• Subject Name : Management

Strategic Assessment


Key Judgments.


Political Factors.

Economic Factors.

Socio-Cultural Factors.

Technological Factors.



Key Judgments

  • Reinforcing the defence strengths of democracies: The United States has increased the effectiveness of the defence systems and technologies of the other democracies of the Indo-Pacific. Furthermore, it can enhance such competencies via joint training, and other means.
  • Declined threats: The indo-pacific strategy of USA has reduced the external military threats to democracies in the region.
  • Enhanced military basing: The US military remains the robust belligerent force in the globe and it is not about weapons. The existence of a nation’s defence forces spreads outside the boundaries of the nation. Moreover, approximately 2 lakhs workforce are on the vigorous duty outside the USA in more than 170 nations.

Analysis of US’s Indo-Pacific Strategy

The PEST analysis is the best tool to analyze the external environmental factors of US’s Indo-Pacific strategy and their impact on the military basing in the region. This framework further helps to identify the key opportunities and threats also. The main factors included in this analysis are political; economic; socio-cultural; and technological (Ho 2014, 6478-6492).

Political Factors

Political environment entails the factors related with the intervention of government and includes environment law; restrictions; political stability; labour law, tax policy, and so on (Barkauskas and Jasinskas 2015, 167-172). The United States has both a normative and a measurable interest in democracy, autonomy, and human rights. The government of nation-states that the Indo-Pacific is the only most significant region for the forthcoming of America. In the United States of America, the role of government is to facilitate open business while safeguarding individual rights and authorizing individuals. The peaceable resolution of any of the militarized clashes will likely to eradicate them as possible sources of battle and may remove the need of the United States to establish, assist, or deploy armed forces for possible eventualities entailing such disputes. (Panda 2019, p. 2). The US is having its strength in the network of allies. It indeed has mutual defence treaties with South Korea; Philippines; Japan; Thailand; New Zealand; and Australia within the Indo-Pacific. Moreover, the US has robust defence associations with numerous other nations in the region like Singapore and Taiwan. Further, it is the associate of NATO (North Atlantic Treaty Organization) that entails various powers like the UK, Germany, and France. Though the combined defence portion of the contract would just apply to armed violence in North America or Europe, the occurrence of the treaty means that other associates of NATO would perhaps at least offer economic and political assistance if the US became engaged in a military battle in the Indo-Pacific. The US has signed an MOU with Singapore to enhance it's military basing in the region with containers. Besides, in the Indo-Pacific, the US has a strong soft power meaning that this country is being viewed positively or favourably by others in respect of its foreign policies, political values, and culture. The US, under the Trump’s supervision and direction, is employing a whole-of-government approach to boost the norms it has aided the Indo-Pacific. The main values are admiration for dominance and freedom for all countries; nonviolent resolution of arguments; free, fair-minded, & mutual trade based on open speculation, clear agreements, & connectivity; and obedience to global law entailing autonomy of navigation and overflight (Calabrese 2020, 1-21). The US régime co-hosted the second business forum of Indo-Pacific in Thailand along with the conglomerate with the Thai chamber of commerce, and more. It advances the nation’s obligation to emphasize American private sector devotion on the vibrant and various economies of the Indo-Pacific region.

Economic Factors

The economic environment consists of the factors that interest rates, economic growth, inflation rate, foreign exchange rate, GDP, and so on that can influence the country or business. Furthermore, these factors have major impacts on how law enforcement companies operate and make choices. It also influences criminal behaviour (Zandi et al. 2015, 200-210). The United States has invested about $940 mn in the FDI (foreign direct investment) in respect of Indo-Pacific even more than any nation in 2018. The US government is organizing novel and original ways of improving market access and stabilizes the playing area for its businesses. There is a program named as USAID that is a main contributor to corporate environment expansion and is enlarging programs emphasized on Indo-Pacific trade and attractiveness to assist falling barriers to entry in the market, reinforce controlling capability, and refine private sector appeal. It is evident that above one-third of nation’s foreign trade is presently with the Indo-Pacific with joint US importations and ships to and from the region demonstrating above $1.6 trillion yearly, about 8% of nation’s GDP (Scott 2018, p. 19-43). Furthermore, the companies in the nation are having a trillion dollars’ investment in the region. Besides, numerous products generated in the US are reliant on inputs produced in the Indo-Pacific region. In respect of connectivity or infrastructure, the nation desires to endorse good governance mainly in terms of simplification superior infrastructure, lucrative connectivity projects, and sustainable development (Pitakdumrongkit 2019, 8).

