LEYTE COLLEGES

Tacloban City

CURRENT ISSUES AND UPDATES IN OFFICE ADMINISTRATION

TOPICS COVERED:

UNIT II.

 OFW REMITTANCES
 STATISTICS
 INDUSTRIES THAT BENEFIT OFWs REMITTANCES
 BENEFITS TO THE PHILLIPINE ECONOMY
 CONGLOMERATE, AYALA CORPORATION (AC)
 OWNERSHIP AND PROFITABILITY
 COMPANIES CONTROLLED BY THE CONGLOMERATE
 PROPERTY DEVELOPMENT INDUSTRY
 MAJOR COMPANIES IN THE INDUSTRY
 PROSPECTS OF THE INDUSTRY

I. INTRODUCTION:

OFW or Overseas Filipino Workers are our modern-day heroes or "Bayani" because of their
courage to leave their families and their beloved country that they call home to work and earn money to
provide comfortable lives for their families. These Filipinos are modern-day heroes because of what they
endure while they are abroad. The horrible working conditions and the dangers of being away from the
protection and security of their family and loved ones are great sacrifices that no one can easily endure.
Despite the sacrifices that they endure while they are working abroad, they help boost the economy through
remittances and we look up to them as figures of resilience.
Remittance means send back. Most remittances come from people who work abroad and send money to
their families back home. The most common way of sending money is through bank transfer and electronic
payment. Aside from the fact that remittances are a poverty alleviation, and income source, they also
provide social stability and connections across borders, the most wonderful thing about remittances is the
diversity of financial inclusion.

A booming industry is a facade of a rich and prosperous country. Here in the Philippines amongst the
successful. shopping malls, real estate, banking, and tourism are the top businesses in our country. A
conglomerate is a large corporation that consists of diverse divisions or companies operating in various
industries. Conglomerates play a significant role in the global economy, providing stability and diversified
investment opportunities, but they also face unique challenges that require careful management and strategic
planning.
 II. Intended Learning Outcome:
At the end of this unit, the students should be able to:
 learn and understand the advantages and disadvantages of working abroad, their lifestyle, their
working environment and also the benefits of remittances to our economy.
 Identify the differences between remittances and transfers.
 Discuss the role of banking companies and their contribution to our economy and students will
have learned the definition of conglomerate.

KEY TERMS:

The Embassy of the Republic of the Philippines - The embassy already

serves as a companion to the Philippine Government; it is a diplomatic mission that
represents the Philippines in foreign countries or to where it is located to help assist
OFW and expatriates. Philippine Embassy protects the rights of the OFW who needs
legal assistance and emergencies. Its primary function is consular services like
issuance of passports, visas and notarial services such as document authentication.
OWWA- Overseas Workers Welfare Administration is a national government agency that is responsible for
the welfare and the protection of the OFW and offers services such as health services, social services and
emergency assistance and it also offers training programs to enhance the skills of OFW’s helping them to
adapt to the demands of overseas employment. Our government requires all OFW to be a member of
OWWA for their protection and so that they may haven various benefits.

Financial Inclusion - Financial Inclusion is the availability and equality of opportunities to access financial
services. It refers to processes by which individuals and businesses can access appropriate, affordable and
timely financial products and services which include banking loan, equity and insurance products. Financial
Inclusion helps every family plan there day to day living such for future emergencies and for businesses plan
for everything from long-term goals to unexpected emergencies. Financial inclusion can incorporate
accessibility across a plethora of social constructs such as age, gender, race, geographical region, disability,
or socioeconomic standing.

Expatriate - an expatriate is someone who is highly professional who left them country of origin to reside
or seek lucrative employment in other country or someone who completely renounce their citizenship in one
country in favor of the other. This people often work for diplomatic missions, multinational corporation or
for some specialized fields. Expatriates has higher salaries than OFW. OFW often work low wage jobs like
domestic services, construction, health care and hospitality. OFW has strong focus on remittances and
family support. In short Expatriate earns more money than OFW.

Statistics- is a branch of mathematics and scientific discipline that involves the collection, analysis,
interpretation, presentation, and organization of data.

Real Estate- Properties consisting of land or buildings.

OFW Remittances- Money or payment sent to someone else from OFW migrants, it is often money sent
from the host country to the home country to the home country for family.

General Data Privacy Principles or GDPP - It is the processing of personal information shall be allowed.

Customer relationship management or CRM - A system for managing all of the company's interactions
with current and potential customers. Intended learning: Students will be able to learn of the changes and
shifts inside the business industry.
III. Content:

OFW REMITTANCE

OFW Remittances: Growth Driver of Philippine Economy

"I already bought you!" These are some of the words that you can hear from an abusive employer,
coming from the statement of a female migrant domestic worker in the United Arab Emirates. Despite all of
the hardships, every OFW or OCW endured working abroad for the money that can feed and support their
family, which is amazingly also an economy booster. In fact, it was reported by the Philippines News
Agency and the ANC, or ABS-CBN News Channel, that from the start of the year 2024, personal
remittances from OFWs went up by 2.7%. Data released by the BSP (Bangko Sentral ng Pilipinas) over the
weekend showed that personal remittances from overseas Filipinos amounted to USD 3.15 billion in
January, up from USD 3.07 billion in the same month last year.

