Assignment (Module 1)
Assignment (Module 1)
Course/Unit Information
Qualification Pearson BTEC Level 5 Higher National Diploma in Business
Unit No and Name Unit 1 Business and the Business Environment
Unit Code T/618/5032
Validity Date June 2023 to December 2023
Batch Onsite Batch
Instructor Information
Name Dr. Arpita Mehrotra
Email ID [email protected]
Contact Number 971 52 487 5220
Assignment Information
Full/ Part Assignment Full Assignment
Date Assignment Issued October 10, 2023
Date Assignment Due November 7, 2023
Turn it in ID 40991452
Enrollment Key BBE2310
Student Information
(To be filled by the student prior submitting the assignment)
Name Imaduddin khan mohammed
Student ID
Email ID [email protected]
Date of Submission 10.11.2023
I, Imaduddin khan mohammed hereby confirm that this assignment is my own work and
not copied or plagiarized. It has not previously been submitted as part of any
assessment for this qualification. All the sources, from which information has been
obtained for this assignment, have been referenced as per Harvard Referencing format. I
further confirm that I have read and understood the Demont IMT rules and regulations
about plagiarism and copying and agree to be bound by them.
Students Signature :
Date : 10.11.2023
Turn it in :
The full Turn it in report in PDF Format must be uploaded on the LMS along with the
Assignment Brief.
Achievement Feedback Summary
Assessor’s Name
Pass Merit Distinction Grades Awarded
LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the macro
environment has on business operations.
LO4 Determine the internal strengths and weaknesses LO3 and LO4
making of specific businesses and their interrelationship
with external macro factors. D2 Critically evaluate the
P5 Achieved/Not
P5 Conduct internal and Achieved
external analysis of specific
organisations in order to P6 Achieved/Not
M4 Apply appropriately
identify strengths and Achieved
SWOT/TOWS analysis and
weaknesses.
justify how they influence impacts that both macro-
M4 Achieved/Not
decision making. and micro factors have on
P6 Explain how strengths Achieved
business objectives and
and weaknesses interrelate
decision.
with external macro factors. D2 Achieved/Not
Achieved
Summative Feedback:
1. Complete the title page with all necessary student details and ensure that the signature of
the student is marked in the declaration form.
2. All assignments must be submitted as an electronic document in MS Word to the LMS
(Use 12 Times New Roman script).
3. All assignments must be submitted with an accompanying Turnitin report.
4. Assignments that is not submitted to the LMS by the prescribed deadline will be accepted
ONLY under the REDO and RESIT submission policy of Demont IMT.
5. The results are declared only if the student has met the mandatory attendance requirement
of 75% and/or a minimum of 50% under extenuating circumstances approved and ratified
by the Academic Director. The student must repeat the module (with additional fees
applicable) if the attendance is below 50%.
6. The assignment should not contain any contents including references cited from websites
like www.ukessays.com, www.studymode.com, www.slideshare.net, www.scribd.com.
7. Students can refer Wikipedia as a source of information, but the references cited in
Wikipedia must be mentioned.
8. Submit the assignment in a MS Word document with the file name being:
First Name Last Name_ abbreviation of the subject.
Example: John Smith_BBE
Quick reference Checklist for the Faculty/Instructor to accept/reject the assignment before
evaluation:
Scenario
Choose any organization in the country of your residence. The organization can be a manufacturing or
service-based entity. You can choose a local or a global organization in the - Public/Private/Government
sector. You are to assume the role of a Junior Business Analyst in your chosen organization. Prepare and
submit a report for the chosen organization as follows:
1.Explain different types and purposes of organizations; public, private, and voluntary sectors and
legal structures.
2. Analyse and explain how the structure, size and scope of different organizations link to the
business objectives and products and services offered by the organizations.
3. Analyse and explain the interrelationships between different organizational functions and how they
link to organizational objectives and have an impact on the organizational structure.
4. Provide a critical analysis of the organizational structure and the complexities of different
organizations and structures.