Socio-Cultural Factors

Socio-cultural environment consists of aspects like the educational system, population, growth rate, career attitudes, cultural aspect, focus on safety, and more. There is no doubt that the most essential resource of a nation is its people. It indicates not only to the dimension of its population but also to the competencies and abilities of its people (Hossain et al. 2019, 393-403). It can be said that the population of the USA will endure to be dwarfed by the china and India population that are likely to reach 1.46 bn and 1.5 bn respectively by 2030. Furthermore, the population of the US is more educated than that of any Indo-Pacific nation. The combined aspect of a massive population and greater average education makes the United States of America to be the biggest pool of workforce talent over the globe. As far as safety aspects are concerned, the US is proficient in defence spending activities. It spends much more on defence than any other nation and the expenditure on defence was $ 650 bn for the year 2018. It is being projected that the US will remain the largest defence spender with the annual outlay of $ 790 bn by 2030 that is likely to positively impact on the military basing in the region (Vaughn et al. 2019, 73-117). It also works with nations in the area on military teaching and marine safety. The nation’s Indo-Pacific grasp that military leaders casually refer to as stretching from ‘Hollywood to Bollywood’ leads these struggles. Further, it assists nations via ship rider programs wherein law implementation generals from a seaside state can travel on US containers and impeach unlawful actions in their nation’s elite economic zones (Hartman 2019, 4). Additionally, more than 730000 pupils are studying in the US who are from Indo-Pacific and they account of two-third of overseas students in America. The nation is also supporting to develop its human capital by its language skills development. English language proficiency indeed facilitates the associates of Indo-Pacific to benefit from involvement with the international economy (Tow 2019, 232-244).

Technological Factors

Technological environment is related to the prompt advancements in the modern techniques and novelties that impact the functioning of business or country. Furthermore, it entails the growth of novel technologies along with the existing ones. It consists of automation, research & development actions, and rate of technical modifications (Kara 2018, 598-608). The digital scenario and the internet have encouraged massive economic development and refine the living standards of people. IT can be said that the Indo-Pacific is the household to numerous technology and combined cultured economies on the earth. To fulfil the challenges of fifth-generation 5G telecommunications and IoT (Internet of things) technology, the United States has promoted an undeveloped, interoperable, safe, and authentic internet. The digital partnership programs entail sponsorship, software, and training channels to secure data confidentiality via an interoperable controlling system, technical support, and recommended assistance on ICT (Information and communication technology). The United States of America is having the world’s sturdiest technical competencies and is ready to sustain this benefit for the predictable forthcoming. It is noteworthy that the US has been spending enormously on research and development activities every year. In this respect, it led the whole world with entire expenditure in public and private sector R& D activities that accounted for $ 581 bn during the year 2018. Furthermore, the US is having the second largest number of researchers accounted for nearly 1.4 bn in which 680000 belonged to japan; 420000 to Germany; and 410000 to Russia. Moreover, the nation is also well-versed in the aspect of patents granted to companies and citizens. In the year 2018, it led the world wherein approximately 145000 patents were granted by external patent offices. In 2018, it spent above $ 110 mn in the nation’s support for energy, digital, and infrastructure project to assist spreading prosperity in a region. Moreover, it has numerous programs emphasized on ASEAN (the Association of Southeast Asian Nations), the globe’s firmest emerging internet region with approximately 4 mn novel virtual users each month (Han Jong-Hwan 2020, 5-28). Additionally, the US is growing the counterterrorism capability of its south Asian associates via practical analytical support like the disposition of FBI agents to Sri Lanka after the ISIS-inspired extremist assaults on Easter Sunday along with aiding to evade attacks via increased border supervision procedures and technology in nations like the Maldives and Bangladesh (Ford 2020, 5).