The 5 countries that we consider growth drivers are:

1. The United States of America – 41.8%

2. Singapore - 7.3 %

3. The United Arab Emirates – 6.0 %

4. Japan- 5.8%

5. United Kingdom – 4.8%

Roles and Responsibilities of Bangko Sentral ng Pilipinas:

Liquidity management by formulating and implementing monetary policy aimed at influencing the money
supply consistent with its primary objective to maintain price stability,
Currency issue The BSP has the exclusive power to issue the national currency. All notes and coins issued
by the BSP are fully guaranteed by the government and are considered legal tender for all private and public
debts.
Lender of last resort by extending discounts, loans, and advances to banking institutions for liquidity
purposes,
Financial supervision by supervising banks and exercising regulatory powers over non-bank institutions
performing quasi-banking functions,
Management of foreign currency reserves by maintaining sufficient international reserves to meet any
foreseeable net demands for foreign currencies in order to preserve the international stability and
convertibility of the Philippine peso,
Determination of exchange rate policy by determining the exchange rate policy of the Philippines.
Currently, the BSP adheres to a market-oriented foreign exchange rate policy and
Being the banker, financial advisor, and official depository of the government, its political
subdivisions and instrumentalities, and GOCCs.

The central bank works with the national government to preserve financial stability. To achieve its goals, the
BSP must encourage broad and convenient access to high-quality financial services while also taking the
general public’s interests into account.
Definition of Remittances:

Remittances have become an important source of foreign exchange for developing countries. The
acceleration in the flow of remittances reflects both policy changes and the slowdown in large economies,
reducing job creation and stimulating the interest of its citizens to migrate as a way of improving their
income. Remittances are simply the money that is sent from outside the country.

Two types of Remittances:

1.Inward Remittances - Inward money remittance refers to the process of money being sent to an individual
or entity in a country from abroad. This typically occurs when people working or living in one country send
money back to family members or friends in their home country. Inward remittances play a crucial role in
many countries, especially those with a high number of migrant workers.

Key points:

Sources: It often comes from migrant workers or expatriates.

Purpose: Commonly used for family support, education, healthcare, and investment.
Impact: Can significantly contribute to the economy of the receiving country by boosting household income
and spending.
Methods: Can be facilitated through banks, money transfer services, and online platforms.

Positive Effects of Inward Remittances:

 Poverty Reduction- money sent from aboard can help with the financial crisis of the recipient
 Improved Standard of Living- Remittances can improve their access to education, health, housing
and etc.
 Increased Household Consumption- boost household consumption
 Investment and Economic Development- remittances from abroad can be invested to start a business
that contributes economic growth
 Financial Inclusion- Receiving remittances can help integrate unbanked individuals into the formal
financial system, increasing access to banking services and financial products
 Social and Human Development- with enough money we can have access to fund education,
healthcare and other long term human capital development

Negative Effects of Inward Remittances:

 Dependency and Reduced Labor Force Participation – the lack of motivation to seek employment
because of reliance on remittances
 Inflation and Currency Appreciation – the influx of remittances can lead to currency appreciation
 Inequality and Social Stratification - the uneven distribution of remittances within a community can
exacerbate existing income inequalities and social stratification.
 Brain Drain the outflow of skilled workers seeking employment abroad can result in a brain drain,
depriving the home country of valuable human capital.
 Increased Vulnerability to External Shocks - Significant reliance on remittances can make recipient
economies more vulnerable to external shocks, such as economic downturns or political instability in
the host countries.
 Diversion of Resources from Productive Sectors - Excessive focus on remittance-dependent sectors,
such as real estate and consumption, can divert resources away from more productive and
sustainable economic activities.
  Moral Hazard and Corruption – earning of easy remittance income can create a moral hazard
causing an individual not to seek employment.

2. Outward Remittance- outward remittance refers to the process of sending money from individuals or
businesses in one country to individuals or entities in another country. This is often done for various reasons,
including:

Payments for Goods and Services: Businesses may make payments for imported goods or services.
Support for Family: Individuals may send money to relatives or friends living abroad.
Investment: People may invest in foreign assets, real estate, or businesses.
Education: Students may remit money for tuition fees and living expenses in a different country. Outward
remittances are essential for facilitating international trade and personal financial support across borders.

Key Points:
Channels: Outward remittances can be processed through banks, online money transfer services, and other
financial institutions.
Regulations: Many countries have specific regulations governing outward remittances, including limits and
documentation requirements.
Impact: While it represents capital leaving a country, it can also reflect global economic engagement and
investment opportunities.

