CORPORATE STRATEGY

Corporate Strategy

Corporate Strategy

Introduction

Apple Inc is one of the leading companies in the world. It is the most admired company worldwide. Company's business is related to the technology and is differentiated by its brand perception. For determining the current situation of the company, PESTLE analysis is used (Warner, 2010, pp. 168-181). It will provide us with the clear understanding of the company's role in relation to the external environment.

PESTLE Analysis

Political

As far as political influence is concerned, Apple is running most of its operations outside from United States (O'grady, 2009, pp. n.d). In the year 2007, it was observed that more than 52 percent of the sales of the company were from outside the Unites States. The reason behind this was the unstable relations of the home country with the ones Apple trade with. Most of the product parts of the company are manufacturing outside the United States, so political stability is very important from Apple's operational concerns. Any unsuitable political situation can lead towards drastic losses (Dawei and Others, 2007, p. 2660).

Economic

The main concern for the company's sales is economic stability, because Apple's products are positioned more towards the luxury brands. So purchase power of the consumer is of key concern for the company. The current economic conditions are facing higher inflation rates. Other than this the unemployment rate has also increased. That is why Apple has constantly outsourced its manufacturing to cut down the cost. Apple has also purchased foreign currency in order to minimize the dollar effect on its revenues.

Social

As far as social influences are concerned, Apple is the key player in dealing with the social concerns. Because of the rapid development in the technology and globalization, socializing is taking place virtually. Apple's products are well known in this regard. Advanced ...