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Chapter I
INTRODUCTION

Background of the Study

The term business is an organization or economic system where goods

and services are exchanged for one another or for money. Business means an

economic activity of generating income through buying and selling,

manufacturing and rendering auxiliary services to trade. The formula for business

success requires two elements the individual and the environment. The term

“Environment” refers to anything which surrounds a system. Therefore, business

environment means the surroundings (including human beings) in which

business exists.

The international macro-environment (supranational macro-environment)

brings together all the uncontrollable factors with a global impact, and it is related

to the organization’s indirect relationships on international markets. Romania’s

globalization and the EU integration increased the importance of the macro-

environment for all organizations, regardless of their degree of

internationalization. In marketing, the main agreements between countries and

the regulations emanating from general international bodies, reflecting on their

business, on different foreign markets must be mastered. Knowledge of the

international environment is possible only through an analysis of its components

(Anastase, I., 2012)


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According to Anwar Nasution (2011) in his study, “ Recent Issues in the

Management of Macroeconomic Policies in the Philippines” The Philippines has

managed to avoid the severe fall out from the regional financial crisis partly

because it has barely recovered from the past spending and investment binge

and banking crisis of the 1970s and 1980s. The short-term stabilization program

and long-term economy-wide reform initiated by the Aquino administration

(1986–1991) have begun to bear fruit. Trade, investment, and financial sector

policy reform and the privatization program (more vigorously implemented during

the administration of President Fidel V. Ramos who came to office in May 1992)

have revived private sector investment because the reforms have significantly cut

the costs of doing business and raised productivity and efficiency. The new public

and private sector investment helped ease the infrastructure constraints in the

economy, including the power crisis during 1992–1993. This and the restoration

of peace and order and political stability have improved the investment climate.

In addition with his study, “The economic reform has been designed to

develop an efficient industry sector, increase external competitiveness, and

promote employment. Measures to achieve these objectives include creation of a

sound macroeconomic environment, modifications in the tariff structure,

dismantling of nontariff barriers, removal of the capital bias in the system of

investment incentives, and promotion of cottage, small, and medium industries.

These policies have changed the structure of the industry sector.

Price inflation is generated by interactions between domestic and

international markets for goods and services, labor markets, and financial
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(including foreign exchange) market. A combination of stabilization policy to

suppress aggregate demand, economy wide reforms in all three markets, and

real peso appreciation has helped control inflation rate. The reforms in the

market for goods and services included the phasing out of price and quantitative

controls, adoption of measures to improve domestic market competition, and

policies to reduce levels and variance of levies and taxes on domestic trade and

exports. “

Every business operates in an environment and each business unit has its

own environment. A change in environment presents opportunity to some and

threats to others. Business environment is defined as the combination of internal

and external factors that influence a company’s operating situation, including

employees, customers, management, supply and demand and business

regulations. The business environment can include factors such as clients and

suppliers its competition, and owners’ improvements in technology laws and

government activities and market, social and economic trends. Another expert

has defined business environment as the forces, factors and institutions with

which the businessman must deal with to achieve its objectives.

Environment includes such factors as socio-economic, technological,

supplier, competitor and the government. There are two more factors, which

exercise considerable influence on business. They are physical or natural

environment and global environment.

Technology is understood as the systematic application of scientific or

other organized knowledge to practical tasks. Technology changes fast and to


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keep pace with it, businessmen should be ever alert to adopt changed

technology in their businesses. There is close relationship between business and

its economic environment. Business obtains all its needed inputs from the

economic environment and it absorbs the output of business units. Political

environment refers to the influence exerted by the three political institutions,

legislature executive and the judiciary in shaping, directing, developing and

controlling business activities. A stable and dynamic political environment is

indispensable for business growth.

The researchers found out that Uhaw is a Filipino term means thirst

because before, this place has no water supply and the place was describe as a

dessert like one. Due to this the people living in Uhaw used to go in far places

just to get water. Before, this place was part of Barangay Tambler of the same

city. Years later, it was isolated from the former barangay and stood as an

independent one which made it one of the most develop place in General Santos

City. Many big and one of a kind institutions were built on the said barangay

which then prove the claim above.

By these claims, the researchers is eager to find out what are the Macro-

business environment issues that affects every business in Barangay, Fatima,

Uhaw, General Santos City, what are the impact of these macro issues to the

businesses and how do business owners deal with these issues or what are the

ways and strategies that they apply with these issues.

