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Yes, a good case study demonstrating the effectiveness of the PEST Analysis framework is Apple Inc. The PEST Analysis framework helps to understand the impact of Political, Economic, Social, and Technological factors on the business. For instance, Apple's large cash reserves mean it is subject to higher corporate taxation in the United States, a political factor. Economically, Apple is heavily dependent on low-cost manufacturing in China, which could be affected by social and political unrest, or increased manufacturing costs. Technologically, Apple is a leading player, but any disruption in technology trends can impact its market share. Thus, PEST Analysis provides a clear picture of Apple's external macro-environmental factors and helps in strategic decision-making.
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Apple is a leading American technology company that has collected a large amount of cash. As of June 30, 2015, the company had $34.7 billion in the bank. This means higher corporate taxation in the United States, where income inequality has become a major political issue. Apple is heavily dependent on low-cost manufacturing in China. The risk here is that social and political unrest in China may negatively affect manufacturing or increase manufacturing costs for Apple. There has also been a discussion about limiting Chinese imports in the U.S. in an effort to support native manufacturing.
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Dive into competitiveness data and take into account the dynamics of your venture’s financial, technological and market performance with our PEST Anal...
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