Description
I chose Apple Inc.
Purpose of Assignment
This week students will review and revise their Week 3 Research Analysis for Business Signature Assignment based on economic analysis and the feedback provided by their facilitator. Students will also expand their Week 3 analyses to evaluate the challenges of expanding their chosen company's production to a foreign market.
About Your Signature Assignment
This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignments might be graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements.
Assignment Steps
Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.
Revise your Week 3 assignment, Research Analysis for Business, using the feedback provided by your facilitator. This Week 6 report should only include one conclusion, so you will need to rewrite the conclusion you included in your Week 3 assignment, Research Analysis for Business.
Select a foreign market in which to expand your chosen product. If you wish, you may use one of the countries your team analyzed in their Week 5 Comparative and Absolute Advantage Assignment.
Prepare a minimum1,750-word report addressing the points listed below. The use of tables and/or charts to display economic data over the time period discussed is highly encouraged, you may submit any economic data in Microsoft® Excel® format in a separate file. You may use the U.S. Department of Labor's Bureau of Labor Statistics (BLS), U.S. Dept. of Commerce's Bureau of Economic Analysis (BEA), the Federal Reserve of St. Louis's FRED data, the CIA World Fact Book, World Bank data, and World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library. The new sections of your report should:
- Evaluate current global economic conditions and their effects on macroeconomic indicators in your selected country. Provide forecasts for population growth, gross domestic product (GDP) growth, GDP per capita growth, export growth, and sales growth.
- Evaluate any competitors' existing production in the chosen country.
- Assess sales forecasts in the selected country by using the Federal Reserve of St. Louis's FRED data, the CIA World Fact Book, World Bank data, World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library.
- Categorize the type of economy that exists in your selected country as closed, mixed, or market. What is the difference between these types of economies and how might this affect your expansion?
- Assess how your chosen country's current credit market conditions, especially interest rates and the availability of financing, affect demand for your product or service and your planning or operating decision for your production in that country.
- Analyze the role of the selected country's central bank on that country's economy.
- Compare the availability, education, and job skills of the work force in the selected country. Discuss any additional challenges of international production, such as political stability, availability of government financing or other incentives, threat of capital controls, and exchange rate risks.
- Explain any additional supply chain challenges you anticipate if attempting to make your product in your chosen country and selling the product in other countries.
- Based on the data gathered and analysis performed for this report write a conclusion in which you:
- Create business strategies, including price and non-price strategies, based on your market structure to ensure the market share and potential market expansions and explore global opportunities for your business in a dynamic business environment and provide recommendations.
- Develop a recommendation for how the firm can manage its future production by synthesizing the macroeconomic and microeconomic data presented.
- Propose how the firm's position within the market and among its competitors will allow it to take your recommended action.
- Recommend strategies for the firm to sustain its success going forward by evaluating the findings from demand trends, price elasticity, current stage of the business cycle, and government.
- Recommend any comparative advantages your company will have over competitors currently operating in that country, and defend your position, either for or against, expanding your company's production into your chosen country based on your research.
Integrate with the Week 3 Individual Assignment, and incorporate corrections and suggestions from the instructor's feedback. The final report should be a minimum of 2,800 words.
Cite a minimum of three peer reviewed sources not including the textbook.
Include all peer-reviewed references and government economic data sources/references from Week 3.
Format your assignment consistent with APA guidelines.
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Research Analysis for Apple Inc.
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Research Analysis for Apple Inc
Andrew Littlefield
ECO/561
University of Phoenix
Research Analysis for Apple Inc.
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Introduction
Apple Inc. is a global US company that manufactures and markets large consumer electronics
products such as mobile phones and personal computers. The main product line of Apple
products includes a range of Macintosh computers as well as iPhones, iPods and iPods. In 2010,
Apple managed approximately 460 stores in 10 countries. Apple was founded in April 1976 by
its co-founders Steve Jobs and Steve Wooniak in California. Initially, the company was called
Apple Computer Inc. in the first 30 years, and then around 2007, the word "computer" was
deleted.
Current Global Economic Conditions
The global economy is at a crossroads, with the courage, wisdom and responsibility that the
world desperately needs, setting a clear direction and a path for sustainable economic growth.