Positive Effects of Outward Remittance:

 Improved Standard of Living for Families

 Economic Development and Poverty Reduction
 Increased Financial Inclusion
 Human Capital Development
 Entrepreneurship and Investment
 Social Stability and Community Development
 Social Stability and Community Development
 Increased Foreign Exchange Reserves

Negative Effects of Outward Remittance:

 Brain Drain
 Labor Shortages
 Reduced Domestic Investment
 Dependence and Reduced Labor Force
 Inflationary Pressures
 Income Inequality and Social Stratification
 Vulnerability to External Shocks
 Moral Hazard and Corruption
The Advantages of being an OFW

 Learning new skills

 Earning high salary than working in the Philippines
 Free accommodations, free food, free uniform, free electricity depending on your employer
 Learning new language
 Better standard of Living
 You can experience new holidays and tradition
 You get to adapt to their culture
 Investment
 Remittances
 Better employment benefits

The disadvantages of being an OFW

 The struggles in adapting new culture
 The language barrier
 Racial discrimination
 Exploitation and Abuse
 You are away from the safety and security of your own family
 Homesickness
 Being away from your family
 Cultural differences
 Social Isolation
 Health Concerns
 Reintegration Challenges
 Financial Burden

Different Kinds of Modes of Remittances:

 Cheque – it is a small piece of paper where you can see an amount indicated in front and it is used to
order or instruct the bank to transfer a certain amount to another party as a form of payment.
 On-line funds transfer – it is an electronic movement of money between bank accounts and financial
institutions with the help of a mobile application or internet. This process can be done without going
physically going to the bank.
 Western Union – a company that provides money transfer services
 Bank to bank transfers – a movement of money electronically between two banks
 Money transfer services – companies that offers money transfer services like Western Union, LBC
and Xoom.
 Prepaid cards - Reloadable cards from providers like Green Dot, Net Spend, and MoneyGram that
allows you to store and access funds without traditional bank account.
 Electronic payment – a type of payment made or done electronically. Ex. G cash, Pay Maya and etc.
 Wire transfer - Provide fast, secure transfers of funds between bank accounts, often same-day
 Remittance advice- remittance advice is a proof of payment document sent by a customer to a
business company. Generally, it’s used when a customer wants to let a business know when an
invoice has been paid.
Challenges and Opportunities in Harnessing Remittances for Development in 2024

As our country faces lots of economic downturn since President Duterte’s campaign on the war on
drugs during his term last 2016 which caused a lot of controversies about our president that affected our
country’s image among foreigners, and then there was an outbreak of variants of COVID-19 that struck our
country for the past few years that caused a huge downturn to the economy of the Philippines, millions of
people lost their jobs because of business closures here and abroad. Amidst it all, our fellow countrymen
have been strong and steadfast, and we still continue to fight and seek out answers for our survival.

Here are some of the Challenges in harnessing remittances for development:

 Maintaining Remittance Flows:
The COVID-19 pandemic caused a drop in remittance flows globally in 2020-2021 as many migrant
workers lost their jobs.
Maintaining steady remittance inflows to developing countries remains a challenge, especially of
economic downturns.
 High Costs of Remittances
High fees and unfavorable exchange rates reduce the amount that reaches recipient households.
 Lack of Financial Inclusion- Access to remittances services to some places like provinces

Here are some opportunities in harnessing remittances for development:

 Technological Innovations:
The rise of new modes of sending money like mobile applications, electronic transfers make it very
easy and accessible everywhere you go.
 Channeling Remittances for Investment:
Promoting to invest in productive assets like small business-like online selling, education and
housing.
 Remittance-backed Financing
Governments and development institutions are exploring ways to leverage future remittance flows as
collateral for raising development financing.
 Partnerships and Policy Coordination
Improved coordination between countries, financial institutions, and development organizations can
optimize the development impact of remittances.
Public-private partnerships are emerging to channel remittances into priority development areas.

STATISTICS

Overseas Filipino Workers (OFWs) send substantial remittances to the Philippines, which significantly
impact various sectors of the economy.

Here are some statistics and the industries that benefit from these remittances:

Statistics 1. Remittance Volume: In recent years, OFW remittances have consistently contributed a
significant portion of the Philippines' GDP. For instance, in 2023, remittances were estimated to exceed $35
billion.
2.Global Distribution: The top sources of OFW remittances are the United States, Saudi Arabia, the United
Arab Emirates, Canada, and the United Kingdom.

Statistics is a branch of applied mathematics that involves the collection, description, analysis, and
inference of conclusions from quantitative data. The mathematical theories behind statistics rely heavily
on differential and integral calculus, linear algebra, and probability theory.
People who do statistics are referred to as statisticians. They’re particularly concerned with determining
how to draw reliable conclusions about large groups and general events from the behavior and other
observable characteristics of small samples. These small samples represent a portion of the large group
or a limited number of instances of a general phenomenon.

Understanding Statistics

Statistics are used in virtually all scientific disciplines, such as the physical and social sciences as well as
in business, medicine, the humanities, government, and manufacturing. Statistics is fundamentally a
branch of applied mathematics that developed from the application of mathematical tools, including
calculus and linear algebra, to probability theory.

In practice, statistics is the idea that we can learn about the properties of large sets of objects or events
(a population) by studying the characteristics of a smaller number of similar objects or events (a
sample). Gathering comprehensive data about an entire population is too costly, difficult, or impossible
in many cases, so statistics start with a sample that can be conveniently or affordably observed.

Every year on 16 June, the global community observes the International Day of Family Remittances. This
day raises awareness of the hard work of millions of migrants who support their families and
communities of origin through the money they send back home.

Here are 14 reasons why remittances matter more than ever:

1. A staggering one billion people worldwide – about one in eight people – depend on remittances.
Every year, 200 million migrant workers send money home and 800 million people benefit from them.

