● Shareholder and their demands

APPLIED Tax Reforms

ECONOMICS ● Refer to revisions on the implementation
and collection of taxes. These include
Macroenvironment Analysis increasing and lowering existing tax rates as
well as new ones.
Principles, Tools, and
Government Regulations
Techniques in Creating a
Business ● That streamline procedures in government
agencies and improve the ease of doing
1. Developing a product or service business. Remember that there are costs
description. associated with delays; hence, an
improvement in processing time for
2. Creating a prototype
government transactions potentially cut can
3. Testing the prototype delays and reduce overhead costs

4. Validating the market ECONOMIC FACTORS

PESTLE ANALYSIS ● Economic factors take into view the
economic condition prevalent in the country
● Is the study of macroeconomic factors
and if the global economic scenarios might
that impact a business. It helps enterprises
make it shift or not.
make decisions after analyzing the external
environment Disposable income;
1. Political - government, policy, political, ●Unemployment level
stability
●Foreign Exchange rates
2. Economic - economic growth, exchange,
rates ●Interest rates

3. Social - population, growth rate, age, ●Trade tariffs

distribution ●Inflation rate
4. Technology - technology, incentives, Gross Domestic Product Growth
level of innovation
● is the total monetary or market value of
5. Legal - discrimination. antitrust laws all the finished goods and services produced
6. Environmental - weather, climate, within a country's borders in a specific time
climate change period.
● GDP equivalent to total output is a
POLITICAL FACTORS
measure of a country’s economic
● Political factors account for all the political performance
activities that go on within a country and if
Inflation
any external force might tip the scales in a
certain way. ● is a rise in prices, which can be translated
as the decline of purchasing power over time
● Trading policies
● Inflation Is the loss in value of money.
● Funding
Lifestyle and trends
● Foreign pressure
● A lifestyle trend refers to a change or shift
● Conflicts in political area in how people live.
● These trends can be influenced by a range ● Competitive regulations
of factors, including technological
● Future legislation
advancements, cultural shifts, and global
events.

SOCIAL FACTORS ENVIRONMENTAL FACTORS

● Social factors are your consumers. You Environmental factors have to do with
need to look at buying habits, emotional geographical locations and other related
needs and consumer behavior in this section. environmental factors that may influence
Because these are the people who directly upon the nature of the trade you're in. For
influence your sales. example, agri-businesses hugely depend on
this form of analysis.
● Ethnic/religious factors
● Ecological
● Major world events
● Environmental issues
● Demographics
● Staff attitudes
● Consumer opinions and attitudes
● Management style
● Trends
● Environmental regulations
● Education
● Consumer values
● Brand preferences

TECHNOLOGY FACTORS LESSON 2: INDUSTRY ANALYSIS

AND COMPETITION
● Technology can be directly involved with
company products, like manufacturing SECTOR OF THE ECONOMY AND
technologies. RELATED INDUSTRIES
● Technological development
Industry analysis enables a company to
● Research and development
develop a competitive strategy that best
● Associated Technologies
defends against the competitive forces or
● Patents
influences them in its favour. The key to
● Licensing developing a competitive strategy is to
● Information technology understand the sources of the competitive
● Communication forces.
LEGAL FACTORS
Industry analysis—also known as
● Legal factors have to do with all the
legislative and procedural components in an Porter’s Five Forces Analysis—is a very
economy. Also, this takes into account
certain standards that your business might useful tool for business strategists. It is
have to meet in order to start production/ based on the observation that profit margins
promotion.
vary between industries, which can be
● Employment law
explained by the structure of an industry.
● Consumer protection
● Industry-specific regulations
The Five Forces primary purpose is to
determine the attractiveness of an industry.
However, the analysis also provides a
starting point for formulating strategy and
understanding the competitive landscape in
which a company operates.

Primary Sector-involves the extraction and

production of raw materials. Examples of
Secondary Sector/Industry Sector-
primary sector activities include agriculture
Groups of industries that process raw
logging, fishing, and mining. Natural
materials into goods through manufacturing
resources or raw goods are items we can
and construction.
find in nature. This includes raw minerals,
crude oil, lumber, sunlight, and even water. -This is the sector that takes natural
resources collected via primary sector
activity and turns them into artificial
resources. Secondary sector activity includes
construction, textile fabrication, oil
distillation, water filtration, and so forth.