Statement of the Problem


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This marketing study is an attempt to determine what kind of macro-

business environment does the Barangay Fatima, Uhaw, General Santos City

has. Specifically, it will seek to answer the following questions:

1. What is the macro issue that affects the firm in terms of :


1.1 political
1.2 economic
1.3 technological
2. What is the impact of the macro issue to the firm?
3. What are the actions done with the macro issue that affect the firm?

Scope and Delimitation


This would be conducted General Santos City specifically in Barangay

Fatima. The study focuses on the macro business environment of Barangay

Fatima, Uhaw, General Santos City. There would be twenty (40) business owners

that would be randomly selected as a respondent of this study. Each respondent

would be given the same questionnaires to answer.


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Significance of the Study

This study can impart an opportunity and assurance to every beneficiary.

The following are the beneficiaries of the study and their benefits.

Businessmen. The study can be their basis to forecast a strategic place

to put up a business and investment where they can ensure a lot of consumers

since Barangay Fatima, Uhaw has a lot of residents.

Residents. It can promote their community to the business man who has

a plan on having a business in their area. A lot of establishment in their area, a lot

of opportunities for them to have a better job.

Students. This study can be their guide in studying another macro-

business environment of a certain place.

Researchers. The knowledge of the researchers in terms of business can

be widen. Through this study, the researchers would know the possible factors

that can affect in building a business in the said barangay. They can also justify

how business environment can be a very big impact to a business.


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Definition of Terms

To better understand the terms used in this study, the following are

conceptually and operationally defined:

Economic. Related to economy and it is based in production, distribution, and

consumption of goods and services. Conceptually, Economic it has a

significant impact on how an organization does business and also how profitable they

are. Factors include economic growth, interest rates, exchange rates, inflation, disposable

income of consumers and businesses and so on.

Macro-Business Environment. It is the macro issues affecting the operation of

the firm, conceptually, it refers to certain external factors that affect a firm

and its business. Such factors are not a part of the firm’s immediate

surroundings and cannot be controlled by them.

Political. Relating or involved to government or political system. Conceptually,

These are all about how and to what degree a government intervenes in the economy.

This can include – government policy, political stability or instability in overseas markets,

foreign trade policy, tax policy, labour law, environmental law, trade restrictions and so on.

Socio-Economic Status. It is what the researchers wants to achieve afetr

knowing the macro business environment issues. Conceptually, the social

standing or class of an individual or group. It is often measured as a combination of

education, income and occupation.

Technology. It affect marketing and the management thereof in three distinct ways

such as new ways of producing goods and services, new ways of distributing goods and services,
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and new ways of communicating with target markets. Conceptually, refers to methods,

systems, and devices which are the result of scientific knowledge being

used for practical purposes, or simply characterized by technology.

Chapter II
REVIEW OF RELATED LITERATURE AND STUDIES
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This chapter provides an overview of previous research on knowledge

sharing and intranets. It introduces the framework for the case study that

comprises the main focus of the research described in this thesis. This chapter

introduces some of this literature, its theories and findings in a way that will

inform the reading of the empirical work presented in the following chapters. This

review was written after the field study and analysis, so the comment and

development of the ideas is not only a reflection on the literature, but also on

insights from the study.

A. Theoretical Framework

The theoretical framework adapted for this study is (Johnson et al., (2008)

theory on strategic position whereby external business environment factors are

considered as an accept of organization‟s strategic position. (Johnson et al.,

(2008) identified key components of external business environment which is

made up of macro external factors, industry factors and competitors and markets.

B. Related Literature

Macro-Business Environment
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Garry D. Bruton, David Ahlstrom, Han Lin Li (2017), “Institutional

theory is an increasingly utilized theoretical lens for entrepreneurship

research. However, while institutional theory has proven highly useful, its use

has reached a point that there is a need to establish a clearer understanding

of its wide–ranging application to entrepreneurship research. Therefore, we

will initially review the existing entrepreneurship literature that employs

institutional theory to both understand the current status of the field, its

current shortcomings, and where we need to move in the future. We then

summarize and discuss the articles in this special issue and how they

contribute to this process of advancing institutional theory and its application

in entrepreneurship research.”. This study is a initial review of entrepreneurs

literature to understand the current status of the field and preparation for the

future in moving from one field to another.

Camilleri (2017) To achieve success, firms must adapt to on going

trends and development in their macro and small environments. However, it

regards with the organization to scan their marketing environment t deal with

any possible threat and to capitalize on available opportunities. This chapters

explain the external factor including: PESTEL analysis and internal factor

including: Capital structure, resources, capabilities and marketing

intermediaries.