2. Even through a pandemic and political instability, remittance flows continue to grow. According to the
latest World Bank data, remittances to low- and middle-income countries reached US$656 billion in
2023.

3. Migrant workers send on average US$200 to US$300 home every one to two months. This represents
only 15 per cent of what they earn – the rest stays in their host countries. But what they do send can
make up as much as 60 per cent of a household’s total income, representing a lifeline for millions of
families’

4. Over the last 20 years, remittance flows have grown five-fold, despite the myriads of adverse events
that took place all over the world.

5. The amount of money sent via mobile transfer increased 65 per cent during 2020 to US$12.7 billion
and grew again to US$16 billion in 2021.

6.Over 50 per cent of remittances are sent to rural areas, where 75 per cent of the world' s poor and
food-insecure live.
7.About 75 per cent of remittances are used to put food on the table and cover medical expenses,
school fees or housing expenses. In times of crisis, migrant workers are likely to send more money home
to cover crop losses or family emergencies. The remaining 25 per cent is either saved or invested in
assets or activities that generate income and jobs.

8.More than 80 countries rely on remittances for at least 3 per cent of their GDP. These countries show
that remittances are an engine of socio-economic growth and transformation, particularly for rural
areas.

9.Remittances can be costly to send but innovations, like blockchain and mobile money, can keep costs
down. Currently, currency conversions and fees cost 6.4 per cent of the total amount sent – that’s
double the target set by the Sustainable Development Goals. In this regard, there’s enormous potential
for innovative digital financial services.

10.Between 2022 and 2030, an estimated US$5.4 trillion will be sent by migrant workers back to them
communities of origin. Of that, around US$1.5 trillion will be either saved or invested.

11.Migrant workers make an invaluable contribution to SDGs through remittances and investments. In
particular, they contribute to ending poverty and hunger, promoting good health, quality education,
clean water and sanitation, decent work and economic growth, and reducing inequalities.

12.Strategic partnerships and progress on remittances go hand in hand. Partnerships among public and
private sector stakeholders have paved the way for lowering the cost of remittance transfers and
provided financial services for migrants and their families.

13.Digital remittances can transform rural economies while reducing costs and enabling recipients to
track and access funds quickly without having to travel long distances.

14.Remittances to rural areas can bolster climate resilience. These financial inflows empower
communities to adopt eco-friendly technologies and practices, enhance food security and mitigate
climate change impacts. This helps build long-term environmental sustainability and economic stability.

INDUSTRIES THAT BENEFIT OFW’s REMITTANCES

OFW remittances have become a major contributor to the economy, representing around 10 percent of the
gross domestic product. However, while remittances support OFW families and consumer spending, the
authors said labor migration can also cause emotional strain, with families divided and having complex
transnational relationships.

1. Real Estate- Remittances often drive demand for housing and property investments. Many OFWs use
their earnings to purchase homes or invest in real estate, boosting the construction and property development
sectors.
2. Retail- Increased disposable income from remittances fuels spending in retail. OFW families frequently
purchase goods and services, benefiting retail stores and e-commerce platforms.
 3. Banking and Financial Services- Remittances contribute to the growth of banking services, including
remittance transfer services and investment products. Banks and financial institutions see increased deposits
and transaction volumes.
4. Education- Families use remittances to fund education, leading to growth in private schools, universities,
and tutoring services.
5. Healthcare- Increased spending power from remittances can lead to higher demand for healthcare
services and medical products, benefiting hospitals and clinics.
6. Consumer Goods and Services- Remittances increase consumer spending on goods and services,
including travel, dining, and entertainment, thereby supporting these industries. Overall, OFW remittances
play a crucial role in supporting various economic sectors in the Philippines, driving growth and
development across multiple industries.

BENEFITS TO THE PHILLIPINE ECONOMY

The Philippine economy has been experiencing a period of growth and recovery in recent years, with
various factors contributing to its positive outlook. While global economic headwinds and geopolitical
events pose challenges, the country has identified several key areas of opportunity for continued economic
growth.

Here are the benefits in Philippine economy:

1. Economic Impact
 Wealth Accumulation- Ownership is a key driver of wealth accumulation. Owning assets like
real estate, stocks, or businesses can generate income and increase wealth over time.
 Economic Power- Owners of large businesses or significant assets often hold considerable
economic power, influencing markets, prices, and employment.
 Inequality- Ownership distribution affects economic inequality. When ownership is concentrated
in the hands of a few, it can lead to a widening wealth gap.
2. Social Impact
 Social Status and Influence- Ownership often confers social status and influence, affecting how
individuals or groups are perceived in society.
 Community Stability- Homeownership, for example, is often linked to community stability, as
owners are more likely to invest in their communities and remain long-term residents.
 Social Mobility- Access to ownership opportunities (e.g., homeownership, business ownership)
can enhance social mobility, while barriers to ownership can perpetuate social inequalities.
3. Political Impact
 Political Power- Owners of large corporations or media outlets often wield significant political
influence, shaping policy and public opinion.
 Policy Making- Governments may design policies to encourage or discourage certain types of
ownership, such as incentives for homeownership or regulations on corporate ownership.
4. Environmental Impact
 Resource Management- Ownership of natural resources or land can influence how
these resources are managed, impacting sustainability and environmental conservation.
 Corporate Responsibility- The way businesses manage their ownership of resources and
production can have significant environmental consequences, including pollution and climate
change.
5. Legal and Ethical Impact
  Property Rights- Ownership is deeply intertwined with legal systems that define and protect
property rights, affecting access, use, and transfer of assets.
 Ethical Considerations- Ownership can raise ethical questions, such as the moral implications of
owning essential resources (e.g., water, land) or the fairness of intellectual property laws.

