How Recent Economic Trends Influence BusinessA business and its management are affected by many factors in its environment, because a business cannot operate in isolation closed. Factors existing in a firm's environment are beyond the firm's control and affect how a firm operates and behaves in the marketplace (Li, 2008). Besides economic factors, other macro-environmental factors that affect business performance include political, social, demographic or ecological factors and technology. The economy is an important factor that affects businesses since it determines the level of profitability that a business can earn from its operations. In recent times, the economy has been characterized by recession and increasing inflation. These two issues have had a significant effect on businesses in terms of strategies, costs and profits. The recession has had a significant impact domestically and globally and has primarily had a negative effect on businesses. For companies to make a profit, their demand must exist for their products, but the recession affected the demand for products, so companies had to change their business processes. One of the trends shown by companies in the face of the recent economic situation is the price war. Current economic conditions have led consumers to spend and demand fewer products, resulting in reduced sales for businesses (Li, 2008). Businesses are involved in price wars to try to attract customers and maintain sales levels. Since the economy has led to a reduction in demand for products, this means that Apple will have reduced sales. Another effect of the recession on businesses includes increased risks and also businesses looking for new methods to reduce middle of paper......e it has major strengths which include a strong brand known for its innovation and quality. The company has also developed strategies to guard against internal and external changes, ensuring stability of performance. Works cited Li, B. (2008). An analysis of Apple's investments: case study. Related content from Yahoo. Retrieved October 6, 2011, from http://Www.Associatedcontent.Com/Article/1170502/An_Investment_Analysis_Of_Apple_Inc_Pg16.Html?Cat=3Lliev, V., Lindinger, A., and Poettler, G. (2004). Apple Computer Inc. Strategic audit. Retrieved October 6, 2011, from http://Www.Andreaslindinger.Net/Downloads/Strategicmgmts-Lindingeretal.PdfRogers, J. (2008). Apple is not letting the economy collapse. Technology update. The street. Retrieved October 6, 2011 from Http://Www.Thestreet.Com/Story/10443376/1/Apples-Not-Letting-Economy-Get-It-Down.Html