The slide is mainly related to the PESTLE analysis of America. It is useful in setting up of business. We are analyzing every aspect which can create an impact on the business.
2. Country Profile
• Capital : Washington, DC
• Population : 316 million
• Area : 9.8 million sq km (3.8 million sq miles)
• Major language : English
• Major religion : Christianity
• Life expectancy : 76 years (men), 81 years (women)
• Currency : US dollar
3. Political
• The oldest Democracy in the world
• The USA is the second largest democracy in the world
• Federal system: National Government & states
• National government: Legislative, Executive & Judicial. Congress (they write U.S.
Federal Law) Executive Branch (Headed by president) Judicial Branch (U.S. Supreme
Court)
• 50 States in total, 48 locked within continental united states. Other are Hawaii and
Alaska.
• The president is the head of the country and is elected for a four year term
4. • Stable political climate
• Influence over the political dynamics of many counties around the world
• Great destination for Foreign Direct Investment (FDI)
• Corruption Perception Index ranked 16th
5. Economic
• The largest economy in the world with the GDP of 18.57 trillion USD
• The economic system is well developed and gathers its strength from its service and
manufacturing industries
• The recession in 2009 adversely affected the economy of the country and
unemployment rates soared to an alarming point
• But the economy bounced back with a growth of around 4% in the third quarter of
2014 as consumers and business have stepped up spending
• Reduction in unemployment
• Non availability of cheap labor
6. Taxation
• The overall system of taxation in the United States is progressive.
• Not only do those with higher incomes pay more in total taxes, they pay a
higher rate of taxes.
• The highest total sales tax rate in the U.S. is 13.725 percent
• All income subject to tax at 34% to 35% where taxable income exceeds
$335000.
• The average American will pay 19.8% of their income in federal taxes.
7. Labor Laws
• Minimum wage
• Health Coverage
• Workplace safety
• Social security
• Unemployment Benefits
8. Social
• America is the third most populous country in the world
• Like most developed countries, US face the problem of an aging population which
can lead to a serious labor shortage.
• The education and healthcare system is one of the best in the world.
• Majority of the population has a liberal mind set, but rising racial intolerance is a
serious concern.
• Increasing illegal immigration is another concern.
• America is a diverse country.
9. Technological
• Home to one third of the world’s scientists and engineers and accounts for
one third of global R&D expenditure.
• Technological innovation within the private and educational sector has been
increasing.
• The government’s R&D is focused on defense (58.3% of its R &D budget)
• Rising pharmaceutical market.
• Significant development in emerging technologies.
10. Environmental
• Extremely diverse geography, climate, and wildlife.
• Major tourist place
• The country sustained 218 weather and climate disasters since 1980.
• In 2017 alone, there have been 15 weather and climate disasters with losses
exceeding $1 billion each across the United States.
11. Legal
Incorporation
• It is possible to incorporate a company online for US$100
• There is also various locations in the US, where incorporating can be done
quickly, easily and cheaply through a law firm on your behalf.
12. Business Regulatory Bodies
• US Customs and Border Protection
• Food and Drug Administration (FDA)
• US Department of Agriculture (USDA)
• Consumer Products Safety Commission (CPSC)
• Environmental Protection Agency (EPA)
13. Restriction on Foreign Investment
• There are no substantial restrictions imposed by the federal government on
foreign investment in the United States.
• A few industries are subject to restrictions-these include the exploitation of
certain natural resources, communication, shipping, nuclear and other power-
generating facilities and aviation.
• Some states have restricted certain foreign investment in certain cases such as
in agricultural land.
14. Consumer Protection
• Federal and state laws protect the interest of consumers.
• Also important to consider are federal agencies with regulations for specific
industries
• The pertinent areas of consumer protection in the united states include
consumer product safety, food and drug safety, product labeling, product
liability, motor vehicle safety, and consumer credit safeguards.
