the philippine business enterprise

7/31/2019 The Philippine Business Enterprise

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The Philippine Business Enterprises



Business• Selling of goods and services.

• “Social process which involves the assembly and

utilization of resources to produce goods and

services in order to satisfy the needs of society.” – Prof. Lawrence Gitman of Wright State University

• Organized to acquire profit.

• “The purpose of a business is to create a customer

and satisfy him. “ - Peter Drucker

- It is the customer who determines what a

business is.



Business Basic Resources

Men – people who work in the business.

- considered the most important resource

- organizations should train and treat their people

well

Money – funds for acquiring materials and machine,

and paying for operating expenses.

Machines – more efficient and economical.



Business Basic Resources

Materials – for creation of products.

Methods – technology or techniques of production.



Economic Systems Model

• An economic system is a set of economic

institutions that dominates a given

economy.

• Its basic objective is to satisfy the

economic needs of the people.

•Criteria of performance: abundance,growth, stability, security, sufficiency,

justice, and economic freedom.




Capitalism – factors of production and

distribution are owned and managed by

private individuals. Essential features:

• Private property

• Economic freedom

• Free competition

• Profit motive




Communism – factors of production and

distribution are owned and managed by

the state. Essential features:

• No one owns property privately

• Government is the only producer

and seller• There are no economic freedoms

• The profit motive is prohibited.




Socialism – mixture of capitalism and

communism. Major industries belong to

the State while the minor industries

belong to the individuals. Lower stage of

post-capitalism according to Karl Marx.

Essential feature constitute both those

of capitalism and communism.



Basic Market Models

• Market Models are theoretical

frameworks for existing firms and

industries.

• Describe the features of the various

market structures.



Basic Market Models

Pure Competition – a market situation

where there is a large number of

independent sellers offering identical

products. i.e corns, fishes, vegetables

Pure monopoly – a market situation wherethere is only one producer or seller. i.e.

MWSS, Meralco



Philippine Business Development

• Barter system

• Early 10 th Century – trade with the Arabs

• 300 years later – Chinese dominated trade from

Batanes to Sulu. Such expanding trade with othercountries created new communities in bay areas i. e.

Sta. Ana Manila. Local traders went as far as

Malacca, China and Borneo to transact their

businesses.• Spanish colonial rule – Chinese dominated the retail

trade business while the Spanish elite monopolized

the Manila-Acapulco trade and the tobacco business.




• American colonial period – exporting of raw

materials and primary products for U. S.

factories and importings of finished U.S.

products.• Japan Invasion period – same as when the

American colonized us, we exported of raw

materials and primary products for Japanfactories and imported of finished Japanese

products.




• Post WWII – spread of communism, hence

business plunged into its lowest level. US

agreed to Import Control Policy during Pres.

Carlos Garcia’s time. “Filipino first” policy.Then, the Philippine business flourished.

• After 7 years – Free Trade Agreement with

U.S. was established again.



Philippine Business Environment

• Business environment refers to the factors

that affect the efficiency of a business

enterprise.

• In economics, it is called the economies of scale.

• Can be found within or outside the business.




• Internal business environment i.e.

management, technology, facilities, financial

incentives. If favorable to employees,

customers, suppliers, stockholders and to thecommunity where the company operates,

then it is a good business environment.




• External business environment i.e. peace andorder, transportation, telephone, and electric

facilities, monetary and fiscal policies,

political, social, and economic conditions. If the external forces are favorable, it only

means profitable business (if internal

environment is also in good condition)



The Role of the Government

• Assistance and control

• Protection of consumers and other sectors in

the society

• Major areas of government regulation of

business enterprises:

1. Occupational safety – workplace and work

environment are safe for workers (DOLE)

2. Fair labor practices – regulations of unfair labor

practices (DOLE)



The Role of the Government

3. Consumer protection – regulation of activities of business firms (i.e. Sales Returns DTI, FDA)

4. Pollution prevention – protection of people and

the environment against the ravages of pollution.(DOH)

5. Economic Security – financial and technical

assistance from the government (GSIS, SSS, NHC)



Business for the Poor

• Agrarian reforms and cooperatives

• “Credit for the Poor”

- Microfinancing

- Rural Banks and government banks

the philippine business enterprise

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