External Environment And Organisational Culture Of Apple UK Marketing Essay

impertinent Environment And Organisational gloss Of orchard apple tree UK Marketing EssayThe aim of this report is to explain the brief account statement of orchard apple tree Inc and contri exactlyenistervas the innate and external environment and organisational glossiness of apple UK. The findings in this report pull up stakes supported by academic precedents and theories.2.0 MethodologyThe net income is useful source for any kind search, the information I gathered for this report is from search engine e.g. Google, university recommended books and lecture notes.3.0 IntroductionEnvironment skunk be defined as, the amalgamation of external physical circumstances that impinge and influence the augmentation, reading and survival of creation. Therefore, the employment environment would define as same, any the factors internal and external that runs its profitability and growth. It is very(prenominal) important for the line of merchandise leader to carry out business environmental analysis to understand their business topography at benef achievement time. apple Inc is an Ameri slew company which ope values in diverse countries in other words. This report briefly characterizes the orchard apple tree UK environmental analysis. The environmental analysis will focus on on internal environment SWOT (strengths, failing, opportunities and threats) and external environment will focus on PESTEL (political, economical, companionable, technological, environmental and legal) of orchard apple tree UK with the support of academic models and theories. The final circumstances of this report is the assessment of apple culture and organisational culture.4.0 Defining the Business EnvironmentStrategy is the direction and scope of an organisation over the long term, which achieves advantages for the organisation done its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations.(Johnson and Scholes)Business environment means the forces or the factors that affect the business decisions. It is important for businesses to analyse those forces in order to come up with problem solving solutions. Some of those forces atomic number 18 out of business control e.g. political, social, economical these forces called as external forces which ar out of business control. The environment which businesses render or can hold is called the internal environment.4.1 Importance of Business Environment archives is abundant with paradigms of organisation that lease failed to apprehend their operating environment, or simply fizzle to react to transform in the environment. The after-effect was gradual decay in their profitability, and hereafter they may break mutilate to exist as a viable business. Therefore, understanding business environment is very important it brings the early assimilation of opportunities and threats that business may suffer and helps to oppose from oncoming bu siness threats instead of losing to competitors.4.2 Analysis of Business EnvironmentEnvironmental analysis is a precise evolution that initiate from assimilation of environmental factors, accessing their formation and impact, analysing them to come up with their impact to the business, and accomplishing distinctive contour for positioning. Business environment can competently assay using following business environment4.2.1 familiar Business EnvironmentInternal environment reflects the internal factor of the business which organisations can control and can adapt or alter from time to time. The surmount way of explain internal business environment of any organisation is use of SWOT and ushers value chemical bowed stringed instrument analysis.4.2.2 External Business EnvironmentExternal business environment represent the uncontrollable factors, the external factors can be analysed using PESTEL and Porters quin forces. Kotler argues that PESTEL analysis is an effective strategic t ool for understanding market development and decline, business position, conceivable and direction for operations.5.0 What is Apples Inc.Apple Inc is an American intercontinental organisation with a hub on conception and fabricating consumer electronics and intimately connected computer softwargon crops. entrench in Cupertino, atomic number 20 on April 1, 1976 Apple evolves dispenses and supports a variety of personal computers, music musicians, mobile resounds, and computer softw ars and hardware accessories. As of November 2010, Apple operates over ccc inventorys worldwide and online shop where its products are sold. The Apples vigorous known hardware products involve Macintosh for personal computers, the iPod for media players and iphone. The Apple Inc was known as Apple computers Inc for its first thirty years of business. The Apple Inc dropped computers from its name on January 9, 2007 because the Apples expansion towards consumer electronics in accessions to its core b usiness of personal computers.Apple employs over 49,400 employees worldwide and Apples financial results for its fiscal ordinal quarter ended September 25, 2010 Apple posted record revenue of $20.34 billion and net quarterly profit of $4.31 billion or $4.64 per diluted share.5.1 Apples Inc HistoryApple was established on April 1, 1976 by Steve Jobs, Steve Woznaik and Roland Wayne to sell its Apple I personal computers. Roland Wayne left the company on January 3, 1977 who sold his share back to Jobs and Woznaik. The Apple I personal computers were hand built by Woznaik in the common room of jobs fathers home. The Apple I was came to market at home brew computers floor show almost 200 computers were built and was sold as motherboard not they sell streamly as full personal computers.1989-1991 been called first golden age for apple when apple introduces its