PESTLE Analysis of the USA for XYZ Company's Expansion

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Business Communication
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Executive Summary
The main purpose of this report study is to understand the sustainability issue in terms of social,
economic, technological, cultural, political, legal, environmental and custom. This leads to the
PESTLE Analysis of a country. The country which is selected for the critical analysis is the
United States of America (USA). The USA comprises of 50states and is the third or fourth
largest country as compared in terms of total area (Malone and Laird, 2018). With such a wide
number of population in the country it attracts business organizations to expand their business
operations and investors to invest in such area. XYZ which is an Australian company is
planning to expand its operations in USA. This report study aims at critical analysis of all such
factors which directly or indirectly impact on the business environment.
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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Background of XYZ Company........................................................................................................5
United States of America.................................................................................................................5
Business Custom and Culture......................................................................................................6
PESTLE Analysis........................................................................................................................6
Impact of climate change on the operations of XYZ Company..................................................7
Conclusion.......................................................................................................................................7
Recommendation.............................................................................................................................7
References........................................................................................................................................8
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Introduction
The USA is the country which is composed of 5 major self-governing territories, 50 states, a
federal district, and various other possessions. The capital of USA in Washington, D.C. The
largest city in the USA in terms of population is New York(Malone and Laird, 2018). The
country is well-known for its cultural aspects and investors are also every time interested in
investing in this country. The report study will conduct an in-depth analysis of various factors
that are associated with the effective and efficient functioning of USA. This analysis will be
helpful for the XYZ Company in order to make its investment decision and other business
related decision appropriately. In the end, some useful point will also be recommended to XYZ
so that it can make the correct decision.
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Background of XYZ Company
XYZ is well-known ride-hailing service or Transportation Network Company of Australia. There
are various services offered by XYZ such as peer to peer ride sharing, auto-sharing, bicycle
sharing and taxi cab hailing. The cabs of this company are very safe as the vehicles are newly
purchased and rented. Moreover, the personal backgrounds of cab drivers are checked very
strictly and no fault background drivers are appointed. In addition to this, the USP of company is
providing safety rides at very economical pricing. The target audience of a company is youth and
professionals as they are the once who frequently visit various places. Additionally, the company
has positioned itself in terms of the interior of cabs which are designed very attractively so that
customers get attracted from the comfort and leisure experience provided by XYZ. The
segmentation of customers includes rural and urban areas and providing taxi cab hailing services
to each and every part of country (David, 2019).
United States of America
Figure: USA immigration and work visas
Source: (Workpermit, 2019)
USA is one of the world’s most popular immigration destinations. USA is 3rd most popular
country in the world(Weberience LLC, 2019). With its diversified economic structure, it comes
to a great opportunity for the investors and venture capitalists to opt as its first option in such
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country. However, the US economy has faced with various ups and down and is majorly affected
due to recession in the year 2009. This lead to a slow growth rate of US economy. However,
after this economic downturn, the economy somehow managed to grow steadily because of
increase in a business environment, decrease in unemployment, increase in consumer
expenditure and many other factors (Weberience LLC, 2019).
USA is the most diverse country in the whole World. The western regions, Southeast regions,
Midwest regions, South Regions and the Northeast regions of the USA have the distinct
traditions and the customs of the country. There is not the official language in the USA
according to the Government of US. As almost every language is being used in the US by
different people in the country. Some states in the US have the official languages in the country
of US such as the “English and Hawaiian” are being officially used languages in “Hawaii”.
According to the “Census Bureau”, it has been estimated about 300 more languages are being
spoken in the country of US. All these languages are being divided by the “Census Bureau” into
four different categories including the “Spanish, the European languages such as the German,
Russian, Greek, Swedish, French, Hindi, Punjabi Italian and many more. Asian pacific language
including the Chinese, Korean, Japanese, Tamil and many more (Epstein, 2018). The other types
of languages include the Arabic, language of Africa, and the languages of native people living in
North, Central, South America.”
On the basis of religious freedom, every known religion is being practiced in the US. According
to the "Pew Research Center (a non-partisan group in the year 2017)" approx 71% of the
Americans treat themselves as Christians. It has been also examined that nearly 23% of the
Australian people have not been considered as the religious affiliation and also the non-
Christians group are 6% in number.
The style of clothes being worn by the Australian people varies according to the social status, hte
religion, the occupation of the people living in the country, the climatic situations, the boots and
other items of clothes. The popular celebrities of the US and the media influence and have a
great impact on the trending fashion of America. According to the "Harvard University, 2007" it
has been estimated that about 200 dollars each year are being earned as the sales in the fashion
industry of USA.
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The various kinds of foods such as the "hot dog, potato chips, macaroni, cheese and hamburger"
which are being identified as American food. Also, there are various different types of style of
cooking American food like the cooking in "Southern style" is called as the "American Comfort
Food". The popular dishes such as the "fried-chicken, collard greens, corn bread", all these
dishes are being included in the “American Dishes and Food” (Wijayati, et.al. 2018).
In the context of "mass-media communication", America is a very well known country in
consisting of the television and the movies. The programs of America on the television are being
shown in almost all the parts of the country. The country of America is rich in relation to the
"theatrical history". Also, the art and music of US are very diverse all over the World, and it
includes the different styles such as the "rhythm, jazz, gospel, western music, rock n roll, and hip
hop."
The sports people are widely spread in the whole country of USA. There are millions of fans of
the American sports people across the whole World. The sport of Baseball was developed in the
part of “Colonial America” (Wijayati, et.al. 2018).
