A case study

A brief about US
The United States of America is a country primarily located in North America, between
Canada and Mexico.
The United States is the world's third-largest country by land and total area behind
Russia and Canada.
The United States is a federal republic of 50 states, with its capital in a federal district,
asserting sovereignty over five unincorporated territories and several uninhabited
island possessions. It is the world's oldest surviving federation, and, according to the
World Economic Forum, the oldest democracy as well.
The U.S. has been the world's largest economy nominally since about 1890. The U.S.
gross domestic product (GDP) of $27 trillion is the largest in the world.
Of the world's 500 largest companies, 136 are headquartered in the U.S. The U.S. dollar
is the currency most used in international transactions and is the world's foremost
reserve currency.
Culturally, the country has been described as having the values of individualism and
personal autonomy,having competitiveness, and voluntary altruism towards others.
 PESTEL Analysis
A PESTEL Analysis is a framework or tool used by marketers to
analyze and monitor the macro-environmental (external
marketing environment) factors that have an impact on an
organization, company, or industry.
Political- Political factors include government policies, foreign
trade policies; tax policy.
Economic- Economic factors include current and projected
economic growth; inflation.
Social- Social factors include demographics; population
growth rate; socio-cultural changes.
Technological- Technological factors affect marketing in new
ways of producing goods and services; new ways of
distributing goods and services.
Environmental- Environmental factors are important due to
the increasing scarcity of raw materials; pollution targets.
Legal- Legal factors include equal opportunities; advertising
standards; consumer rights and laws.
Political
Firstly we look at Political stability
index of US, this index is made
from factors including:

-Corruption perceptions
- Transparency International
-Political rights
-Civil liberties
-Competitiveness
Source - The world bank
-Cost of starting a business
-Shadow economy
For that indicator, we provide data for the USA from 1996 to 2022. The latest
value from 2022 is -0.04 points. We see a falling trend in political stability.
For comparison, the world average in 2022 based on 193 countries is -0.07
points.
 In 2023, American foreign policy faced challenges and
Political encountered both successes and failures in different
areas.

Ukraine: China Relations: Middle East:

The U.S. initially provided Tensions with China began The Biden administration
strong support to Ukraine, due to spying issues but struggled to balance relations
including military aid. were later addressed in the Middle East, particularly
However, delays in delivering through diplomatic regarding Israel and Palestine.
critical weapons and slow initiatives. Support for Israel's actions in
progress in Ukraine's Economic challenges in Gaza led to diplomatic
counteroffensive reduced China led to efforts to isolation and criticism.
public support for aid. normalize relations with The administration's failure in
Criticism from Republican the U.S. by the year's end. Gaza undermined its
factions weakened the diplomatic reputation and
administration's position. allowed space for other global
powers.
 Economic
Growth was stronger than expected a year ago: Defying pessimistic
forecasts, US economic growth has progressed at a significant pace over the
course of 2023.
Manufacturing investment reached historic highs: manufacturing
construction contributed the most to year-on-year real GDP growth on
record. A major factor in this historic manufacturing boom has been the
Inflation Reduction Act
Jobs growth cooled towards a steady & stable pace, while the unemployment rate stayed low despite falling inflation.:
Job gains continued at a very strong pace in 2023, although down from the torrid rates seen in 2021 and 2022
immediately following the pandemic recession.

Inflation decelerated throughout the year: After peaking in summer 2022, inflation has been on a downward trend for a
year and a half thanks to a retreat of food, energy, and goods inflation.

Real wages grew and wage inequality fell: Real wages began to grow in 2023 as inflation fell from its 2022 peak and
workers received robust nominal wage gains.
Women and Black Americans made historic gains in the labor market: The year 2023 saw the highest rate of prime-
age women participating in the labor force on record since 1948.The record labor force participation of this group has
served to boost incomes of American households and keep consumer spending strong.

Consumer sentiment improved in 2023: With more work to do on lowering costs, consumer sentiment has further
room to grow.

Challenges to the US Economy

Inflation is falling, but it’s not completely back to the target level. Fed officials have stated that they might tighten
monetary policy further to get inflation all the way back to target.

Long-term interest rates have only recently risen above their pre-COVID-19 levels. That delayed reaction means
that part of the impact of previous Fed tightening remains to be seen.

The US budget process still poses some risk to economic growth. The differing objectives and lack of will to
negotiate these differences among the key members of Congress suggests that a partial or even full government
shutdown remains a possibility.