AGRICULTURE AND FISHING SECTOR

The primary sector in the Philippines includes
two main industries:
•agriculture, hunting, and forestry; Tertiary Sector/Service Sector-Covers the
marketing and selling of raw materials and
•fishing manufactured products.
Agriculture-farming of rice, corn, vegetables, -The tertiary industry is the services sector
fruits and even poultry & piggery. of an economy, encompassing medical
providers, educators, financial services,
Fishing- those activities that extract marine
haircuts, and personal trainers, among many
life in the different bodies of water.
others.
Mining-oils, minerals, golds & silver that we
-The tertiary sector can be subdivided
can convert to useful items like jewelries.
broadly into for-profit and nonprofit
segments.
 -The higher the number of new entrants the
higher the competition.
-Entrants these are the businesses or
entrepreneur who wants to enter.
-There are new entrants because there are
industries that are easily to enter. Ex: food
industry, flea market and sari-sari store
-The easier to entry a specific industry the
greater the competition.
-Barriers to entry this is now we see the
willingness of the entrepreneur to enter a
specific industry depends on the barriers or
the risk they are about to face.
Barriers to entry determinants include
✓ economics of scale- it means you need
to reach a certain or a high number of
production or the time number of production
to reach a specific revenue or profit.
-Here in economics scale we need a high
production.
-This barrier is the cause of discourage of the
entrepreneurs to enter industry. Like for
-Whenever we conduct industry analysis we example there are businesses that requires a
make sure to see how it is started, or how high in production like for example clothing
this established. industry and food industry also because we
need to comply the needs of the customer.
-In conducting industry analysis you will
know the current growth rate or current -It is mandatory to produce a high in
outline of the growth in a specific industry. production in order for you to reach a
specific or certain profit revenue.
✓ product differentiation- talks the unique
characteristics of your product. The more
your product is unique, the lesser the
entrepreneurs will enter that industry it
is because it is hard to re-create or it is hard
to established a unique product or unique
industry. The more unique the product is,
the lesser the supply.
✓ capital requirement- it refers to
THREAT OF NEW ENTRANTS “money or capital” the more capital the
lesser the threat of new entrants it is
This factor evaluates how easy it is to firms because not all the entrepreneurs have the
to enter the industry. The more players in capacity or capability to produce that specific
the industry are, the greater the competition. money. Like for there are businesses that
The threat of new entrants is evaluated requires an intensive capital like for
through barriers to entries. examples luxury products, healthcare
products, insurance, cosmetics or beauty materials that are unique from the other
products or jewelry, real estate and steel products in the market. There is a product
manufacturing industry. differentiation here also because there
are certain suppliers that it has a
✓ government policies-This can be a
specific consumer to give their demand.
barrier to entrepreneurs to enter a specific
Example: Pet products for pet owners
industry it is because there are policies or
there are laws that needs to be followed or ✓buyer's switching cost to other inputs-
that needs to be obeyed. The laws or the it refer to the ease of switching to an
policies(restrictions) are the hindrance to alternative product. If the product is
earn more profit in an industry there are so cheap, there is a switching of products
many things you need to consider. This is because there is consumer prefer
one of the things that entrepreneurs cheaper and there is also consumer that
think before entering an industry. prefer expensive products because really
believe that it has a high quality. If the price
is high, it means it has a high switching cost
BARGAINING POWER OF SUPPLIERS because it is expensive and it cost a lot and
if the product is cheaper, there is low
Analyzing the structure of the industry switching cost.
requires an analysis of the suppliers and how
powerful they are in terms of influencing ✓supplier's threat of forward
input and product prices. The bargaining integration and buyer's threat of
power of suppliers is the second factor that backward integration-
affects the level of competition among
Two types of product integration:
players in the industry.
Forward Integration- it means the supplier
Determinants:
is also the manufacturer of the product.
✓supplier concentration-it refers to the Example is beauty products & clothing
number of the suppliers in the industry. If product.
the number of suppliers is high, is it
Backward Integration-is when company
high or low bargaining power of
buys another company that supplies that
supplier? The answer is the bargaining
products or services that is needed for
power is low because when many suppliers
production. Example is Bakery Industry they
in a competitive environment serve in the
need to purchase a wheat processor or what
industry and supply exceeds demand. Buyer
farm in order to create product like bread
can choose product because they have a lot
and cakes.
of options and they can choose what supplier
they will pick. Another example is the Honey,
it has a high bargaining power of the supplier
BARGAINING POWER OF BUYERS
because there is a small number of suppliers
who produce Honey in the market. Similar to supplier power, the bargaining
power of buyer or consumers impacts
✓availability of substitute inputs-If the
industry structure. Buyers pertain to end
buyer has a lot of options, or it has a high
consumers, which means the bargaining
number of options, it has a low bargaining
power of buyers points to the influence
power of supplier because buyer can choose
of consumers on product prices in the
different supplier that are available in the
industry.
market especially those suppliers who offers
cheaper products but high in quality or it has Determinants:
the same quality.
✓ Number of buyer relative to sellers- it
✓supplier's product differentiation- is the ratio between the buyer and the
occurs when suppliers sell products or seller/supplier. If the number of buyers is
higher than the supplier, there is a low ✓ Number of competitors-The higher
bargaining power of buyers and if the number of competitors, it is hard for you to
number of buyers is lower than the enter the industry.
supplier, there is a high bargaining
✓Relative size of competitors-Not all
power of the buyer. If there’s a lot or great
industry or businesses we have in the market
number of buyers in the industry of course
is the same. The Ratio between the
there is a competition because many buyers
segment’s sales and firm’s total sales.
will compete to buy the product that are
available in the industry. For example, during ✓Buyer
pandemic.
✓Product differentiation
✓Product differentiation
✓ Strategic diversity- it refers to the
✓Switching to use other product strategic approach of the business or
industry. It depends on their plan how they
✓Product integration (forward and
improve their business they are in.
backward)
✓ Exit barriers- obstacles or impediments
✓ Buyer's volume-it refer to the quantity
that prevent a company from existing a
demand of the buyer. It refers to how many
market or industry. Typical barriers to exit
products are willing to buy the buyer. The
include highly specialized and assets, which
higher quantity demand that the buyer is
may be difficult to sell or relocate, and high
willing to buy, it means that it has a high
exit costs, such as asset write- offs and
bargaining power of the buyer because there
closure costs.
willing to buy that product.

