An Investigation on the USA Market

Question: Describe about Various sectors and its GDP contribution, PEST Analysis and Key findings in USA Market? Answer: Introduction: The US economy stands as one of the largest economies is the worlds, having a transition from the agricultural sector to Industrial sector, which took many revolutionary changes (Naroff and Scherer, 2014). The project is an MCT of the US market which brings out a research on PEST analsis. With the help of various secondary data from trade sources, government sources, database sources and academic sources the research work has are preceded. There are certain remedies the the market must follow so as to avoid negative effects on the global market. The US market plays an important role in the international trade. The study will include the potential consumers, the market conditions and other similar perspective. Various sectors and its GDP contribution in the market: Table: 1 The GDP Breakdown by sectors in %age: (Bea.gov, 2015) Industry In %age 1. Mining, Quarrying and Oil gas extraction 4.70 2. Management of companies and enterprise 12.50 3. Healthcare and Social 8.60 4. Manufacturing 21.50 5. wholesale 5.50 6. Retail 5.80 7. Transportation warehousing 2.80 8. Information 9.50 9. Finance and Insurance 15.6 10. Agriculture 3.90 11. Professional Scientific Technical 6.0 12. Arts, entertainment and recreation 1.8 13. Accommodation and food services 1.8 Figure: 1 GDP breakdown of sectors: PEST Analysis The PEST analysis helps to comprehend various aspects of a market that facilitates the potential factors in respect of Political, Economic, Social and Technical grounds (Business.qld.gov.au, 2015). The following is a PEST analysis of US market: Political: USA has an influential democratic effective laws and rules that are counted as transparent and justifiable. USA enjoys a good political influence in policy making on the global and national forum . Factors Severity Type impacts Trading policies high (-)tive - Political pressure medium (+)tive favourable Government policies low (+)tive favourable International Relationships medium - favourable terrorism medium - stable The US Government plays the role of a Superpower globally. Though it maintains a good international relation still it faces many criticisms for its domineering policies regarding its measures taken against terrorism. This puts a medium impact on its foreign relations (USA TODAY, 2015). Economic: The current GDP of United States has total Purchase Power Parity of $16.72 Trillion along with total GDP (nominal) is US$ 16.768 Trillion (Bureau, 2015). The US Economy is well developed and the pillar of its infrastructure is its Manufacturing Industries and service industries. The country saw a high rate of unemployment in 2009 that made a negative impact for the economy. However, it recovered the problem in the third quarter of 2014. There is an adverse impact of increasing deficit in its budget which is currently staggering at $506 million (Global.etrade.com, 2015). Table: 2 the GDP growth years USD Billions 2008 14480.3 2010 14417.9 2012 15533.8 2014 16800 The GDP growth rate of USA is shown below (Tradingeconomics.com). Figure:2 Social: Like majority urbanized countries, the US also confronts the dilemma of an aging mass that might lead to a serious issue for labor availability (Infoplease.com, 2015). However, the healthcare and education sectoris considered as to top the list in world rankings. A liberal mindset is what the population bears, but there are increasing racial intolerance. Subsequently, another concern is illegal immigration. There are currently 11.7 million people residing illegally in USA that increases the risk of racial discrimination. Technology: Technology and innovation are considered as the major cornerstones of the economy of United States. The country is technologically advanced and presently 91.6% of household are having computer access (Usa.gov, 2015). There are many developing and developed countries that are giving a tough competition to USA yet it strives to maintain its top position in technology. According to the market spectators and researchers USA ranks the third position in being most innovative country (CityLab). United States of America leads in technical areas such as biotechnology, environmental technology and most importantly in Nano technology (Usatech.com, 2015). These sections provide huge opportunities for enterprise with specialization in various fields. Another important technological field is the Information Technology. This field is facing a good competition with India and China. PEST Analysis Estimation: Factors Effect on market (Out of 10) Political 8 Economic 9 Social 5 Technology 10 Key Findings: Political: Through pestle analysis it was found that though the trade policies and government policy is favorable for a good market operations yet terrorism acts as a barrier. The countries foreign relations are good to many developing and developed countries but it also invites competition that may be unfavorable. Economic: after a glance at the GDP growth it can be said that the country is doing well, but still the employment rates are not improving. According to recent articles the unemployment rate is still 5.6% (Data.bls.gov, 2015). Social: according to the PEST analysis and the demography of USA the majority of Americans is found to be at their old age, which forecasts a chance of labor crisis in near future. Moreover the number of inter races are more which results in racial discrimination. Technological: USA is amongst the leading companies in technology. Technology lies in every type of market operations. Today the IT companies are playing a vital role at the same time these IT companies are competing against each other which can turn out to be a bad impact on the countries business policy . Recommendations: For political issues the company needs to focus on its international relations and foreign policies. The War against terror and the supremacy need to be solved. The 9/11 case, where the countrys economy was hugely affected created a big alarm. The economy fluctuates and is very much affected by the unemployment rates. The market needs a scope for increasing employment rates by providing jobs in services sectors and sectors where general skills are required. Socially, the country needs to increase the opportunities for studying and keep a high check on the immigrants and their settlement. The market will be highly facilitated by the increasing number of labor. Technology: The country is already technologically advanced yet it needs to put a healthy environment among its stakeholders and companies. Conclusion: The investigation shows that the US markets needs to emphasize more on the political factors. The current stock market shares seem to be favorable. The US market is now one of the leading market in global economy and presently focuses on their IT sector where the country is facing competition. References Bea.gov, (2015).News Release: Gross Domestic Product. [online] Available at: https://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm [Accessed 21 Feb. 2015]. Bureau, U. (2015).detail_page_visual-standard-U.S. Census Bureau. [online] Census.gov. Available at: https://www.census.gov/ [Accessed 21 Feb. 2015]. Business.qld.gov.au, (2015).PEST analysis | Queensland Government. 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Tradingeconomics.com, (2015).United States GDP | 1960-2015 | Data | Chart | Calendar | Forecast | News. [online] Available at: https://www.tradingeconomics.com/united-states/gdp [Accessed 21 Feb. 2015]. USA TODAY, (2015).US Politics News and Articles - USATODAY.com. [online] Available at: https://www.usatoday.com/news/politics/ [Accessed 21 Feb. 2015]. Usa.gov, (2015).Science and Technology Research Agencies | USA.gov. [online] Available at: https://www.usa.gov/Citizen/Topics/Science/Agencies.shtml [Accessed 21 Feb. 2015]. Usatech.com, (2015).USA Technologies, Inc.. [online] Available at: https://www.usatech.com/ [Accessed 21 Feb. 2015].