5. Apply appropriately the PESTLE model to support a detailed analysis of the macro environment of
the chosen organisation, identifying the positive and negative impacts the macro environment has on
business operations, supported by specific examples.
6. Apply and conduct appropriate SWOT/TOWS analysis of the chosen organisation to identify
strengths and weaknesses.
7. Explain how strengths and weaknesses interrelate with external macro factors. Critically evaluate
the impact these factors have on business objectives and justify how they influence decision-making
in the chosen organization.
Submission Format
You are required to make use of headings, paragraphs, and subsections as appropriate, and all work must be
supported with research and referenced using the Harvard referencing system. You will need to provide a
bibliography using the Harvard referencing system (or an alternative system). Inaccurate use of referencing
may lead to issues of plagiarism if not applied correctly. The recommended word limit is 5000–6,500 words,
although you will not be penalized for exceeding the total word limit.
Recommended Resources:
BURNS, J. and NEEDLE, D. (2019) Business in Context: An Introduction to Business and its
Environment. 7th Ed. Cengage Learning.
MORRISON, J. (2020) The Global Business Environment: Towards Sustainability? 5th Ed.
Red Globe Press.
WETHERLEY, P. (Editor) and OTTER, D. (2018) The Business Environment: Themes and
Issues in a Globalised World. 4th Ed. Oxford: Oxford University Press.
WORTHINGTON, I., and BRITTON. C. (2018) The Business Environment. 8th Ed.
Harlow: Pearson.
Websites
The private sector is the part of the economy that is owned by individuals or
organizations, rather than by the government. It's usually established to make a
profit or promote public welfare. The private sector includes various economic
sectors that aim to generate profits for business owners. It plays a crucial role in
the economy by creating job opportunities, delivering goods and services,
stimulating growth, and encouraging innovation. The private sector is further
divided into for-profit and non-profit organizations. Non-profit entities are legal
bodies whose primary objective is to promote the public good, while for-profit
businesses focus on earning profits from regular operations to maximize the
wealth of their owners. The private sector includes a wide range of sectors such
as retail, hospitality, aviation, construction, and financial services.
limited liability companies (LLCs) are entities that are privately owned. Those
who invest in an LLC are responsible for the company's debts up to the amount
of their investment. Shareholders in LLCs have liability limited to creditors
only to the extent of their investment in the company. In the event of unforeseen
circumstances that cause the company to lose money, shareholders' assets are
protected, but their initial investment may be lost. When incorporating, LLCs
must pay an application fee and have at least one director and one guarantor,
who can be the same person.
What is apple?
Apple Inc. is an American multinational powerhouse headquartered in
Cupertino, California, renowned for creating game-changing products like the
iPhone, iPad and Macintosh computers. With a market cap of over 2 trillion
dollars, Apple has established itself as one of the largest and most successful
companies globally. The design aesthetic and attention to detail of Apple
devices are second to none, and their systems have a performance advantage
over competitors due to their tight integration between hardware and software.
Apple's rise to the market leader was no accident; they correctly positioned their
products and produced some of the first versions of personal computers,
graphical user interfaces (GUIs), MP3 players, smartphones, smartwatches, and
tablets that were refined, easy to use, and well-designed, leading to widespread
adoption. (Wright, 2023)
Apple's undeniable success can be attributed to several crucial factors, including
its unwavering dedication to innovation and design, which is evident in their
highly functional and visually striking products. The company's design
philosophy centers around simplicity, ease of use, and intuitiveness, which is
prominently displayed in its product line, such as the iPhone and Apple Watch.
Apple is also known for its exceptional ability to generate hype for its products
through well-crafted and meticulously analyzed marketing campaigns. Their
marketing efforts are considered top-notch, highlighting the benefits and
exceptional features of their products, which further boosts customer loyalty.