SWOT MATRIX
THREAT OF SUBSTITUTES
The SWOT framework may be used in a
Consumers shifting to the use of other goods
company-level or an industry-level analysis.
or services impacts sales, thus, affecting the
In a company-level analysis, internal factors
competitive structure of the industry. The
are inherent to firms and external factors
higher the threat of substitutes, the
pertain to factors in the firm's industry.
greater is the competition. An Industry
providing more highly specialized products INTERNAL FACTOR- Strength &
has a less competitive structure than an Weakness these factors are internal factors
industry selling product that can be easily because it is observed within your business
substituted. or company. The strength is the advantages
of your company while the weaknesses
Determinants;
internal factors that are underperforming.
✔Relative price of substitute products-
EXTERNAL FACTOR-Opportunity &
The cheaper the product is, the greater
Threats these factors are under external
competition. The cheaper the product the
because we don’t have control over it.
number supplier increases.
Opportunities refers to favorable external
✔Relative quality of substitutes- it refers factors that could give an organization a
to the quality of the product itself if it is a competitive advantage ex: current trends.
high quality or low quality. Threats refers to the factors that have the
potential to harm an organization ex:
economic shift, natural disasters, number of
COMPETITIVE RIVALRY competitors, government policies and etc.

Determinants:
 -We consider the scars here because we are
attaining sustainable for the future

Economic Pillar
- also known as "Profit Pillar" because it
pertains to money, revenue or income.

Sustainable Development

LESSON 3: SUSTAINABLE
DEVELOPMENT

3 PILLARS OF SUSTAINABLE
DEVELOPMENT
SOCIAL PILLAR
The social pillar refers to the community and
everyone in it - households or parts of social
groups. In business, the social pillar pertains
to the stakeholders such as employees and Sustainable Development means meeting
consumers and the locality the business the needs of the present without
operates in. A business has to earn support compromising the ability of future
from all its stakeholders to be sustainable. generations to meet their own needs.

