Question

PESTLE analysis used as a tool by companies to track the environment they’re operating in or as providing a ‘big picture’ of the environment in
which a business operates. Elaborate with PESTLE analysis in a essay form with a clear explanations and examples in the context of procurement with the organisation of your choice.

Answer 1

Apple.inc is a world’s largest multinational consumer electronics brand. Apple was founded in 1976 by Steve Jobs, Wozniak and Ronald Wayne, which is known for its size and revenue. Investors always prefer Apple for its high return on investment and fast growth.

PESTLE analysis is used to study the company's macro environment and how the different factors of the macro environment affects the working and operations of the company.

Political Factors: Apple is reputed and known that more than half of its revenues and sales is generated other than the America. Apple Inc. manufactures a number of parts and its products from outside the US like Ireland, China, Cork. Thus, the political and bad relationships between US and other countries could have an impact on the working of Apple.inc.

Economical Factors: Recession, Inflation and the currency are the three important factors noticed by Apple in their operations. Since apple products are viewed as luxury goods, people have started spending less on them. US dollar keeps on fluctuating although the company has purchased and have an impact on other countries' currencies also which made it stand against the economical factors.

Social Factors: The world always requires some innovation and gadgets in their lives. Thus by providing innovation and creativity, apple has made its impact in the society. As the purchasing power of the society has risen up, so is the ability to buy luxury goods too. Possessing apple items is considered as a status symbols in many societies thus have a social impact on the company too.

Technological Factors: Technology doesn't have a long life. Thus to adapt itself with the ongoing technology, Apple keeps on upgrading itself with the changing environment and technology to outdo their competitors. The company has invested largely in the research and development to know about the needs, technology and innovation to deliver the best product to people.

Legal Factors: The company has been a participant to various legal proceedings and statements. Apple has been in number of patent cases agains HTC and Samsung. It also has been in news for not paying the huge Taxes in Europe and known to create a tax invasion regarding the same. The company tried its best to regain its name and follow all the legal duties thereby.

Environmental Factors: The company takes a comprehensive approach to reduce the carbon footprint and be environmental friendly at large. Apple's commitment to environment includes properly disposing off the electronic equipment and recycle the waste materials like computer screens and cables. It also tries to power the company with the renewable energies like solar, geothermal, wind etc.