Tanya Sammut-Bonnici (2015) “The macro environment encompasses

a number of variables that are beyond the control of an organization, but


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which nonetheless require analysis to realign corporate and marketing

strategy to shifting business environment. The major forces in the macro

environment are viewed to be political, economic, social, technological, legal,

ecological, demographical, ethical, and regulatory. The objective of macro

environment analysis is to help organizations recognize major developments

and future implications. The structure of the analytical tools employed to view

that the macro environment implies that organizations are reactive to their

environment. Some organizations may be instrumental in shaping their

environment and act as game changers. An organization’s environmental

analysis can be biased in terms of the level of focus given to different factors

of the macro environment and in their interpretation of them”. There is a need

for businesses in analyzing the macro environment for the developments and

future implications and considering the major factors of macro environment.

Bruno (2015) the business environment in the company includes

economic, political, institutional, legal, technological, and cultural conditions

where business process and activities are implemented the quality of the

business environment creates a basic preparation for sustainable growth and

long term competitiveness of each market economy.

According to Elena Fraj‐Andrés, Eva Martínez‐Salinas, Jorge Matute ‐

Vallejo (2008), “During the last 30 years, environmental issues have become

very important for governments, consumers and companies. Firms, aware of

their environmental responsibilities, have started to show an important


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commitment to society and the natural environment, developing

environmentally friendly strategies. This study analyses the main

antecedents that influence firms' ecological behaviour, distinguishing

between environmental orientation and environmental strategies. Moreover,

management commitment is a critical factor for firms because managers'

perception about customers' ecological concern directly influences firms'

environmental behaviour”. This study reveals that management commitment

are the most important factors into strategic planning process.

Socio-Economic Status

Reynalda B. Garcia “ Business establishments in Balagtas, Batangas

City bring a lot of benefits to the community therefore leading to the

improvement of the socio-economic life of the people. However despite the

claim that these businesses definitely improve the quality of life of the

people, there is a need not only to determine both the positive impact, but

should also identify means to mitigate adverse effects the balance between

the economic gains and negative effects to the community. The local

government therefore has the prime responsibility to implement stricter

measures to balance the fast growth of business vis-à-vis the socio-

economic impact to the community. Proposed measures maybe integrated in

the local government’s business plan for Balagtas that will promote long term

sustainability.” Business establishments give vast benefits in improving the


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life of the community by determining the positive and addressing the

negative impact of the businesses to the socio-economic life of the people.

Political

Michael Howes (2017) For a generation, governments around the

world have been committed to sustainable Development as a policy goal.

Despite these efforts, decades of scientific monitoring indicate that the words

is no closer to environmental sustainability and many respects the situation is

getting worst. The failure in achieving the political outcomes of environmental

policies and those focused on economic development, a lack of incentives to

implement environmental policies, and a failure to Communicate.

Chattopadhyay (2017) The entry of many private brands, both

domestic and foreign affects the business as a result from the policies of

liberalization, privatization, and globalization which makes the market

became hyper-competitive.

Economic

Celia M. Reyes, Joel Bancolita, Alellie Sobrevinas, & Jeremy de Jesus

(2010), “The world experienced a dramatic increase in food and fuel prices
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during the first half of 2008. International nominal prices of all major food

commodities reached their highest levels while prices in real terms were

highest. The FAO food price index increased by 53% for the first three

months of 2008 compared to the same three months in the previous year.

The rising prices of food is led by vegetable oils, which increased by more

than 97%, followed by grains, which increased by about 87%. The current

agricultural market is characterized by the increased in international prices of

not just a few but of nearly all major food and feed commodities. The

increase in prices is expected to have adverse effects on poverty and is

worrisome precisely because it is expected to hurt the poor the most.” A rise

on the price is expected to have a negative impact especially to the

consumers with low income. On the other hand, inflation has a positive

impact to the business.

S. Singh; Rakesh Dude; R. Singh (2011)The selling price of the

business depends on the inflationary environment in order to maximize the

business' profit.

Actions Done with the Macro Business Environment Issues

E.Genchev & G.Todorova (2017), “Sales promotion should be

maintained and improve to retain old ones and attract new customers
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especially in environment with a lot of competitors. In addition, it also gives

an improvement in increasing the sales of a firm.”

Roxas (2016) Small business in developing countries adopts

sustainable business practices. Small business in the Philippines shows that

environmental strategic orientation enables them to develop a more

provident aspect toward environmental sustainability practices which results

to superior firm performance.

