1. to the Chinese government’s policies. So, Apple

Political: Political factors of a country
include the government’s intervention in the economy. Some of the most
important regulatory and legal factors include employment laws, tariff and
trade restrictions, consumer protection laws, tax policies, labour laws and consumer
protection. The foreign policy of the country plays an imperative role in
determining the trade regulations of the state. This may result in a variety of
trade restrictions or may offer various trade incentives. Apple TV and similar
products are not available in China, due to the Chinese government’s policies.
So, Apple made it disappear. Erased all trace of its very existence, as if it
had never heard of the word Apple TV before. Ask Apple China’s website: “I want
an Apple TV!” They’d be like “Huh? Never heard of it.” The anti-China
information handling policy, ever since this service was launched China was
never included. It is clear that Apple and China made some kind of deal that
kept China out of the loop. Apple erased the News app from your phone as long
as your “country and region” is set to China. When the Chinese government
appointed a Chinese company to be the supplier of map info in China, China’s
Map app is since completely different from the rest of the world. Apple even
went to the length to eliminate everything that might come as a suggestion. The
Taiwan flag is removed from the emojis as long as your iPhone is purchased in
China. Apple is so integrated into the Chinese society and so well-known for
its excellent services in comparison to other brands, that Apple is already a
sign of success and wealth in the Chinese society. This is what makes Apple so
popular in China and a lot Chinese people dying for an iPhone. By setting up a
data centre and pulling VPNs, (Apple) is sending a friendly signal to the
Chinese government. Because others have eaten away at Apple’s market share in
China, it now has to pay more attention to regulation from government.

Economic: This factor examines the
outside economic issues that can play a role in a company’s success. Items to
consider include economic growth, exchange, inflation and interest rates,
economic stability, anticipated shifts in commodity and resource costs,
unemployment policies, credit availability and unemployment policies. China’s
corporate tax rate is 25%, falling between the US’s 35% and Ireland’s 12.5%
rates. The Chinese government can lower the rate to 15% for industries it wants
to encourage, which includes technology, a category that may very well apply to
Apple. The company earned $23 billion in operating income in Greater China in
its latest fiscal year, so by a completely crude measure, even if all of the
$2.9 billion it set aside for foreign taxes for that period were paid in China
and none elsewhere, it would still be paying less than a 15% tax rate—about
12.6% to be exact. Much of that $2.9 billion is probably being paid to the EU,
its second-biggest market, meaning China’s tax collectors are getting even
less. Apple CEO Tim Cook visited a Foxconn factory in Zhengzhou, China, on Wednesday.
The company said: “Our team has been working for years to educate workers,
improve conditions, and make Apple’s supply chain a model for the industry,
which is why we asked the FLA to conduct these audits.” An audit of
Apple’s Chinese factories details “serious and pressing” concerns
over excessive working hours, unpaid overtime, health and safety failings, and
management interference in trade unions. More than 43% of workers reported
experiencing or witnessing an accident at the three plants audited. Foxconn is
China’s largest private-sector employer, and its activities have turned the
coastal town of Shenzhen into the electronics workshop of the world. In December
46% of the workforce clocked up to 70 hours per week, although Chinese labour
laws say employees should work no more than an average of 49 hours a week,
including overtime. The average maximum week was 61 hours, and between November
and January more than a third of staff did not receive the statutory one day
off in seven.

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Social: The social factor analyses the
demographic and cultural aspects of the company’s market. These factors help
businesses examine consumer needs and determine what pushes them to make
purchases. A report from the China Internet Network Information Centre, a
branch of the Ministry of Industry and Information Technology that oversees
internet policy, states there were 780 million activated smartphones in China
in 2015, a penetration rate of about 59% of the population. Apple iPhones
accounted for approximately 16.8% of those smartphones, the report says. That
means there are about 131 million iPhone owners in China, assuming every iPhone
owner keeps only one activated device—more than any other country in the world.
(The US, the world’s second-largest market, is estimated to have about 100
million iPhone users).

Technology: Technology issues affect how
an organisation delivers its product or service to the marketplace. Specific
items that need to be examined include, but are not limited to, government
spending on technological research, the life cycle of current technology, the
role of the internet and how any changes to it may play out, and the impact of
potential information technology changes. Just like the other factors,
companies should consider generational shifts and their related technological
expectation to figure out how they will affect who will use their product and
how it’s delivered. Technology advancement is the generation of information or
the discovery of knowledge that advances the understanding of technology.
Advantages of technology advancement will be that it is great discoveries in
all industries. Technology advances show people a more efficient way to do
things, and these processes get results. For example, education has been
greatly advanced by the technological advances of computers. Students are able
to learn on a global scale without ever leaving their classrooms. Agricultural
processes that once required dozens upon dozens of human workers can now be
automated, thanks to advances in technology, which means cost-efficiency for
farmers. Medical discoveries occur at a much more rapid rate, thanks to
machines and computers that aid in the research process and allow for more
intense educational research into medical matters. Another advantage is that its
cost efficient. Cost efficiency is an advantage in some ways and a disadvantage
in others. As technology improves on existing processes and showcases new ways
to accomplish tasks, machines are able to produce the same, if not more output
than humans in certain industries. This results in cost savings for business
owners, allowing them to invest in growth in other areas of the business, which
contributes on a positive level to the economy as a whole. However, a
disadvantage of technology advancement is dependency. The more advanced society
becomes technologically, the more people begin to depend on computers and other
forms of technology for everyday existence. This means that when a machine
breaks or a computer crashes, humans become almost disabled until the problem
is resolved. This kind of dependency on technology puts people at a distinct
disadvantage, because they become less self-reliant. Moreover, another
disadvantage is that if technology improves, it will lead to less value in
human workers. Human workers retain less value, which is a disadvantage of
technological advances. Because machines automate processes and do the work of
10 people with one computer, companies find they don’t need to employ as many
people to get the job done.