6. Cultural Impact
 Cultural Preservation- Ownership of cultural heritage, such as historic sites or artworks, can play
a crucial role in preserving cultural identity and history.
 Consumerism- In consumer-oriented societies, ownership of goods is often linked to personal
identity and lifestyle, influencing cultural norms and values.
7. Technological Impact
 Innovation and Patents- Ownership of patents and intellectual property can drive innovation but
can also stifle competition and access to new technologies.
 Digital Ownership- As digital assets (e.g., cryptocurrencies, NFTs) become more prevalent, the
concept of ownership is evolving, leading to new legal and economic challenges.

CONGLOMERATES, AYALA CORPORATION (AC)

The word conglomerate means a composite of mass or mixture. Imagine a sedimentary rock made of
rounded pebbles and sand that is usually held together (cemented) by silica, calcite or iron oxide. It is also
the same the same with corporation that holds lots of subsidiaries. A conglomerate is one very large
corporation or company, composed of several combined companies, that is formed by either takeovers or
mergers. In most cases, a conglomerate supplies a variety of goods and services that are not necessarily
related to one another. Conglomerates can be found in industries like manufacturing, media, or food. A
media conglomerate may own several newspapers, and move to purchase television and radio stations, and
book publishing companies. A food conglomerate may start by selling potato chips, diversify by buying a
soda company, and expand by purchasing other companies that make different food products.
Conglomeration describes the process by which a conglomerate is created when a parent company begins to
acquire subsidiaries. The bottom line is A conglomerate is a multi-industry company composed of several
different, independent businesses. One company owns a controlling stake in several smaller companies, all
of which conduct business separately and independently.

Current possible impacts of ownership

Ownership, whether of property, businesses, intellectual property, or other assets, can have various
significant impacts, which can be considered across several dimensions:

What is a conglomerate boom?

A conglomerate boom occurred in the 1960’s. In which interest rates were low, so leveraged buyouts were
easier for managers of big companies to justify because the money came relatively cheap. It was a period in
the United States when big corporations bought out several companies in multiple or unrelated fields. Low-
interest rates and a volatile stock market were the main reasons for conglomerate boom.

Notable Conglomerate in the Philippines

  Ayala Corporation

 SM Investments Corporation

 San Miguel Corporation

 Metro Pacific Investments Corporation

These conglomerates have played a significant role in shaping the Philippine economy and are often
involved in major infrastructure projects, retail expansions, and service innovations.

Biggest Media Conglomerate is ABS-CBN- formerly known as Bolinao Electronics Corporation (1946–
1952, 1957–1967) to Alto Sales Corporation (1952–1957) to Chronicle Broadcasting Network, Inc. (1956–
1957) then ABS-CBN Broadcasting Corporation (1967–1972; 1986–2007) it is founded by James
Lindenberg, Antonio Quirino, Eugenio Lopez Sr. And Fernando Lopez. The conglomerate owns and
operates general entertainment broadcaster Kapamilya Channel and English-language news service ABS-
CBN News Channel under ABS-CBN, AM radio station DWPM and Filipino-language cable and online
news channel TeleRadyo Serbisyo (through a joint venture with Prime Media Holdings), and digital radio
platform MOR Entertainment. Other companies which operate under the ABS-CBN media conglomerate are
motion picture companies under ABS-CBN Film Productions, such as Star Cinema, Cinema One Originals,
Cine Bro and Black Sheep Productions, the entertainment division ABS-CBN Studios (Dreamscape
Entertainment, Star Creatives, RCD Narratives, JRB Creative Production and RGE Drama Unit under RSB
Scripted Format), entertainment and film production Star Magic Studio(under Star Magic), and online
ticketing and streaming site KTX.

It also operates music record labels under ABS-CBN Music, such as Star Music and its subsidiaries, Tarsier
Records, and MYX Global. The conglomerates’ publishing assets include ABS-CBN Publishing and ABS-
CBN Books, pay TV content provider and distributor Creative Programs, telecommunications
company ABS-CBN Convergence (68% co-owned with Globe Telecom). Its talent agency Star Magic is
composed of divisions such as Star Hunt, Polaris, and Rise Artists Studio. In recent years, ABS-CBN has
ventured and diversified into other businesses such as over-the-top platforms iWant TFC, TFC IPTV and
web-based channel Kapamilya Online Live. Both iWant TFC and Kapamilya Online Live are under ABS-
CBN Digital Media, a new media and digital division under ABS-CBN which also handles news.ABS-
CBN.com and ABS-CBN.com.

