Schools require students to write strategic management papers to meet their academic requirements. Therefore, it is crucial for students to learn about PESTLE and in particular PESTLE analysis for Apple Inc – a global firm. There are some variants of the analysis’ name: PESTLE, PESTEL, and PEST. PESTLE or PESTEL is the same and studies the political, economic, social, technological, legal, and environmental factors that influence the operations of a firm as highlighted above, other than legal and ecological aspects.
This article is an ultimate guide on how to write a PESTLE analysis essay for Apple Inc, which is central to understanding the opportunities for entrepreneurship in a country. Each time professionals and senior managers conduct PESTLE analysis for business, they inevitably get familiar with the chosen place’s uniqueness, which can guide them in strategic decision-making.
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What is a PESTLE Analysis?
PESTLE analysis is the most common personalized form of academic writing. Colleges and Universities require students to write essays on PESTLE to analyze a firm’s competitiveness. In some cases, students find it difficult to complete their assignments and request help in writing an essay. This is where EssayChoices.com comes in handy to offer much-needed assistance for those who need help with essays.
Several factors influence the macro-environment. These include but are not limited to political upheavals, inflation, health and safety laws, interest rates, etc. For clarity, scientists systematized the determinants of the environment where a business operates.
PESTLE Analysis is a detailed framework that assesses the strategic framework of the firm’s external factors that influence business decision-making. It audits six principal components of the macro-environment:
a) Political: government policy, political stability, corruption, foreign trade policy, tax policy, labor law, trade restrictions, reform, and tariffs.
b) Economic: economic growth, exchange rates, interest rates, inflation rates, disposable income, unemployment rates, credit availability, and cost of living.
c) Social: population growth rates, age distribution, career attitudes, safety emphasis, health consciousness, lifestyle attitudes, and cultural norms and expectations.
d) Technological: technology incentives, level of innovation, automation, R&D activity, technological change, technological awareness.
e) Legal: changes to legislation impacting discrimination laws, antitrust laws, employment laws, consumer protection laws, copyright and patent laws, and health and safety laws.
f) Environmental: weather, climate, environmental policies, climate change, pressure from NGOs.
What are the Six Principal Components of the PESTLE Analysis?
Without a doubt, political factors are one of the first to deliberate when entering a new market. If a country can boast its political stability, it becomes appealing to many investors globally. An entrepreneur needs a guarantee that the current government is concerned with creating a safe environment for foreigners.
The next prominent segment includes economic factors. Everything from inflation rates and unemployment rates to economic growth and trade tariffs has an impact. So, logically, economic instability discourages prospective investors.
Next, a business’s administration assesses social factors. Here, features like population growth rate, health consciousness, or age distribution decide the appeal of the business environment. Generally, an enterprise needs loads of skilled workers and probable buyers to operate successfully.
Why do technological factors matter for businesses? Consider a company that originates from a country where many new technologies, like artificial intelligence and robotics, are usual. Changing to the new environment could be difficult if the firm picks a place with fewer technology incentives.
Furthermore, an organization’s top managers assess legal factors. In this case, changes to legislation impacting taxation, imports/exports, resources, quotas, access to materials, and employment determine the company’s probability of entering a new market. An enterprise needs favorable legislation to be able to operate successfully.
Finally, the enterprise must consider global warming and the increased need to switch to suitable sources of energy, pandemics, and other emergencies. By analyzing these factors, the firm can assess any risks specific to their industry and organization, and make informed decisions. Besides, it can highlight the potential for additional costs and prompt further research for future plans.
How to do a PESTLE Analysis
- Establish the scope of the study. It should cover present and possible future scenarios, and apply to the industry and areas of the world in which the business operates.
- Resolve how the data will be gathered and by whom. Identify more than one person to gather data to bring diverse evidence and perspectives.
- Find suitable sources of information. You may find some areas of PESTLE are a bigger focus to your industry than others but exploring information for all of them will give you a bigger view of the external environment.
- Collect the data.
- Scrutinize the results.
- Order the items in terms of significance with impending risk to the business.
- Describe the business opportunities to address the issues.
- Compose a discussion document for all stakeholders.
- Publish and discuss the findings with stakeholders and decision-makers.
- Resolve what activities need to be taken, and trends to be examined
Some Useful Tips for Carrying Out A PESTLE Analysis
- Collaborate – multiple perspectives can identify more risk.
- Use expertise and resources within the organization.
- Use PESTLE analysis alongside other techniques, such as SWOT analysis, Porter’s Five Forces, competitor analysis, or scenario planning.
- Incorporate a PESTLE analysis into an ongoing process for monitoring changes in the business environment.
