UCAM/CIQ/205 Assignment: PEST Analysis for Amazon in the US Market

This report presents a PEST analysis of the United States, focusing on the multinational technology company Amazon. The analysis examines political, economic, social, and technological factors that influence Amazon's operations within the US market. Political factors include the US's democratic setup and regulatory framework. Economic factors consider the nation's GDP, economic system, and the impact of recession. Social factors address education levels, employment rates, and demographics, while technological factors highlight the US's leadership in innovation. The report concludes that PEST analysis is vital for strategic decision-making, identifying external factors that affect business performance and profitability, and gaining a competitive advantage. The report also includes references to relevant academic sources.

Socio-Economic &
Legal Environment

Table of Contents
 Introduction
 PEST Analysis of the United States
 Conclusion
 References

Introduction
PEST analysis can be defined as a method that is used in management and
helps organizations in assessing the various external factors that can influence
their overall operations. The main reason of a firm behind using PEST
analysis is to become more competitive and outperform in the market.
Organization chosen for this presentation is Amazon, which is a multinational
technology company based in Washington, United States.

PEST Analysis of the United States
A PEST analysis helps an organization in making better and informed decisions thereby
improving its overall performance. This is done by analyzing various external factors that
can influence the operations of the company such as political factors, economic factors,
social factors as well as technological factors. The PEST analysis of United States is
described below.
Political Factors –The United States has a strong democratic setup and powerful
rule of regulation, with elections which might be considered honest and transparent. The
united states of America enjoys big political and financial affect over both country wide and
worldwide policy-making, and is diagnosed as the main superpower within the international.

Cont…
Economic Factors – With a GDP of over $sixteen.760 trillion, America is the largest
financial system within the global. The economic machine is well-evolved and gathers its
power from its offerings and manufacturing industries. The recession in 2009 adversely
affected the economic system of the USA and unemployment charges soared to an alarming
factor. The four additives of gross domestic product are non-public intake, commercial
enterprise funding, authorities spending, and internet exports. The subsequent detail to cope
with in the PESTEL evaluation of the united states is the use of a’s economic environment.

Cont…
Social Factors – There are various social factors that can affect the overall
operations of the organizations operating in the United States. These factors can include
education levels of the customers, the employment rate, age, gender etc. The people
living in the United states are qualified and educated.
Technological Factors - The USA is the global leader in technology and
generation. Americans have a longstanding fascination for generation, and corporations
such as Apple, Microsoft, Google, Facebook, and plenty of others have addressed the
technological desires of the Americans and the humans round the sector.

Conclusion
From the above report, it can be concluded that pest analysis is one of the important
aspects that an organization should take into account while developing strategies. This
is because it can help the company in identifying the various external factors that can
impact the overall performance as well as profitability of the business. Different factors
can either act as barriers or have a positive impact on the company. As a result, there is
an increase in the profitability and the company also gains a competitive advantage
against competitors.

References
 Barbara, C. and et.al., 2017. The european insurance industry: A PEST analysis.
International Journal of Financial Studies. 5(2). p.14.
 Cornelius, B. and et.al., 2017. The phenomenon of tin pest: A review.
Microelectronics Reliability. 79. pp.175-192.
 Gurr, G. M. and et.al., 2017. Habitat management to suppress pest populations:
progress and prospects. Annual review of entomology. 62. pp.91-109.

Thank You