ABS-CBN is also the principal owner of the ABS-CBN Philharmonic Orchestra. It owns ABS-CBN Studios,
Inc. which operates its production facilities nationwide, including the ABS-CBN Soundstage located in
Bulacan, and the newly relaunched theater arm of ABS-CBN, Teatro Kapamilya. Aside from the ABS-CBN
Soundstage, ABS-CBN also owns many other real estate properties used in its operations.

One of biggest food conglomerate worldwide is Nestle whose founder is Henri Nestle. Nestle is a Swiss
multinational food and drink processing conglomerate corporation headquartered in Vevey, Switzerland.
Nestlé's products include coffee and tea, candy and confectionery, bottled water, infant formula and baby
food, dairy products and ice cream, frozen foods, breakfast cereals, dry packaged foods and snacks, pet
foods, and medical food. Twenty-nine of Nestlé's brands have annual sales of over
1 billion CHF (about US$1.1 billion), including Nespresso, Nescafé, Kit
Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. Nestlé has 447 factories, operates in 189 countries,
and employs around 339,000 people. It is one of the main shareholders of L'Oreal, the world's largest
cosmetics company. In recent years, Nestlé Health Science has made several acquisitions: CM&D Pharma
Ltd., a company that specializes in the development of products for patients with chronic conditions like
kidney disease; and Prometheus Laboratories, a firm specializing in treatments for gastrointestinal diseases
and cancer. It also holds a minority stake in Vital Foods, a New Zealand-based company that
develops kiwifruit-based food products as of 2012. In December 2014, Nestlé announced that it was opening
10 skin care research centers worldwide, deepening its investment in a faster-growing market for health care
products. That year, Nestlé spent about $350 million on dermatology research and development.
The COVID-19 pandemic did not affect Nestlé negatively.

Due to lockdown, people bought more packaged foods, not only coffee and dairy products, but also pet
products, which increased the company's sales. Nestlé is recording its strongest quarterly sales growth in 10
years. Cereals Partners Worldwide is a joint venture by Generals Mills and Nestle established in 1991to
produce breakfast cereals. These products are Cheerios, Cookie Crisps, Fitness, Lucky Charms, Nesquik,
Trix, Golden Nuggets, Golden Graham, Lion Cereal, Frosted Shreddies Coco Shreddies and Shredded
Wheat bite size.

Nestle Philippines is the subsidiary of the global Nestle S.A and it is the one of the major players in the
food and beverage industry in the Philippines. Its products are Nescafé, Milo, Nestea, Nestle Milk, Nestle
Cream, Ceralad, Lactogen, KitKat, Munch, Maggi noodles and seasoning. Nestlé Philippines continues to
play a vital role in the country's food landscape, combining global expertise with local insights.

Top manufacturing conglomerate here in the Philippines is San Miguel Corporation The company is
one of the largest and most diversified conglomerates in the Philippines. According to most recent news San
Miguel was on the top of the list on ranking 9th place in inquirer.net dated June 18, 2024 with a market
capitalization of $ 26,023.9 in millions.
San Miguel was originally founded in 1890 as a brewery, San Miguel has ventured beyond its core business,
with investments in various sectors such as food and drink, finance, infrastructure, oil and energy,
transportation, and real estate. Its flagship product, San Miguel Beer, is one of the bestselling beers in the
world. San Miguel's manufacturing operations have extended beyond its home market to areas such as Hong
Kong, China, Indonesia, Vietnam, Thailand, Malaysia, and Australia. In total, its products are exported to 60
markets around the world. Its founder is Enrique Maria Baretto d Ycaza and Vice Chairman, President and
CEO Ramon Ang.

 San Miguel's Core Subsidiaries are San Miguel Brewery, Ginebra San Miguel, San Miguel Food and
Beverage, San Miguel Yamamura Packaging Corporation, San Miguel Properties
 San Miguels New Investments are Petron Corporation, SMC Global Power Holdings Corporation, San
Miguel Energy Corporation, San Miguel Holdings Corporation, Manila North Harbor Port, Inc., Bank
of Commerce, Northern Cement Corporation, SMC Asia Car Distributors Corporation, Delta Djakarta.
 San Miguels Key brands are Ginebra San Miguel, Magnolia, Monterey, Petron, Pure foods, Redhorse
Beer, San Miguel Pale Pilsen
San Miguel’s Sports team are San Miguel Beer men, Miguel, Magnolia, Petron Blaze Spikers (defunct), San
Miguel Alab Pilipinas (defunct), Magnolia Pure water Wizards (defunct), San Miguel beer men
(ABL) (defunct), Pop Cola Panthers (defunct), Pop Cola Panthers (defunct)
 OWNERSHIP AND PROFITABILITY

Ownership and profitability are two fundamental concepts in the world of business. The relationship
between these wo factors is crucial for the success and growth of any organization. Ownership refers to the
possession or control of a business entity, while profitability measures the financial performance and success
of that entity. In terms of ownership, there are various forms such as sole proprietorship, partnership, and
corporation. Each form has its advantages and disadvantages when it comes to profitability.

Current importance of knowing the profitability of your product before you establish.

Understanding the profitability of your product before you establish or launch it is crucial for several
reasons:

Feasibility Assessment- Profitability analysis helps determine whether your business idea is viable. It
allows you to see if the product can generate sufficient revenue to cover costs and eventually turn a profit.

