8/10/2019 gan 2.docx

1/7

8/10/2019 gan 2.docx

2/7

LCD and digital appliances. The results, production variety of product mix with lower cost tomeet the customer demand. Offering the market with variety or multi product segment, gaveSamsung the advantage to other competitors. Example, by providing the varieties of models and

product features, Samsung are able to tab to a larger market segment compare to Apple or Nokia.Centralization of R&D also gave Samsung the advantage to keep their intellectual propertywithin their boundary and mass produce at the same time.

Samsung is an aggressive market reader. They are the early adopters of new technology andinnovation, while their competitors still in R&D progress or even finding the market niche tocommercialize the products. Samsung has an aggressive learning curve, which them anadvantage and ability to read the market demand better than other competitors. As the result theyare able to produce customized products to meet the customer demand. Samsung stable andstrong financial portfolio, gave them the advantage to launch and adopt through aggressivemarketing campaign and promotion. Positions themselves before any competitor does byidentifying the customers need and demand to enhance their lifestyle. The information and datagathered, along with the close monitoring of the market trend, able Samsung to customize tocustomer need. Samsung have a large product portfolio, which cover broad market and at alllevel.

Samsung has been in the market since the 60s and has been well established. Acknowledgingand creating the competitive advantage ensure their dominant in the industries. The fact that theyare in the top 5 in smart phone vendor and shipment for 3rd quarter 2012, with 31.3% marketshare, proofed that they are the major player in the industry.

Economic FactorsThe economy of a country has some factors that can influence in purchasing decisions of endconsumers and in turn the cost of capital of a company.Therefore the company has to consider thefollowing aspects for decision making:

Inflation Iinterest rates Economic growth Market and trade cycles Global econimies and trends

Apple's operations and performance depend on worldwide economic conditions. Also, uncertaintyabout current global economic conditions, unemployment, and negative financial news could have anegative effect on demand for the company's products and services. This means that, in the globalmarkets such as, personal computers, mobile communication devices, digital music and videodevices, and related peripherals and services are highly competitive and subject to rapidtechnological change. Also with the global economic conditions, the stock price of the companycould be affected.

8/10/2019 gan 2.docx

3/7

The global economic crisis had huge impact on Apple Inc. The inflation rate went high and so did theunemployment rate in the country, and since Apple Inc products were viewed as luxury products, thecustomers started pending less on them. US dollar value keeps fluctuating, and thus again whichhave a bad impact on Apple Inc products, however the company has purchased itself foreigncurrencies and thus, the economic effects on the company are minimized. Thus, Apple Inc revenuehas increased in the global market (Apple Inc 2012).

Weaknesses of Apple Inc UK:High Price: Apples products are higher in price, even though many of consumers want to use

Apples product but they cannot afford to buy one. Apples competitors have advantage of them theyintroduce and sell their product cheaper in price than Apples. T he recent innovation of Apple is iPadwhich cost minimum of 600 as of the same product launch by Samsung which cost 200, so Apple

loses its customers keeping its high prices.

Weak Relationship: Apple relationship with Microsoft and Intel is not strong as it should bepreviously Microsoft products were not useable with Apple product recently they started working withMicrosoft but till now they are not successful to make a strong relation with Microsoft. IBM used to bethe chip supplier to Apple but they moved to Intel in recent times which could cause confusion to

Apples user.

Weak Presence in Business Area: Apple have only 29 retail store operating in United Kingdom, Apple depend on other retailers e.g. Argos, Currys, PC World and different mobile networks to sellits products e.g. music players, mobile phones, personal computers. Apple does have online store

but still there are many consumer they do not preferred to use online store. When Apple launched itsiPhone it was available to consumers on the purchase of one specific mobile network.

The Product Life Cycle: The Apples product life cycle is very small so the revenue is mostlydepending on its new product or service. Apples products are not consistent if we talk about ApplesiPhone, since the iPhone introduces in 2006 till now there are four different types of iPhone beenintroduce it is same as Apples all product and Apples revenue more depend on its new product.

Less Attraction towards Corporate Customers: Apple products do not attract corporate customerse.g. Apples computers are not in use within organisation or Apple iPhone is not famous amongbusiness people as dell computers has it placed within corporate and blackberry phones has it place

in business people.Technological Complications: A pples mostly face problems with its software and hardware, therecent problem with Apples new product was iPhone network signal problems and data sharingproblem with Apples product e.g. consumer do not share their files with other non Apple products.

Above are the few weaknesses of Apples product which affects its profitability and within UnitedKingdom Apple launched its product far later than United States in mean time its competitor areready to launch its product same as Apple.

8/10/2019 gan 2.docx

4/7

Carroll Model

Apple has been committed to the highest standards of social responsibility across itsworldwide supply chain. It has been insist all of its suppliers provide safe workingconditions, treat workers with dignity and respect, and moreover use environmentally

responsible manufacturing processes. We terminate our relationship with those supplierswhich don t respect the code or they refuse to take corrective actions based on audits("Apple supplier code," 2012). To respect labor and human right. Apple s suppliers mustuphold the rights of their workers. Apple does not tolerate involuntary labor, underage labor,excessive work hours, or discrimination. And as a member of the Fair Labor Association,Apple is setting a new standard in its industry for transparency and oversight. Moreover,Apple s suppliers must create a safe and healthy work environment for their workers. Safetyequipment, proper ventilation, and emergency procedures are just the beginning. On theother hand, Apple s suppliers must use environmentally sound processes, includingmanaging hazardous substances, treating wastewater, and limiting air emissions. It s all partof a commitment that starts with product design and continues through manufacturing and

beyond. Lastly, the most important part for Apple is fostering and enforcing ethical practices.Apple has established ethics training programs for managers that cover proper recruitmentof foreign workers, record-keeping and documentation of business practices, worker IDchecks and age verification, tracking of working hours, and general managementresponsibilities. Apple-designed training programs have educated more than one millionsupply chain employees about their rights as workers, local laws and occupational healthand safety (Apple, 2012).

