Paradigms of Business Environment

University: University of Suffolk

  • Unit No:
  • Level: High school
  • Pages: 14 / Words 3468
  • Paper Type: Essay
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Question :

This assessment will cover following questions:

  • Apple is the biggest technology company in terms of revenue and is standing at position four among the personal computer vendors. How does Apple audit their internal and external environment?
  • Explain the micro economic environment that is existing in Apple?
  • What concepts and models can be used to study the existing environment of company?


Answer :
Organization Selected : Apple


A contemporary business environment means a business environment that has a hugely competitive market and that changes in a very fast way. For standing against this challenging environment businesses must have to develop a ability to achieve the fast response of the environment. Organisation's operating situation is influenced by the internal and external factors of business environment. Business environment involves various elements such as its owner and competition, suppliers and clients, government and laws activities, economic and social trends and technology improvements. Apple is a well known mobile company in the United Kingdom. It is an American multinational company. Apple headquartered in California, Cupertino. The Apple organisation develops, sells and designs computer software, online services and electronics. This report will include the factors of the internal environment and external environment of Apple mobile phone company. This report will also highlight the role of government in the market economy functions and the economic environment in which the mobile business operation in the UK. This report will also state about the benefits of trade when countries trade together and how the British business influenced by the developing effects of the European union.


LO 1 The main factors of the internal environment and external environment of Apple organisation

Internal audit is a consulting activity and objective assurance that will designed to enhance the value of business and it also help to improve company's operations. Internal audit also identifying the impact of internal environment on the business of company (Barr and, 2018).

SWOT analysis

SWOT analysis is a best tool to identify the various factors that can impact of internal environment of Apple company. SWOT analysis involves company's strengths, weaknesses, opportunities and threats.


Well known brand

Apple company is a most famous mobile company and also a best reliable brand in global market. The Apple includes personalized smart technology devices and advanced computer that make the organisation more reliable (Boone and, 2019). They have huge customers base with quick increment. They delivers its devices and products globally. It is the main reason that makes the Apple organisation most powerful brand. Apple is most demanded brand in mobile industry.

Excellent technology

The Apple has excellent technology which will help the organisation to develop innovative and unique products. Apple is identified to craft and build better and best technology devices.

Financial strength

Apple has most stable financial growth so that they are able to finance all of its research activities and investment to produce its products and services.

Superior design

The design of Apple products is very unique that attract more customers and youngsters (Nikitina and Lapiņa., 2019).


Lack of promotion and marketing

Apple has poor marketing and promotional strategies for their products.

High price of products

Apple products or devices are very expensive and they have premium prices so that only high-income customers can afford its products.

Limited variety

The variations in the iPhone is very less because all the variety of iPhone do not have difference as per their looking (Ahmed., 2016).


Demand of Laptops and Computers

Today, The demand of Laptops an d Computers are very high as compared to Mobile phone. So the Apple has a huge opportunity to expand their market with innovative Laptops and Computers design.

Apple Watch applications

Apple watch apps are increasing quickly, approximately 3500 applications have been implemented for the Apple watch. So the Apple company should have to create their own app for Apple watch to enhance customer's buying activity.

Qualified Professionals

Apple has highly qualified develops, product specialists and researchers in their team that have high experience, it can generate more opportunities for Apple (Domanović and Janjić., 2018).


Increasing competitors

The expansion in the competition in the mobile industry can create huge threat for Apple company.


Against the Apple, about 60 action lawsuit have been recorded. It can diversely affect the Apple's customers and their trust.


It is major threat that are faced by Apple because many people or company sell duplicate products of Apple. This will create negative publicity of the organisation.

PESTEL analysis

The Apple organisation has many impacts from the factors of external environment (Namvar and, 2018). PESTEL analysis includes Political factors, Economic, Social, Technological, Environmental and Legal factors.

Political factors

Apple faces higher corporate taxation that created income equality in the organisation and its a major political issues for them. Apple is dependent on chine for lower cost manufacturing, political and social unrest in china will enhance manufacturing costs in the country. The threat of terrorist attack can develop a negative patch on the Apple organisation.

Economic factors

Economic issues and recession can diversely affected the company's income. Apple is negatively affected by their huge pricing and premium quality products. The increasing inflation rate in the United Kingdom and labour cost in china has effected company profitability.

Social factors

The various social elements have contributed huge impact on Apple. It increases company's popularity and demand in market (Blahová, Haghirian and Pálka., 2015). The high standard lifestyle of people attracted towards the premium and leading brand of Apple. Brand acquisition in various countries also increase the company's social image.

Technological factors

The various technological advancement in the company attract more customers. Apple spend more on Research and development activities to approach customers. Many others companies such as Google and Samsung also adopted high technologies in their products, it can affect Apple's performance.

Environmental Factors

Because of several environmental factors, Apple's revenue can be affect. Pollution issues and disposal of waste like non working devices etc. which will generate more issues for Apple.

