Business Environment of USA

ECONOMIC
ENVIRONMENT OF
U.S.A.
U.S.A- AN OVERVIEW
World's largest nation with GDP estimated to be $17.1 trillion in
December 2013
Mixed capitalist economy and has maintained a stable overall GDP
growth rate, a moderate unemployment rate, and high levels of
research and capital investment.
World's sixth-highest per capita GDP, third largest producer of
oil and second largest producer of natural gas. It is the second-
largest trading nation in the world behind China.
5 largest trading partners- Canada, China, Mexico, Japan,
and Germany.
The nation's economy grew by 1.9% in 2013. This year, the economy
is projected to grow by 2.7%, and in 2015, it is forecast to grow by
another 3.2%.

MICRO
ENVIRONMENT
COMPETITORS
STAKEHOLDERS
FINANCERS
SUPPLIERS
CUSTOMERS
MARKETERS
COMPETITORS

As per Global competitiveness report by world economic
forum ,2013-14
US rose two positions taking 5th place.
US companies are innovative , have excellent university system
in collaboration with R&D.
Combined with flexible labor markets and the scale
opportunities afforded by the sheer size of its domestic
economythe largest in the world by farthese qualities
continue to make the United States very competitive.

INTERNAL STAKEHOLDERS-
EMPLOYEES
Over its history, the U.S. Congress has enacted a number of laws
giving specific protection and rights to employees. Some of them
are:
minimum wage and maximum hour rules,
nondiscrimination in employment practices,
pension guarantees,
collective bargaining rights,
notice of termination protection,
health and safety requirements,
unemployment compensation,
disability benefits, and
nondiscrimination against lower-compensated employees in the
benefits provided

INTERNAL STAKEHOLDERS-BOD

In the U.S. meaning, directors are simply members of the Board.
The Board acts and decides as a body; individual directors have no
power to act or to bind the corporation individually (unless,
exceptionally, by resolution or power of attorney, the corporation
grants a particular director certain powers).
Under the laws of many U.S. states, a one person Board is possible.
Some states have a different rule when a corporation has two or
more shareholders. Directors can be officers and officers can be
directors.
all of the members of the U.S. corporations Board of Directors and
all of its officers can, if so desired, be non-U.S. nationals and U.S.
non-residents.

INTERNAL STAKEHOLDERS-
SHAREHOLDERS
U.S. corporation can be owned by just one
shareholder.
Nationality or Residence Requirements. Non-U.S. nationals
or temporary residents can own all of the shares of a U.S.
corporation.
Member of the corporations Board of Directors or corporate
officers need not own any shares (like directors qualifying
shares).

EXTERNAL STAKEHOLDERS-
FINANCERS

The U.S. banking market comprises several types of financial
institutions, including commercial banks, investment banks, savings
banks, savings and loan associations and credit unions.
In addition, specialized institutions, including leasing companies,
finance companies and factoring companies, offer asset-based
financing.
Commercial banks supply the most funds to businesses while
Medium term financing is often used by foreign investors to begin
U.S. operations.
Investment bankers are often called on to arrange financing
through the sale of stock, debt obligation or commercial paper.

EXTERNAL STAKEHOLDERS
-INVESTORS
The Securities and Exchange Commission (SEC) is the
primary federal agency that regulates the offering of
securities in the United States.
A foreign investor who wishes to acquire a U.S.
corporation may tender cash or issue its own securities
in exchange for the stock of the U.S. company.
A tender offer requires the foreign investor to file
certain information with the SEC. If the acquisition is
to be made through the issuance of securities, the
acquiring company must file a registration statement
with the SEC.
EXTERNAL STAKEHOLDERS-CREDITORS
Credit Reports
Lenders use credit reports to help them decide
whether to give credit or a loan, and to
determine what interest rate they will charge.
Credit reports contain information about how
company pays its bills and repay loans, how
much credit is available, the amount of your
current debt, and other types of information to
help a lender determine credit risk.

MACRO
ENVIRONMENT
(RANK 111)
POLITICAL
LEGAL
TECHNICAL
DEMOGHARPHIC
PHYCOGRAPHIC
GEOGRAPHIC
Federal republic and Capitalist society consisting of independent
executive, legislative and judicial branches.
Each state has statewide govt. elected by the residents of the state
and within the states are political subdivisions known as counties.
Within counties there are cities, towns, villages and local
municipalities.
The laws that govern the U.S. are legislated and enforced by the
central (Federal) government, state governments, county
governments
Minimum Government Intervention allowing private sector to make
the majority of economic decisions
US companies make one-third of their revenues from products
marketed to countries in Asia and Latin America.

LEGAL & POLITICAL ENVIRONMENT
TECHNICAL ENVIRONMENT
Largest producer of environmental technology in the world representing 40% of $782 billion
global market and leads the world in scientific research papers .
Inventions, like airplane, internet, microchip, laser, cell phone, refrigerator,
email, microwave, personal computer, LCD and LED technology, bar code, electric motor,
ATM, etc.
Environmental protection is an integral consideration in U.S. policies on natural resources,
human health, economic growth, energy, transportation, agriculture, industry, and
international trade. It is the world's largest consumer of petroleum

Dynamic business
growth environments
Ranking according to the Grant Thornton Global
Dynamism Index
A. Business operating
environment
12
th

B. Science and
technology
8
th

C. Labor and human
capital
21
st

D. Financing
environment
28
th

E. Economics and
growth
26
th

DEMOGRAPHIC & GEOGRAPHIC
ENVIRONMENT

Capital City: Washington, D.C.
National Independence: July 4, 1776
Largest Cities: New York, Los Angeles, Chicago, Houston,
Philadelphia, Phoenix, San Antonio, San Diego, Dallas, San
Jose
Population:298,444,215 (July 2006 est.)
Land Area:3,615,123 sq. mi. (9,375,720 sq. km.)
Third largest population globally of approx 295 million, 50.8%
comprising of women.
Accounts for 4.5% of the worlds population.
California and Texas are the most populous states
Increase in population by 103% as compared to
Germany(21%) and Italy(30%) since 1950.

1%
13%
8%
78%
SECTOR-WISE SHARE IN GDP
Agriculture
Manufacturing Industry
Non-manufuring Industry
Services

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ECONOMIC

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