Apple’s External Environment
External environment is the environment or surroundings outside of the company such as economic component, demographic component, technological component, sociocultural component, political/legal component, and global component (Chapter 2, Management Environment, slide 5). As for Apple, they have their own factors which is P.E.S.T. (Political, Economic, Social, and Technological) factors that affect them to make a decision-making process. These are the explanation about PEST : 1. Political Factor
Political factor is a factor by looking at federal, state, and local laws, as well as other countries’ laws and global laws, include a country’s political conditions and stability (Chp. 2 Management Environment, slide 5). Since 2007 until 2009 it is accounted for that more than a 50% of offers of their items originates from nations other than America. To decrease their working expense Apple likewise spread their item assembling to diverse organizations outside America. Cork, Ireland, Korea, China and Czech Republic are a percentage of alternate states where Apple put their organization. Awful universal relations, wars, terrorism, and general wellbeing issues between U.S. also, these states may give a negative effect that may harm the Apple Inc. notoriety and additionally their business process. Just like when there is political precariousness between to states where Apple works their business, a business postponement could be happen and subsequently the picture of Apple Inc. could turn out to be terrible to its clients and retailers. (Management of Apple Inc., P.E.S.T Factors, Political Factor Analysis). 2. Economic Factor
Economic factor is factor such as interest rates, inflation, changes in disposable income, stock market fluctuations, and business cycle stages (Chp. 2 Management Environment, Slide 5). During inflation period in the U.S. the purchasing power of all the people will decrease and sales of Apple’s product in U.S. will also decrease. As U.S. dollar has lost in value, to minimize the effect of inflation Apple Corporation has purchased itself foreign currency. By doing so the revenue of their product in international market will increase (Management of Apple Inc., P.E.S.T Factors, Economic Factor Analysis). 3. Social Factor
Globalization, Virtual World, and Way of life are a social component that gives a big effect to Apple Inc. business improvement. The virtual world that we can access to these days innovation is utilized by Apple as a major business opportunity by creating numerous virtual media. Apple created a technology based on trend and they also includes so many virtual media. This make the notoriety of apple goes up, since they product were used as a lifestyle now (Management of Apple Inc., P.E.S.T Factors, Social Factor Analysis). 4. Technological Factor
Technological factor is a factor which concentrate on scientific and industrial innovations (Chp. 2 Management Environment, slide 5). As the technology’s market become wider that make Apple has a lot of competitors. However, technology has a short lifetime. That is the reason Apple needs to update their item all the more regularly so they will exceed their rivals effectively. This factor help Apple to arrange their new objectives to contend with their rivals (Management of Apple Inc., P.E.S.T Factors, Technological Factor Analysis).

References :
https://sites.google.com/site/managementofapple/pestfactors