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 ENVIRON

MENT

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 economy—the largest in the world by far—these 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. corporation’s 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 corporation’s 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 ENVIRONME

NT(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

12th

B. Science and technology

8th

C. Labor and human capital

21st

D. Financing environment

28th

E. Economics and growth

26th

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 world’s 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

AgricultureManufacturing IndustryNon-manufuring IndustryServices