- we are talking about the individuals or the Adopted by the General Assembly of the
people that reside within the society. United Nations in 2015, the 17 "Sustainable
Development Goals" (SDGs) are the layout to
-also known as "People Pillar” achieve a better and more sustainable world
for all by 2030.
-it means we are now providing the needs
ENVIRONMENTAL PILLAR
and wants of the people now I'm today's
It is equally important companies to earn generation but of course we see if it affects
profit as much as it is critical for them to the capability of future generation to meet
consider the society and scars natural the needs. We are not only concerned with
resources in producing goods and services. how we can resources but also we see the
effect of it in the future generation.
The environmental pillar refers to the
environmental and natural resources. -it is to assure that even if we want to
Following the concept of scarcity, natural provide resources in today's generation, we
resources have to be utilized efficiently to want it also to protect the capacity of future
satisfy the needs to the present generation generations to meet their needs and wants.
and sill have enough for future ones. The
-It is based on the book of Consuming Power
globally growing call to conserve and protect
by UN World commission and development.
the environment in is line with the goal of
sustainable development.
-also known as "Planet Pillar" because we get #1 NO POVERTY
our resources from the environment
This first goal aims to eradicate poverty in all -Continous Research and Development to
its forms. provide affordable medicine
While the number of people living in extreme
poverty has dropped by more than half
between 1990-2015, there are still about 659
million people living with a lack of certain
commodities as of March 2023. This leaves
many struggling to meet basic human needs #4 QUALITY EDUCATION
like food and clean drinking water. Ensure inclusive and equitable quality
-to end poverty education and promote lifelong opportunities
for all.
This goal ensures inclusive and equitable
#2 ZERO HUNGER quality education and promotes lifelong
learning all.
End hunger, achieve food security and
improved nutrition, and promote sustainable In 2015, when the SDGs were established,
agriculture the primary school enrollment rate in
developing regions reached 1 percent, the
"Zero Hunger" sets out to end hunger,
number of children out of school had been
achieve food security, improve nutrition, and
cut in half and there were more girls in
promote sustainable agriculture. The global
school than ever before.
pandemic hus only worsened global hunger,
seeing as many di 161 million additional
people will experience hunger as a result.
Regarding women. 1/3 of those at a #5 GENDER EQUALITY
reproductive age experience Anaemia due to Achieve gender quality and empower all
nutritional deficiencies. women and girls.
-provide people who don't have access to This SDG focuses on addressing unequal
food or healthy foods labor rights, sexual violence and exploitation,
unequal division of unpaid domestic care,
and discrimination in public office.
#3 GOOD HEALTH AND WELL-BEING
Ensure healthy lives and promote wellbeing
for all at all ages. #6 CLEAN WATER AND SANITATION

This goal focuses on promoting healthy Ensure availability and sustainable

lifestyles and providing modern, efficient management of water and sanitation for all.
healthcare for all, so that preventable Water scarcity affects more than 40 percent
illnesses continue to decrease around the of the world, an alarming figure that is
globe. expected to rise along with global
To address this goal, the U.N. has specific temperatures.
targets that cover all different aspects of This SDG cites reducing pollution and
healthcare. Targets to achieve by 2030 eliminating hazardous chemical and raw
include things like reducing maternal sewage dumping as necessary steps on the
mortality rates, ending preventable deaths in way to improving overall water quality and
children under five, fighting communicable access to drinking water. Working
diseases like AIDS, tuberculosis and malaria, cooperatively between countries to
and supporting research and development of efficiently use freshwater in a way to
affordable vaccines and medicines. minimize scarcity.
-the goal is to sustain clean water and Build resilient infrastructure, promote
sanitation inclusive and sustainable industrialization
and foster innovation
With over half the world population now
living in cities where mass transport and
renewable energy are becoming ever more
important, as are the growth of information
#7 AFFORDABLE AND CLEAN ENERGY and communication technologies.
Almost 800 million people lack access to -Technological progress is interconnected
electricity. This puts into perspective why with the other SDG'S
this goal aims to ensure affordable, reliable,
sustainable, and modern energy. -It is the key to discover the solution of the
economic and environmental challenges
Our current reliance on fossil fuels is because Innova will help the individuals to
unsustainable and actively harmful to our uplift their standard of living not only to
planet, and as the population grows, so too equal opportunity but also a more efficient
will our energy needs. Climate change is one energy system.
of the biggest threats to our survival, but
access to energy is essential for all. How can we attain this SDG?

-we must create/make something to get 1. Develop Sustainable Resilient

electricity without fossil fuels
-In order for this to economic development
-if we want to protect fossil, we must not rely and human well being
on it to reduce climate change
-To give affordable and equitable for all
commodities they need

