INDIVIDUAL REPORT

Sarah Ann Subin | BA IBAF 08004 Business Environment | Page 1

TASK 1
Explain the purpose of different organizations

1. Public Organization

‘Public Organizations’ are entities that have been formed to manage the policy and operating
requirements that enable a government to achieve its goals of public governance. The main
purpose of Public Organizations are:

 Public service is the main concern of the public sector organizations; their purpose is
to provide the best service at any cost.
 Utilize the scarce resources to maximize the country’s productivity.
 To provide public services include public goods and governmental services as the
military , police , public education along with health care and those working for the
government itself.

2. Private Organization

The Private sector is the part of a country's economic system that is run by individuals and
companies, rather than the government. Most Private Organizations are run with the intention of
making profit. The purposes of the Private Organizations are:

 Maximize profit
 Growth
 Increase market share
 Maximize sales
 They provide goods and services for the benefit of the community.

3. Charity

A charitable organization or charity is a non-profit organization whose

primary objectives are philanthropy and social well-being. They raise money but they spend
it to further their mission, not to benefit the donors or founders. They are allowed to pay
employees. The purposes of Charity are:

 feeding the homeless

 managing an association of businesses
 preaching the gospel.

Sarah Ann Subin | BA IBAF 08004 Business Environment |

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TASK 2
Select a Company- APPLE INC.

1. Briefly explain the Internal and External environment and its impacts.

Apple Inc. Mission Statement:

Apple is committed to bringing the best personal computing experience to students, educators,
creative professionals and consumer around the world through its innovative hardware, software
and internet offering.

Apple Inc. Vision Statement:

“Man is the creator of change in this world. As such he should be above systems and structures,
and not subordinate to them.”

Strengths of Apple Inc.:

 Brand 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 stable although the idle
market shares development of computer hardware and software area. Apple achieves this
by resisting market pressure to cut cost by product packaging and forming strategic
agreement.
 Customer Loyalty and Quality: Apple has strong customer loyalty because of the quality
of product that Apple provides to its customers.

Weaknesses of Apple Inc.:

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  High Price: Apple’s products are higher in price, even though many of consumers want to
use Apple’s product but they cannot afford to buy one.
 Weak Relationship: Apple relationship 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 Apple’s 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: Apple’s mostly face problems with its software and
hardware.

Opportunities of Apple’s Inc.:

 Fast Growing Industry: Apple started with personal computers, now they are selling
music players, laptop computers, mobile phones, iPads and also online music store.
 Technological Innovation: Apple can develop strong position in market doing joint
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 competitor’s prices and hold a strong position in
market.

Threats of Apple Inc.:

 Fierce Competition: Apple has strong competition with its competitors within same
industry.
 Economic Crisis: economic crises have negative impact on Apple sales because
consumers do not spend too much in critical situations.
 Microsoft: Microsoft recently launched windows 7 with alluring user interface and new
features which can attract Macintosh user to switch to windows.
 ITunes: free downloading of music and videos may affect the profitability of Apple
online store.

2. Identify stakeholders

Apple considers the interests and concerns of a number of key stakeholders in its policies and
programs for corporate social responsibility. Stakeholder groups impose varying demands in
different aspects of business. In Apple’s case, the following stakeholders are the most
significant:

 Customers/Consumers
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  Apple’s Employees
 Investors
 Employees of Suppliers and Distributors

3. Explain Stakeholders needs and Objectives

Stakeholder needs and requirements represent the views of those at the business or
enterprise operations level—that is, of users, acquirers, customers, and other stakeholders as
they relate to the problem (or opportunity), as a set of requirements for a solution that can
provide the services needed by the stakeholders.

The objective of many shareholders is to influence the governance of the firm to meet their
individual objectives and goals. Depending on the percentage of ownership she holds,
a shareholder can significantly influence the business's strategic decisions.

4. How does the organization meet the objectives of stakeholders? Explain the strategies
used by the organization to meet them.

 MAXIMIZE CORPORATION'S VALUE

The primary shareholder objective for a corporation is to maximize the value of the
corporation. Corporations exist to provide goods and services to generate revenue and net
income. The net income gets passed to the shareholders via dividends and distributions or
through the sale of a shareholder's stock back to the company or to another individual or entity.

 INCREASE SHAREHOLDER WEALTH

Another shareholder objective is to increase shareholder wealth. This is similar to increasing the
company's value. A company that increases significantly in value can drive higher shareholder
wealth by providing access to that value at a lower tax rate.

 SOCIAL IMPACT
In the U.S. shareholder objectives focus solely on wealth and value creation. Therefore, being a
good corporate citizen by supporting charities or civic organizations and donating to beneficial
causes might be a credible shareholder objective for a number of businesses.

 EMPLOYEE AND CUSTOMER SATISFACTION

From the shareholder perspective, this might be a secondary objective. Customer satisfaction is
important to drive repeat business, referrals and testimonials to use in marketing and case studies
for sales. Employee satisfaction is similar. Both lead to higher expenses, which decrease
profitability and, therefore, lower a corporation’s shareholder value
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Strategies used by Apple Inc.

A. Expanding their distribution network to reach more consumers.

Tactics:

– Internet Providers

– Third Party Retail Stores

– Flagship Stores

One of Apple’s objectives is to expand their sales to customers who have not yet own an Apple
product. They do this not only through advertising but by expanding their distribution network as
well. In my opinions, in order to expand their distribution network, Apple has their products such
as the iPhone sold in various Internet providers like Smartone which aim to sell long-term phone
plans with the iPhone.

B. To continue investments in Research and Development

Tactics:

– Improved new generations of products

– New features

Apple wants to produce hassle free products that will provide service and enjoyment for
customers. To reach this goal Apple believes in the continuous investment in their Research and
Development department in order to continue producing quality products. The improved
generations of the iPhone offer new features such as Face Time, Voice Control and access to
new games and software updates. Customers are able to enjoy movies and play their favorite
games in the palm of their hands and they are able to connect with friends and families even
faster than before.

C. Become an online search machine and platform for online advertising

Tactics:

– Research and Development in online search and advertising

– Monitoring the works of Google and Yahoo

One of Apple’s biggest objectives is to become the leading business in the mobile market. Their
strategy associated with this goal is to become an online search machine and platform for online
advertising. To fuel this strategy, I believe continuous investments in Research and Development
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would be a viable tactic as well as monitoring the works of Google and Yahoo very closely in
order to see how they can match their competition.

5. Explain the Company’s market structure

Market structure is best defined as the organisational and other characteristics of a market.
Apple Inc. can be considered stand in difference market structures such as oligopoly and
monopolistic competition. Apple Inc. maintains oligopoly market structure in the competition
of smart phone brands announcements,but Apple Inc. is known as monopolistic competition in
the branded computers.

Sarah Ann Subin | BA IBAF 08004 Business Environment |

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References
https://www.quora.com/What-are-Apple-s-aims-and-objectives

https://www.ukessays.com/essays/economics/market-structure-of-competitive.php

https://www.ukessays.com/essays/marketing/internal-and-external-business-environment-of-
apple-marketing-essay.php

Sarah Ann Subin | BA IBAF 08004 Business Environment |

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