power book in 1991, the modern layout of laptop computers and the same year Apple introduces system 7 for its operating systems.A pple introduces its online store on November 10, 1997 Apple introduces its invigorated all in one Mac computer on August 15, 1998. Apple sold almost 800,000 units of imac in first five months and holds the toughened name in the market also made a good profit.Apple opened its first retail store in Virginia and California on 19 May 2001 and carry on opening new stores in fall in States and other countries. In afterward 2001 Apple introduces its music player iPod, it was a big success and sold over 100 million units in six years since it introduce. Apple introduces its first chip computer on January 10, 2006 a note book computer called Mac book pro in 2006 Apple transformed all its products into Intel chips. In 2007 Apple announced the emit of iPhone and Apple TV and the following day Apple share price hit all time senior proud. Apple introduces its iPhone in 2007 which was big success and later updated version of Apple iphones and in 2010 Apple launched its new innovation calle d iPad.5.2 Apple Inc Mission StatementApple is committed to bringing the best personal computation experience to students, educators, creative professionals and consumer around the world through its innovative hardware, software and internet offering.5.3 Apple Inc Vision StatementMan is the creator of change in this world. As such(prenominal) he should be above systems and structures, and not subordinate to them.6.0 Apples Inc UK Environmental AnalysisApple Inc is the leading consumer electronic brand in United Kingdom, operating around 29 Apples retail stores and online store within UK. Apple UK environment can be analyse using internal and external environmental analysis.6.1 Apples Inc UK Internal Environmental AnalysisApples internal environmental analysis represents the factors which Apple has controlled over them, those factors best analyse using SWOT analysis and Porters take account chain analysis.6.1.1 SWOT Analysis of Apples UKSWOT analysis will focus on following factors of Apple IncSource http//www.bizstrategies.biz/swot-analysis.html6.1.1.1 Strengths of Apple Inc UKBrand Name Apple has well established and strong brand name among the consumer and its competitor through quality and introducing new products.Innovative Apple is been innovative since the beginning, always come up with new ideas and products.Microsoft and Intel Apple use to produce its own software for its product but working with Microsoft and Intel gave edge to its profitability.Research and Development Apple has strong research and development to its competitor this is the reason apple always come up with new innovation.Financial Vitality Apple has cash reserve continued strong and motionless although the idle market shares development of computer hardware and software area. Apple achieves this by resisting market pressure to cut cost by product promotion and forming strategic agreement.Customer Loyalty and Quality Apple has strong customer loyalty because of the quality of produc t that Apple provides to its customers.6.1.1.2 Weaknesses of Apple Inc UKHigh Price Apples products are higher in price, even though many a(prenominal) of consumers want to use Apples product but they cannot afford to buy one.Weak Relationship Apple descent with Microsoft and Intel is not as strong as it should be.Weak Presence in Business Area Apple have only 29 retail store operating in United Kingdom.The Product Life Cycle The Apples product life cycle is very small so the revenue is mostly depending on its new product or service.Less Attraction towards Corporate Customers Apple products do not attract corporate customers.Technological Complications Apples mostly face problems with its software and hardware.6.1.1.3 Opportunities of Apples Inc UKFast Growing Industry Apple started with personal computers, now they are selling music players, laptop computers, mobile phones, iPads and also online music store.Technological aim Apple can develop strong position in market doing join t venture and Laptop computer market growth is high so it can develop new models to fulfil the need of customers.The Online Store the e-commerce is growing rapidly, ITunes is the online store developed by Apple.Improve Warranty and Reduce Prices Apple can improve its warranty program and reduce its product prices to challenge its competitors prices and hold a strong position in market.6.1.1.4 Threats of Apple Inc UKFierce Competition Apple has strong competition with its competitors within same application.Economic Crisis economic crises have negative impact on Apple sales because consumers do not die too much in critical situations.Microsoft Microsoft recently launched windows 7 with alluring user interface and new features which can attract Macintosh user to tag on to windows.ITunes free downloading of music and videos may affect the profitability of Apple online store.6.1.2 Porters Value Chain Analysis of Apples UKSource http//www.ukeducation.org.uk/qdocsview.asp?ID=1340The va lue chain approached was established by Michael Porter in his book competitive advantage in the 1980s. Michael Porter value chain analysis accommodates a series of activities found to be accepted to a wide range of organisations. Porters describe primary and supportive activities as shown in the above diagram.6.1.2.1 The Primary Activities of Value Chain and Apple UKInbound Logistics the movement of acquiring and depot of in the altogether materials and their distribution to accomplishing as they are appropriated. In case of Apple UK the inbound logistics are the new ideas, product designs, Intel chips and other required raw material.Operations it is the process of transforming inputs into outputs