Pestle analysis of United States V/s. Mexico

This article provides a PESTLE analysis of the United States and Mexico, focusing on the political, economic, social, technological, legal, and environmental factors. It discusses the strengths, challenges, threats, and issues in each country. The analysis also includes an examination of ethical issues, such as Walmart's bribery scandal in Mexico.

Running head: INTERNATIONAL MANAGEMENT
International Management
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Pestle analysis of two countries United States V/s. Mexico
PESTLE analysis provides a holistic view of the nation in terms of historical, current
and the future perspectives. It given a brief insight of the critical issues that are presented
through a detailed strengths, challenges, threats and issues analysis for each of the elements
PESTLE, i.e., Political, Economic, Social, Technological, Legal and Environmental (Aithal
2016). However, PESTLE analysis of United States Versus Mexico is presented below:
United States Mexico
Political USA is the 2nd largest
democracy.
There is a fair and
transparent elections held
(Corbin 2015).
The political environment in
USA is relatively stable.
It is considered to be one of
the great destinations for
FDI (Foreign Direct
Investment)
Mexico is a federal republic.
Elections are done in every
six years and they do not
meet the international anti-
corruption standards.
Political disruptions are
frequent in Mexico and it is
threatening the regular
disruptions of the supply and
sales of the businesses
(Crowley-Matoka and
Hamdy 2016).
Economic The per capita GDP growth
in U.S.A is 42%.
The rate of unemployment
has been fallen since 205
The level of incomes of the
people has improved and
increased since 2016.
As compared to Mexico and
other countries like India
and China, labour is not
cheap in USA.
USA is considered to an
economic superpower
The situation of the labour
market in Mexico has been
improved to a significant
level and per hour earnings
of people have increased.
People in Mexico have more
disposable income to spend
on different items.
Profitability of the retail
industry is likely to be
increased in the near future.
There is an economic
slowdown in Mexico and
this have stalled the growth
of retail industry.
The per capita GDP growth
in Mexico is 31%.
Labour is cheap in Mexico
Social The population in U.S.A
was 114 million as per the
year 2015.
It is very diverse nation.
Every 1 out of 3 Americans
are African, Native
Millennial in Mexico tend to
shop online.
There is an increased use of
smartphone usage and
technology among the
youths

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American, Latino or Asian
ancestry.
People are highly health
conscious in USA and most
of the population has liberal
mind-set.
The population in Mexico
was 313 million as per the
year 2015.
This is a threat for the
physical retailing business
like Walmart who still have
not spread its online
presence.
The life expectancy is 77
years and median age is 27
years.
Technological USA is considered to be a
global leader in the field of
science and technology.
There are several jobs in
USA that have been
transferred from USA to
other nations
There is a rapid change in
the rate of technological
change and innovation and it
faces significant challenges
from India, South Korea and
China.
Technological factors have
developed all the more
important for business in
Mexico. Right from
customer service and HR
management to marketing
and supply chain,
management everywhere
make use of technology.
Mexican companies that
have internet have benefits
of 16% of productivity
increase, 5% of cost
reduction and 9% of revenue
increase.
Legal Some powerful U.S.
regulatory agencies include
the Environmental
Protection Agency (EPA),
the Occupational Safety and
Health Administration
(OSHA), the Equal
Employment Opportunity
Commission (EEOC), and
the Securities and Exchange
Commission (SEC)
(Lundergren and McMakin
2018).
There are many laws in
Mexico that the retail
industry need to remain
compliant with. They
include Occupational Safety
and Health Administration
(OSHA), Employment
Opportunity Commission
(EEOC) etc.
To remain compliant with
the FCPA (Foreign Corrupt
Practices Act (Jorgensen
2018).
Tax policies
Environmental Building on the momentum
of becoming the largest on-
site green power generator
in the U.S.
USA also face some of the
harsh weather conditions in
the world.
Walmart at Mexico needs to
compliant with
Environmental Protection
Agency (EPA)
Change in climate and
weather condition influence
the business of several
businesses in Mexico.

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Analysis of ethical issues:
Walmart was accused of practising a far reaching bribery campaign that was carried
out by its executives in Mexico in order to boost the growth of the company in the Mexican
market. It responded to this allegation by claiming that it is in possible violation of the FCPA
law with showing a video and a statement that it is cooperating with the authorities for getting
to the bottom of the allegations that are 6 years old (Rarick et al. 2018). It later also released
its 5th annual Global Responsibility Report, highlighting its top ten global achievements in
terms of sustainability and the measures that it has taken for reducing its business impact on
the environment.
I think it should be at the top priority for the corporate leaders to stand firm on a
culture of integrity all through their organisations, no matter how big they are and how
difficult is the environment in which they conduct business (Jorgensen 2017). In fact, it is
more necessary for the big firms to be determined of ethical behaviours as it hampers their
global reputation. It is an act of shame and highly unethical and I think no good deeds could
ever make the people forget about the bribery scandal in which big firms like Walmart gets
engaged in.
If I were the manager at that time, I would work towards making a more positive
image of the company by means of dedicating a large part of the business to the various
different charitable institutions. This is because I believe in sharing the profits within the
society and my people from whom my company can earn by providing better employment
and the increased living standard to the people. I would also provide benefits to our
customers in the form of low prices and would provide our employees with suitable
employment in order to cater their aptitudes and skills. At the same time, I would also ensure

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that the company is paying the taxes properly in order to comply with the nation and state
regulations and rules.
References:
Aithal, P.S., 2016. Study on ABCD analysis technique for business models, business
strategies, operating concepts & business systems. International Journal in Management and
Social Science, 4(1).
Corbin, D.A., 2015. Life, Work, and Rebellion in the Coal Fields: The Southern West
Virginia Miners, 1880-1922 2nd Edition. West Virginia University Press.
Crowley-Matoka, M. and Hamdy, S.F., 2016. Gendering the gift of life: Family politics and
kidney donation in Egypt and Mexico. Medical anthropology, 35(1), pp.31-44.
Jorgensen, J.T., 2017. The Foreign Corrupt Practices Act Turns 40. Tex. A&M L. Rev., 5,
p.237.
Jorgensen, J.T., 2018. The Foreign Corrupt Practices Act Turns 40:" Reflections on
Walmart's Enhanced Ethics & Compliance Program". Texas A&M Law Review, 5(1), pp.237-
252.
Lundgren, R.E. and McMakin, A.H., 2018. Risk communication: A handbook for
communicating environmental, safety, and health risks. John Wiley & Sons.
Rarick, C.A., Williams, H., Barczyk, C. and James, A., 2018. Walmart de Mexico and the
Foreign Corrupt Practices Act: Stepping Over the Border and Stepping Over the
Line. Journal of Leadership, Accountability and Ethics, 15(1).