- Avoid collecting vast amounts of detailed information without analyzing and understanding your findings appropriately.
- Don’t jump to conclusions about the future based on the past or present.
What is PESTLE Analysis Used for?
By auditing the external environment, a PESTLE analysis can detect and understand broad, long-term trends. This can support a range of business planning situations, such as:
Strategic business planning
PESTLE analysis offers background data about the business direction, its brand positioning, growth targets, and risks (such as another pandemic) to productivity. It can aid determine the validity of existing products and services and define new product development.
A PESTLE analysis can help to isolate disruptive changes to business models that may severely affect the future employment landscape. It can identify skills gaps, new job roles, job reductions, or displacements.
A PESTLE analysis provides the ‘climate’ element in the situation analysis phase of the marketing planning process. It can help prioritize business activities to accomplish specific marketing objectives within a set timeframe.
By monitoring external activity, a PESTLE analysis can help inform whether to enter or leave a route to market, determine if a product or service still fulfills a need in the marketplace, or when to launch a new product.
A PESTLE analysis helps understand the context for change but it is most effective when used together with a SWOT analysis to comprehend opportunities and threats around labor changes, like skills shortages or current workforce capabilities.
People strategies, reports, and projects
Organizations can use the PESTLE analysis framework to hypothesize what may happen in the future and explore opportunities outside the firm. It also ensures that some basic factors are not overlooked and ignored when designing strategies for the entity.
Video lesson on how to write a PESTLE analysis
After watching this video, you’ll feel more confident writing a PESTLE analysis for Apple Inc or any other company of your interest. Learn more about the framework and acronyms in this video.
If you decide that you need more information about PESTLE analysis and exemplifying a successful strategy for business, you can read this book- Crafting & Executing Strategy (The Quest for Competitive Advantage). However, our experts can also offer detailed guidelines on writing tips at your convenience.
If you’re not sure what to do, read ”how it works” from our website and our writers can help you write an essay.
PESTLE Analysis for Apple Inc.
After reading this example, we hope that you already have a vision of how to write a PESTLE analysis. Also, we recommend that you review our sample papers for future references on other types of essays.
Strategic decision-making for a technological company must take into account political, economic, social, technological, legal, and environmental factors. Irrefutably, the PESTLE analysis for Apple Inc aids in building an apt business plan for working in other countries like China.
Political stability is one of the indispensable constituents of the external environment. Whereas Apple Inc does not have issues with safety procedures and fiscal policies, international conflicts may hurt its operations. The trade war between China and USA demonstrates how governments upset companies’ performance. First, China’s declining scale of cheap manufacturing results in higher production costs. Also, both nations increase import taxes, which escalates the product cost.
Because Apple products are highly-priced, factors like economic growth and purchasing power are essential for fruitful projects in foreign countries. Currently, Asian countries like China exhibit steady progress in the gross domestic product and aggregate purchasing power of their citizens. As a result, introducing fresh branches in flourishing places might upturn profits.
A different element of PESTLE analysis for business are social particulars of the prospective nation. For illustration, in places like China, population growth rates surpass expectations. Consequently, venturing into such countries means the enterprise gets enough workers and consumers. Moreover, Apple’s marketing strategies make the public identify their products as luxury. Thus, the buyers’ wish to demonstrate high rank can lift the demand among the Asian population. However, the US trade war with China may also negatively affect Apple sales.
The succeeding segment of the PESTLE model entails technological innovations. For Apple, external factors like the level of technological growth are critical. Firms like Samsung, Xiaomi, and Lenovo compete for larger market segments by employing inventions. At the same time, Apple hardly comes up with something innovative in their gadgets, so their target audience time and again picks other brands.
Legal factors often comprise safety laws or patent laws and other legislation concerning any business activity. Apple has a strong brand and to sustain a respectable public image, the corporation evades getting into law scandals. Apple takes risks by partnering with music and software that has copyright and patent protection. In case of litigation, it could hurt the loyalty of Apple customers significantly.
The final segment of the PESTLE analysis examines environmental issues like climate change or environmental regulations. For example, Apple can largely survive global warming and other weather changes by placing its factories in safe areas. However, the stringent environmental policy of countries like China compels Apple to make environmentally responsive choices in its production processes, like abandoning lithium batteries. That way, the company can retain an even better reputation in the earmarked country.
In conclusion, the PESTLE analysis for Apple Inc presents the features of the macro environment that touch Apple’s performance abroad and investigates the weaknesses and strengths of the business’s policy. While Apple has to adapt to the shifting environment to remain significant, it still has several strengths.
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