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The international business environment of Apple Inc

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Introduction

P1 International business environment of Apple Inc Globalisation Globalisation describes the mobility of goods, services, labour, technology and capital throughout the world. All those around the globe are more connected to each other than ever before. The benefits of globalisation allow information and money flow more quickly. Another advantage is that goods and services can be produced in one part of the world which is increasingly available in all parts of the world. International travel is also frequent than anything else and the communication is also common place. Apple Inc has increased dramatically as an international business. One of the ways in which Apple have used globalisation is by providing iTunes. A large variety of songs are available on iTunes and because the business has offered this on the internet and as software has increased their sales internationally as it has become accessible internationally. The products that Apple provides are sold internationally. Stores exist all over the world, allowing the business to become an international company. Not only does the use of stores help Apple to become an international company but the use of the internet also allows this to occur. Any product can be shipped from the business to where a customer is. Payment is made through the internet, which allows their global economy as transactions can take place instantly. The manufacturing of apple products is made in China. This is how international companies such as Apple operate. Other countries are involved with the production of the company?s products. This benefits the business in many ways as it the most cost effective way according to the business to manufacture their products. As the growing markets have increased for apple, China has been able to modernise their living standards by the trade between Apple Inc. Competition The international competitiveness refers to the ability of a business being able to provide goods and services that offer at better value than of its oversea rivals. ...read more.

Middle

Political 2. Economical 3. Social 4. Technological The political factors will affect international businesses. The political factors mainly revolve around legislations in that country. If a country prohibits a business from exposing more than 35% gas emissions, the business operating in that country will have to abide to that. Other political factors that the business will have to abide is the way the country operates with the employment. A business cannot treat the employees of that country working for them to suit their needs but will have to consider how the country operates politically. Each country will have their consumer rights, environmental issues and government taxes and subsidies which will all need to be taken into account. The economical factors for international businesses that will need to be considered are: 1. Pay levels 2. Labour, supply and demand 3. Energy prices The pay levels for each country will differ. A business will need to consider this as this will affect the financial aspect of their business. Each country will vary with the amount of pay levels. A business such as Toyota will have many people working for them all over. The amount of minimum wage will vary widespread because of the economical factors within that country. The labour, supply and demand in the country may cause issues to arise upon the international business. For example raw materials may have an effect on the country due to the import reasons. If country for example has restricted trade such as embargo this could affect international businesses operating in that particular country. This may cause the business to have to close the business in that country temporily or make other arrangements. Each and every business will use vast amounts of energy in order to provide the service or product. The amount of energy they use and will have to pay will vary from country to country. This like other factors will need to be taken into consideration, as a business when locating themselves in other countries will have to evaluate whether the business operating there will be beneficial or not. ...read more.

Conclusion

Certain products may be acceptable in some countries where as in others it may not be. Taking McDonald?s as an example, if they introduce a new product containing pork, countries with a large population of Muslim?s or Jew?s will not purchase that product as they are forbidden to eat it. Geographics is refered to where a person lives. Different countries will have different customs, beliefs and values as discussed previously. The type of country it is will influence the way people live and spend their money. The habits of one country may be different to another. For example one country may enjoy spending money luxurious items such as gadgets whereas the other may spend money on more valuable things such as housing property. Psychographic is the lifestyle, attitudes, personality and values. Each country will have different types of poepel however this may be divided into further types within the country itself for example England will have Goths, Chavs, etc. When selling products these factors will need to be considered. Apple will use these marketing identifications tools in order to establish which country will be most beneficial in selling its products. The demographic identification will be used to see whether the countries are able to afford such items at the price that the business aims to sell them for. Apple business will not sell its products in a third world country after looking at the demographics. The business will also take into account the geographical factors and psychographic factors. The identification of products will allow Apple to consider and evaluate which country will be most beneficial to the business and will enable them to have an increase in sales. Advertising internationally will take place through many forms. The advertisement of Apple varies from country to country. When considering to advertise the products of Apple the business will need to take into account the national and international legislations of that country, trade and industry practices and relevant advertising codes and standards. ...read more.

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