Business

ECONOMICS
AN ECONOMICS LECTURE BY
Gianne Paulo Muñoz
Shania Sauler
Aimee Marian Potato
Jessa Gerapusco
 4 PICS 1 WORD
It is a word guessing game. It presents you
with four pictures and then tasks you with
guessing what specific word fits with the theme of
the photos presented
 4 PICS 1 WORD

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4 PICS 1 WORD

BUSINESS
 4 PICS 1 WORD

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 4 PICS 1 WORD

BUSINESSMAN
 BUSINESS
The activity of making money (profit)
by producing or buying and selling products (resources)
such as goods and services
BUSINESS ORGANIZATION
WHAT FACTORS SHOULD
KIND OF BUSINESS
I CONSIDER?
SHOULD I START? INTEREST

CAPITAL
SOLE
PROPRIETORSHIP

STAFF
PARTNERSHIP

CORPORATION
MARKET/
COOPERATIVE COMPETITION
 Sole Proprietorship
The simplest way to set up a business and
owned by a single individual who is responsible
for all the accounts (Capital, Liabilities and
Expenses) and other obligation with regards to
the business.
 Sole Proprietorship
ADVANTAGES DISADVANTAGES
THE OWNER ENJOYS EXCLUSIVE THE OWNER HAS UNLIMITED
CONTROL TO THE BUSINESS LIABILITY,
EXTENDED TO HIS PERSONAL ASSETS
EASIER PLANNING AND DECISION ALL PLANS AND DECISION MAKING
MAKING MUSTBE DONE BY THE OWNER
THE OWNER ENJOYS ALL PROFIT OF THE OWNER SHOULDERS ALL
THE BUSINESS LOSSES OF THE BUSINESS
YOU’RE THE BOSS TAXED AS A SINGLE PERSON

LOW START-UP COST CAPITAL IS LIMITED

YOU HAVE MAXIMUM PRIVACY LIFE OF BUSINESS IS LIMITED

(CONFIDENTIALITY)
CHANGES CAN EASILY BE DONE
(LEGAL AND OPERATIONAL)
BUSINESS ORGANIZATION
WHAT FACTORS SHOULD
KIND OF BUSINESS
I CONSIDER?
SHOULD I START? INTEREST

CAPITAL
SOLE
PROPRIETORSHIP

STAFF
PARTNERSHIP

CORPORATION
MARKET/
COOPERATIVE COMPETITION
 Partnership
A partnership is a business entity in which an
agreement between two or more persons
combine their resources in a business with a
view to making profit. A partnership agreement
is drawn up and profits are divided among the
partners according to the terms of agreement.
 Partnership
ADVANTAGES DISADVANTAGES
EASY FORMATION OF THE PARTNERS HAS UNLIMITED LIABILITY,
BUSINESS ENTITY EXTENDED TO THEIR PERSONAL
ASSETS AND ACCOUNTS
FLEXIBLE PLANNING AND ALL PLANS AND DECISION MAKING
DECISION MAKING MUSTBE DONE BY THE PARTNERS
PROFIT IS DEVIDED AMONG THE PARTNERS SHOULDERS ALL
PARTNERS BASED FROM THE TERMS LOSSES OF THE BUSINESS
LARGER RESOURCE LIFE OF BUSINESS IS LIMITED
(CAPITAL)
SHARING OF RISK CAPITAL IS LIMITED
 Partnership
 General Partnership
- All partners share the management of the business and
each is personally responsible for and must assume the
consequences of the actions of other partners (unlimited
liability).

 Limited Partnership
- Consists of general partners
and Limited partners as contributor
(limited liability).
BUSINESS ORGANIZATION
WHAT FACTORS SHOULD
KIND OF BUSINESS
I CONSIDER?
SHOULD I START? INTEREST

CAPITAL
SOLE
PROPRIETORSHIP

STAFF
PARTNERSHIP

CORPORATION
MARKET/
COOPERATIVE COMPETITION
 Corporation
A legal entity that is separated from its owners
(shareholders). No shareholder is personally liable for the
debts, obligations, or acts of the corporation.
However Directors and officers can bear liability for their
involvement with the corporation.