The Chinese economy is undergoing an unprecedented and profound transformation. The
concept of “innovation, coordination, green, openness, sharing” “innovation, coordination, green,
openness and sharing” is not only providing solutions to the current economic problems in
China, but also clearly indicating the direction of long-term development. The structural reforms
in the supply sector have triggered new development momentum and improved the quality and
effectiveness of national economic development. Intensify efforts to innovate to promote deeper
and broader reforms, administrative procedures and powers, and simplification of delegations of
lower government governments, in addition to development, the rule of law and the fight against
corruption. They help to establish a management system that guarantees a healthy and balanced
development of the Chinese economy.
Gross Domestic Product
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The unique results have led to fundamental changes in China's global economy. When China
introduced its economic reform plan in 1979, the world's most populous population was barely
registered on the scale of the global economy, accounting for only 1.8% of the current US gross
domestic product. Currently, it is the second largest economy in the world, accounting for 9.3%
of global GDP.
From 1979 to 2009, China's exports grew by 16% annually. At the beginning of this period,
Chinese exports accounted for only 0.8% of world exports of goods and services, rather than
exports of goods and services. Today, China is the world's largest exporter of goods, with a 9.6%
share of the global market, and 8.4% of goods and services have nothing to do with it.
Export Growth
Research Analysis for Apple Inc.
4
GDP Per Capita
In 1980, China remained a low-income country. In fact, per capita income (measured by
purchasing power parity or purchasing power parity) is only 30% of the average for sub-Saharan
African countries. Per capita income of $7,500 (at current purchasing power parity of $4,400) is
more than three times that of sub-Saharan Africa, and China has a good position as a middleincome country.
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China’s population Growth
The graph shows the growth of China's population in 2006-2017. In 2017, the annual growth rate
of China's population is about 0.6%. Due to the strict contraceptive measures of the Chinese
government and the changing situation of Chinese families and manpower, population growth
has declined in the past decade. With an annual population growth rate of less than 0.5%, China's
population growth is one of the lowest in the world. In 2014, the major developing countries
were almost exclusively in the Arabian Peninsula and Africa. In mid-2012, Asia ranked first
among other continents in terms of population. According to the latest forecast of the IMF, the
Chinese population will gradually change in 2019. If we consider the absolute number of births
in China, we can see that the total population has increased by about 16 million in 2012 and
nearly a quarter in Germany. Due to the explosive growth of the Great Leap Forward and the
Cultural Revolution, China won the world in 2012 and then India. In addition to the virtual
stagnation of population growth, Chinese cities have also shown a clear upward trend. In 2012,
more than 52% of Chinese lived in cities, compared with less than 40% a decade ago. In
addition, the average age of the population has increased significantly over the past decade. It is
expected that in the past 50 years, there has been a significant imbalance in the distribution of
Research Analysis for Apple Inc.
ages in China from about 46 to 2050.
China Sales Growth
The statistics show that sales of Chinese branded smartphones in 2011 were in line with 2015
forecasts. In 2011, China Lenovo sold approximately 1.7 million smartphones in China.
6
Research Analysis for Apple Inc.
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Samsung and Apple's smartphones should be more expensive brands sold in China, with a total
of 650,000 and 360,000. In 2015, Samsung Mobile contributed 24.5% of the smartphone market,
global market share. From 2014 onwards Apple's mobile phones have begun to surpass Samsung
in the high-end market, with local distributors and brands predominating in the low-end market.
However, about 72.8 percent of the market is in the hands of the Android operating system,
while Apple iOS currently has about 25.4% of the smartphone market in China. In China,
smartphones account for about 85.7% of mobile phone sales. In 2013, the total number of
Chinese smartphone users tends to be on mobile phones with larger screens, but mobile phones
are also very important. Consumers with lower costs have also changed the profits of Apple. The
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share of smartphone users in China increased by 26.3% to 51.6% of the 2012 population in 2018.
However, ownership of projection smartphones is often lost in the huge growth of the Chinese
smartphone market. The Indian market is expected to be the next fastest growing market in the
world and is expected to surpass the US market within a few years. The number of smartphone
users in India is expected to increase from 470 million users in 2012 to 730,700,000 users in
2017.