Apple's reputation for quality, reliability, and customer service has helped it
build a vast and dedicated customer base that is willing to pay a premium for its
products. This loyal customer base is a significant contributor to Apple's
continued growth and success, as they are more likely to purchase additional
products from the company. Apple's financial performance is a testament to its
success, having consistently generated billions of dollars in revenue each
quarter and steadily increasing its stock price over time. This financial success
has enabled the company to invest in research and development, expand its
product line, and acquire new companies. Apple's strong leadership team is
instrumental in its success. The team is singularly focused on innovation and
growth, with an emphasis on collaboration and communication, which fosters a
culture of creativity and innovation within the company. This has been a
significant contributing factor to Apple's continued success and growth.
(Banerjee, 2023)
What kind of organizational structure does Apple have?
Meyer (2023) states that Apple operates with a hierarchical organizational
structure which demonstrates notable divisional attributes, featuring a weak
functional matrix. This structure is a common model in the business world.
Apple's divisional attributes are apparent in its product-based classification,
such as iOS and macOS. The functional matrix's weakness enables cooperation
between divisions, while the company's hierarchy is maintained. This structure
has proven to be highly effective in managing Apple's various product lines.
Apple's organizational structure is designed around the company headquarters
and is hierarchical. However, the company has made efforts to improve
collaboration between its various offices, departments, and teams, such as
software and hardware teams. Compared to the tenure of Steve Jobs, Apple's
vice presidents now have more autonomy. Although the structure is less strict, it
still follows a spoke-and-wheel hierarchy. The upper tier of the business
structure groups functions based on business needs, deriving from the functional
type of organizational structure. This involves top leaders addressing specific
business function areas. For instance, Apple has senior vice presidents who
oversee retail and worldwide marketing. Apple also has a divisional
organizational structure that is based on products. The structure has upper and
lower tiers, with senior and vice presidents overseeing different product outputs.
The company's distribution channels are designed to align with the structure,
ensuring efficient delivery of products to the target customers. This structural
design is used to manage specific products or their components, which
facilitates effective control and management of the entire product cycle. (meyer,
2023)
POSITIVE EFFECTS:
NEGATIVE EFFECTS:
5. PESTLE:
Political:
Economical:
Apple Inc. in the United Arab Emirates benefits from the stable
economies of developed nations because they offer a consistent supply
chain, stable exchange rates, heightened consumer confidence, export
opportunities, and access to partnerships and investment. This stability
supports Apple's success and expansion in the UAE by ensuring
consistent product availability, predictable pricing, and a growing market
for the company's products.
Apple's business in the United Arab Emirates is benefiting from the swift
economic expansion of developing nations. It results in a growing
customer base, more chances for travel and business, a more diverse
market, investment opportunities, easy access to talent and innovation,
and more effective global supply chain operations. Together, these
elements strengthen Apple's position and expansion prospects in the UAE
market.
The target market for Apple in the United Arab Emirates has unstable
disposable income, which can lead to erratic demand, price sensitivity,
thrown off sales cycles, cash flow problems, more competition, and
possible threats to Apple's loyalty and brand image. It may be more
difficult for Apple to sustain consistent sales and market share in the
UAE as a result of this economic factor. (Lombardo, 2023)
Social:
Technological:
Legal:
The UAE government has been passing and carrying out environmental
regulations to promote sustainability. Apple stands to benefit from these
regulations, as the company has committed to environmental
responsibility. By using sustainable materials and reducing its carbon
footprint, the company complies with legal requirements for
environmental preservation.