Implications of US’s Indo-Pacific Strategy

The main implications of US Indo-Pacific Strategy on the military basing of the regional areas are numerous. As per the government of the United States, the nation is having the best military by far anywhere in the globe. Furthermore, its military remains the robust belligerent force in the globe and it is not about weapons. The existence of a nation’s defence forces spreads outside the boundaries of the nation. Moreover, approximately 2 lakhs workforce are on the vigorous duty outside the USA in more than 170 nations. The indo-pacific strategy of USA has reduced the external military threats to democracies in the region. Further, there has been an increased United States military presence in Northeast Asia due to which china being drawn to conflicts with the US. It can be said that the United States must work with the globe’s democracies to develop a global export-control government to limit the transfers of military and dual-use technologies to control nations. Moreover, it is constantly committing to the Indo-Pacific for its existence in the region with nearly 375000 United States military and noncombatant workers assigned to the US Indo-Pacific command area of accountability. It has signed an MOU (memorandum of understanding) with Singapore to enable constant US military access to Singapore’s air and marine bases and offers logistic assistance for transiting workers, aeroplane, and containers. Furthermore, the above analysis suggests that the United States must enhance its support for programs that endorse spiritual acceptance and reinforce non-ideological education in countries like Bangladesh, Malaysia, Indonesia, and the Maldives. Overall, as per the pest analysis of US Indo-Pacific strategy is having numerous strengths in respect of military bases in the region. The USA working together with japan as an associate has 56000 service members in japan who aid in the defence of the country (Garamone 2019, 3).

References for US’s Indo-Pacific Strategy

Barkauskas, Vytautas, Kristina Barkauskienė, and Edumundas Jasinskas. 2015. "Analysis of macro-environmental factors influencing the development of rural tourism: Lithuanian case." Procedia-Social and Behavioral Sciences 213: 167-172.

Calabrese, John. 2020. "Assuring a Free and Open Indo-Pacific–Rebalancing the Us Approach." Asian Affairs: 1-21.

Ford, Lindsey. 2020. "The Trump administration and the ‘free and open indo-pacific’." https://www.brookings.edu/wp-content/uploads/2020/05/fp_20200505_free_open_indo_pacific.pdf

Garamone, Jim. 2019. Milley describes the indo-pacific region as the US military’s main effort. US dept. of defence. https://www.defense.gov/Explore/News/Article/Article/2015053/milley-describes-indo-pacific-region-as-us-militarys-main-effort/

Han, Jong-Hwan. 2020. "The Stances of Neighboring States to the Indo-Pacific Strategy and Its Implications for the South Korean Navy." Strategy 21: 5-28.

Hartman, Leigh. 2019. What is the U.S. Indo-Pacific strategy? https://share.america.gov/what-is-u-s-indo-pacific-strategy/

Ho, Joseph Kim-Keung. 2014. "Formulation of a systemic PEST analysis for strategic analysis." European academic research 2, no. 5: 6478-6492.

Hossain, Sahadat, Afifa Anjum, Md Elias Uddin, Md Abdur Rahman, and Md Forhad Hossain. 2019. "Impacts of socio-cultural environment and lifestyle factors on the psychological health of university students in Bangladesh: A longitudinal study." Journal of affective disorders 256: 393-403.

Kara, Ergün. 2018. "A contemporary approach for strategic management in tourism sector: pestel analysis on the city Muğla, Turkey." İşletme Araştırmaları Dergisi 10, no. 2: 598-608.

Panda, Ankit. 2019. "The 2019 US Indo Pacific Strategy Report: who is it for?’." The Diplomat, Accessed June 25: 2019.

Pitakdumrongkit, Kaewkamol Karen. 2019. The impact of the Trump Administration's Indo-Pacific strategy on regional economic governance. Honolulu, HI: East-West Center.

Scott, David. 2018. "The Indo-Pacific in US Strategy: Responding to Power Shifts." Rising powers quarterly 2, no. 2: 19-43.

Tow, William T. 2019. "Minilateral security's relevance to US strategy in the Indo-Pacific: challenges and prospects." The Pacific Review 32, no. 2: 232-244.

Vaughn, Bruce, Emma Chanlett-Avery, Ben Dolven, K. Alan Kronstadt, Susan V. Lawrence, Thomas Lum, Wayne M. Morrison, and Ronald O'Rourke. 2018. "The Trump Administration's" Free and Open Indo-Pacific": Issues for Congress." Current Politics and Economics of South, Southeastern, and Central Asia 27, no. 1/2: 73-117.

Zandi, Gholamreza, A. Mahadevan, L. Supramaniam, Ayesha Aslam, and Lai Kin Theng. 2015. "The economical factors affecting residential property price: The case of Penang island." International Journal of Economics and Finance 7, no. 12.

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