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Effects of Political environment changes on Apple Company
Various factors affect businesses. These include political, environmental, social and technological factors. The political factors are very critical to any company as it is required to follow the law. Political factors may be perceived regarding new rules, judicial legislations or politics ideologies in a country. Changes in the political environment require that a company complies with the new rules and decisions despite their possible effect. This paper will evaluate the effect of new laws, regulations, judicial decisions and political forces. In achieving this, the paper considers the current issues facing Apple Company.
A Court decision may pose a risk to the privacy and security of its customers. For instance, the court order forcing Apple Company to comply with the requirements of the FBI poses a security risk (Barrett, 2016). Such a decision will create a way for other investigation bodies to seek data extraction from customer’s phones. Moreover, it would have allowed the government to keep track of phone usage by Apple Company. Such decision would have therefore incurred a risk of security violation to Apple Company’s customers.
Political forces have the ability to cause loss to a company that are required to meet certain detrimental legislative requirements. Powell (2016) explains a political remark made by a presidential aspirant Donald Trump that would see the Apple Company make its manufacturing only in the US. Implementation of this political directive would imply that the company would lose economically.
Political forces may also help improve market awareness of a brand. In this case, Finley (2016) explains of a situation in which Apple Company customers claim to boycott if the company complies with the FBI. The decision by the company’s chief executive officer to fight against the court order requiring them to comply with the FBI seems to offer support to its customers. In such a way, Apple company can improve its market awareness as customers perceive it to be championing for their welfare since tracking would compromise their confidence.
Political environmental is critical in the operations of any company. It can improve or cause a decline in the performance of a company. The two political issues facing Apple Company have been beneficial to its operations. Despite the threats posed by the court order, the company has gained market awareness and acquired more political support after winning the case and gaining Congress support on its decision. However, the company has also experienced loss due to the time consumed during the legal process and in financing the case process.
Barrett, Devlin. “Apple’s Other Court Showdown to Watch.” Wall Street Journal 24 February 2016. Web. 2 March 2016. < http://www.wsj.com/articles/apples-other-court-showdown-to-watch-1456357068>.
Finley, Klint. “Apple’s noble stand against the is also great business.” Wired 17 February 2016. Web. 2 March 2016. <http://www.wired.com/2016/02/apples-noble-stand-against-the-fbi-is-also-great-business/>.
Powell, Benjamin. “The art of economic illiteracy.” philly.com 29 February 2016. Web. 2 March 2016. <http://www.wired.com/2016/02/apples-noble-stand-against-the-fbi-is-also-great-business/>.