and services. Apples software products are developed in US and all the hardware products e.g. computers, music players and mobile phones assembled in China.Outbound Logistics it is the process of distributing and store of products. In case of Apple products are distributed from Chine an d warehoused in Apples allocated warehouse in UK.Marketing and Sales the process of identifying customers requirement and creation of sales. When the Apple product is ready to entre in the market Apple advertise it it self showing rich features and Apple suppliers advertise it as well to generate awareness among the consumers.Service it is the process of feedback after the products and services are sold to customer. Apple feedbacks from its customers are always good well-nigh its products and services it is because of the quality Apple provide to its customers.6.1.2.2 The Supportive Activities of Value Chain and Apple UKFirm Infrastructure it focuses on the organisational culture, structure and organisational control system. Apple is an American multinational organisation its UK operation is influence by its understate and consideration of consumer needs in United Kingdom.Human Resource Management represents the recruiting of employees, development, training and compensation. Apple UK recruits the local staff and trained them about their products so they can help and satisfy Apples customers.Technology Development the important part of any organisation it focuses on improves and new technology introduce to system it gives organisation a competitive advantage. Apple itself a technology business so save up introducing new and beneficial technology to its business.Procurement it focuses on valuable purchase of inputs such as raw material equipment and supplies. Apple main raw material is to buy chips to produce good quality and moderate products.6.1.3 Critical Discussion on Apple Internal EnvironmentSWOT and Porters value chain analysis explained the internal environment of Apple UK, hence it will help to understand the current and future position of organisation. SWOT (strength, weakness, opportunities and threats) analysis of Apple shows the strength of company the factors which Apple are doing its best, weaknesses explained the factors which Apple do not pro vide its best, opportunity explained the factors what Apple can achieved using its resources and threats shows the factor which can damage the profitability and growth of Apple. SWOT analysis shows the strength of Apple is very strong to protect its image, the weakness Apple has they can do more research and development to overcome those weaknesses, Apple must utilise its opportunities to own its brand strong and if Apple can work on their weaknesses and opportunities its threats will be overcome or may be reduce. The Value chain analysis show the business culture and business operating system which shows that Apple Value chain is valuable because their product assembled in China with low cost and they have their UK operating system and world resource follows the required environment as in United Kingdom.6.2 Apples Inc UK External environmental AnalysisExternal environment represent the factors which organisations do not have controlled over them. PESTEL and Porters five forces wi ll best explain the Apples external environment.6.2.1 comminute Analysis of Apple Inc UKSource http//www.marketingminefield.co.uk/marketing-plan/pestle-analysis.htmlPolitical government type, its stability, current and future revenue enhancement policies. Apple does not have any control over it, to cope with this Apple has to change with it as in United Kingdom VAT rate is going up to 20% from 17.5% it will cause Apples product prices will go up.Economical economical situation, inflation, interest rate and strengths of consumer spending. It will directly affect the Apple and its profit, if economical situation is bad consumer will spend less.Social population growth rate, life style of tribe, culture, religion media views and perception. Apple has to consider all those things to do business and have to have with consumer needs.Technological it represents the current and future technology, research and development and rate of technology change. Apple itself an electronic organisat ion so it has to keep up to date and move on to new technologies.Legal it focuses on legislation in employment and health and safety, changes in law, trading policies and regulatory bodies. Apple has to update itself with new legal laws and change its policies according to it.Environmental it focuses on recycling consideration, amount of pollution created by product or services, carriage to the environment from government and environmental pressure groups. Apple is electronic organisation so it has to consider its packaging that it can be recycled.6.2.2 Porters Five Forces Analysis of Apple Inc UKSource http//notesdesk.com/notes/strategy/porters-five-forces-model-porters-model/The five forces model was developed by Michael Porter in his book competitive strategy in 1980s. The model is simple but effective tool to understand business position. It is helpful to understand current competitive strategy and strength of business that it is cogitating to move into. The five factors in thi s model areSupplier Power it accommodates all the supply of inputs that are required to provide products or services. It reflects how many, and who is the supplier of the company and what is the strength of supplier and switching to different supplier will cost more, as Apples main supplier of chips are Intel.Buyer Power it is impact the consumers have on company, when buyer power is strong the relationship of the company is called monopsony in economist term. When there are many suppliers and one buyer then the buyer set the