In the early days of consumer electronics, computers and telecommunication developed as separate, distinct industries. Digitization changed the rules of the game, demolishing walls, blurring the distinction between once separate industries and building a $ 300 billion industry. Changes are driven by wide spread internet usage, “on the go” life styles, cutting edge innovation and digital convergence. This multibillion Industry is run by key players such as Apple, Sony, Dell, RIM, Samsung & LG. Apple Inc., is an American multinational company that designs and manufactures computer software such as Mac OS x, iTunes and electronic products such as iPhone, iPad and iPods for the consumer market. Apple operates a chain of retail stores, providing goods and services from 35 locations in the UK with 355 employees. Business Environment
It is strategically important for Apple Inc. to analyse their ‘business environment’ in order to gain competitive intelligence and market superiority. “Business” refers here to the internal activities or internal environment of Apple, performed by people in order to make profit (production, extraction or purchase or sales of goods). The internal/micro environment of an organisation is affected by five controllable factors, Man, Money, Machinery, Material, and Management. On the other hand the word ‘Environment’ refers to the external aspects of surrounds the business. External/ Macro environment consists of factors (such as tax changes, new laws, trade barriers, demographic change and government policy changes) which are beyond the control of the organisation and create opportunities and threats to business units. PESTEL
Tremendously complex and dynamic external environments can be analysed by looking at the PESTEL factors. By understanding the changes of Political, Economical, Socio-Cultural, Technological, Environmental and Legal factors organisations can take advantage of the opportunities and minimize the threats. Socio- cultural
When making strategic decisions, one of the key areas Apple should analyse is the people and groups of people, in the respective geographical area that the business operates and their affect on the business both as consumers and employees. These socio-cultural factors can be mainly divided into two segments: “Cultural changes” (such as values, attributes, manners, customs, languages and educational levels of the population of the United Kingdom) and “Demographical changes”. Demographical factors are socioeconomic characteristics of the population of the UK expressed statistically (age, gender, size of population and ethnicity) Recent and Predicted Demographical changes in the United Kingdom
Size of Population in the United Kingdom
The Office for National Statistics reports the net population of the United Kingdom as follows. The emigration trend of the early 19th century saw the net population drop to 37 million and the world war increased UK’s population to 49 million. The UK net population increased by 20% by 2000 CE, escalating it to 58.6 million. Since early 1990 UK population has been on a steady growth due to natural change (Birth rate – Death rate) and Net Migration (Emigration – Immigration). Natural change' has been the main driver of growth for the last three years (2007-10), narrowly overtaking net migration, (the dominant factor for the previous nine years), in 2011 accounted for 52% of the population growth. The increase was driven by the baby boom as fertility rates reached their highest since mid 1990’s. Total fertility rate increased to 1.96 from 1.04 in the year 2004 and is predicted to reach as high as 2.14 by the year 2015. A dramatic fall in the Death rate means higher life expectancy of the UK population increasing from 71 in late 1990 to 80 years (78 years for a male and 82 years for a female). Age Distribution of the UK population
The UK census report of 2011 by ONS showed people joining the work force as...
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