According to Zoran Jovanovic (2015), “Managers must pursue what they already

know which means, refer in existing knowledge in order to develop the capabilities and

competencies that will provide to there firms a competitive advantage. “. Manager must

chased there plans in order to develop the capabilities and competencies of the business

that provides there firms competitive advantage to there competitors.

According to Mike Kennerley (2011) “The design and use of

performance measurement systems has received considerable attention in

recent years. Many organizations have redesigned their measurement

systems to ensure that they reflect their current environment and strategies.

However, increasingly the environment in which organizations compete is

dynamic and rapidly changing, requiring constant modification of strategies

and operations to reflect these changing circumstances. Despite this, few

organizations appear to have systematic processes in place to ensure that

their performance measurement systems continue to reflect their

environment and strategies.”. Business environment is changing every time

and cannot be considered as consistent. Many organizations modify and


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redesigned their strategies and operations to be able to compete in the

changing environment. Some organizations use measurement systems to

ensure that their performances continue to give help and reflect in their

strategies and environment.

B. Related Studies

Foreign Studies

William Sucuahi (2016) According to William Sucuahi, the

inflation rate can positively influence the stock price growth among

diversified companies in the Philippines. That financial analysts and

economists have been interested in the real relationship between inflation

and stock prices, whether or not income can survive the effect of inflation ,

the market behavior, company fundamentals, external factors and inflation

rate they are the factors why investors took as a hedge against their

investments . as a result, the amount of goods and services that money

jhresult, a decreased in the real value of money. In effect, there would be a

decline in stock price.

John Kitching, Mark Hart and Nick Wilson (2015). “This study

adopts a more nuanced approached. One informed by critical realism, that

conceptualizes social reality as stratified, and social casualty in terms of

the actions of human agents situated within structural social-structural

contexts. We theorize regulation as a dynamic force, enabling as well as

constraining performance, generating contradictory performance effects.


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Such regulatory effects flow directly from adaptations to regulation, and

indirectly via relationships with the wide range of close and distant

stakeholders with whom small businesses interact. Future research should

examine these contradictory regulatory influences on small business

performance.” Since the regulation is dynamic, the performance of the

business might be affected temporarily and these regulations can help

improve a business better.

Morar Loan Dan (2015), Tax procedures in their complexity and

conditioning current also generates related behavioral another of the

taxpayer in relation to the tax authorities, other public bodies and their

relations with other taxpayers. Not only techniques or can be aligned and

continuous modernization but fiscal vocabulary developed by taking the

connotation of words with specific technical field. Continuous adjustments

of fiscal procedures, specific vocabulary are as complicated pea tat

unimportant in front of the tax burden borne by taxpayers. Taxpayer's tax

effort is what counts the most sensitive indicator reactions taxpayers. the

quantification of tax revenues in absolute terms and relative indicator

secondly on the tax burden and the level of taxation.

Dionco-Adetayo (2014) “ Business is the product of the

technological, political-legal, economic, social – cultural, global and natural

factors amidst which it functions. Three features are common to this web of

relationship between business and its environment”. There is symbolic

relationship between business and its environment and among the


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environmental factors. In other words, business is influenced by its

environment and in turn, to certain degree, it will influence the external

forces. Similarly, political-legal environment influences economic

environment and vice-versa. The same relationship between other

environment factors too. These environmental forces are dynamic. They

keep on changing as years roll by, so does business.

Porter (2011) The essence of strategy formulation is coping with

competition. Yet it is easy to view competition too narrowly and too pessimistically. While

one sometimes hears executives complaining to the contrary.

Local Studies

David J. Edelman (2016) “Bring sa contemporary thinking and practice of

urban environmental management to the solution of real problems in a major city of

developing countries in southern Asia. Such city confront more pressing problem than

those in the developed world and have fewer source to deal with them. The study first

consider the urban issues, property alleviation, industry, transportation, energy, water,

sewage and sanitation, finance and the purposes of 5 year plan to help solve the urban

environmental problem of metro manila, the Philippines, an environmentally complex,


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sprawling metropolitan region with over 24 million inhabitance”. To produce

contemporaneous thinking and practices of urban environmental management to

provide solution in real problems in major developing city in southern Asia countries.

Such city confront more pressing problems than those in the developed world and

dealing fewer sources. It consider the urban issues first, property alleviation, industry,

transportation, energy, water, sewage and sanitation, finance and the purpose of 5 years

plan to solve the urban environmental problem in metro manila where over 24 million

people inhabited.