In many nations, laws about data privacy are getting stricter. Apple must
abide by these rules to safeguard the information of its clients. For
instance, a law recently passed by the European Union mandates that
businesses get users' consent before collecting their data. In response,
Apple updated its privacy policies to adhere to the new legislation
Apple faces several challenges related to data protection laws in the
United Arab Emirates, such as intricate compliance requirements,
safeguarding user privacy, localizing data, facilitating cross-border data
transfers, obtaining consent, modifying user interfaces, reporting data
breaches, facing severe penalties for non-compliance, and managing
constantly changing global regulations. To protect user data and maintain
legal compliance, Apple must carefully abide by these laws while
addressing the challenges of a global operating environment. (Pereira,
2023)
Environmental:
According to phương trương (2017), there are several positive and negative
factors that impacts the macro environment of Apple, some of them are:
Political factors:
Positive impacts: Political factors can benefit Apple Inc. when governments
pass laws that encourage innovation and corporate expansion. For instance,
Apple may be persuaded to invest in R&D by advantageous tax laws and
incentives. International trade agreements that lower tariffs and other barriers
may also make it simpler for Apple to enter foreign markets, which will help the
company grow its clientele and improve the efficiency of its supply chain. Such
political backing may help Apple achieve global success and profitability.
Negative impacts: When governments enact laws or take other actions that
make things difficult, negative political factors can hurt Apple Inc. For example,
antitrust litigation and investigations, like the one involving the App Store, may
result in court cases and even modifications to corporate policies. Geopolitical
unrest and trade disputes may also affect Apple's access to important markets
and the worldwide supply chain, raising costs and uncertainties. Such political
obstacles may have a detrimental effect on Apple's business practices, financial
performance, and market share. (trương, 2017)
Economic Factors:
Positive impacts: Apple Inc. can profit from economic factors that increase
consumer spending and open up international markets. For example, a rise in
consumer disposable income during economic downturns drives up demand for
Apple products, including MacBooks and iPhones. Exchange rates that are
favourable can also lower the price of Apple products in foreign markets, which
will increase sales worldwide. These economic variables help Apple grow its
revenue and profit margins because it taps into both local and foreign consumer
markets, especially when the economy is doing well.
Negative impacts: Apple Inc. may face negative economic effects that result in
lower consumer spending and higher expenses. Similar to recessions, economic
downturns can result in decreased consumer spending power, which can affect
the market for Apple's high-end goods and possibly lower sales. Furthermore,
growing manufacturing costs and inflation may reduce Apple's profit margins
and have an impact on the company's overall profitability. Apple's ability to
maintain its pricing strategy and high profit margins may be hampered by
economic challenges, which could ultimately affect the company's financial
performance. (trương, 2017)
Social Factors:
Negative impacts: Concerns about labour practises in Apple Inc.'s supply chain
are one of the company's negative social factors. Public outcry and protests have
resulted from reports of subpar working conditions and low pay at some of
Apple's suppliers, including Foxconn, harming the company's reputation. For
example, there has been criticism of claims of excessive overtime and
insufficient worker protections. This demonstrates the significance of social
responsibility in the larger context, where moral questions regarding labour
practise can result in harm to one's reputation and negative consumer feedback
(trương, 2017)
Technological Factors:
Legal Factor:
Negative impact: The scrutiny and legal challenges associated with antitrust
regulations are a negative legal factor that Apple Inc. must contend with.
Regarding its App Store policies and claims of anti-competitive behaviour,
Apple has been the target of inquiries, litigation, and investigations. For
instance, the European Union opened an investigation into Apple's App Store,
which might result in significant fines and legal limitations. These legal issues
highlight the legal pressures Apple faces in the macro environment and have the
potential to disrupt the company's business model, increase compliance costs,
and harm Apple's reputation.
Environmental Factor:
Pereira (2023) stated that there are several strengths and weaknesses that
lie within apple, they are:
STRENGTHS:
One of the main reasons Apple Inc. is one of the most valuable brands in
the world is its strong brand. Due to its reputation for quality, innovation,
and user-friendliness, the company has amassed a loyal following of
customers around the world. Apple's robust brand image contributes to its
market leadership and financial success by allowing it to demand higher
prices for its products, foster customer loyalty, and sustain a competitive
advantage in the technology industry.
Apple Inc. leads in technology thanks to its robust app ecosystem,
ecosystem integration, user-friendly interface, and continuous innovation.
