A firm and its management are affected by many factors present in its environment and this because a business can not operate in vacuum. The factors existing in a business’ environment are beyond control by a firm and the factors affects how a business operates and performs in the market (Li, 2008). Other macro environmental factors besides economic that affect business performance include political factors, social, demographic or ecological, and technology. The economy is an important factor affecting businesses since it determines level of profitability a business can receive from operations. In recent period the economy can has been characterized by recession and increasing inflation levels. These two issues have had significant effect on businesses in terms of strategies, costs and profits.
The recession has had significant impact within the country and across the world and has had mainly negative effect on businesses. In order for businesses to make profits their must exist demand for their products but the recession affected the demand for products thus business had to change their business processes. One trend exhibited by businesses to recent economic condition is price wars. The prevailing economic conditions have led to consumers spending and demanding fewer products which in turn results in reduced sales for businesses (Li, 2008). Businesses are involved in price wars in an attempt to attract customers and maintain their sales levels. Since the economy has resulted in reduced demand for products it means that Apple will have reduced sales. Other effect of recession on business includes increased risks and also businesses looking into new methods to cut down on c...
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...e it has strengths major strengths that include a strong brand known for innovation and quality. The company has also developed strategies to guard against internal and external changes thus ensuring stability in performance.
Li, B. (2008). An Investment Analysis of Apple: Case Study. Associated Content From Yahoo. Retrieved On October 6, 2011 from Http://Www.Associatedcontent.Com/Article/1170502/An_Investment_Analysis_Of_Apple_Inc_Pg16.Html?Cat=3
Lliev, V., Lindinger, A. & Poettler, G. (2004). Apple Computer Inc. Strategic Audit. Retrieved On October 6, 2011 from Http://Www.Andreaslindinger.Net/Downloads/Strategicmgmts-Lindingeretal.Pdf
Rogers, J. (2008). Apple’s Not Letting Economy Get It Down. Technology Update. The Street. Retrieved On October 6, 2011 from Http://Www.Thestreet.Com/Story/10443376/1/Apples-Not-Letting-Economy-Get-It-Down.Html
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