Current Competition
In the Chinese market, Apple and Samsung have declined in all areas, while Huawei, OPPO and
Meizu have significantly expanded their market share. This market is mainly caused by the
beatings of Huawei, OPPO, Meizu and Apple. The domain name is as follows.
Meizu
Although the iPhone 7 will not be a significant improvement in terms of functionality, and
significant changes abroad, where users want and support the iPhone 7, this will be a huge
success for Apple fans. He didn't even succeed. We compared the iPhone 6S and 6S more than
the iPhone 7, 7 Plus does not provide significant improvements - just a new color jet
Black.Huawei, Xiaomi, Meizu and other Chinese mobile phone manufacturers produce about 10
new mobile phones each year, some of them Significant improvement. Meizu organizes a trip
almost every month. It may not always be a model heavyweight, but it always brings something
new. They always invite different stars to participate in their launch event and help the audience
feel bored. During the Meilan event, Meizu invited Wang Nima, the editor of the popular
comedy "including Man Hua". When we released a new model for a year and had a number of
Research Analysis for Apple Inc.
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improvements below the company's new model to launch 10 new cars, it is easy to explain why
Apple's performance in China is getting worse every year.
Huawei and Xiaomi
Compared to the latest generation of iPhones, the dual camera of the new iPhone 7 Plus is a
major advancement. However, from the user's point of view, it is no longer new. In 2014, when
HTC became interested in two cameras, Huawei was behind them. The model team is equipped
with dual cameras. Huawei and P9 Pro Red Mi mobile phones have two cameras, and many
other two newest smartphones: G5 LG, ZTE AXON 7 Dodge Cool 360 and N4. Of course, the
iPhone has always had a significantly better performance with the camera and iPhone 7 plus
offer. Excellent performance compared to the iPhone 6S plus. For this reason, the Huawei
mobile phone released in 2014, the main reason for the dual camera is the company in crisis.
Three years of Xiaomi NFC understanding ability Xiaomi 3 experienced the same crisis: Fear
that "the competitors may launch the first batch of Apple's payment for Apple's salary, Huawei
and Xiaomi immediately pay for Huawe and MIPay because I want to respond to the passive not
only imprisonment using two cameras and NFC. When fingerprint recognition is red, small
Honey, afraid to be left behind, released its first mobile fingerprint recognition in November last
year.
OPPO Brand
OPPO's slogan is "charge the phone for five minutes, talk for two hours", stuck in the middle and
broadcast in Chinese cities. OPPO uses this column to send information about the depth of your
product. In the second quarter, smartphone sales worldwide, IDC showed that OPPO ranked
Research Analysis for Apple Inc.
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fourth in the world of Samsungami, Apple and Huawei, sales increased by 136.6% in the second
quarter to 226,000 mobile phones. In addition to OPPO, Samsung, Huawei, Xiaomi and other
manufacturers, their products pay, the latest Moto with Lenovo and the bank announced that
"using a mobile phone for six hours after charging for 15 minutes." When Chen Xudong, Lenovo
Group Senior Vice President and Lenovo Mobile Senior Vice President, I want to know how
different OPPO can "charge the phone for five minutes and talk for two hours." Che Xudong
admitted that OPPO understands the psychology of consumers. Ordinary consumers do not
distinguish between "speak" and "use." Compared to OPPO, the iPhone 7 charges are
disappointing. (It doesn't support fast loading.) Today, strong competition means that all phones
have the same level of quality. Therefore, manufacturers must include new flagship products to
attract customers. Leading smartphone manufacturers are loading quickly, and Apple can't even
keep up.
Sales Forecast Assessment
Despite the recent economic downturn, China remains an important market for Apple, as shown
in our chart. According to UBS estimates, according to data from Gartner, Apple sold 58 million
iPhones in China last year, making it the second largest source of revenue in Apple's pocket.
