SUBMITTED BY:-Namarta Narang H038

United States of America

Historical Analysis The start of the history of the United States  is marked with the arrival of Christopher Columbus in

1492

Indigenous people lived in what is now the United States for thousands of years before European colonists began to arrive, mostly from England, after 1600. The Spanish had small settlements in Florida and the Southwest, and the French along the Mississippi River and the Gulf Coast.

In 1776, Congress declared that there was a new, independent nation, the United States of America, not just a collection of disparate colonies. With large-scale military and financial support from France and military leadership by General George Washington, the American Patriots rebelled against British rule and succeeded in the Revolutionary War. The peace treaty of 1783 gave the new nation the land east of the Mississippi River and confirmed Great Britain's recognition of the United States as a nation.

Congress wrote a new Constitution, which was adopted in 1789. In 1791, a Bill of Rights was added to guarantee inalienable rights. With Washington as the Union's first president and Alexander Hamilton his chief political and financial adviser, a strong central government was created

Geographical Analysis

The United States of America is the world's third largest country in size and nearly the third largest in terms of population. Located in North America, the country is bordered on the west by the Pacific Ocean and on the east by the Atlantic Ocean. Along the northern border is Canada and the southern border is Mexico. There are 50 states and the District of Columbia. 

United States has high mountains in the West and a vast central plain. The lowest point in the country is in Death Valley which is at -282 feet (-86 meters) and the highest peak is Denali (Mt. McKinley) at 20,320 feet (6,198 meters).

Geographical Analysis

CLIMATE:West: mostly semi-arid to desertMountains: alpine,Northeast: humid continentalSoutheast: humid subtropicalCoast of California: Mediterranean, Pacific Northwest: cool temperate

oceanic, Alaska: mostly subarctic, Hawaii and the territories:

tropical

NATURAL RESOURCES:

Coal, copper, lead, molybdenum, phosphates, rare earth elements, uranium, bauxite, gold, iron, mercury, nickel, potash, silver, tungsten, zinc, petroleum, natural gas, timber

ENVIRONMENTAL ISSUES:

severe water shortages, air pollution resulting in acid rain in both the US and Canada

Cultural Analysis

Language

More than 300 languages are spoken in the United States. Spanish, Chinese, French and German are among the most frequently spoken non-English languages. Ninety percent of the U.S. population speaks and understands at least some English, and most official business is conducted in English.

Religion

About 83 percent of Americans identify themselves as Christians, according to an ABC poll. Judaism is the second most-identified religious affiliation, at about 1.7 percent of the population.

American style

Clothing styles vary by social status, region, occupation and climate. Jeans, sneakers, baseball caps, cowboy hats and boots are some items of clothing that are closely associated with Americans. Ralph Lauren, Calvin Klein, Michael Kors and Victoria Secret are some well-known American brands.

American food

American cuisine has been influenced by Europeans and Native Americans in its early history. Today, there are a number of foods that are commonly identified as American, such as hamburgers, hot dogs, potato chips, macaroni and cheese, and meat loaf. "As American as apple pie" has come to mean something that is authentically American.

The United States was included in the group of countries that had the Long Term Orientation (LTO) Dimension added. The LTO is the lowest Dimension for the US at 29, compared to the world average of 45. This low LTO ranking is indicative of the societies' belief in meeting its obligations and tends to reflect an appreciation for cultural traditions.

Hofstede dimension

The high Individualism (IDV) ranking for the United States indicates a society with a more individualistic attitude and relatively loose bonds with others. The populace is more self-reliant and looks out for themselves and their close family members.

Uncertainty Avoidance (UAI), with a ranking of 46, compared to the world average of 64 is indicative of a society that has fewer rules and does not attempt to control all outcomes and results. It also has a greater level of tolerance for a variety of ideas, thoughts, and beliefs

Masculinity (MAS) with a ranking of 62, compared with a world average of 50 indicates the country experiences a higher degree of gender differentiation of roles. The male dominates a significant portion of the society and power structure. This situation generates a female population that becomes more assertive and competitive, with women shifting toward the male role model and away from their female role.

Power Distance (PDI) at 40, compared to the world Average of 55 indicates a greater equality between societal levels, including government, organizations, and even within families.

General Etiquette and Customs

Business DressWhat is considered appropriate business attire varies by geographic region, day of the week and industry. People in the East dress more formally, while people in the West are known for being a bit more casual.Executives usually dress formally regardless of which part of the country they are in.Casual Friday is common in many companies. High technology companies often wear casual clothes every day.

