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.

Economic Systems Model

Capitalism factors of production and distribution are owned and managed by private individuals. Essential features: Private property Economic freedom Free competition Profit motive

Economic Systems Model

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.

Economic Systems Model

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 where there is only one producer or seller. i.e. MWSS, Meralco

Basic Market Models

Monopolistic Competition a market situation where there is a relatively large number of small producers. i.e. banks, book publication, drugs, tailoring shops, gasoline stations. Oligopoly a market situation where there are a few firms offering standardized of differentiated goods and services. i.e cars, diamonds, steel, cement, airplanes, locomotives

Philippine Business Development

Barter system Early 10th Century trade with the Arabs 300 years later Chinese dominated trade from Batanes to Sulu. Such expanding trade with other countries 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.

Philippine Business Development

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 Japan factories and imported of finished Japanese products.

Philippine Business Development

Post WWII spread of communism, hence business plunged into its lowest level. US agreed to Import Control Policy during Pres. Carlos Garcias 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.

Philippine Business Environment

Internal business environment i.e. management, technology, facilities, financial incentives. If favorable to employees, customers, suppliers, stockholders and to the community where the company operates, then it is a good business environment.

Philippine Business Environment

External business environment i.e. peace and order, 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