UBS expects that Apple will see a further decline in China in 2017, but consumers are expected
to be positive again in the long run. Delivered to China, the world's largest smartphone market
fell 4% year-on-year, compared with 4.59 million units in the same period last year. Market
research firm IDC predicts a 4.9% decline last year, and predicts 2% this year, other losses,
Chinese consumers have seen a "slight" change in phone technology in 2017, IDC said in a
statement, April 6th. Most ended in February 2016, replacing the warm features of smartphone
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features such as larger screens, fingerprint readers and new camera features. Ple's sales also limit
high prices.
In the last quarter, Apple saw two big companies from China, but the largest company still leads.
iPhone sales in Greater China (including mainland China and Hong Kong and Taiwan) exceeded
sales in the United States. UU. Because the total income of the region exceeds that of Europe.
Apple CEO Tim Cook predicted that China will become Apple's largest global market in 2013,
and it seems that it is not too far away. Ben Bajarin, an analyst at Creative Strategies, said that in
the second quarter, Chinese Apple’s revenue next year may exceed US revenue."This is
definitely in sight," he said. “The things they do in China are unprecedented.” Currently, China is
29% of Apple’s total sales, compared with 37% in the Americas. China’s revenue increased from
71% in the three months to March to the same period last year, reaching a peak of US$16.8
billion, while the growth rate in the Americas was 19%. iPhone sales in China increased by 72%,
and the smartphone market is estimated to be 5%. “Everything you see in China is very good,”
Cook said on Monday. “I have never seen so many people entering the middle class, which is the
Research Analysis for Apple Inc.
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bulk of our sales.” Given the difficulties faced by other Western technology companies in the
country, Apple’s success in China is surprising. Jack Dawson said: "Apple is only adapting to
China's growing middle class and attracting non-Chinese and Western products, especially those
with luxury brands." "Apple is the only technology and luxury market. Combined technology
companies, which are especially useful for monitoring
Type of Economy
China is a managed economy, but now it is a mixed economy. The Chinese central government
controls the economic sector, directly controls large state-owned enterprises, and controls the
regulations and policies of the smaller private sector. The Chinese government has an impact on
how companies operate in the US and overseas.. Unless they break the law, the company can do
almost anything they want to do. Therefore, the Chinese economy may be more stable towards
the new long march of the mixed economy. This process will be slow and controversial, but due
to the new rules, the game will be different. It is unlikely to sell large amounts of state capital,
but we should expect competition between state-owned and non-state-owned enterprises to be
more transparent and fair. The main topic of the fourth plenary meeting was “law”. This is the
most important issue for the long-term stability of the Chinese economy.
Numerous economic systems are the most traditional and oldest economies in the
world: the vast world continues to function as part of the traditional economy. These areas are
usually rural, second or third, and environmentally friendly. In general, surpluses will be rare in
this economy. Every member of the traditional economy plays a more specific and clearer role.
These societies are very united and socially satisfied. They cannot get advanced technology and
medicine.
Research Analysis for Apple Inc.
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In the economic command system, most economic systems are controlled by
centralized authorities. For example, in the Soviet Union, most decisions were made by the
central government. This economy is at the heart of communist philosophy. The basic
characteristic of the economy is that it often involves everything from planning to redistributing
resources. A managed economy can create a healthy supply of resources and reward employees
at an affordable price. The government usually owns all major industries such as utilities,
aviation and railways. In a managed economy, the government can theoretically create enough
jobs and provide goods and services at reasonable prices. Focusing on the most valuable
resources, such as oil, it is difficult for central planners to meet the needs of everyone. This
forces the government to quantify because the demand cannot be calculated because it sets the
price. There is no innovation because there is no need to take risks. Employees are also forced to
find jobs that the government deems appropriate.
In a free market economy, businesses and families take action and their own interests to
determine how to get resource allocation, products they produce, and what they buy. This is the
way the economy is managed, and the central government keeps its interests in the opposite
direction. There is no government intervention in the pure market economy ("Let's do it").
However, the market economy has no real freedom in the world. For example, although the
United States is a capitalist country, our government will continue to regulate (or attempt to
control), fair trade, government plans, fair trade, monopoly, and so on. In this economy, the
government is separated from the market. This separation prevents the government from
becoming too powerful and will remain in the same interest as the market. Hong Kong has been
recognized as an example of a company op...