According to the culture of “American Holidays”, multiple holidays are being celebrated every
year like the Independence Day on July 4th, also the Memorial Day which is being celebrated on
the day of last Monday in the month of May. Like these days, all the other days are being
celebrated by the different people of the country. One such example is the “Labour Day” which
is being celebrated on the first day of the month of September.
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Business Custom and Culture
The XYZ Australian Company has strong cultural norms like it handles the operations at the
Global level. The organization works to gain strong customers' trust and try to sustain it for a
longer period of time. It also encourages the various different opinions and considers various
feedbacks of the different people of the Country. The company is very accountable and identifies
the effective solutions on its own for the different problems.
PESTLE Analysis
There are six factors which are critically analyzed in the PESTLE Analysis. The below points
provides the description of such factors(Gellis and Noe, 2013):
Political Factor–USA economy has a strong democratic structure where rules and regulations
are very stringent. In addition to this, the elections are also conducted fairly and transparently. In
terms of both the political and economic the country is considered to be a policy maker and super
powerful across worldwide. In terms of trade and business also there are favourablepolicy and
duties. It is also studied that the country faces international criticism (David, 2019).
Economic Factor–USA is the largest economy in the world having GDP of over $16.760
trillion. The structure of a country is well structured and developed and because of which it is
able to rule on various other economies also(David, 2019). However, the country was exposed to
an economic crisis in the year 2009 which led to adversely impacting on the country. This
recession time period gave a huge risk to business organizations and impacted on trading also.
Social Factor–It is researched that unlike other developing or developed countries US faces a
problem of an aging population that can lead to a serious matter of concern. It can create a labor
shortage and an increase in tax rates in future. On the other side, it is also evident that the
education and health care system of USA is among the best in world. Most of the population in
US has a liberal mind-set but due to an increase in racial intolerance it is becoming a serious
social problem for the country (Gellis and Noe, 2013).
Technological Factor-The increasing trends in technology has made it easy for the people living
in US to access and enjoy their rides with online access by using the XYZ Company’s online
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application. It is necessary for the Australian company to have the strong connectivity and
minimize the network issues so that it can run its operations effectively. The drivers of the
company must use the 4G and the 5G networks so that the strong connection must be established
with the customers.
Legal Factor-Legal factors are very essential to be considered with all the above factors. All the
legal laws must be effectively understood and the policies must be framed accordingly. The XYZ
Company must go through with all the "legal laws, copyright laws, the labor and the
employment, safety laws" of Australia.
Environmental Factors-Many Australian people believe that the XYZ Company is increasing
the pollution in the country and also consuming a lot of fuel. The company must ensure that the
operations must not negatively impact the environmental of Australia. The company also fulfill
the social responsibilities for the development of the Country. This will also increase the number
of customers towards the Company (Weberience, 2019).
All these external factors must be analyzed effectively and in an efficient manner so that the
smooth running can be enhanced in the organization. But only examine the external factors is not
enough, it is very essential to determine the internal factors also such as the internal attitude and
behavior of the people or the employees, the team efficiency in the team work and the effective
coordination among the various departments and managers in the organization. All these factors
are necessarily be required in the organization internally so as to increase the profitability and
enhanced productivity in the organization. Also, the effective policies must also be framed in the
context of structure of the organization and to attain the defined goals and objectives of the
company in an effective and proper manner.
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Impact of climate change on the operations of XYZ Company
There can be a negative impact on the operation of XYZ Company. The complete operations of
the company are being occurred with the online application, the bad climate can reduce the
network and effective connectivity because of which the customers may not get connected with
the Company through online sources. Although, the climatic factors cannot be controlled by the
organization, but with the implementation of effective policies and strategies these factors can be
minimized and may have the least impact on the smooth running of the organizational
operations. By framing of the efficient tactics and strategies, these climatic factors cannot create
the hurdles in between the attainment of organizational goals and objectives. Hence, it is been
said that effective measures must be set and applied whenever required or else the organization
may face the consequences of failure (Sagmeister, 2018).
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Conclusion
On the basis of the above report study, it has been concluded that US economy is majorly
impacted by such environmental factor. US economy is among the strongest in a world which
enables attracting of business s entrepreneurs and investors to invest in such a country. XYZ
Companyis expanding its business operations in US which are a big challenge for them. As the
population is very high it leads to varied customers preferences, behaviour, and attitudes.
Moreover, there is a stiff competition in Transportation Network Company as presently many
companies are coming up like this that creates a threat for existing and new once. However, in
this highly dynamic business environment also there come opportunities for the businesses to
grow and expand its operations (Mastrorillo, 2016). From the above PESTLE analysis it is
concluded that there is a positive impact of climate change on the business operations of XYZ
Companyand therefore, the company must be very carefully and innovative while expanding its
business operations in USA.
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Recommendation
The suitable and the effective measures, policies, and strategies must be framed by the company
on the regular basis; also the company must ensure the connectivity form time to time and must
implement the measures in advance so as to eliminate any kind of hindrance. All its operations
must be followed with the strict laws and policies. The effective training must be provided to all
its drivers and employees about how efficiently they can deal with the customers (Mastrorillo,
2016). The employees must be given with the effective programs and sessions of the training so
that they must be learned about the effectiveness of being working in a team and enhancing the
coordination among each and every level of department. Also, the effective strategies and tactics
must be implemented by the company in order to retain the skilled and efficient employees with
the organzaition for the longer period of time. As because if the employee will leave then the
investment of conducting the training session will convert into the wastage (Greene, 2018).
Therefore, all these recommendations must be considered by the company effectively. And also
the feedbacks must also be conisderd by the company given by its customers and the effective
measures must also be taken in order to implement those feedbacks.
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