Entertaining:Business breakfasts and lunches are common and lunches may last two hours. The person extending the invitation usually pays. Business is usually not discussed until everyone has ordered their meal. Socialising occurs more often after business is concluded. Business entertaining is not to develop a personal relationship. 

General Etiquette and Customs

GreetingsThe hand shake is the common greeting. Handshakes are firm, brief and confident.Most people will insist that you call them by their nickname, if they have one.In formal circumstances, you may want to use titles and surnames as a courtesy until you are invited to move to a first name basis, which will happen quickly.Business cards are exchanged without formal ritual.It is quite common for the recipient to put your card in their wallet, which may then go in the back pocket of their trousers.

Communication StylesAmericans are direct. They value logic and linear thinking and expect people to speak clearly and in a straightforward manner. A person from a culture that is more subtle in communication style should try not to feel insulted by the directness. Americans make the use the telephone to conduct business that would require a face-to-face meeting in most other countries. They do not insist upon seeing or getting to know the people with whom they conduct business.

Political Analysis

The executive branch is headed by the President and is independent of both the legislature and the judiciary. Legislative power is vested in the two chambers of Congress, the Senate and the House of Representatives. The judicial branch (or judiciary), composed of the Supreme Court and lower federal courts, exercises judicial power (or judiciary).

Barack Obama is the 44th president of the United States of America

Political Party : Democratic party

Joe Biden is the 47th vice president of the United States of America

Political Party : Democratic party

Economic Analysis

The United States is the world's largest national economy, representing 22% of nominal global GDP . The United States' GDP was estimated to be $17.914 trillion as of Q2 2015. The U.S. dollar is the most used currency in international transactions and is the world's foremost reserve currency.  

The US has abundant natural resources, a well-developed infrastructure, and high productivity. It has the world's ninth-highest per capita GDP (nominal)  as of 2013.Americans have the highest average household and employee income among OECD nations.

Of the world's 500 largest companies, 128 are headquartered in the US.

The United States has one of the world's largest and most influential financial markets. The New York Stock Exchange is by far the world's largest stock exchange by market capitalization

 Consumer spending comprises 71% of the US economy in 2013. The United States has the largest consumer market in the world, with a household final consumption expenditure five times larger than Japan's.  The labor market has attracted immigrants from all over the world and its net migration rate is among the highest in the world. The U.S. is one of the top-performing economies in studies such as the Ease of Doing Business Index, the Global Competitiveness Report, and others.

Major Exports

Cars 4.4 %

Refined Petroleum 4.2 %

Planes Helicopters and Spacecraft 3.2%

Packaged Medicaments 3.1 %

Gas Turbines 2.4 %

Gold 2.2 %

Major Imports

Cars 8.3 %

Computers 5.4 %

Crude Petroleum 5.3%

Packaged Medicaments 2.6 %

Broadcasting Equipment 2.5 %

Refined Petroleum 2.5 %

Largest Trading Partners

Failure of an International Brand in USA

Tesco’s venture into the US with ‘Fresh & Easy’ was a failure.

Factors contributing to the failure of Tesco’s US venture

Entry Strategy

When entering the US market, Tesco planned to enter with small format stores that replicated the ever-popular Tesco Express stores of the UK.This initial entry strategy failed to account for the cultural discrepancies that existed between British and American consumers.“Europeans make more frequent grocery trips… whereas Americans are used to going for bigger trips less frequently” . This meant that the small-format stores did not meet the demands of the US consumer despite its popularity in the UK.

Human Resource Management Fresh & Easy stores, used self-service checkout systems only in an attempt to increase convenience

and limit labour costs. The absence of employees at traditional checkout lanes limited the company’s interaction with the customer, which made it difficult for Fresh & Easy employees to provide a high level of customer service.

Risk Assessment The company strategically targeted ‘food deserts,’ areas positioned far away from large grocery

retailers, in Arizona, California and Nevada (Telegraph). Such locations, however, had been hit hard by the economic recession and the collapse of the real estate market , thus increasing the inherent risk. Research into the US grocery industry showed a lack of mid-market specialist retailers. Tesco hoped to exploit this gap in the market by using small format stores to meet consumer demands (Emerald Group, 2008). Meeting consumers’ demands, however, proved a harder challenge than the risk assessment had envisaged. Tesco soon came to realise that the lack of mid-market specialist stores in the industry resulted from the US consumers’ preference to shop big and infrequently at large supermarkets such as Trader Joes and Costco. In essence the demand for this perceived ‘gap in the market’ did not exist and as one article stated “aiming directly at this [mid-market specialist] sector would therefore appear suicidal”.

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