Economic Factors That Affect Apple in China and Usa

3) What are the challenges that Apple faces in the future, and what are the implications for its supply chain?

This paper introduces six economic indicators that affect Apple Inc. and how they form part of the firm strategic plans and goals for the future of the firm. A definition this paper provides a definition of each economic indicator along with an explanation of how they affect the company’s domestic operations. In addition, the paper offers suggestions as of what the strategic response for each indicator should be.

I decided to do my international business case study on Apple and Canada. I chose Apple because they are phenomenal in the global business market and who better to look at then the company that pretty much wrote the book on emerging into foreign markets. I chose Canada because it was a country that is right next to America but completely is completely different. How does Apple, a technology company, not operate wrong and fail miserably in the Canadian market? I will explain how I believe they were able to be successful and still prosper to this day.

* So companies can increase company revenue and be able to dominate international markets in order to establish more stores and spread product around. A good example is McDonalds, they are everywhere. This helps the US because in revenue allows a company to keep its base in the US, increase the national gross product, drive consumer activity, keep jobs, and increase the export business, which goes along with jobs.

Economic factors – which include interest rates, economic growth, exchange rates, inflation and taxation changes (Nieman, G; 1998). The change the economy can have a major impact on the behaviour of the business. For example: inflation may cause a higher wage demand from employees (Herrigton, Kew & Kew; 2009).

There are various threats in the external environment that influences Apple. Rapid technological development and change is a problem, the company might be set aside by a competitor who invents a newer technology. Tax increases have also influenced Apple. Apple’s profits went down due to new taxes. Patent breaches pose a huge threat, competitors might imitate their technology and make profit on these features. Appreciation of the dollar, Apple’s profits in foreign countries are reduced due to strengthening the dollar. The growing popularity of Android, widespread use of this operating system makes Apple’s infrastructure less attractive for customers. Increasing labor costs in Asia, the protests of workers in Asia, especially Foxconn

Economic factors include the operation in tourism and hospitality industry. Such factors can influence the expenses and revenues of the organisation that are working in tourism and hospitality industry. The prices of raw material, inflation rate and product prices also impact the industry. Exchange rates and rate of interest greatly influences the industry. The financial recessions all around the world has led to reduce the purchasing power of the tourists and customers. Thus, therefore, the overall revenues generated from tourism and hospitality industry impacts the financial

We chose to research Apple Incorporated, one of the most innovative companies of our generation. It is safe to say that nearly every one in the US and many foreign countries have used or at least heard of Apple products. We will be looking at the macroeconomic variables that impact Apple’s business as well as how the current developments in the industry have impacted Apple’s financials and we will also look at how Apple competes with other firms in the same industry.

China's economic output for 2006 was $2.68 trillion USD. Its per capita GDP in 2006 was approximately US $2,000, still low by world standards (110th of 183 nations in 2005), but rising rapidly. As of 2005, 70 per cent of China's GDP is in the private sector. The smaller public sector is dominated by about 200 large state enterprises concentrated mostly in utilities, heavy industries, and energy resources.

Apple Inc. was founded in 1977. To date, this company has continually offered a wide range of products to meet the growing demands of customers all over the world. Apple not only produces and sells computer software and cellphones; they also distribute consumer electronic products around the globe. Increasing the value of shareholder and coming up with new inventive products is a constant process for Apple, and Apple continues to do so with their popularity around the world with about 301 store locations in 10 different countries. Aside from all of

was renamed Apple Inc. on January 9, 2007, to reflect its shifted focus towards consumer

Introduction The intention of presenting this report is to give a full strategic appraisal and evaluation of Apple Inc. In 1976, the company was founded in a garage in Santa Clara, California. The American multinational corporation mainly involves in designing and marketing consumer electronics, computer software and as well as personal computers. Differentiation is the current strategy position of Apple Inc. There are five main firms in the PC industry and among them; the world’s leading brand is Dell. Apple’s major target is to sustain their present strategic position and to take over the market position as a leader. The key stakeholders include Steve Jobs, employees, lenders and the government.

Factors that happen in the external environment are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. The main factor that affects most business is the degree of competition - how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are:

Suggested actions include operational ones for immediate actions and strategic ones for a longer period of time in the future so that Apple can still maintain its image in China market. Besides, these specific activities are also prioritized based on the urgency of each one.

Apple Inc. is the most revered corporation of the USA, both in terms of brand equity and market capitalization. The company’s international competitive strategy is focused on the innovative product development, which Apple controls through its eight business segments: Portables, Desktops, iPads, iPhones, Music related products and services, peripherals and hardware (Lam et al. 2005).