The most important question for the future of the US economy is whether trend productivity growth can grow fast
enough to improve the standard of living. Prior to the pandemic, productivity growth was disappointing. If
productivity growth picks up, many of the country’s other problems will become easier to solve.
Social
The demographic landscape of the USA is changing, with
an aging population, increasing ethnic diversity, and
changes in family structures.
American society is characterized by diverse attitudes
and values, influenced by factors such as education,
religion, ethnicity, and geographic location.
The quality of education and literacy rates in the USA
significantly impact workforce skills, productivity,
innovation, and social mobility.
Health and wellness trends, including diet, exercise,
mental health awareness, and access to healthcare
services, shape consumer preferences, employment
practices, and public policy initiatives.
Social
The USA has various social welfare programs and safety
nets designed to address poverty, unemployment,
disability, and other social needs.
American culture is influenced by a diverse range of
factors, including literature, arts, entertainment, media,
sports, and popular culture.
Urbanization trends, migration patterns, and community
dynamics impact infrastructure development, housing
affordability, transportation systems, and social
cohesion.
 Technological
Innovation and Research Tech Industry Trends Regulatory Landscape
Global Innovation Hub: The United States, Data Privacy Debates: Ongoing
AI and Machine Learning: Rapid advancements
notably Silicon Valley, is a premier global discussions and debates surround data
in AI and ML are revolutionizing industries like
innovation hub, catalyzing the creation of privacy regulations, with potential
healthcare, finance, and manufacturing,
groundbreaking technologies. implications for how tech companies
fueling efficiency improvements and fostering
R&D Investments: Significant investments in collect, use, and protect user data.
innovation.
Research and Development by both the Antitrust Scrutiny: Major tech firms face
Cybersecurity Focus: The escalating threat
government and private sector drive ongoing increased scrutiny over antitrust
landscape has prompted a substantial focus
technological progress and innovation across concerns, leading to potential
on cybersecurity, leading to continuous
diverse industries. regulatory changes that could reshape
developments in technologies to protect
Research Institutions and Companies: Top-tier the competitive landscape.
critical systems and data in the United States.
institutions such as MIT and Stanford, alongside Intellectual Property Laws: The legal
Emerging Technologies: Blockchain, Quantum
industry giants like Apple and Google, play landscape around intellectual property
Computing, and Augmented Reality (AR) are
pivotal roles in fostering technological influences innovation, with patent laws
gaining momentum as emerging technologies
breakthroughs through cutting-edge research and copyright regulations playing a
with the potential to reshape industries,
and development initiatives crucial role
spanning from finance to healthcare.

Digital Infrastructure Skills and Talent

Advanced Connectivity: The U.S. boasts an advanced digital infrastructure Tech Workforce: The availability of a skilled tech workforce is a key
with widespread high-speed internet access. The ongoing rollout of 5G strength, supporting the sustained growth of the technology sector
technology further enhances connectivity, paving the way for innovative STEM Education: The emphasis on STEM education (Science, Technology,
applications Engineering, and Mathematics) ensures a pipeline of talent, essential for
E-commerce & Digital Transformation: The surge in e-commerce activities maintaining leadership in technology
and digital transformation across industries reflect a robust digital Immigration Policies: Immigration policies impact the recruitment of
infrastructure, influencing how businesses operate and consumers international talent, influencing the diversity and expertise of the tech
interact workforce
Environmental
The USA has a wide range of ecosystems, from vast forests
and deserts to wetlands and mountain ranges.
This diversity contributes to the country's rich biodiversity
and provides valuable natural resources.
The USA is a significant contributor to global greenhouse
gas emissions, and climate change is already impacting the
country through rising temperatures, sea levels, and
extreme weather events which poses a major threat to
human health, infrastructure, and ecosystems.
Activities like overfishing, intensive agriculture, overuse of
water, fertile land, etc threaten resource availability,
creates competition, impact food production leading to
food insecurity, economic decline and environmental
degradation.
Environmental
The USA has various environmental laws and regulations,
including the Clean Air Act, Clean Water Act, Endangered
Species Act, etc.
These regulations have contributed to some improvements
in environmental quality, such as reducing air and water
pollution.
The USA invests significantly in research and development
of renewable energy sources like solar, wind, and
geothermal which fosters innovation and drives down the
cost of renewable energy technologies.
Public and private sectors are increasingly investing in
renewable energy, energy efficiency, and sustainable
practices practices.
 Legal
1. Regulatory Environment:
Complex regulatory framework at federal, state, and local
levels.
Varied regulations necessitate meticulous compliance efforts
for risk mitigation.
2. Litigation and Legal System:
Adversarial legal system and high litigation rates.
Legal challenges can significantly impact business operations
and financial stability.
3. Intellectual Property Rights (IPR):
Strong legal protection for patents, trademarks, and
copyrights.
Enforcement and defense crucial for safeguarding intellectual
assets.
 Legal
4.Employment Laws:
Extensive legislation covering labor standards, workplace
safety, and discrimination.
Compliance with employment laws influences labor costs and
operational practices.
5.Trade and International Law:
Trade agreements, tariffs, and sanctions shape the legal
landscape.
Compliance with international trade regulations is vital for
global businesses.
6.Environmental Regulations:
Mandated compliance with environmental standards.
Regulations impact business strategies and sustainability
initiatives.
Conclusion
Political instability and unsupportive policies curbed innovation and
business growth.
Economic factors provide access to capital and favorable tax policies, but
market fluctuations pose challenges.
Social factors reflect a culture of innovation and diversity, but shifting
demographics may impact opportunities.
Technological advancements offer opportunities for innovation but require
continuous adaptation.
Legal considerations emphasize the importance of regulatory compliance
and intellectual property protection.
Environmental awareness presents opportunities for sustainable
entrepreneurship, but regulations and climate change pose challenges.
Thank You