Strategic management (analysis) Management Essay Paper (Essay Sample)

STRATEGIC MANAGEMENT (ANALYSIS)
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Strategic Management (Analysis)
Not many companies can rival Apple’s their dominance when it comes to newer technologies or even their brand (Smithson, 2019). As such, the company often targets economically stronger regions as markets for its pricey products and services. At the same time, the company has to grapple with factors in the macro-environment. The subsequent paragraphs will factor in the company's PESTEL Analysis and the five-force framework used to measure the intensity of competition in the industry.
The PESTEL Analysis essentially focuses on the principal components of strategic significance. It encompasses political, economic, sociocultural, technological, environmental, and legal factors. As a global company, Apple Inc. faces these challenges in its external environment.
Political factors
The external political aspects in Apple Inc. macro-environment majorly come with opportunities. Often, political factors show a government alongside other related-businesses influence on the company (Contributor, 2015). For Apple, there are several political external factors. The first is improving free trade policies which is an opportunity. In China is likely to interfere with manufacturing or sometimes increase manufacturing costs.
Economic factors
Notably, economic factors entail aspects such as exchange rates, prices, and inflation rates that are likely to affect consumer confidence as well as discretionary income. For Apple's case, factors such as increased labor costs especially in China, will likely interfere with the cost advantage of some of the company's products.
Sociocultural Factors
The socio-cultural forces entail the societal values alongside cultural influences, attitudes, and lifestyles that influence the demand for a company's products. Apple can experience growth in consumer spending, especially within the African market in the coming decades.