Geopolitical instabilities
Geopolitical instabilities create a risk for the business, which is frequently exacerbated. Continuous domestic and international strains produce increasing polarization in society. Climate change becomes the driver for the development of the company and nation. Western democracies are still struggling and are in a post-crisis pattern to which political fragmentation has complicated the overall situation of the business. The global issue that the world is facing is related to political issues of the country, which cannot be easily controlled and affects every business (Limna 2012). The process of considering effective governance is not found while the national management and global issue that is ensured is the failure of national governance. Around 85% of the business is facing major power political confrontations, which should be managed on a priority basis. Business leaders all over the world should consider strong governance with rules and regulations that should protect the right of citizens and indulge in political health. There are partisan differences that are addressed by the business to which a more profound concern that needs to be taken for a long time is continuously managed.
The vicious circle encourages diminishing social cohesion that takes place in the business. The ability to respond to change with the societal challenge is widely considered. The problem of acute and global difficulties needs to be addressed adequately for ensuring competitive advantage and achieving market share. Weak governance measures and serious issues need to be resolved immediately to solve the political problems and respond to a societal challenge. The question of the global challenge is addressed adequately while integrating change in the business and cooperating with government norms. The failure of multilateral policy is affected by the political constraints that the organization and the nation suffer quickly. Identity politics is the primary concern that is addressed in the business s to drive political trends and to ensure fundamental questions that hinder the composition of political communities. Therefore the pressure of migration has blocked the overall situation of the business to reach the point where the sales volume of an organization is mainly affected.
Political factors are the source of further crises, and leaders take the dominant national culture at risk. The risk is highly associated with a populist, to which an increase in the political factors has affected the organizational growth. Equality and recognition in the nation will provide a business opportunity to expand the business and to gain a competitive advantage while acquiring market share. There is an increase in the business opportunity of political factors that are under control, and various aspects are equally relatable. The characteristics of religion, identity, and race are increasing concern of divisions, and the congressional elections saw the first record of women who are not appointed at the senior level management. There exists a period of renewal to which gender, sexual assault, and sexism are recorded.
With the #MeToo movement, there is continuous awareness among people to which some cases of sexual violence were noted. Political instability leads to a negative impact on the business. The increased intention is to globally make awareness about violence against women so as to reflect the situation that the nation is facing. The case is directly instead of the world situation and provides knowledge among people. Discrimination and violence spread in the country affect the business situation to which it is difficult to manage the business and achieve market share. Even in the case of climate change, women often face a difficult job to walk farther and fetch water. Freedom for women is not provided, whereas men have facilities and resources to reach safely.
Political factors are concerned with politics to which the country’s laws and regulations are the major factors. The type of government, government issues, leadership aspect, and decision making of a leader in a country drastically affects the business as well as the country’s condition. The leadership decisions and rules affect the country’s outcome and performance. The decisions related to policies, taxation, tariffs, and other practices lead to government activity that help host companies to achieve the specific advantage of considering social responsibility. Foreign companies face a real-time situation to enter in the country and sell the products and gain the benefit of profitability (Kozubikova, Kotaskova, Dvorsky & Klkucnikov 2019). Therefore, the significant decisions made by the government and the tax laws affect the sales volume and profitability index of a company. Improving trade policies and gaining considerable influence in the business may lead to the stabilities of government policies. There are opportunities for companies to focus on international sales and expansion when external political factors do not hinder the business. There are a lot of opportunities for the market to improve sales and gain stabilized sales in terms of developed countries. Apple Inc is one such company that is affected by political factors. Improvement in trade policies is expected, while there is an increase in business opportunities when there are free trade policies that are reflected in the country. Apple can distribute its products in more than one country, and additional free trade policies are reflected in the business.
