Macroeconomic Factors Affecting Apple Company

When the value of a currency goes up against the value of another country’s currency it affects the role and the relationships a company has when exporting its products. For example, with the Canadian dollar rising in value against the US dollar the production costs for Chrislan Ceramics became higher which reflected on the products they sold, those were now more expensive comparing to American products than they were before. Which means that they could lose not only current costumers but also potential clients, losing space in the market. One solution the Canadian organization found to fight the lonnie’s rise was to start buying supplies from companies based in the USA.

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.

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.

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

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).

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.

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.

(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.

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.

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.

These factors include external influences such as cultural

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).

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.

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

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).