As machines and computers become even more advanced and efficient, this
will continue to be a growing disadvantage of technology and an issue that has
a global impact. Apple chief executive Tim Cook informed Lu last month that
Apple would let China’s State Internet Information Office conduct “security
checks” on all products that it sells on the mainland. China has been concerned
that Apple devices like the iPhone enable the company—or worse, US intelligence
agencies—to spy on Chinese citizens. “There were rumours that Apple built back
doors in its devices, and let third parties have data and access those devices,
but that was never true and that we would never do that in the future either,”
Cook reportedly said. Lu Wei responded, according to the Beijing News, by
saying: “It doesn’t matter what you say, you should let our internet safety
department do a safety assessment. We need to reach our own conclusions to put
the consumer at ease.” Apple had probably promised to turn over its source code
to China’s government, but disagreed about the consequences. The access would
allow the Chinese government to “run spot checks” on how Apple is protecting
user information, and to determine whether other intelligence agencies are
trying to snoop on China, said Ben Cavender, a principal at China Market
Research Group in Shanghai. If that is in fact what has been agreed, it’s a
landmark deal, Cavender said, and Apple has not generally provided such
information to other governments.

Environment:  Environmental factors relates to the
ecological and environmental aspects that will affect the demand for a
company’s products and how that business operates. In the face of sustained
pressure from Chinese green groups, Apple has finally broken its silence on
pollution problems in its supply chain, for the first time holding talks with
the environmental organisations that, for many months, have been asking the
firm to increase transparency – and improve oversight – of its China
operations. China’s environmental NGOs have been working with their US
counterparts to ramp up the pressure on Apple, who they accuse of secrecy and
poor supplier management. The “Apple and the Environment” section of
Apple’s website lists the efforts the corporation makes to manage the
environmental performance of its suppliers, including reducing greenhouse-gas
emissions and removing toxic substances. Apple’s “Supplier Code of
Conduct” also lists detailed rules on control of hazardous substances,
solid waste, and waste-water and air emissions. Apple is working with suppliers
to help transform the environmental landscape in China, and is proud to
announce all 14 of its final assembly sites in China are now compliant with
UL’s Zero Waste to Landfill validation. “We want to show the world that you can
manufacture responsibly and we’re working alongside our suppliers to help them
lower their environmental impact in China,” said Lisa Jackson, Apple’s vice
president of Environment, Policy and Social Initiatives. “We congratulate Lens
for their bold step, and hope by sharing the lessons we’ve learned in our
transition to renewable energy, our suppliers will continue to access clean
power projects, moving China closer to its green manufacturing goals.” Apple
will partner with suppliers in China to install more than 2 gigawatts of new
clean energy in the coming years, avoiding over 20 million metric tons of
greenhouse gas pollution in the country between now and 2020. Foxconn committed
in October to construct 400 megawatts of solar, starting in Henan province, by
2018. The manufacturer is now well on its way to constructing the first 80
megawatts of that commitment. Apple has taken significant steps to protect the
environment by transitioning from fossil fuels to clean energy. Today, the
company is powering 100 percent of its operations in China and the US, and more
than 93 percent of its worldwide operations, with renewable energy.

Legal: Legal factors relates to the laws,
regulation and legislation that will affect the way the business operates. Apple’s
legal structure is that it’s a corporation. A corporation is a legal entity
that is separate and distinct from its owners. Corporations enjoy most of the
rights and responsibilities that an individual possesses; that is, a
corporation has the right to enter into contracts, loan and borrow money, sue
and be sued, hire employees, own assets and pay taxes. It is often referred to
as a “legal person.” Apple to raise workers’ wages at a factory it
investigated. The group has a long history of investigating the Cupertino,
California-based company’s supply chain in China, and this time claims to have
found problems at an iPhone factory in Shanghai. The report also alleged that
workers lived in cramped dorms and that the factory failed to provide adequate
job safety training. Apple’s activism in China extends beyond labour issues.
The company also has been pushing its manufacturing and supply chain partners
toward clean energy and a smaller carbon footprint. It announced new
solar-power and energy efficiency projects in China.


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