Internal and External Factors
April 6, 2015
Internal and External Factors
Globalization, technology, innovation, diversity, and ethics are internal and external factors that could influence decision-making managers. Apple Inc. is a public traded company founded in 1976 by two college dropouts, Steve Jobs, and Steve Wozniak. They both started building computers out of a car garage and today Apple Inc. has come a long way since then, today Apple is a pioneer in the computer industry. In 1985, Steve Jobs resigned due to inability to respond to internal factors that would have affected his decisions (Pollack, 1985). After twelve years of been absent from Apple Inc., Steve Jobs returned and revolutionized the company responding to both internal and external factors to reinvent the Apple brand (Bajarin, 2010). Job’s used five factors to reestablish the company as the top technology and innovative company in the world. Steve realized that his company isolation from competitors, partners, and customers was not allowing Apple to succeed in the technology market, as he wanted. IMac’s lack of compatible software was not appealing to customers and sales were declining. Planning, organizing and leading were a major factor for Steve when decided the next big step, team up with his biggest rival Microsoft Corporation. This move helped Apple grow in a market controlled by other computer companies like IBM and HP. Management demands and decisions are always changing with globalization, technology, innovation, diversity, and ethics. Apple is a great example of a company that is always using the four functions in order to manage changes effectively. Globalization is the integration of national economies through trade, investment, capital flow, labor migration, and technology (Investing Answers, 2015). Apple has taken advantage of globalization to grow their business. Globalization is an external factor that needs to be analyzed and can help a company grow, but it also can have a negative impact. According to Britt D (2010) globalization creates opportunities to a bigger market, but it also creates more competitors. Apple’s annual report shows that international sales accounted for forty-three percent of the quarter revenues (Dowling, 2005), since then Apple revenues have kept on the rise. In a market pulse in December of 2014, Apple owned thirty-three percent of the market share in South Korean, previously dominated by Samsung. Apple is the world’s largest technology company, in the fourth quarter of 2014 Apple shipped 74.5 millions of IPhones globally. The report claims that it is the first time in history that any foreign company earns more than the twenty percent of the market share in South Korea (Rivera, 2015). Technology is always evolving, and Apple understands that. Apple knows that some internal factors could also affect them and they must continue with innovative technology and products. Some external factors that could affect Apple are competitors, pricing, and availability. Apple correct approach to both factors has helped them establish a reputation of technology leader. One of Apple’s biggest successes is Siri. Siri allows people to use their voice to send messages, place a phone call, set reminders, and answer questions. People can address Siri normally like they are talking to another person with complete sentences, and if Siri is confused she will ask to clarify the question. Siri can also speak eight other languages besides English and the voice gender can be changed for male. Apple has also developed ICloud, and it allows Apple users to share their music, pictures, contacts, and information with all of their Apple devices. Apple is also known for innovation. According to Boston Consulting Group, Apple ranks as the world’s most innovative company since 2005 (Adams, 2013). On today’s market products become outdated within the year, with consumers waiting for the...
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