Investment and Funding- Investors and lenders often require a clear understanding of potential
profitability before providing capital. A profitable product proposition increases the likelihood of securing
funding.

Pricing Strategy- Knowing the profitability helps in setting the right price point. You can determine a price
that covers costs, ensures a profit margin, and remains competitive in the market.

Resource Allocation- Profitability insights guide how resources such as time, money, and manpower should
be allocated. It ensures that resources are invested in a product with a higher chance of success.

Market Positioning- Understanding profitability helps in positioning your product in the market. It
influences decisions on marketing strategies, product features, and target customer segments.

Risk Management- Analyzing profitability helps identify potential risks and prepare mitigation strategies.
It ensures that you are not entering a market or launching a product that could lead to financial losses.

Strategic Planning- Profitability analysis is essential for long-term business planning. It helps in setting
growth targets, reinvestment strategies, and scaling plans.
Sustainability- Ensuring profitability before launch helps create a sustainable business model that can
withstand market fluctuations and economic downturns.

COMPANIES CONTROLLED BY CONGLOMERATE:

Companies controlled by Conglomerates

Conglomerates are large corporations that own and manage a diverse range of

businesses across different industries. Here are some well-known conglomerates and

example of companies they control: Each subsidiary operates independently but

benefits from the resources and expertise of the parent company.

Conglomerates control companies for several strategic reasons.

Here are the reasons why:

1. Diversification of Risk
By owning businesses in various industries, conglomerates can spread their risk. Poor

performance on one sector may be offset by better performance in another.

2. Economies of Scale

Conglomerates can achieve cost savings through bulk purchasing, shared resources

and streamlined operations across their subsidiaries.

3. Access to Capital

Larger conglomerates often have better access to financing and capital markets,

allowing them to invest in growth opportunities and acquisitions.

4. Market Power

Controlling multiple companies can enhance market influence.

5. Synergy and Collaboration

Conglomerates can create synergies between their businesses, sharing technology,

expertise or distribution channels to enhance overall performance.

6. Strategic Investment

Conglomerates can invest in emerging industries or technologies, positioning

themselves for future growth and adapting to market changes.

7. Brand Recognition

A good brand reputation can enhance customer trust on new products or services.

8. Political and Economic Influence

They may have more influence in policy making and can navigate regulatory
environments

9. Talent Acquisition

Conglomerates can attract top talent by offering diverse career opportunities across

different sectors, enhancing innovation and competitiveness.

By consolidating control over various companies, conglomerates can optimize their

operations and strategically position themselves within the market.

1. Berkshire Hathaway

 Geico (insurance)

 Duracell (batteries)

 Dairy Queen (fast food)

 BNSF Railway (transportation)

2. General Electric (GE)

 GE Aviation (aerospace)

 GE Health-care (medical technology)

 GE Power (energy)

 GE Renewable Energy (sustainability)

3. 3m

 Scotch Tape (adhesives)

 Post-it Notes (stationary)

 Filtrate (air filters)

 N95 (health-care products)

4. Siemens Ag

 Siemens Healthiness (health-care technology)

 Siemens Mobility (transportation solutions)

 Siemens Digital Industries (automation)

 Siemens Financial Services (finance)

5. United Technology Corporation (UTC)

 Pratt & Whitney (aerospace)

 Carrier (HVAC systems)

 Otis Elevator Company

 (elevators and escalators)

6. Sony Corporations

 Sony Pictures

 Sony Music

 Sony Interactive Entertainment

7. Proctor & Gamble

 Tide (laundry detergent)

 Gillette (razors and blades)

 Pampers (diapers)

8. Kraft Heinz Company

 Heinz (ketchup and sauces)

 Kraft (cheeses and snacks)

 PROPERTY DEVELOPMENT INDUSTRY

The property development industry, often referred to as the backbone of the real estate market, plays a
crucial role in shaping our cities and towns. This sector encompasses a wide range of activities, including
land acquisition, construction, and sales. The development of properties not only provides housing for
individuals but also contributes to economic growth and job creation

The property development industry encompasses the entire process of transforming land into usable real
estate. This includes purchasing land or existing buildings, planning and designing new structures, securing
financing, overseeing construction, and marketing the final product for sale or lease. Developers must
navigate complex regulations, manage budgets, address market demand, and often collaborate with
architects, engineers, and contractors to successfully complete projects.

Site Acquisition- Identifying and purchasing land or existing structures that align with development goals.

Market Research-Analyzing market trends, demand, and competition to ensure the project aligns with
current and future needs.

Project Planning- Creating detailed plans, including architectural designs, project timelines, and budget
forecasts. This phase also involves obtaining necessary permits and approvals.

Securing Financing- Arranging funding through various sources like loans, equity investors, or partnerships
to cover development costs.

Construction-Managing the actual building process, coordinating with contractors, and ensuring quality and
adherence to plans and regulations.

Marketing and Sales/Leasing- Promoting the property to potential buyers or tenants, employing strategies
to attract and secure interest.

