Kotler (1998) claims that PEST analysis is a useful strategic tool for understanding market growth or decline, business

position, potential and direction for operations. And it is essential tool for understanding the dynamic of the market. This part of the report will cover slept analysis of host and home countries

SLEPT of US POLITICAL The following are major regulations and policies that are applicable for the business. y Environmental regulation and protections: The environment law foundation (ELF) is helps peoples use the law to protect and improve their environment and quality of life. y Contract enforcement laws. The law enforcement in the united state is the criminal justice system along with courts and corrections. y Consumer protection law: consumer protection law designed to ensure fair trade competition and free flow of truthful information in the market. y Employment law: The united state supreme court recently ruled that anti-Retaliation provision of the fair labors standard such as protects employee right etc. y Government organization / attitude: There are major differences between the political system of the United States and that of most other developed democracies. These include increased power of the upper house of the legislature, a wider scope of power held by the Supreme Court the separation of powers between the legislature and the executive, and the dominance of only two main parties. The United States is one of the world's developed democracies where third parties have the least political influence y Competition regulation. Competition law, known in the United States as antitrust law, is law that promotes or maintains market competition by regulating anti-competitive conduct. 1947, limited international competition obligations were proposed within the Charter for an International Trade Organization. y High Political stability: The United States has enjoyed 135 years of political stability since the end of the Civil War y Safety regulations. Safety laws are made regarding Crime, Prisons, and Corrections. Safe Kids USA works to ensure that state and federal laws help prevent child injury. Safety laws can make products safer for consumers and promote the use of safety devices.

Border Control. CBP is one of the Department of Homeland Security s largest and most complex components, with a priority mission of keeping terrorists and their weapons out of the U.S. It also has a responsibility for securing and facilitating trade and travel while enforcing hundreds of U.S. regulations, including immigration and drug laws.

High Wage Policy. the US is in for a manufacturing renaissance, thanks to plummeting wages and toothless labor protection policies in the American south

ECONOMICAL ANALYSIS  Import and export duties. The USITC Interactive Tariff and Trade Data Web provides international trade statistics and U.S. tariff data to the public full-time and free of charge. U.S. import statistics, U.S. export statistics, U.S. tariffs, U.S. future tariffs and U.S. tariff preference information are available on a self-service, interactive basis  Tax policies: The USA new government collected revenue from the custom duties and selective taxes termed excise taxes on such items as liquor, tobacco, sugar and certain legal document.  International trade regulation and restrictions: The government of USA makes lot of polices about trade. Tariff policy etc  FISCAL POLICY: Fiscal policy is considered any changes the government makes to the national budget in order to influence a nation s economy. The approach to economic policy in the United States was rather laissez-faire until the Great Depression. The government tried to stay away from economic matters as much as possible and hoped that a balanced budget would be maintained.  MONETARY POLICY: Monetary policy concerns the actions of a central bank or other regulatory authorities that determine the size and rate of growth of the money supply. In the United States, the Federal Reserve is in charge of monetary policy, and implements it primarily by performing operations that influence short term interest rates.

Economic indicators Unemployment 8.9% (March 2011)

GDP growth

2.8% (4Q 2010), 2.8% (2009 2010)

CPI inflation

2.7% (March 2010 March 2011)

Poverty Public debt

14.3% (2009) $14.22 trillion (March 21, 2011)

Household net worth

$54.2 trillion (4Q 2009)

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $47,400. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. The war in March-April 2003 between a US-led coalition and Iraq, and the subsequent occupation of Iraq, required major shifts in national resources to the military. Soaring oil prices between 2005 and the first half of 2008 threatened inflation and unemployment, as higher gasoline prices ate into consumers' budgets. Imported oil

accounts for about 60% of US consumption. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups. The merchandise trade deficit reached a record $840 billion in 2008 before shrinking to $506 billion in 2009, and ramping back up to $630 billion in 2010. The global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and other industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barrack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - twothirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. Approximately two-thirds of these funds were injected into the economy by the end of 2010. In March 2010, President OBAMA signed a health insurance reform bill into law that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a bill designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in parti cular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. In November 2010, in an attempt to keep interest rates from rising and snuffing out the nascent recovery, the US Federal Reserve Bank (The Fed) announced that it would purchase $600 billion worth of US Government bonds by June 2011.

