Political Economic Social and Technological factor PEST are four general

Political economic social and technological factor

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Political, Economic, Social, and Technological factor (PEST) are four general environment factors that place a big role in a company’s decision-making process. By undergoing general environmental factors analysis of PEST Apple Inc. we will easily handle many assumptions and will also adapt quickly and effectively to the change of external conditions. It will also help Apple to understand their business performance. After understanding their business process their business will be more effective, efficient and developed. Therefore, we will explain these four general environment factors that placed an impact on Apple Inc. business process and also how they handle problems that comes out from these PEST factors. 1. Political factor analysis Political factor gives a heavy influence to Apple Inc. decision-making process as they have established many companies all over the world. However, Apple Inc. could not control the political factor. Since 2007 until 2009 it is reported that more than a half of sales of their products comes from countries other than America. To reduce their operating cost Apple also spread their product manufacturing to different companies outside America. Cork, Ireland, Korea, China and Czech Republic are some of the other states where Apple
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placed their company. Bad international relations, wars, terrorism, and public health issues between U.S. and these states might give a negative impact that may damage the Apple Inc. reputation as well as their business process. For example, when there is political instability between US to states where Apple operates their business, a business delay could be occurring and as a result the image of Apple Inc. could become bad to its customers and retailers. According to that information we can see that political relationship between U.S. and other states where Apple Inc. placed will be very important as it affects the Apple Inc. decision-making process. 2. Economic factor analysis World economic condition is also becoming one of the factors that influence Apple Inc. business process as this company is recognized internationally. Inflation, recession and currency are three important economic factors that Apple noticed. For example, 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. As Apple Inc. already go international the U.S. bad economy condition, which take a longer time to recover compare with other country will not be a problem anymore. 3. Social factor analysis Globalization, Virtual World, and Lifestyle are a social factor that gives a huge impact to Apple Inc. business development.
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