Legal factors

The various rules and regulations of UK government affect the operations of Apple (Amankwah-Amoah and Wang., 2019). Government of the UK banned import of some parts that are usable for manufacturing Apple devices, which will create more problems for Apple.

LO2 The functions of market economy and the role of government in it

Market economy is a effective system that includes the law of demand and supply that helps the production of goods and services. Market economy helps the organisation to set prices of their products. Through the Market economy, Apple company can find out their resources, prices of their products etc. The market economy is totally dependent on the demand and supply activities (Aksenov., 2017). Economic development and growth in the market economy is identified by the rewards and risks that generated from economic activity. If the demand of product is high but the supply of product is low , than the price of product become high. If the supply of product is high and demand is low, than the price of product becomes low. Market economy is the situation where products are controlled by people and allocated through market transactions according to the products demand and supply. The market economy provides various advantages for the Apple organisation because it encouraged innovation by enhancing scope for wealth and providing a competitive edge. The Apple has huge variety of products, in which market economy differentiate them in the whole market. Market economy encourage towards the economy activities because money is essential for any business (Tarabasz, Selaković and Abraham., 2018). It provide a freedom of people choices by offering options for developing a business, work and buying goods and services. The economy is operate by market. Use of resources, production, employment level an d pricing of the Apple products are based on the market demand and supply of goods. Customers are sovereign in the market economy (Namada., 2018). Effective economy market implement a perfect competition in the market.

The involvement of government in the market economy is very limited, they only focus on the rules of market are applied and enforced by the all participants. In the directing and planning economic growth and development, government involvement is very less. Pure market economy is very beneficial for Apple company because in that situations no government regulations related to economic activities and no taxation on economic activities. The government has less involvement in the determination of company's products prices, distribution of profits, production and employment. The main role of government in the market economy is to resolve market failure of such as excessive pollution and monopoly to develop a efficient economic system for Apple company (Phillips and Moutinho., 2018). They develop integrated infrastructure to increase efficiency and output level in production. The government should have to organize programmes to develop equity use taxes. Government make concern on the expenditures, monetary regulation and taxes to enhance macro economic stability and growth to decrease inflation and unemployment.

LO 3 The economic environment in which the Apple business operate in the UK

Economic environment includes the law of demand and supply, elasticity, Oligopoly etc. Demand - Demand means the amount of products or services that customers is willing, wants to purchase and capable to but at any price. The demand of the products is affected by two factors such as willingness to buy according to their preferences and tastes. The price factor is also influence the demand of products. The supply curve and demand curve of Apple products are interconnected with each other (Mani., 2016). If the demand of Apple product is high but the supply is low, it will lead to high price. If the demand of Apple product is low but supply is high, it will lead to low price. For example, if the price of iPhone is $1000, the quantity of iPhone demanded is 10 million but if the price of the iPhone increased up to $1200 that the quantity demanded would reduced to 8 million. Other factors that affect demand of Apple products such as changing preferences and tastes, alterations in composition of population and changes in expected future prices.

The production cost is also affect the supply. Factors that affect supply such as organisation's profits, factors of production or inputs like material, machinery and labour (Zafar, Hafeez and Shariff., 2016). The changes in the inputs prices will affect the production costs and also the supply. Demand in the economics is the ability and willingness of customers to purchase Apple products in the offer prices. Supply is the seller's willingness to offer quantity of products for decided price.

In the UK, elasticity is a measurement of changes in economic variable as peer changes in another. It define that how easy for the consumers and suppliers top change their choices and substitution different products (Siriwardana and Dissanayake., 2018).

Oligopoly is a specific market form where the industry or market is dominated by the various number of sellers. It is a market structure that include many small number of sellers. The oligopoly in the market can reduce competition form the market and increase prices for consumers.

The economic environment in the UK provide a great platform for the Apple business to run their operations and production activities in a very effective manner. It assists the business to expand their economic situation within the best economic environment. The economic environment in the United kingdom is very smooth, means that sellers and buyers have power of take their decisions in dependently. They are not restricted by the several government regulations, rules and policies (Matijević, Vrdoljak Raguž and Filipovıć., 2015). The UK has most developed and investment environment for the businesses to expand their trade relationships with various countries. In this environment, Apple company develops their business as most efficient business. In the United kingdom, economic environment is very secure for business contracts and agreement which can helps the UK business to develop their business activities with conceiting other businesses. It created a better economic environment for business to balance their demand and supply activities in a very effective manner. It also assist in improving business behaviour and strategies for the great expansion and growth. The economic environment also provide various opportunities to the Apple company by indulging related actions and trade agreements. The economic growth and development percentage is very high in United Kingdom, it is a major advantage for the UK business. It helps the business to complete their production of good and services activities within a specific period of time. The economic growth in the UK depends on many factors such as inflation etc. which can affect the business's production activities. Usually, the economic environment of UK is open and is mainly influenced by the demand of customers.