SLEPT Analysis of India

POLTICAL India is the one of the biggest country in the World. The government type is federal republic. Based on English common law, judicial review of legislative acts, accepts compulsory ICJ jurisdiction with reservations, separate personal law codes apply to Muslims, Christians, and Hindus. The political Situation in the India is more or less stable. Most of its democratic history, the federal Government of India has been led by the (INC) Indian National Congress. State politics dominated by several national parties including the INC. The Bharatiya Janata Party (BJP), the Communist Party of India (CPI), and various regional parties. In the 2009 Indian elections, the INC won the biggest number of Lok Sabha seats and formed a government with a alliance called the United Progressive Alliance (UPA), supported by various left-leaning parties and members opposed to the BJP. Overall India currently has a coalition led government and both major political parties the UPA and BJP, whichever comes in power. It comprises political stability and the policies of the government. Ideological inclination of political parties, personal interest on politicians, influence of party forums etc. create political environment. For example, Bangalore established itself as the most important IT centre of India mainly because of political support. In India many poltical factors those effect in business environment. Political pressures in ruling government and vote bank problems. These are the major factors those affect on political environment:Taxation policy India has a well developed tax structure with a three-tiered federal structure. They are the Union Government, the State Governments and the Urban & Rural Local Bodies. The power to levy taxes and duties are distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are Income Tax income, Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are Sales, Stamp Duty, State Excise, Land Revenue, and Duty on Entertainment and Tax on Professions & Callings. Privatisation Because most of the government companies are privatized, there have been process of change in every sector. Deregulation and International trade regulations International trade regulation is supposed to make India more flexible towards FDI

Government stability In India past 10 years or so government have been relatively stable. Government stability is an important factor in this industry in deciding whether to invest or not. International stability If there are major issues aroung globe and especially countries closer to India, that would bring uncertainty in the market.

ECONOMICAL As a part of economic reforms, the Government of India announced a new industrial policy in July 1991, The broad features of this policy as follows: y y y y y The Government reduced the number of industries under compulsory licensing to six. Disinvestment was carried out in case of many public sector industrial enterprises. Policy towards foreign capital was liberalized. The share of foreign equity participation was increased and in many activities 100 per cent Foreign Direct Investment (FDI) was permitted. Automatic permission was now granted for technology agreements with foreign companies. Foreign Investment Promotion Board (FIPB) was set up to promote and channelise foreign investment in India.

The economic factors in India are improving continuously. The GDP (Purchasing Power Parity) is estimated at about 3.965 trillion U.S. dollars in the year 2009. The GDP- real growth rate in 2009 was 6%. India has the third highest GDP in terms of purchasing power parity just ahead Japan and behind U.S. and China. Foreign direct investment rose in the fiscal year ended September 2009 to about US$ 10.532 billion. There is a continuous growth in per capita income; India s per capita income is expected to reach Rs. 33283 by the end of 2009-2010. This will lead to higher buying power in the Hands of the Indian consumers. India GDP is now 6.5. Today India reserve Us dollor in Good condition. SOCIAL Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. In the India, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff are generally living longer. It also means some firms started to recruit older employees to tap into this growing labour pool. It describes the characteristics of the society in which the organization exists. Literacy rate, customs, values, beliefs, lifestyle, demographic features and mobility of population are part o the social environment. It is important for managers to notice the direction in which the society is moving and formulate progressive policies according to the changing social scenario

India is the second most populous nation in the world with an approximate population of over 1.1billion people. This population is divided in the following age structure: 0-14 years 31.8%, 15-64 years 63.1% and 65 years and above 5.1%. TECHNOLOGICAL New technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organisations providing the products. India is known for IT expertise so it is easy to acquire software and hardwares that are specific to the organizational need at much cheaper price. Advantages of Indian technological environment are: IT Development New Materials and processes Government technology funding Speed of technology transfer Software upgrades