Pest Analysis: USA Essay Examples

Introduction

United Sates of America has a population of roughly 318 million; the nation is culturally distinct and has the biggest economy in the world. After the 9/11 attacks and the economic recession, America experienced a slump in their economic growth. Nonetheless, it bounced back quickly and by the end of the year 2014 there was a substantial increase in the economic growth and consumer expenditure along with a downfall of the unemployment levels. For the company’s success, it is extremely important to scrutinize the overall business environment it operates in. Hence, this report will analyze the important factors regarding the American business environment in depth.

Economic Factors

America has the one of the largest economy amounting upto $16.760 trillion. The economic structure is well-built and assembles its power from its services and manufacturing productions. “The recession in 2009 harmfully disturbed the economy of the nation and joblessness rates climbed to an shocking point. But the economy rebounded back with a development of around 4% in the third quarter of 2014 as customers and businesses have treaded up spending” (Makos,).It is one of the major changes from the business point of view, providing numerous lucrative opportunities. Though, the rising budget deficit puts the economic opulence of the nation at serious jeopardy as the deficit now totals to a astounding $506 million. Another major change in the economy of America was the free trade treaties it signed during the past tenure. “Free trade is a prodigious device for development. The most significant treaty under deliberation is the Transatlantic Trade and Investment Partnership, an effort to loosen trade between the European Union and the United States” (Forbes). This will provide businesses with wider and cheaper trading opportunities.

Social Factors

Similar to most advanced countries, the America experiences the difficulty of an aging population that can lead to a grave labor deficiency and increasing tax rates in the prospect. This was a point of concern for the government recently and it is drafting policies to ensure the stable flow of labor in the market. Another major changes in the recent years is regarding the racist attitude amongst the general public. “The mass of the population has a open-minded mentality, but increasing racial prejudice is a severe distress. Moreover, mounting illicit immigration is another alarm, as there are presently more than 11.7 million individuals existing illegitimately in the America, additionally rising the hazard of racial discernment”(_Makos). This sudden increase in the illegal immigrants and an in surge in the black labor market is bringing numerous changes in the labor laws and regulations.

Political Factors

Massive, stable upsurges in army expenditure. And candidates still feel they have to try to exceed each other with suggestions for expenditure upsurges. Even the recent government has increased its military spending tremendously It is compromising its spending on giving up other projects such as schools, hospital that can increase public welfare. Rather it is spending on the wars and other military expenses. Another important recent change is the enormous standing of cash in politics. “After four years the expense of the American presidential election doubles. The 2008 election ran for two full years, compelling all the contestants to increase and expend just that much more. Obama and the Democrats spent 600 million dollars” (Makos). This has turned the current American politics into a money war, where only those candidates with influence and money can enter the politics rather then based on the most deserving candidates. This has an adverse effect on the policies drated by the government. “For instance, each plan to modification health care, whether Democratic or Republican, initiates by consolidation and preserving the current insurance industry, as they are a giant funder to both parties” (Makos).

Technological Factors

Invention and technology are the keystones of the American economy. Since its beginning, the nation has been prominent in footings of adjusting and smearing technology. One of the important changes in this field in the sudden rise in the competition from countries like China that is biggest threat to America’s technological developments. However, the government is actively working to develop Science parks and other innovative bodies as to keep its title of the technological leader in the world. “Moreover, the US has also been at the vanguard in improving and increasing technologies in parts such as nanotechnology, environmental technology and biotechnology, which unlocks up huge opportunities for businesses with proficiency in the mentioned fields” (Makos)

Ecological Factors

There is an increasing number of Americans converting to the solar energy. It is fulfilling more of America’s energy requirements, which are unpolluted and native. “Regrettably, murky energy corporations are putting up new barricades at every turn. Recent study displays that the cities and states with the greatest solar power aren't the ones with the most sunshine—they're the ones with the greatest pro-solar rules” (EnvironmentAmerica). Hence there are more and more people forcing the government to create pro solar policies. “American wind energy is a accurate ecological accomplishment division. Wind energy now controls the corresponding of approximately 13 million households across the nation, dropping our constraint on coal and oil and generating a fresher, healthful prospect for Americans.” (EnvironmentAmerica).

Works Cited

All Issues. (n.d.). Retrieved January 11, 2015, from http://www.environmentamerica.org/issues
The 4 Major Challenges The U.S. Economy Faces In 2014. (n.d.). Retrieved January 11, 2015, from http://www.forbes.com/sites/alejandrochafuen/2014/01/01/the-4-major-challenges-the-u-s-economy-faces-in-2014/
Makos, J. (2014, December 21). PEST Analysis of USA, the Largest Economy of the World. Retrieved January 11, 2015, from http://pestleanalysis.com/pest-analysis-of-usa/