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P.E.S.T Factors: 1. Political Factor Analysis

P.E.S.T analysis examines how political, economic, social, and technological factors influence Apple's business decisions. Apple operates globally and relies on international sales for over half its revenue, so it is impacted by relationships between countries. Political instability or economic issues like inflation in countries where Apple has operations can negatively impact its reputation and business. Apple aims to understand these external factors and adapt quickly to changes in conditions to make its business more effective and efficient.

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36 views2 pages

P.E.S.T Factors: 1. Political Factor Analysis

P.E.S.T analysis examines how political, economic, social, and technological factors influence Apple's business decisions. Apple operates globally and relies on international sales for over half its revenue, so it is impacted by relationships between countries. Political instability or economic issues like inflation in countries where Apple has operations can negatively impact its reputation and business. Apple aims to understand these external factors and adapt quickly to changes in conditions to make its business more effective and efficient.

Uploaded by

javeria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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P.E.S.

T Factors
Political, Economic, Social, and Technological factor (PEST) are four general environment factors that place a
big role in a company’s decision-making process. By undergoing general environmental factors analysis of
PEST Apple Inc we will easily handle many assumptions and will also adapt quickly and effectively to the
change of external conditions. It will also help Apple to understand their business performance. After
understanding their business process their business will be more effective, efficient and developed. Therefore,
we will explain these four general environment factors that placed an impact on Apple Inc business process
and also how they handle problems that comes out from these PEST factors.

1. Political factor analysis

Political factor gives a heavy influence to Apple Inc decision-


making process as they have established many companies all over the world.

However, Apple Inc could not control the political factor. Since 2007 until 2009 it is reported that more than a
half of sales of their products comes from countries other than America. To reduce their operating cost Apple
also spread their product manufacturing to different companies outside America. Cork, Ireland, Korea, China
and Czech Republic are some of the other states where Apple placed their company. Bad international
relations, wars, terrorism, and public health issues between U.S. and these states might give a negative impact
that may damage the Apple Inc reputation as well as their business process.

For example, when there is political instability between US to states where Apple operates their business, a
business delay could be occur and as a result the image of Apple Inc could become bad to its customers and
retailers.

According to that information we can see that political relationship between U.S. and other states where Apple
Inc placed will be very important as it affects the Apple Inc decision-making process.

2. Economic factor analysis


World economic condition is also becoming one of the factors that influence Apple Inc business process as this
company is recognized internationally.

Inflation, recession and currency are three important economic factors that Apple noticed. For example, during
inflation period in the U.S. the purchasing power of all the people will decrease and sales of Apple’s product in
U.S. will also decrease. As U.S. dollar has lost in value, to minimize the effect of inflation Apple Corporation
has purchased itself foreign currency. By doing so the revenue of their product in international market will
increase.

As Apple Inc. already go international the U.S. bad economy condition, which take a longer time to recover
compare with other country will not be a problem anymore.

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