Specify the nature, structure, and types of products or services of Apple, and identify two (2) key factors in the organization’s external environment that can affect its success. Provide explanation to support the rationale.
Apple Inc. is an American transnational corporation involved in designing, manufacturing, marketing personal computers, mobile communication devices, digital music players that are portable, media messaging and software besides other application and services. The principal products, which Apple deal with, include Apple TV, iOS operating system and the OS X, Mac and iPod iPhone. The Apple products and services are of unique capability and high quality ( Apple, 2014) . Such uniqueness of its features makes its products and services be preferred by a majority of clients.
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The products from are unique in nature and as such, give a unique experience to its customers. The Apple iPhone is exceptionally competitive and functions on an iOS that is ideally an inbuilt apple operating system in the smartphones ( Apple, 2014) . No other smartphone use this kind of operating system and that adds to the uniqueness of iPhones. Apple personal computers, on the other hand, use Mac Operating system, which is also an inbuilt operating system ( Apple, 2014) .
Some of the factors in the external environment have a significant effect on the Apple business. That includes political instability, technology, economic effects among others. Technology is on a fast rise. Apple must be in a position to fast advance and adopt current technologies as it grows and has a more significant market share. The clients have a more substantial margin of power specifically with the advancement of technology ( Apple, 2014) . Notwithstanding the idea, that Apple's products are unique, consumers continuously provide specifications that may necessitate the firm to make good use of technology for the modification of its products. For instance, customers continue to give specs on the screen size. Apple needs to carry out lots of exploration and advancement for it to be in a position to control technology and achieve the needs of the consumers. Khan, Alam and Alam (2015) noted that failure to attain technological threshold, they would start losing some of the clients to the competitors, e.g. Microsoft.
Apple derives its products from without the United States and predominantly from Asia. The firm also has a more noteworthy market share in extra countries that are not essentially in the United States. Any kind of political uncertainty that occurs in the nations that supply it resources or where it trades its products can grossly upset the performance of the business. Putting aside political gravity from other nations, Apple also undergoes lots of dogmatic force within the United States. For instance, the State banned the importation of particular raw materials for the manufacture of iPhones in the year 2010. That adversely affected the corporation, and it had to restore its products. According to Khan, Alam and Alam (2015), s trict environmental and labor laws are also making it cumbersome for smooth operations at Apple.
Suggest five (5) ways in which the primary stakeholders can influence the organization’s financial performance. Provide support for the response.
Stakeholders have a significant impact on the financial performance of the company. How concentrated stakeholders also affect the firm’s financial performance. The shareholders have a crucial mandate in making decisions for the company. In the event the business is not performing as expected, the stakeholders have a right to vote and change the management. A proper and cohesive relationship between management and the shareholders is crucial. Firms that have a better relationship with the shareholders have a superior financial performance as compared to those with weaker associations. Arguably, Khan, Alam and Alam (2015) affirmed that a team of satisfied shareholders are easily motivated and hence can buy extra shares from the company, and that makes more finances available for the company to trade. On the other hand, in the event, shareholders become disgruntled, they can opt to trade their stakes and do business with companies that are more lucrative.
Workers and directors have a significant bearing on the firm’s financial performance. The managers and employees have a determination of the organization’s output. In a scenario where the workforce and management are committed, there is a high likelihood of producing products of better quality, and that will definitely boost the organization's revenues due to the high volume of sales ( Isik & Soykan, 2013).
Managers have a direct impact on the performance of an organization. The decisions made by managers can result in better or poor performance of the body. Managers that are motivated by selfish self-interest can negatively affect the financial performance as they run after activities that befit themselves ( Isik & Soykan, 2013) . Managers whose focus is to offer the best to the shareholders shape the business entity and thus results in progressive performance.
In the event that the management is not trustworthy and corrupt, they are likely to waste the organization’s resources for personal gain, and that results in the poor performance of the business.
Suppliers can possess influence in the financial performance just like in the case of Apple. When suppliers do not respect the workers’ rights, consumers may develop a negative attitude on the reputation of the business entity ( Isik & Soykan, 2013) . For instance, the poor working environment in the Foxconn corporation in China that are key traders of Apple has caused the community to have deleterious attitudes with regards to Apple product’s, that tentatively influences the financial performances as a result of the reduced sales.
Investors form part of the principal stockholders that can likewise affect the financial performance of the firm by either withdrawing their investments or investing the more. The investors are a crucial source of finances that it can use in carrying its activities, and the firm returns gains on the investment. A business, e.g. Apple, should learn how to satisfactorily deal with investors and provide them with striking returns on investments else, they may opt to make an investment in other corporations. That may lead to edgy financial standing in the company ( Isik & Soykan, 2013).
Specify one (1) controversial corporate social responsibility concern associated with Apple.
Foxconn’s business concern is amongst the famous controversial Apple’s corporate social responsibility. There are dire accusations that Apple is working with suppliers that infringe human rights by giving impecunious conditions of work and a partial safety protection. In 2012, an eruption occurred at Foxconn that feared four folk’s dead, and some workers sustained injuries in the iPad case room ( Chan & Cole, 2015) . The corporation’s employees also noted that they operated for very long and extra hours minus any reparation. Further, reports indicate that some stand for very long hours that they can barely walk ( Chan & Cole, 2015). Foxconn is a primary Apple supplier. The company was forcing its workers to use a poisonous chemical to do cleanup on the iPad screen. Two people died and several injured because of the chemical.
References
Apple Inc. (2014). Apple Inc. Annual report . Retrieved from http://www.sec.gov/Archives/edgar/data/320193/000119312514383437/d783162d10k.htm
Chan, J., & Cole, L.N. (2015, Feb 26th). Despite claims of progress, labour, and environmental violation continue to plague Apple. The Open Democracy .
Isik, O., & Soykan, M. E. (2013). Large shareholders and firm performance: evidence from Turkey. European Scientific Journal , 9 (25).
Khan, U.A., Alam, M.N & Alam S. (2015). Critical analysis of internal and external Environment of Apple Inc. International Journal of Economics, Commerce, and Management , 3(6)