In the property development industry, each key player has a distinct role:

Developers- They initiate and oversee property projects, from acquiring land to managing construction and
ultimately selling or leasing the property. They handle project financing, planning, and coordination of
various stakeholders.

Architect- Architects design the layout and appearance of buildings, ensuring they meet aesthetic,
functional, and regulatory requirements. They create detailed plans and collaborate with engineers and
contractors to bring their designs to life.

Engineers-Engineers focus on the technical aspects of property development. Structural engineers ensure
buildings are safe and stable, civil engineers handle site infrastructure and environmental considerations, and
MEP (Mechanical, Electrical, and Plumbing) engineers address the systems that make buildings functional.

Contractors- Contractors manage the construction process, including hiring subcontractors, procuring
materials, and ensuring the project is completed on time and within budget. They act on the plans and
specifications provided by architects and engineers.

Real Estate Development

Is the process of improving land or property by constructing new buildings, renovating existing structures,
or otherwise enhancing the value and usability of the property for commercial, residential, or industrial
purposes.

However, the property development industry has a significant impact on local economies. It creates jobs for
architects, engineers, construction workers, and various other professionals involved in the process. It
generates revenue through taxes and fees paid by developers. like any other industry, property development
also faces challenges. One such challenge is ensuring sustainable development practices. With growing
concerns about climate change and environmental degradation, developers must adopt eco-friendly
approaches such as using renewable energy sources or incorporating green spaces into their projects.

MAJOR COMPANIES IN THE INDUSTRY

Major companies in the industry play a crucial role in shaping the economy and influencing consumer
behavior. These companies have established themselves as leaders through their innovative products, strong
brand presence, and effective marketing strategies.

Here are some current major issues faced by major companies across various industries:

Technology

Data Privacy and Security- Increasing concerns over data breaches and misuse of personal information.

Regulation and Compliance- Stricter regulations, such as GDPR in Europe, impacting how companies
handle data.

Healthcare

Cost and Access-Rising costs and access disparities, particularly in the U.S.

Regulatory Challenge- Navigating complex regulations and approvals for new treatments and
technologies.

Supply Chain Issues- Shortages of critical supplies and medications.

Finance

Economic Uncertainty- Impact of global economic fluctuations, inflation, and interest rates.

Regulatory Compliance- Adapting to changing financial regulations and standards.

Cybersecurity Threats-Protecting against sophisticated cyber-attacks and fraud.

Manufacturing

Supply Chain Disruptions-Ongoing issues with supply chain interruptions and logistics.

Sustainability- Pressure to adopt environmentally friendly practices and reduce carbon footprints.

Labor Shortages- Difficulty in finding skilled workers and dealing with labor strikes.

Retail

E-commerce Competition-The challenge of competing with online retail giants and shifting consumer
preferences.

Inventory Management- Managing inventory levels and dealing with supply chain delays.
Consumer Behavior Changes- Adapting to evolving customer expectations and shopping habits.

Many companies are facing similar challenges, like dealing with new rules, adapting to technology, and
managing supply chains. These challenges affect us all, because they can influence the products we buy, the
services we use, and the overall economy.

PROSPECTS OF THE INDUSTRY

"Prospects of the industry" refers to the potential future outlook and growth opportunities for a particular
industry. The "office of prospects" typically refers to departments or roles focused on business development,
client relations, and sales strategies within various industries. The "office of prospects" typically refers to
departments or roles focused on business development, client relations, and sales strategies within various
industries.

Here are some current issues and updates relevant to such roles:
Changing Market Dynamics: Companies are dealing with rapid shifts in market demands and consumer
behaviors. Adapting strategies to align with these changes is a key challenge. Market dynamics refer to the
forces and factors that affect the behavior and performance of a market. These dynamics include supply and
demand fluctuations, competitive forces, technological advancements, regulatory changes, consumer
preferences, and economic trends.

Digital Transformation: There's an ongoing shift towards digital tools and platforms for prospecting and
client management. This includes the use of CRM systems, automation tools, and data analytics to
streamline processes and improve efficiency.

Data Privacy and Security: With increasing regulations such as GDPR and CCPA, businesses must ensure
compliance while handling prospect and client data responsibly. RA 386(1949) Under the civil code of the
Philippines, anyone who "obstructs, defeats, violates or in any manner impedes or impairs" the privacy of
communication and correspondence is liable for damages article 32. Elsewhere, communications
surveillance may be penalized as a felony or crime.
Economic Uncertainty: Fluctuations in the economy can impact client budgets and purchasing decisions.
Navigating these uncertainties requires agile and flexible strategies.

Customer Experience: There is a strong focus on improving the customer journey from initial contact
through to sales and post-sale support. This involves personalizing interactions and providing value at every
stage of the process.

Remote Work and Collaboration: The rise of remote work has changed how teams interact with prospects
and clients. Effective virtual communication and collaboration tools are crucial for maintaining relationships
and driving sales.

Lead Generation and Qualification: Identifying and qualifying high-quality leads is increasingly
challenging but critical for maintaining a robust sales pipeline.

Integration of AI and Machine Learning: AI is being used to predict client needs, automate outreach, and
analyze data for better decision-making in prospect management. Staying updated on these trends and
challenges can help professionals in business development and sales navigate the evolving landscape
effectively.