Apples Company ethical issuesThere were find out the Apples company have several ethical issues such as chemical relatedhealth problems, bribery, enrol document issues, using fault IDs, and employ underage workers. Allthese are seriously impact the stakeholders and shareholders.

Issues of chemical related healthThe issues of chemical related health problems were seriously impact the employees health. ApplesCompany use any hazardous substance by replacing it with a substances that fall above its normalconditions of use, is not only dangerous affected employees but also others stakeholders will beseriously impact. Some of chemicals can cause damage to the reproductive system of employees,leading to cancers, infertility. For women, it will cause menstrual disorders and damage to offspring.

Manager of Apples Company might also get impact by the chemical issues. Their healths also getaffected by hazardous, and managers feel guilty because their employees were under insecureconditions. They feel the burden to bared this issues.

Over use of chemical in the products will cause lots of issues for customers. Different ages ofcustomers may have different health issues. Children are most at risk due to they dont clear with the

8/10/2019 gan 2.docx

5/7

safety. Chemical affected children were common issues. Adult healths get affected likes causingfatigue, death of cell issues and get poisons.

Besides that, due to the Apply Company over use chemical in the products cause lots of healthissues and many of them were seriously impact. Shareholders also were get impact by diminished

their value when Apples Company failure to appropriately account fot toxicity and health criteria.These issues can impact a company financial health. Those risks that can impact company financialwell being due to failing to take into toxicity and health factors in business assessments.Shareholders not only lost the funds, in the same times they force to give out money to respond tothe injury claims for health issues. Moreover, shareholders worried the products get ban because theproducts chemical already excess the standards. They tend to worries lost of sales.

Bribery issuesBribery issues occur in the company will cause employees to feel insecure to continue stay with theorganization. This is because the company doesnt have well management causing bribery occur inthe company. Employees feel the organization dishonesty and they tend to leave as soon aspossible. Managers also get impact by bribery issues. Due to mishandle the organization, causebribery activity get introduce from somewhere. This is a serious issues for manager, due to they failsto perform better in company. Manager stressed by this issues and this cause them to feel burden.

Customers notify these issue and they tend to get rejected and run away from the company. This isbecause they feel the company is dishonest and irresponsible to their ethical issues. They will findothers better company. Automatically, attitudes of customers and also bribery issues occur madeshareholders tend to worries. Their emotions get affected by these issues because they have givingout funds to this company. Once bribery issues d idnt settle well, affected shareholders losteverything from the above company. They started to feel loss confident and tend to withdrawal thefunds and leave the company.

Employ underage workers issuesThis is the major issues for Apples Company. One of the serious impact of stakeholders isemployees. There are feel their position is insecure. This is because company employ large amountof underage workers with save large amount of cost, they tend to worry those underage workersmight replace them. Besides that, their benefits also force to share with underage employees, thiscauses the violence conflicts in internal organization. Employees feel unhappy and unsatisfied withthe offer of company. Unfair treatment of the company forces them to leave the company.

Manager also facing this issue, due to their overlook of the company employees causing theunderage workers issues affected the company. Managers will feel stressed to protect the reputationof the organization because the company already employ large amount of underage workers. Theyfeel hard to take the responsibility in the company, cause them choose to leave the company.

8/10/2019 gan 2.docx

6/7

These issues were less impact for customers. But nowadays, customers are intelligent and beforemake purchase; they will make the company research. Although this issues doesnt impact themvery well, but customer will not prefer with the above company. This is due to the company is havingan ethical issues; cause them to change their mind set. They prefer to choose others companyrather than an issues Company.

Shareholders also get serious impact on this issue. Once customers do not prefer with theircompany product, automatically the production of sales will drops. This can make shareholders tofeel nervous. They already lost confident and tend to withdrawal the funds and leave the company.

The issues of modern indentured servitude Apple audit revealed a system in which their workers have to pay recruitment fees that boned themto modern indentured servitude. These cause them to pay out lots of recruitment fees and force

them to work with Apple Company. This issues is related with human right violations. Employees willfeel reluctant to work with the organization, but they have no choice. These impact them to injurethemselves such as suicide.

Manager of the company they also get affected due to they overlook the reactions of an employees.Besides that, customer will feel the company is like a devil, so that rejected continue to co-operatewith them. They can see the company is dishonest and insecure.

Shareholders also get to affected by this issues. From the first time of invest the funds to thiscompany objectives is to earn back more than the current amount of funds. But now, this issues hasbeen so serious, they lost confident to the company and tend to stop invest the funds.

Legal ServicesIn an environment of continuous change and innovation, it is impossible that aim to produceimproved and developed products and services, Apple will suffer patent and copyright breachclaims. The dispute over the Apple logo on its iTunes Music Store, for example, continues despite apreviously reached settlement with Beatles' Apple Corps Ltd. in 1991. (Dow Jones Newswires) Whilesuch litigation as Microsoft's Windows infringement on Mac OS patents has been highly publicized,

use of legal guidance to drive acquisition versus internal development strategies for such productsas GarageBand and iMusic have proven highly valuable. (Linzmayer, 172-4, 250) Intellectualproperty is sacred to Apple. There was a recent attempt to uncover the identities of internal "sourceswho leaked confidential information about an unreleased product to online media outlets in 2004."(Wong)

8/10/2019 gan 2.docx

7/7