Gatchalian (2009) Technological charges are often introduce as components

of larger strategic changes, although they sometimes take place on their own.

C. Research Gap

The researchers studied the economic status of a certain place based on demographic,

needs of people, and the status of their living. On the contrary, Saini (2010) focused on the

Foreign Direct Investment (FDI) which only discussed about the investment of the foreign

countries unto the lost country to help its economic status.

Dou (2015), the central point of the study is on employees. For the study of Diaz (2015),

it only about on the organizational change occurs when a company makes a transition from its

current state to some desired future state.

The study of David J. Edelman (2016) is based only on contemporaneous thinking and

practices of urban environmental management to provide solution in real problems in major

developing city in southern Asia countries.


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Chapter III
METHODOLOGY

This chapter covers the research design and methodology,

including sampling design, participants of the study, data collection, ethical

considerations, the instrumentation, method of analysis and the interview

scheme. It presents the methods that have been used in this study. It is also the

specification of method of acquiring the information needed to answer the

problem.

Research Design
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A research design is the structure with in which research is conducted.

The researchers employed a phenomenological research design to achieve the

objectives of this study . This is a study which made use of phenomenological

data or approach to gather relevant data. The phenomenological approach

concerns itself with understanding and interpreting the meaning that participants

give to their everyday life. This design deals with data that is primarily verbal and

meaning from the participants perspective.

The researchers visits primarily personally the business owners,

business managers or storekeepers in Barangay Fatima, Uhaw, General Santos

City. The researchers made a questionnaire for the collection of data and data

analyzing. This research questionnaire contains a consent letter which includes

the importance of the study, purpose of the study and a confidentiality. After the

answering of the participants, the researchers have ask some follow up

questions regarding with their business. As a result, the researchers will analyze,

interpret and gather the information and data obtain from business owners or

business managers in their business.

Participants

The participants of the study are those business owners, storekeepers or

managers and the citizens of Barangay Fatima, Uhaw, General Santos City.

The first criteria and requirement for business owners, storekeepers or

managers is that, at least handled a business for two(2) consecutive years. And
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the age must range only from 30 years old to 55 years old. Second it does not

matter if the gender is male or female. But what matter, participants with current

alcohol or drug problem were excluded. The participant is only forty (40)

individuals. The same criteria and requirement for the citizens of the barangay

except for handling a business.

Locale of the Study


This study will be based in Barangay Fatima, Uhaw, General Santos City,

South Cotabato, Philippines. It is located on the island of Mindanao which is the

Southernmost and 15th -most populous city in the Philippines. Its geographical

coordinates are 6 °6’ 46” North, 125° 10’ 18” East.

The researchers based their study in Barangay Fatima, Uhaw, General

Santos City because it is one of the urbanized barangay in the city. The

researchers come up with this location because there are lots of establishments

and businesses there that they could refer on and where they could gather

relevant information about their study


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Figure 1. Map of Barangay Fatima, Uhaw, General Santos City


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Sampling Design

To draw conclusions about the population from samples, the researchers

uses a technique in selecting the participants, this sampling design called

convenience sampling is a non-probability sampling technique where subjects are selected

because of their convenient accessibility and proximity to the researcher and it is made up of

people who are easy to reach.

Interview Scheme

Interviews are particularly useful for setting the story behind a participants’

experiences. Before the researchers conducted an interview, they addressed

problems using the information gathered in the interview. Here are the

procedures of the researchers when they start to conduct paneling interview.

The researchers first explain the purpose of the study.

It includes why the interview were necessary for the

accomplishment of the study and what are the main objectives of the said

study.

Addressed terms of confidentiality.

The researchers view on the responsibility of being an ethical

oriented. The important informations that are not applicable to public must

be concealed.
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Indicate how long interviews usually takes.

Business owners are too busy in their business. In this case, in

order for them to spend their time the researchers is responsible for the

time management.

The researchers do not repeat what the interviewee said.

The researchers avoided the repetition of answers given by the

eatery owners. They take responsibility that someone bring along with

taking notes.

Data Collection
This section, outlines some of the key considerations that may arise

during various steps in the data collection process. Data collection is a process

which gathers and measures necessary information on variables of interest.

Regardless of the field of the study or preference of defining data, accurate data

collection is essential in maintaining the integrity of research.