Apple Inc has drastically exposed to problems such as political insurgence that leaves the company in danger. The company has suppliers all over the world to which sales contribution is affected in case of any political issues in East Asian countries. The significant sales that are affected are due to political instability and government issues. Apple is at times in danger to which political pressure cannot be handled; instead, the political pressure may lead to decreased profit. The company had faced similar political pressure to which supplier issues were the primary criteria. The long working hours that the company faces tend to hinder the work policy of the supplier’s organization and leads to a work slowdown position. The supplier situation and pressure are the significant aspects that impede the work and need to be addressed immediately. There are suicide cases that were sent by the supplier company to which the brand image of the company is affected negatively. The company is facing political risk, which is addressed adequately and can be solved with business strategies such as making policies and procedures for international suppliers (John & Johnson, 2015). The political situation of the company is not just confined to the international aspect. Still, internally there are specific legal issues and stresses that the company considers ensuring an increase in sales volume. American government’s environment and labor law are harsh to which Apple is facing real problems in competing in the US market. Apple has focused on the Asian market, which is the reason the company is considering useful sales volume and favorable conditions in the business.
Strategies
Business opportunities for Apple presents stabilized due to political hindrances in developed countries. The primary reason that Apple has achieved the position is due to less political issues that it has faced in the business while dealing with developed countries. Political opportunities are taken by the company to improve the overall performance of the market and to ensure the manufacturing process that is dependent on Apple’s production and sales volume. Apple can achieve profit maximization to which it is dependent on a wide range of factors. The primary factor that the business is profitable is government stability (Almasi 2014). The business strategy used is the level of bureaucracy, government stability, and home market lobbying. There are several activities that the business considers while it ensures trade unions that can be mentioned as part of the political factor for Apple. The dispute with US Federal was the significant case to be noted that illustrates the potential impact of Apple’s battle. The company has significant differences with the FBI, which turned out to be a political debate.
Political lobbying by Apple represents a vital role in terms of consistency in the legislative lobbying budget. The company has a consistent increase in the budget to reach the sales volume and consider directed efforts by the organization for the development of legislation and long term business perspectives. Business interests are maintained while focusing on significant activities and considering higher causes of environmental measures (Khan, Alam & Alam 2015). The climate agreement that the business has deemed to be retain American leadership is consistent and meaning action. Apple deals with the impact of political factors that are present on an international scale. The measures to stop lawmakers in using Apple products were taken to protect from eavesdropping by foreign services. Politics interferes with business aspects, while measures to ensure a harsh approach used in international sales can be eliminated by focusing on potential impact and essential steps in a direct manner.
Political factors affect business in terms of law, taxation, and other aspects that a company should follow while entering the overseas market. An increase or decrease in tax leads to the best example of the political factor that affects the business. The rise in taxes for electronic companies will be a real problem for automobile and engineering companies. The government’s decision, directly and indirectly, affects business sales. Government interventions and interest rates also affect the demand pattern of a product. Certain factors are interlinked and change the economic environment. Political decisions largely influence the socio-cultural context. Politicians influence the acceptance of technology, and the rate of new technologies increases due to technological trends all over the world. The factors that affect the company are bureaucracy, corruption level, tariffs, freedom of the press, education law, discrimination law, environmental law, competition regulation, health and safety law, tax policy, and import restrictions.
Conclusion
The report considers significant factors that affect the company for the more full business environment. As per the World Economic Forums Global Risk Report 2019, there is number of challenges that influence a nation and organization strategies. These factors are economic vulnerabilities, societal and political strains, geopolitical tensions, environmental fragilities, and technological instabilities. Apple Inc has considered several challenges for international expansion. The external factors that affect the business are economic factors, political factors, and technological factors. An organization finds effective strategies to ensure business growth and profitability. Financial vulnerabilities cannot be controlled as the inflation rate; the organization cannot directly control the exchange rate and financial condition. Political factors such as tax policy, freedom of the press, tariffs, import restrictions, and environmental law directly affect on sales volume. Advanced technology is one such factor that affects the business and ensures effective sales while focusing on technology trends and growth of the market.