Topics: Apple Inc., Steve Jobs, IPhone Pages: 6 (1232 words) Published: July 23, 2014

Internal and External Factors of Apple Company
July 9, 2014

Internal and External Factors of Apple Company
Apple is a brand known throughout the world because of the company’s reputation to be able to handle the continual modifications of internal and external factors within the marketplace. Planning, organizing, leading and controlling, which are the four functions of management, can be greatly influenced by internal and external factors. Some things that internal factors may include may be a company’s reputation, their image, the structure of the company and how they operate. External factors may refer to anything that is outside the control of the company, such as government regulations, competition and lending conditions. Some of Apple’s internal factors are functions that they have complete control over, such as organizing, leading and planning. Apple’s external factors would influence controlling, which consists of learning and changing with the competition within the constantly changing market. Internal and external factors, within the Apple company, can influence diversity, ethics and innovation. Apple has remained a globally respected company that displays its remarkable flexibility due to the continuing production of consumer needed products. In 1976, Steve Jobs and Steve Wozniak established Apple Inc., formerly Apple Computer, Inc. In the midst of the planning process, which is the first phase of management, Jobs and Wozniak designed the Apple I, a personal computer that was sold for a little under $700. For over twenty years, Apple primarily manufactured PC’s with their own integrated software known as Macintosh, which was marketed as “Mac”. During the 1990’s, Apple experienced a drought of low sales and market share, primarily because of various external factors. The principal factor that caused all of this was the market dominance of Microsoft Windows founder, Bill Gates, and his line of computer software. In order to widen their target market, Apple decided to modify their philosophy by reformatting the creation of their products into more designs that were simpler and easier to use. As a result, Apple had to return to the planning process once again in order to completely transform their objective, while implementing any new ideas. In 2001, Apple introduced the public to their first line of MP3 players, called iPods, which instantly became a huge success, which helped the company attain record high profits and market shares (Linzmayer, 2006). Thanks to Apple’s innovative designs and products, such as the iPhone and iPad, Apple exceeded Microsoft as the most valuable technology company in the world in 2010. (Helft & Vance, 2010) Over the last five years, Apple has sold over 365 million digital devices, and at this time is averaging nearly four billion dollars in monthly profit (Gustin, April). Overall, Apple has accumulated about $110 billion dollars. Innovation is defined as the introduction of new goods and services (Bateman, 2011). Steve Jobs insisted that it was important to find needs that consumers did not even know they had (Gustin, April). For example, before iPods and iTunes were developed, Americans were content with just using a Sony Walkman mobile analog tape deck (Gustin, April). As a result, once Apple came out with the iPods and iTunes, it radically change the music industry and the way people use their music players (Gustin, April). The Motorola Razor flip-phones were popular until Apple came out with the iPhone (Gustin, April). The iPhone first introduced people to the Smartphone device, and how it was advantageous for businesses, or for daily use (Gustin, April). The iPhone’s main two benefits and key selling points were its accessibility to checking e-mails and browsing the internet (Gustin, April). Finally, the iPad eventually became a new PC product line to the popular market; having an iPad reshapes centuries-old traditions of paper-based reading (Gustin, April)....

References: Bateman, T. (2011). Management: Leading and collaborating in a competitive world (9th Ed.).
N/A: McGraw-Hill.
Gustin, S. (April 25, 2012) Why Apple is winning: Innovation, Opportunity, and Execution.
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