Course: BUS-690

Strategic Management

Country Road: Macro Environmental

Analysis of USA (1989-2001)
 Country Road: Macro Environmental
Analysis of USA (1989-2001)

Presented by, Presented to,

Md. Ahsan-Ul Hoque M.Nazmul Amin
Md. Mahamudul Hasan Bappy Adjunct Faculty, NSU
Tania Akter
Irfan Ahmed Sadib
Mezbauddin Md. Jibon Chowdhury
Introduction

• COUNTRY ROAD
• Started 1974
• US entry in 1989
• Controlling interest to Woolworth Holding
Limited
• Withdrawn from US market in 2001
Objectives

• Identifying the Global segment

• Identifying the economic segment and
• Identifying the political or legal forces
The Global Segment
What are the Global
Segments?
• Political Events
• Global Markets
• Overseas Financial Markets
• Wars
• Political Regimes
• Trade Blocs
• Trade Boycotts
• Changing Cultural Patterns
Global Markets
• GATT became the World Trade
Organization (WTO)
• Developing countries expanded exports
• Low-wage countries received more quota
• Tariffs were reduced
• Retailers have free rein to shop global markets
• Consumers reap benefits from the intense global
competition

http://fashion-history.lovetoknow.com/fashion-clothing-industry/textiles-international-trade
Trade Boycott
• US President George W. Bush had
worked on-
• Using existing laws to attack unfair trade
practices
• Prohibiting imports from countries taking
advantage of child labour
• Not negotiating new trade agreements that
would cause further damage to the textile
companies and workers

https://www.just-style.com/news/governors-ask-president-bush-to-address-textile-problems_id77277.aspx
 Wars
• Invasion of Grenada (1983 – 1983)
USA/Barbuda/Barbados/Dominica/Jamaica
Vs
Grenada/ Cuba
• US Invasion of Panama (1989 – 1990)
USA
Vs
Panama
Changing Cultural Pattern

• Core competence
• Minority population rose appx 34%
(1990 – 2000)
• Different Cultures
The Economic Segment
Economic Segments are
• Inflation rates
• Interest rates
• GDP
• Currency Exchange rate
• Unemployment level
• Disposable income
GDP (Constant 2010 US$)
1.4E+13

1.2E+13

1E+13

8E+12

6E+12

4E+12

2E+12

0
Inflation, GDP deflator
(annual %)
10

0
Unemployment, total (% of
total labor force)
10
9
8
7
6
5
4
3
2
1
0
Exchange Rate US$1 to AUD
2.50

2.00

1.50

1.00

0.50

0.00
 10.00
12.00
14.00
16.00

0.00
2.00
4.00
6.00
8.00
12/1/1980
8/1/1981
4/1/1982
12/1/1982
8/1/1983
4/1/1984
12/1/1984
8/1/1985
4/1/1986
12/1/1986
8/1/1987
4/1/1988
12/1/1988
8/1/1989
4/1/1990
12/1/1990
8/1/1991
Fed Interest Rate

4/1/1992
12/1/1992
8/1/1993
4/1/1994
12/1/1994
8/1/1995
4/1/1996
12/1/1996
8/1/1997
4/1/1998
12/1/1998
8/1/1999
4/1/2000
12/1/2000
8/1/2001
Household Income
• In 1990-2000 income growth

• African American 32.5%

• Hispanic 24.35%
• Asian American 23.1%
• Caucasian 14.2%
The Political/ Legal
Forces
• Stable Political Environment
• Approximately US$178 billion in revenue in 1995
• Rapid market growth
• High industry profitability

• US Government Policies
• Profound impact on the businesses especially
which are engaged globally
• Growth-oriented policies
• Changes in International Law
• 9/11 terror attack
• Recession
• Interest rate increased
• Strict regulation to enter into US Market

• Tax policy
• International competitive tax arrangements
by the Federal Reserve
• Provides tax benefits for environment
friendly business strategies
• Trade and tariff regulation
• Favorable
• Entry barrier low

• Labor law
• Follows minimum wage law
• Child labor strictly prohibited

• Import export
• Some countries get benefit by different
import export agreement with US
Government