The company's technological advantages are further reinforced by its
dedication to privacy and security, its hardware that is custom-designed,
its global retail presence, its sustainable practices, and its robust
developer support. This, along with its sound financial standing,
establishes Apple as a market leader in technology. (Pereira, 2023)
WEAKNESSES:
Apple's expensive products can be a liability even though they are a sign
of luxury and high quality. This premium pricing approach may reduce
market share and alienate consumers who are concerned about costs.
Affordability is a key consideration in competitive markets, and some
consumers might choose less expensive options, which would limit
Apple's market expansion and hinder its ability to reach a wider audience.
Devices and software from non-Apple companies frequently cause
compatibility issues with Apple's ecosystem. This tactic encourages brand
loyalty but restricts the flexibility of the user. It can be frustrating for
users to have trouble integrating their Apple devices with non-Apple
products. On the other hand, consumers looking for customization and
interoperability may find greater options in rivals' more open systems.
(Pereira, 2023)
OPPORTUNITIES:
THREATS:
External: From the outside, Apple's entry into the "User Electronic Sector" has
been a huge success, especially with the iPhone and iPod, which are huge hits in
the entertainment industry. The trust and allegiance that customers have for
Apple's smart devices are important outside variables. Furthermore, Apple's
unique pricing strategy reflects the company's reaction to external market
dynamics, setting it apart from its competitors' low-cost offerings.
Apple's creative design and innovation strengths are positively correlated with
external macro factors, such as consumer confidence and loyalty, which in turn
drive brand loyalty and success. In order to preserve its competitive advantage
and premium pricing, Apple must constantly innovate and differentiate its
products in the highly competitive external landscape. The external concern of
piracy is closely linked to Apple's internal need for continuous innovation and
creativity. Apple has a responsibility to protect its intellectual property from
these outside threats as a leader in the technology sector. Furthermore, Apple's
track record of adjusting to outside technological developments like its conflict
with Microsoft demonstrates its capacity for innovation and differentiation in
the face of shifting market conditions.
Apple's strengths and internal capabilities are in line with external opportunities
and entry barriers. Apple can maintain premium pricing because of its
distinctive product portfolio and significant capabilities, which complement
outside opportunities like the digital market and user-friendly devices. Cost
structures are directly impacted by negotiations with external suppliers, which is
in line with Apple's internal pricing strategy and profitability considerations.
The external environment's socioeconomic pressures will have a significant
impact on how effective Apple is going forward. These outside variables affect
consumer behavior and purchasing power, so Apple has to modify its
advantages and disadvantages to suit changing market conditions. Apple's
strategic choices and long-term success in the dynamic tech sector are shaped
by the complex interactions between these internal and external factors.
Philip (2019) states that there are numerous macro and micro factors that
have an impact on apples objectives and decisions
The goals and choices made by Apple Inc. are significantly influenced by both
macro and micro factors. The company's pricing, market expansion, and product
innovation strategies are influenced by macroeconomic conditions, government
regulations, and technological trends.
One important macro factor that significantly affects Apple Inc.'s goals and
choices is the economy. Variations in the state of the world economy, including
recessions and economic expansion, affect consumer spending and the demand
for Apple products. Changes in exchange rates can have an impact on
international sales profitability and pricing. Apple needs to modify its goals and
pricing policies to successfully manage these economic factors. Another
important macro factor that significantly affects Apple Inc.'s goals and choices
is technological trends. Innovation and product development are Apple's
primary goals, driven by the rapid advancements in technology. To keep its
competitive edge, the business must constantly anticipate and adapt to new
technologies like artificial intelligence (AI), 5G, and augmented reality. In the
fast-paced tech sector, these trends influence Apple's product offerings, business
alliances, and investment choices. Another important macro factor that
significantly influences Apple Inc.'s goals and choices is government
regulations. Trade policies, data privacy, and antitrust laws are just a few of the
topics covered by these regulations. Apple's ability to access markets, compete,
and develop new products are all impacted by compliance and navigating the
legal environment. Government regulations influence Apple's strategic direction
by dictating decisions about things like content moderation and user data
security. (Philip, 2019)