LO 4 The countries benefit from trade with each other

The trading with each other generate more benefits for the countries or their business. the advantage of the international trade is very high (Bogdan and Beata., 2018). For the great expansion of business, company will choose to trade with other country. Apple company largely involved in trading activities with various countries. The major advantages of countries trading is that company becomes able to enhance their number of potential customers from all over the world. Each country you approach for trading can create a new path for for the business development and growth. It increased huge revenue for organisation.

Trade with other countries generate a huge advance by decreasing number of competitors in various countries. With the trading business will approach many countries and country's business which can eliminate the competition from global market. With the increasing trading activities with other countries, Apple organisation become able to stable their products image for longer period as people always attracted towards another countries products or goods. Through the overseas selling business can extend the life of product (Gregor and Gotwald-Feja., 2018). The another advantage of global trade is, it makes the cash flow management easier. It also assist in by market diversification of Apple business.

The countries trading with each other also develop the better risk management ability in the organisation. If the company only focus on the local market it will enhanced risk from downturns in the political, economy, environmental and other risk elements. The international trading assist the organisation to reduce their dependency on the one market and helps to remove potential risks in specific market. For the international trading Apple company also take advance from currency exchange. They gain the advantages from currency fluctuations and currency conversion. By this company will be capable to leverage export financing. It provides a great opportunity to the company to dispose their surplus goods that company not able to sell this goods in their own market or country. Countries trade also increased the reputation of business. Conducting business activities in other countries can enhance the company's reputation. Apple are operating their business in many countries which are increasingly boost their business and reputation in international market. Success in one country directly affect the success in another countries that can boost organisation's profile in own market. It can improve the company's performance and productivity because company have to offer their products within a deciding time with great efficiency. It can enhance company's creditability in the local as well as abroad market. It will provides a immense opportunities to the company to become a specialize in various areas to offer effective products or services in that country (Dartey-Baah and Ampofo., 2016). Countries trade with each other opens a many new lines of products or services so that company can expose their talent and innovative approach globally. By this, company can adopt up-gradation, improve efficiency and increase innovations for their products or devices. Company approaches other countries for their trading if they don't have enough capacity and resources to satisfy their wants and needs, so that countries trade provide a better opportunity to the business to fulfil their desires and needs. It reduces the number of competitors form the several countries. If the company trade with other countries, they have to produce higher volumes, that generate many cost benefits as per the economics of scale and company also seriously focus on producing the products more efficiently and effectively.

LO 5 The increasing impact of European union on British business

The European union has raised British business in a very next level. This union generate various positive effects by enhancing trade and also make positive competition in the British business. The economic benefits of European union for the British business are very high. The European union improved the macro economic situation of British business.

The European union created their major impacts on the British business. Initially, it develops the uncertainty in the businesses, firms and businesses becomes uncertain about dealing with many situations. The European union also developed the British business by proving effective tools and assistance. European union affect the British company's productivity performances and also decreased the trade costs (Divyashree., 2016). They helps the British business by giving assistance in many collaboration activities. It improves the business's productive efficiency and allocative efficiency. It develop a effective platform for the British companies to trade their products or goods internationally. The European union implemented a effective policies for the British business to run their business with a great manner ad also taken necessary action to increase the business profitability from various investments activities. It created huge effects on the economy situation of British business environment. It offers a great advantage by offering effective budgetary contribution in the British businesses. The European union helps to develop a smooth business environment in the British, it assist in import and export activities of business and also helps in resolving many business laws and lawsuits by collaborating various countries. It created their strong effects on trade activities in British business. They helps to decreased taxes on business and enhance government spendings on the British businesses. The European union made the British business more bigger and open for any challenges. It has enhanced the openness to flow of business investments, trade and labour. It assist in business economic growth and development and also enhance labour standards in the business activities (Prowle and Lucas., 2016).

But it has also diverse impact on the British business. European union reduced the value of British economy according to the measurement in GDP. By this, British become able to eliminate all barriers in trading activities, through this, they become able to trade with many countries in the world. British become able to remove all the European regulations such as labour market and environment.

Also Read -Business Environment and Its Related Aspects


From the above report, it is concluded that the effective business environment is very necessary for the great development of business. The success of business depends on the positive business environment. Apple is a popular brand in the mobile industry. They operated their busiesns in many countries. With the great business environment in the UK, Apple become able to expand their business worldwide. UK provides best business environment for all the organisation to run their operations and functions in a very effective manner. UK has effective economic growth and development which promote the business largely. The effective business environment in the country provide a positive competition in the market. It helps the organisation to develop their businesses and achieve competitive advantages in many countries. It is very necessary for the all business to control their demand and supply to develop stability in the productivity and profitability of the business. Business must have to develop their ability to stand against competitors in the market and gain attractive competitive gain. The company's operating activities is influenced by the internal and external factors of business environment. Business environment includes the several elements like as its suppliers and clients, owner and competition, economic and social trends and technology improvements, government and laws activities. This also includes various political, economical, social, technological, environmental and legal factors that can create positive and also negative impacts on business. It also includes the company's strength, weaknesses, opportunities and treats which helps to identifying the major threats and opportunities for the business.To get more details about online assignment help ask our experts.

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