Firstly, the researchers made a questionnaire for the participants to

answer. Before the questionnaire was given to the participants of the study, these

questionnaire was being signed and validated by the professionals. Then the

letter of validation for us the researchers to conduct the data collection. Then in

choosing who would be the participant, the researchers uses convenience sampling

which is a non-probability sampling technique where subjects are selected because of their
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convenient accessibility and proximity to the researcher and it is made up of people who are

easy to reach.

Secondly, the researchers visited personally each of the participants to

give the questionnaires, before giving the questionnaires, the participants signed

first the cover letter of the questionnaire which stated the purpose, the

importance and the confidentiality of the letter and study. Then after, the

participants are ready for answering the questionnaire.

Lastly, after answering the questionnaire, the researchers will read their

answers and then, based on their answers, the researchers will ask some follow

up questions to understand clearly the answers of the participants by the

researchers.
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Ethical Consideration

Research studies are not easy to conduct because these activities also

hold some ethical considerations these are essential to be achieved by the

researchers for aiming and securing the reliability and validity of the researcher

findings. These can undergo various forms depending on the forms of particular

research activity.

In this research study researchers will take ethical considerations by

taking appropriate steps. They will also take formal permission from the owners

of eatery business regarding undertaking data collection and adhere to the

ethical form provided by the owner. Moreover, the researchers establish approval

and formal permission and no force or compulsion posted on any respondent

forms in the questionnaire. The academic nature of this study is to maintain the

transparency without any form of implication

The researchers also state value in writing this study. They took steps to

ensure that accurate information from the respondents perceptions are written. A

responsibility to use the data for the purpose of society change. There is a

consent that obtain through personal interaction of eatery owners. Those details

that is confidential must be in the researchers and not to disseminate with other

people specially to their competitors in business.


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Instrumentation

For this study, a questionnaire instrument was used to achieve the main

objective of the study, a self-administered questionnaire was distributed to the

selected business owners and citizens of Barangay Fatima, Uhaw, General

Santos City. The questionnaire given to them aimed to access the relevant and

important answers regarding with the business environment.

The questionnaire was structured in a way that the participants of the

study will be able to answer it easily.


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Method of Analysis

When the answering of questionnaire has done, the that were collected

has been analyzed carefully. The researchers gather the responses of each of

the respondents, and then these important information that the researcher have

gathered, has been filtered to get the significant responses or answer of the

participants. As the significant sentences or responses have been gotten, the

researchers have determine the message of that significant responses, which is

the theme. And, out of this message, the researchers have been also determine

the concept of that message or the idea coincide in that particular message.

Doing this kind of analyzation, have been conducted or done to each of

the participant of the study. Analyzing the data is relevant to come up with such

as generalization or conclusion about a particular situation.


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Chapter IV
Results and Discussions

Based on the investigation of the experiences of the small-business

owners in Barangay Fatima, Uhaw, General Santos City, this chapter presented,

analyzed, and interpret the data in view of the problem of the study.

1. Macro Business Environment Issue that Affects the Firm

Putting a business is quite challenging. Upon reading and analyzing the

data gathered by the researchers, it was been observed that the information

about the experiences of the business owners are mostly dealing with difficulties.

The business owners are commonly struggling on macro issues like government

policies, increase on prices and taxes, and the efficiency of their technologies.

1.1 Economic

The inflation rate or the price increase, the TRAIN Law or

the tax increase and the increasing number of competitors. This

macro business environment issues under economic factor had the

greatest impact on businesses or firms. Celia M. Reyes, Joel

Bancolita, Alellie Sobrevinas, & Jeremy de Jesus (2010), The increase

in prices is expected to have adverse impact on poverty and is

worrisome precisely because it is expected to hurt the poor the most.”

A rise on the price is expected to have a negative impact especially to


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the consumers with low income. On the other hand, inflation has a

positive impact to the business.

1.2 Political

The government policies and the projects of the new elected

barangay officials. This macro business environment issues under

political factor had the second greatest impact on businesses or firms.

The respondents stated that projects of the newly elected barangay

officials, the customers will buy on supermarkets instead of sari-sari

store and other small-scaled businesses.

1.3 Technological

The lack of advance technologies. This macro business

environment issues under economic factor had the third greatest

impact on businesses or firms. Businesses pays additional fees

because government actually requiring the business owners to have at

least one (1) CCTV. Also the business cannot adapt directly new

innovations. The competitors also had more advance technologies.

These can decrease the customers or consumers and decrease of

sales directly proportional.