#8 DECENT WORK AND ECONOMIC 2. Universal Access of Information and

GROWTH Technology

Promote sustained, inclusive and sustainable -Internet is important because it is the

economic growth, full and productive baseline to foster education
employment, and decent work for all.
-Its like a backbone of innovations
In developing countries, the middle class
3.Existing Technology, Infrastructure and
made up more than 24 percent of total
Upgrade
employment when the SDGs were written in
2015. -In order for us increase productivity,
improve security, enhance collaboration,
This goal aims for truly sustainable economic
improve customer experience, and save
growth by encouraging entrepreneurship and
costs in the long run.
job creation with policies focused on
technological innovation development. #10 REDUCED INEQUALITIES
-having an opportunity to gain/ earn money Reduce inequality within and among
is key to nations in uplifting the life's of every countries
individual
Over the past four decades, income
-we can eradicate poverty inequality has risen sharply due to global
deregulation and large transfers of public to
-it means creating economy wherein there is
private wealth in nearly all countries. In
small or no person who is poor.
2014, the top one percent of corners
#9 INDUSTRY. INNOVATION AND received 3 percent of global income. while
INFRASTRUCTURE
the bottom so percent received only 10 It aims to reduce climate change and
percent of global income. negative environmental impacts.
This SDG focuses on global policies that
empower lower income earners and promote
This is perhaps the most wide-reaching SDG
economic inclusion of all, I and focus
in that affects the entire world population
specifically on lifting up women and migrant
and has significant consequences if no action
workers.
is taken. Every part of the Earth is already
-policies that support entrepreneurs, laborers experiencing the drastic effects of climate
and employees to increase earners change-the annual economic losses from
climate-related disasters already reach the
#11 SUSTAINABLE CITIES AND
hundreds of billions of dollars, and climate-
COMMUNITIES
related geo-physical events killed 1.3 million
Make cities and human settlements inclusive, people between 1998 and 2017.
safe, resilient, and sustainable.
To attain this SDG
By 2050, two thirds of humanity, or 6.5
-Reduce the use of plastic
billion people, are expected to live in an
urban environment. It is vital for the health -Reduce the usage of public transport
of the planet and success of our global
-Reduce Food Waste
connectedness that the cities of the future
can function more sustainably than the cities -Limiting the usage of electricity
of 2023
-Invest in low carbon energy sources
-wants to make the cities in the future safe
and affordable and having a good transport
system #14 LIFE BELOW WATER
Conserve and sustainably use the oceans,
#12 RESPONSIBLE CONSUMPTION AND seas. and marine resources for sustainable
PRODUCTION development.

Ensure sustainable consumption and Healthy ocean ecosystems are essential to

production patterns. our continued existence, and to
counterbalance the effects of climate
The biggest factor in achieving this goal is change. Over three billion people depend on
agriculture, which accounts for close this marine and coastal biodiversity for their
goal is agriculture, which accounts for close livelihoods, yet the current trends indicate e
to 70 percent of all freshwater for human percent of the world's fish stocks are being
use. However, despite this huge footprint, overfished.
nearly 1.3 billion tons of food go to waste
each year, white at the same time almost 2 -it is all about protecting the marine and
billion people coastal biodiversity and ecosystem

-Allocating resources smartly and To attain this;

appropriately so that less waste. 1.Reduce marine pollution (reduce waste)
-we must give fair share for the people equal 2.Organize group wherein we have projects
resources such as conduct seminar and symposium to
#13 CLIMATE ACTION protect marine ecosystem

Take urgent to combat climate change and 3.We must increase our scientific knowledge
its impacts. by simply being aware and being
knowledgeable enough about marine life and
the ecosystem.

#15 LIFE ON LAND

Protect, restore, and promote sustainable
use of terrestrial ecosystems, sustainable
manage forests, combat desertification, and
halt and reverse land degradation, and halt
biodiversity loss.
Many of the targets for this goal look at
forests, which cover 30 percent of the Earth's
surface and provide livelihoods to around
billion people, all while playing a vital role in
combating climate change by providing clean
air and water. Each year we continue to lose
forests to desertification, disproportionately
in poorer communities.

#16 PEACE, JUSTICE AND STRONG

INSTITUTIONS
Promote peaceful and inclusive societies for
sustainable development, provide to justice
for all, and build effective institutions at all
level.
The targets of this SDG aim to work with
governments and communities to end
conflict and insecurity. In addition, targets
mention reducing sexual violence, crime,
exploitation, and torture, which often run
rampant in regions of conflict.

#17 PARTNERSHIP FOR THE GOALS

Strengthen the means of implementation
and revitalize the global partnership for
sustainable development.
Perhaps the biggest theme throughout the
SDS an inherent part of accomplishing this
goal, is making a concerted effort to help
developing countries grow sustainably and in
a way that promotes safety and security for
their citizens. This also extends to promoting
international trade and increasing exports
within developing countries.