3. Domestic Environment

The domestic environment encompasses all forces within the territory of the home country and which forces influence the actions and results of the Nestle Purina PetCare Company. These national and uncontrollable forces refer to the consumption behavior of clients within the United States, the weakening of the U.S. dollar, increased taxes, a large national debt and the real-estate crisis which makes it more difficult for companies to receive loans from banking institutions.

Other domestic forces refer to the laws and regulations promulgated by the U.S. Government, laws which regulate the activity of manufacturers and national companies. The Commercial Law is the most relevant one and deals with most corporative operations, including capital, personnel or sales operations. In addition, the domestic environment is also marked by a skilled and populated labor market.

4. Foreign Environment

The foreign environment is composed from those forces outside the home country, but...
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