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2. Impacts of the Macro Business Environment Issue to the Firm

2.1 Economic

With the economic issues, Charisa Baya of Sweet

Honeybee Bakeshope stated that with this factors, it’s hard for

them to gain again the capital that they had been invested

because of the increasing prices of products and raw materials.

Their sales is decreasing so they are forced to increase also their

selling prices. Also, people who has enough money can afford only

with their products. Business owners increase their prices but they

decrease their customers because of the increasing number of

competitors. The people might not buy their products because their

selling price is high and not affordable. S. Singh; Rakesh Dude; R.

Singh (2011)The selling price of the business depends on the

inflationary environment in order to maximize the business' profit.

2.2 Political

Projects like the relocation of the public market and the vendors

decrease almost half of the slaes in the large part of barangay Fatima,

Uhaw, General Santos City. Hashim Oleverio stated that, “

Government policies like smoking ban and plastic ban had a big

impact to these businesses”. These factors decrease the customers

of some businesses and small-scaled businesses. Also, the

businesses pay additional fees with these government policies.


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Although these policies has a negative impact, as days goes by, it will

help the business operate better.

Michael Howes (2017) For a generation, governments around

the world have been committed to sustainable Development as a

policy goal. Despite these efforts, decades of scientific monitoring

indicate that the words is no closer to environmental sustainability and

many respects the situation is getting worst. The failure in achieving

the political outcomes of environmental policies and those focused on

economic development, a lack of incentives to implement

environmental policies, and a failure to Communicate.

2.3 Technological

The lack of advance technologies. This macro business

environment issues under economic factor had the third greatest

impact on businesses or firms. Businesses pays additional fees

because government actually requiring the business owners to have at

least one (1) CCTV. Also the business cannot adapt directly new

innovations. The competitors also had more advance technologies.

These can decrease the customers or consumers and decrease of

sales directly proportional.


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3. The Actions Done with the Macro Business Environment Issues

These political, economic and technological factors have positive and

negative impact, mostly are negative. With these factors, the business owners

formulate strategies to abide these changes. Business owners create promos to

at least sold their products and to avoid bankruptcy. Some owners decrease the

wages of their employees and make other employees as a regular and others are

in on-call and part timers. But some owners just follow the rules implemented,

and shoulder the excess fees because they cannot do anything with it. Business

owners who wants to sustain their business creates advertisements through

online, place their products properly to attract customers, minimizing the

additional increase of prices, buying more advance technologies and machines

for better operation. They also finding another product to sell, those products that

are highly salable. Some business owners are just prioritizing products that are

needed by the people.

Zoran Jovanovic (2015), “Managers must pursue what they already know which means,

refer in existing knowledge in order to develop the capabilities and competencies that will

provide to there firms a competitive advantage. “. Manager must chased there plans in order to

develop the capabilities and competencies of the business that provide there firms competitive

advantage to there competitors.

E.Genchev & G.Todorova (2017), “Sales promotion should be maintained

and improve to retain old ones and attract new customers especially in

environment with a lot of competitors. In addition, it also gives an improvement in

increasing the sales of a firm.”


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Roxas (2016) stated that,” Small business in developing countries adopts

sustainable business practices. Small business in the Philippines shows that

environmental strategic orientation enables them to develop a more provident

aspect toward environmental sustainability practices which results to superior

firm performance.”
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Chapter V
Reflection and Recommendations

This chapter presents the summary or the research work undertaken, the

conclusion are drawn and the recommendation are made as an outgrowth of this

study.

5.1 Summary

The business owners are commonly struggling on macro issues like

government policies, increase on prices and taxes, and the efficiency of their

technologies. The inflation rate or the price increase, the TRAIN Law or the tax

increase and the increasing number of competitors. This macro business

environment issues under economic factor had the greatest impact on

businesses or firms. The respondents stated that projects of the newly elected

barangay officials, the customers will buy on supermarkets instead of sari-sari

store and other small-scaled businesses. The competitors also had more

advance technologies. These can decrease the customers or consumers and

decrease of sales directly proportional.

Their sales is decreasing so they are forced to increase also their selling

prices. Also, people who has enough money can afford only with their products.

Business owners increase their prices but they decrease their customers

because of the increasing number of competitors. Projects like the relocation of

the public market and the vendors decrease almost half of the slaes in the large

part of barangay Fatima, Uhaw, General Santos City. Government policies like

smoking ban and plastic ban had a big impact to these businesses. These
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factors decrease the customers of some businesses and small-scaled

businesses. These political, economic and technological factors has positive and

negative impact, mostly are negative. With these factors, the business owners

formulate strategies to abide these changes. Business owners create promos to

at least sold their products and to avoid bankruptcy.

