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MGMT 1101 Global Business Environment

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MGMT 1101 Global Business Environment

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MGMT 1101 Global Business Environment

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Course Code: MGMT1101
University: University Of New South Wales

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Country: Australia


Discuss the issues of strategic importance relevant to the content of this GBE course, and preparation of a report suited to delivery to the organisation’s CEO.
Case for the assignment – Apple
Your task is to:
(a) Identify the theme/s;
(b) Assess the issues facing the organisation in relation to the identified theme/s by applying concepts from the course;
(c) Prepare a report suited for delivery to the organisation’s CEO that:

Sets out the key issues facing the organisation in relation to the identified theme/s.
Sets out the outcomes the organisation should seek to achieve in relation to the identified theme/s.
Provides recommendations on what the organisation should do in order to address the issues and achieve the outcomes you have proposed.


In the context of Global Business Environment (GBE) international competitiveness forms one of the major issues for any firm operating at the international level [1]. International competitiveness refers to the concept of firms utilising their ability to provide goods to different countries overseas at a better value as compared to their competitors and rivals [2]. At the international level every firm has the identical goal of maintaining quality and improving the amounts of technological innovation to provide for the changing demand trends of the customers. It is the firm’s goal to provide the community in which it is operating with an increased standard of living. Along with their own increase in the amount of outputs and wealth. Apple also operates in the international space that requires competitive strategies. The major issues related to the international competitiveness which are discussed in this report. Further, the outcomes that the firm is trying to reach in relation to the issues facing and the recommendations for the same are mentioned and discussed in detail.
Issues faced by the firm
Although Apple is well known and is one of the biggest brads in the world solely popular for its brand value, the firm mainly is known for being one of the costliest brands in the word. This causes arousal of international competitive concern for the brand [3]. The key issues faced by Apple based on this cause of concern are as follows:
Firstly, the firm faces issues technologically in the sense that it continuously has to improvise and use the best technological innovations to keep up to the changing demand trends of demand of the consumers [4]. It continuously has to carry out extensive research with the help of reinvestment of the revenue generations. It has to produce and launch its products in such a way that the improvisation is only marginal over the preceding model of gadget launched by the company. Further, the firm also faces the problem of designing the technology in a user friendly way so that it is accessible on the part of the consumers.
Secondly, the firm faces the problem of different horizons of competition as it produces products of numerous kinds including phones, applications, iPads and even laptops. In general, any potential rivals do not threaten the firm. However, the launch of a few products has essentially proven to affect the firm adversely. The firm has faced huge challenges for two of its products including the iPhone and the iPad. Amazon’s launch of the Kindle in a new version for reading which is being expected to pose challenges for Apple [5]. Even though Apple has higher brand value android phones are increasingly providing increasing number of features at the same cost. This is why the market for smart phones is acquired for 43% by android phones and 28% by iPhones.
The third issue faced by the firm in the context of international competition includes the economic challenges faced by the firm in various continents. Because of the high brand value and prices, the demand for the firm’s products do not vary in relation to the supply [6]. This has caused the firm to face higher competition in the sense that the other competitors are able to quickly switch production from one demand pattern to other by not incurring much cost unlike Apple as their products are highly differentiated from other phones.
Outcomes that Apple should try achieving
In the context of the issues faced by Apple in the field of international competitiveness operating in the Global Business Environment, the firm should aim at the following goals:
Firstly, the firm should aim at increasing the amount of progressive research and development in a self-recurring process so that there is continuous technological innovation that helps in beating the quality and value provided by the competitors.
Secondly, the firm should aim at expanding more and selling into regions previously not entered into by the firm. This will help the firm in ensuring that there is an increase in the base of the target market and the number of customers either remain stable or increase in an exponential manner.
Lastly, the firm should aim at providing customise and diversified products and services to the already existing customer base and to the newly acquired customer base so that there is continuous evaluation of the prices without a drop in the level of prices while catering to the demand of the customers at the same time.
From the above issues discussed and the objectives framed that the firm should specifically be aiming at, the following recommendations are advisable:
The firm should be greatly installing and suing a combination of smart devices and disruptive business models [7].  which will continuously help to ensure that there is a continuous flow of information to the firm about the changing demand patterns and trends. This in turn will help the firm to ensure that they are able to innovate the best forms of technology and provide the best means of communication as well as other services at best possible prices.
Secondly, the firm should try using strategies like exploring new international grounds and robust time frame based international expansion [8]. It could also try considering the options of partnership and mergers so that they can expand even more in the international market.
Finally, the firm also needs to diversify the prices of the products and services provided so that there is a large range of products and services with different costs so that the demand is not completely elastic.
In order to conclude it can be asserted that like all other firms, Apple also faces intense competition in the international market. Because of the inelastic demand and different kinds of competitors, it faces some issues related to technology, location and economy. It should essentially strategise sustainable use of its resources with the help of disruptive business models so that the competition can be dealt with in a easier way and a shorter time frame.
[1] Hamilton L, Webster P. The international business environment. Oxford University Press, USA; 2015.
[2] Ughanwa DO, Baker MJ. The role of design in international competitiveness. Routledge; 2018 Jan 10.
[3] Wen W, Zhu F. Threat of Platform-Owner Entry and Complementor Responses: Evidence from the Mobile App Market.
[4] Dosi G, Grazzi M, Moschella D. Technology and costs in international competitiveness: from countries and sectors to firms. Research Policy. 2015 Dec 1;44(10):1795-814.
[5] Dolata U. Apple, Amazon, Google, Facebook, Microsoft: Market concentration-competition-innovation strategies. Stuttgarter Beiträge zur Organisations-und Innovationsforschung, SOI Discussion Paper; 2017.
[6] Miller M, Alberini A. Sensitivity of price elasticity of demand to aggregation, unobserved heterogeneity, price trends, and price endogeneity: Evidence from US Data. Energy Policy. 2016 Oct 1;97:235-49.
[7] Wenzel M, Koch J. From entity to process: toward more process-based theorizing in the field of organizational change. Journal of Accounting & Organizational Change. 2018 Mar 5;14(1):80-98.
[8] Tsang EW, Yamanoi J. International expansion through start?up or acquisition: A replication. Strategic Management Journal. 2016 Nov;37(11):2291-306.

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