employees give their innovative ideas which helps to smoothly conduct innovation process(Hartnell, Ou, and Kinicki, 2011). For this purpose first company need identify taste and preferences of different customers and launch product with new features and ideas so that they can attract large number of customers. For make create product, company can take different suggestions and ideas from their workers which helps to create innovation in existing products and

Read More
1190 Words | 5 Pages

This example serves as a proof of the power of mutual cooperation and tenacity in goal accomplishment. Alteration of innovation is based on primary idea of innovating the way innovation is being done. At first the concept as such may seem disorienting, however, what it represents is constant refining of the product launch model across various stages, from idea to commercialization, what allows P&G to learn and draw conclusions from its own practices for future projects.

Read More
7858 Words | 32 Pages

(ii) General: These forces affect all the firms of an industry equally, e.g., social, political, legal and technical situations. (3) Interrelatedness: The different factors of business environment are interrelated. For example, let us consider that there is a new government has got majority and they have implemented change in the import-export policy.

Read More
1368 Words | 6 Pages

Micro and Macro Environmental factors that influence Marketing decisions (LO 2.1) Micro Environment: This indicates those elements over which the marketing firm has control or which it can use in order to gain information that will better help it in its marketing operations. Furthermore, these are the factors close to a business that have a direct impact on its business operations and success. It is important to carry out a full analysis of micro environmental factors prior to decide corporate strategy.

Read More
1394 Words | 6 Pages

Part A Macro environment is important factor affecting the development of enterprises. A macro environment is the condition that exists in the economy as a whole, rather than in a specific sector or region.(Macro Environment n.d.) Cultures, politics, technology, nature, economy and demographic are the six major forces in the company 's macro-environment.(Kotler & Armstrong 2014, p96） Political factors Political factors include government regulations and legal issues and define both formal and informal rules.(PEST Analysis n.d.) All the companies have to follow these rules.

Read More
1481 Words | 6 Pages

Further, the growth of the world’s economy was also very slow in 2012 and was expected to be same in 2013-14 as obvious. Apple has been affected by a crisis such as the change in American regional sales for the current year was 9% in 2012-13 compared to 50% of 2011-12, in Europe, 4% in comparison to 31% and in greater China 13% in comparison to 78% (Apple INC, 2012). The unemployment rate in U.S was 7.9 during 2012- 13, 4.1 in China and 4.6 in Japan, was one of the significant causes of the downturn in sales growth (Trading Economics, n.d). Euro crisis, U.S fiscal problems and hard landing of large developing countries will likely continue in the coming couple of years leading Apple to more toughen economic situations (IMF, 2013). Moreover, stringing dollars had also source of problem for Apple product prices, transportation cost and profit margins (Apple INC, 2012).

Read More

More about Macroeconomic Factors Affecting Apple Company

Open Document