5.2. Reflection

The researchers concluded that because of the macro business

environment issues specifically the political, economic and technological issues

affects the business to increase their selling price. Because of this, most of the

residents of Barangay Fatima, Uhaw, General Santos City cannot afford

expensive products aside from the basic needs of the people. There are times

that the product of the businesses specially those products that are unsalable will

left unmoved. The product might lose it’s good quality and there is a possibility

that the product will reach it’s expiration date if it is a consumable product. By

these, the sales of the business will weakened.

It had been analyzed by the researchers the data gathered and it

showed that most of the profession of the people living in the area is belong to

the blue collar jobs. Because the business decrease their sales and customers

so the people had only that brocket of jobs. Instead of buying goods near their

place, the people would rather go in the city proper like malls and public markets

because they are considered low price of the product and goods they want are

easy to find in one place.


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Another factor they have been looking is the advancement of the

technology use by the business. For technology can give so much interest in

consumers as well as gain attractiveness in them is the reason why consumers

preferred to buy good or merchandises in a place with an advance technology.

Sometimes for the reflection of security and quality.

Consumers, are very sensitive when it comes to the legality of the

business they have been interacting with. For some reason, legality of the firm

give so much impact o their sales. There are consumers or customers who are

very careful in buying goods in stores who do not comply the requirements of the

city due to the responsibilities it bring. This possibilities would be the safety of the

business as well as the products, the quality and the proper mark-up of the

prices.
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5.3 Recommendation

The results of the analyses in this study are concluded, and the discussion

on the results of the impact of macro business environment issues to the

businesses is presented. The researchers made this recommendations for

further outgrowth.

5.3.1 Improvement of sales promotion

Every firm should create or improve its own sales promotion or

strategy in selling its products. Since the inflation is uncontrollable by a firm.

Sales promotion’s concern is not only for businesses growth and profitability

but also to its customers. It is not only to give awareness to the firm’s

products but to reward and appreciate customers’ patronage. This will be

achieved when firms identify their target markets, select promotional tools

and plan the sales promotional, and implement the sales promotion.

5.3.2 Prioritize the good quality of products and services.

Ensure a good quality of products/services I highly recommend for

the firms, that they should ensure a good quality of their products/services

since most of the businesses right now depends their selling price into

inflationary environment. Therefore there will be an increase of their selling

price and that affects the consumers and the sales of the businesses. This

recommendation will help the business to attract loyalty of their consumers

and to meet the satisfaction of consumers. So in order to achieve this


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recommendation, the firms should first, be productive and second, they

should have a good customer service to retain clients.

5.3.3 Follow the rules and regulation implemented.

Business owners should follow the rules implemented by the

leaders of the barangay as well as the government in order for their business

to stand in a long-term development. Government rules may have a big

impact to the operation of your business, but this is not an excuse to exercise

fraud to make profit. So in order to achieve this is first, submit the

requirements needed to make their business legal, and second, prevention

of exercising fraud to make big profit.

5.3.4 Barangay officials should visit businesses .

The proponent shall recommend to the official in barangay

Fatima, to visit all business in the barangay to know who are the illegal

business. To make sure also that all business in barangay are legally

operated. In order to achieve this recommendation, first, the official

should visit the business in barangay at least once a month, second,

they should check the business requirements to make sure the

businesses are operating legally and third, they should maintain the once a

month operation.
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5.3.5 Prioritize products that are salable.

The researchers recommend that the business owners should

prioritize those product that are salable.Purchasing those salable products

or those products that needed of customers can be a great decision for a

business owners and they need also to minimize purchasing those

unsaleable product. The effect if the business owners purchase those

salable products their capital will be back right away,and if they minimize

purchasing those unsaleable product their money will not be wasted

because there are possibilities that the unsaleable product wont be sale.

Inflation is one of the biggest problem of the business owners today, They

might loss their business if they do not think or decide carefully for their

business especially on how can they survive in this big problem.

Purchasing those salable product can be one of the best thing to do,they

can avoid losses if they just avoid purchasing those unsaleable product

and there's a big possibilities that they capital will be back incontinently.

The first step that they can do to achieve it, of course they must list those

the most needed or demand of the customers, second step is choice the

most convenient price so that their customer can afford the product. And

lastly sell the product without bogus.

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