Macroeconomic Events

396 words | 2 page(s)

Have other macroeconomic events impacted the economy and/or your selected organization? If so, explain.
Apple has determined an extensive list of risk factors that significantly impacts it business operations. A substantial part of the list is comprised of factors of macroeconomic nature. In fact, the company itself is seriously considering the instability in global economy as a scenario that can bring the whole corporation down. They take a close look at scenarios connected to “financial market volatility”, “the continuing sovereign debt crisis”, and rapid changes in fuel costs. The management fears an especially imminent threat from credit markets which can potentially negatively affect the Apple’s supply chain. (Carlson, 2012)

In the very recent past, Apple experienced lower revenues in Europe in connection to the economic crisis in Eurozone. The appalling macroeconomic situation on such markets as Greece, Italy, and France has led to falling consumer demand for iPhone and iPad devices. Eventually, the negative sales experience due to macroeconomic factors induced the company to adjust its strategy for launching new products in Europe. (Lunden, 2012)
India has been one of the fastest-growing markets for Apple. The rapid broadening of target audiences and, therefore, an increased demand, occurred largely in connection with the economic situation in South Asia. India, in particular, has gone through the process of acquiring a significant middle class and, consequently, the new tech-crazy culture. It appears that Apple has used the economic development in India to its own benefit in a very successful way. (Lunden, 2012)

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Macroeconomic factors do not carry advantages but can also be a source of noteworthy risks. This is especially the case with China. Apple focuses on outsourcing both its manufacturing and logistical services, which are almost exclusively dependent on East Asia. As a result, China, having unresolved structural political and military problems, can potentially disrupt the whole system of production and distribution for the California-based corporation. (Carlson, 2012)

All things considered, macroeconomic events have a strong impact on Apple’s operations, sales, and strategies. Being a global company, it cannot ignore economic situation in any major region of the world.

    References
  • Carlson, N. (2012). Apple Carefully Explains Exactly How It Could Be Destroyed. Business Insider. Retrieved 17 April 2016, from http://www.businessinsider.com/apple-carefully-explains-exactly-how-it-could-be-destroyed-2012-11
  • Lunden, I. (2012). Apple’s Feeling Europe’s Economic Crisis: ‘Essentially Flat’ Sales And A ‘Slowdown’ In Business, Says Cook. TechCrunch. Retrieved 17 April 2016, from http://techcrunch.com/2012/07/24/apples-feeling-europes-economic-crisis-essentially-flat-revenues/

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