Environmental Variables: Case Study on Apple
The Six Environmental Variables
The environment in which a business operates substantially determines its performance. Apple does not function solely within the business environment but is surrounded by diverse variables. Just like other firms, Apple is faced with environmental forces that bring significant external influence to the business. Political force is one of the significant variables that affect the company. Politicalenvironmental experienced within a business operation can influence the processes of the business(Taan,2019). For instance, the laws and the government agencies formed under political influence dictate how a company must undertake some functions. Again, some peer groups politically formed to champion business functions can significantly influence business operations. Apple has to consider the prevailing laws and other political forces before making marketing and other important decisions for the company(Moren, 2014). Understanding the prevailing political forces is inevitable in the quest to establish a concrete marketing ethic that would lead to business success.
Demographic force is another factor that significantly influences the performance of the Apple company. A business will strive whenever people exist; hence understanding the demographic is essential in establishing the marketing strategies(Taan, 2019). Within the human population, both challenges and opportunities can be identified by a business. Apple serves a demographic composed of diverse nature. For instance,the age, profession,gender, and the size of the population served by the Apple products varies significantly. The company undertakes an analysis of the shifts in population, change in age structure, and the ever-growing population to understand the demographics. The demographic force has played a significant role in determining the employed recruited to the company. Apple has over thirty thousand employees of different ages, sex, and professionalism(Moren, 2014). Again, demographic forces have influenced the nature of the distribution of the various outlets intended to reach the targeted population comprised of different features.
Economic forces within a business environment can determine how consumers of products are likely to spend and the quantity they would purchase at a given period. Understanding the inflation, gross domestic products, and the disposable incomes of the targeted consumers becomes much essential for a business to succeed within the dominant economic forces(Taan, 2019). Again, a company needs to evaluate the rate of unemployment and the spending patterns among the target market for a given product or service. Apple has to undertake a critical evaluation of the economic forces to understand how much people within a target market are likely to spend before supplying its consumer electronic products and other online services to the same market. Pointedly, the prevailing economic factors have brought a significant impact on the revenue collected by the Apple company within the last decade. For instance, Apple recorded low income in the year 2008 while the following year 2009. The company recorded an increase in revenue attributed to better and improved economic conditions within the target market(Moren, 2014). The income realized from the sales of the iPhone and the computers always increases when there are favorable economic forces, while the same declines when the economic factors become unfavorable.
Ecological force is another significant factor within the business that influences the marketing activities of a company. Natural resource plays a vital role in determining the marketing patterns and the overall success of a business; hence must be considered by every business that desires success(Taan, 2019). Apple keeps track of the ecological trends within the company and the general world environment to ensure that its operations remain relevant and acceptable within the market. For instance, Apple has to keep track of the air and water pollution issues to ensure that all its activities are undertaken within the environmental guidelines. Understanding environmentalconcerns help Apple to take responsibility for ensuring the sustainability of the environment. Again, ecological concerns help to make an informed decision on proper usage of the environment and natural resources such as water. Consumers of various products are changing preferences and currently demanding environmentally friendly products; thus, companies, including Apple, offer what the consumers need and seek to meet the ecological sustainability demands(Moren, 2014). Additionally, the cost of energy used in the business operation is much determined by the ecological forces. Understanding the ecological concerns enables Apple to plan and estimates the cost of energy to be used and support sustainability and protection efforts ensuring the available resources are effectively used.
Technological forces are also significant influencers of business operations through the creation of platforms for innovation and new ideas(Taan, 2019). Apple operates in an environment that is dynamic and experiences continuous changes. Pointedly, the company relies heavily on technology to produce viable electronics products that meet the need of the market. The creation of new products within the firm isdriven mainly by the advancing technology. Consequently, Apple gains new markets through improved products and services(Moren, 2014). For instance, Apple has relied on its broad ability in tapping the technological forces to developed enhanced models of computers and iPhones. The consumers have much accepted the products due to their efficiency.
The business operates within communities that are shaped by defined values and preferences. Social, cultural forces determine what is considered right or wrong within society; hence company must understand and uphold the values to be considered acceptable(Taan, 2019). Understanding the social and cultural background of a business environment is quite essential to discover the belief and views and attitudes that consumers have towards the consumption of certain types of food. Apple strives to understand the values, beliefs, attitudes, and preferences of the market to determine how the factors influence the behaviors of the consumers. Notably, Appleserves all the social-cultural segments within the market, thus ensuring the needs of al the market segment are meet irrespective of the culture or social group.
Most Important Environmental Variables in Terms of Shaping Change
Technological force is one of the environmental variables that significantly shape changes. Firms are continuously seeking form ways of making production effectively and efficient at a reduced cost, and technology has been considered as viable means of providing the needed solution(Taan, 2019). While business continues to rely on already developed technologies, efforts are made to discover new technological modalities that are considered the best ways of innovations. Apple has managed to register substantial changes majorly due to technological forces(Moren, 2014). The technology firm has registered changes in operations and products over the past decade, which can be attributed to the technological forces.
Economic force is another variable that brings the most changes. The business environment changes unexpectedly, and sometimes firms are faced with unexpected economic conditions. Economic forces are often at play, which determines the consumption of various products within the market(Taan, 2019). Economic forces oftenlead to changes through their direct influence on the gross domestic product, disposable incomes, and inflation. While positive changes in the economy lead to business growth, the negative changeshinder the growth of businesses. The changes in a revue at Apple has mostly been brought by the economic forces (Moren, 2014). Thus, Apple has been forced to learn how to adjust and accommodate the changes brought by the economic forces.
References
Moren, D. (2014). Apple Updates Environmental Progress for 2014. Macworld, 31(11), 11.
Taan, H. (2019). Analyzing the Needs and Trends in The Macro Environment. In Journal of International Conference Proceedings (Vol. 2, No. 1, p. 42).