price. Apple has many competitors they sell their products less in price than apple, the buyer threat for Apple is high.Threat of new Entrant competition is high and every organisation wants to diverse it business so it is easier for companies to enter in new market. Apple is electronic organisation it already has many competitors around so threat of new entrant is high for Apple.Threat of Substitute it focuses on the alternative products available in market wi th low price and better performance. Apple produce music players, computers, mobile phone and iPad there are many other companies which are producing same products with lower price.Competitive Rivalry it describes the competition between the existing companies in same industry high competition result in margin, pressure on selling price. Apples products are higher in price than its competitors so threat level is high for Apple.6.2.3 Critical Discussion on Apple Inc UK External EnvironmentExternal environments are the uncontrollable factors for any organisation. Apples external factors were analysed using PESTLE and Porters five forces. PESTLE analysis focused on political, economical, social, technological, legal and environmental factors of Apple UK. However Apple does not have any controlled over them but Apple can change it with them, recently the current United Kingdom government increased VAT rate to 20% from 17.5% this will result in product prices it will go up. Apple can red uce its price to keep customers happy or offered them some incentive. Most of the organisations have pressure from environmental organisation about environment pollution Apple can produce its recycled packaging. Apple has to keep considering social and economical factors and do research and development to cope with them. Porters five forces helps to make up competitive advantage, Apple have many competitors around but it has strong brand value and name and competitive advantage from its competitor. Apple have to keep analysing five forces of Porter and find its best place in the market and carry out more research and development to bring new ideas and innovations.7.0 Organisational CultureOrganisational culture is the nature of the organisation. Culture is composing of the beliefs, values, norms and corporeal artefacts of organisation employees and their behaviour. Any organisational culture can be best analyse using Geert Hofstede cultural dimension.7.1 Geert Hofstede ethnic Dime nsionsHofstede found five different cultural dimensions in his study of interaction between national and organisational culture.Power Distance represent the power within the corporation is divided equally or unequally and what extant society accepts this power distribution.Individualism individualism is the one side against its opposite. Individualism/ collectivism represent the people act according to self interest or the interest of group.Masculinity masculinity against its opposite femininity represents the distribution of role between genders.Uncertainty scheme it refers the member of the society requires structure and boundaries at work place. High uncertainty avoidance societies are intolerant of venture. Low uncertainty avoidance societies are where risk and anomaly widely accepted.Long-term Orientation it refers to society accent attached to future against the present and past. In long term people appraise action and approach that affect the future and in short term peopl e appraise action and approach that affect present and past.7.2 Apples UK organisational CultureSource http//www.geert-hofstede.com/hofstede_united_kingdom.shtmlApple is a multinational organisation its business structure based on country of origin. Apple United Kingdom culture based demographic and social factors of UK. Hoftede study of cultural dimension show UK is most like to be individualistic culture followed by masculinity. It shows people in United Kingdom are individualistic and there is not much difference between genders. Apples employees are more individualistic and there is not bias against any gender, therefore Apple is the successful organisation within the United Kingdom.8.0 RecommendationsApple has many competitors within its industry, Apple try to reduce the cost of products and maintain good quality. Apple has very less retail stores it must try to open more stores and joint venture with any big organisation will help to expand the business. Apple must continue to bring new ideas and innovation and expand its business.9.0 ConclusionApple is the successful company with a strong brand name and has many competitors within same industry. Apple internal business environment was analysed by using SWOT and Porters value chain analysis. SWOT analysis focused on strength, weaknesses, opportunities and threats which explained Apples strength give it a strong hold against its competitors, weakness and threats would overcome by research and development, opportunities will bring more strength to organisation. Porters value chain analysed Apple business system which is valuable but they to consider it to cut the prices of its product. Apple external environment was analysed using PESTLE and Porters five forces the external factors are uncontrollable factors that Apple do not have any controlled over them but it cannot resist them but change with them effectively to maintain its growth and profitability. Organisational culture represents the nature of orga nisation Hofstede cultural dimension helps to analyse culture. United Kingdom is most likely to be individualistic and masculinity cultures where people work for self interest and there is not much differ in gender. Apple UK culture is suitable and acceptable for the people in United Kingdom that what make Apple is a successful organisation in the United Kingdom.