CORPORATION
 Corporation
ADVANTAGES DISADVANTAGES
CAN RAISE LARGE AMOUNT OF OWNERSHIP AND MANAGEMENT
CAPITAL AND INVESTMENTS IS SEPARATED
LIFE SPAN OF 50YEARS, USUALLY DOUBLE TAXATION
RENEAWABLE REQUIRES A LARGER NUMBER
(SEC – Security and Exchange Commission) OF WORKFORCE
OWNERSHIP TRANSFER IS EASY LEGAL DOCUMENTS ARE
EXPENSIVE
STOCKHOLDERS HAVE LIMITED START-UP COST ARE HIGHER
LIABILITY
DOUBLE TAXATION
BUSINESS ORGANIZATION
WHAT FACTORS SHOULD
KIND OF BUSINESS
I CONSIDER?
SHOULD I START? INTEREST

CAPITAL
SOLE
PROPRIETORSHIP

STAFF
PARTNERSHIP

CORPORATION
MARKET/
COOPERATIVE COMPETITION
 Cooperative
A cooperative is an entity organized by people with
similar needs to provide themselves with goods or
services or to jointly use available resources to improve
their life. Profits are usually returned to the members as
returns of investments.

CORPORATION
 Cooperative
ADVANTAGES DISADVANTAGES
EASY FORMATION LIMITED CAPITAL

OPEN MEMBERSHIP WITH PROBLEM IN MANAGEMENT

DEMOCRATIC CONTROL
LIMITED LIABILITY LACK OF MOTIVATION AND
WORKFORCE
GOVERNMENTAL ASSISTANCE DEPENDENCE TO GOVERNMENT

PROMOTES STABILITY IN
A COMMUNITY
 SOLE 100%
OWNED BY PARTNERSHIP
PROPRIETORSHIP
A FILIPINO

BUSINESS ORGANIZATION

ATLEAST 60%
COOPERATIVE OWNED BY CORPORATION
A FILIPINO
BUSINESS ORGANIZATION
WHAT HAVE YOU
LEARNED?

PARTNERSHIP

SOLE
PROPRIETORSHIP

CORPORATION

COOPERATIVE
 ASSETS BELOW
MICRO BUSINESS
₱1,500,000

SMALL SCALE ASSETS FROM

BUSINESS
₱1,500,001 - ₱15M

ASSETS FROM
MEDIUM BUSINESS
₱15M - ₱60M

LARGE SCALE ASSETS ABOVE

BUSINESS ₱60M
HOW TO EVALUATE
A BUSINESS?
 AREA/LOCALE

LOCAL REGIONAL NATIONWIDE WORLDWIDE

SCOPE
LIMITATIONS
TRENDS
PRODUCTS
 CUSTOMERS

NEEDS
WANTS
REGULATIONS
2 Business Analysis Methods
SWOT ANALYSIS IS DISCOVERED IN 1960’s
 INTERNAL FACTORS
The internal factors refer to anything within the
company and under the control of the company no
matter whether they are tangible or intangible. These
factors after being figured out are grouped into the
strengths and weaknesses of the company. If one
element brings positive effects to the company, it is
considered as strength. On the other hand, if a factor
prevents the development of the company, it is a
weakness. Within the company, there are numerous
criteria need to be taken into consideration.
 EXTERNAL FACTORS
On the contrary to internal factors, external
elements are affecting factors outside and under no
control of the company. Considering the outside
environment allows businessmen to take suitable
adjustments to their marketing plan to make it more
adaptable to the external environment. There are
numerous criteria considered as external elements.
Among them, some of the most outstanding and
important factors need to listed the are current
economic situation, laws, surrounding infrastructure,
and customer demands.
 Strengths
• Government incentives
• Low capital requirements
• Market acceptance
• Experienced leaders
Opportunities
• Project may replace imported
good available in the market
• Will improve employee welfare
• Improved company reputation
Weaknesses
• Difficulty of organization
•Costly set-up
•Possible pollution problems
•Lack of training of workers
Threats
• Entry of competitors
•Time consuming production
processes
•Opposition from residents in the
community
PORTER’S 5 IS DISCOVERED IN 1979

“RIVALRY & COMPETITION”

 KEY TAKEAWAYS
• Porter's 5 Forces is a comparative analysis strategy that
analyzes competitive market forces within an industry.
• SWOT analysis looks at the strengths, weaknesses,
opportunities, and threats of an individual or organization
to analyze its internal potential.
• While Porter's 5 Forces are all external factors, the SWOT
analysis examines both internal (strengths and
weaknesses) and external (opportunities and threats)
forces.
• Both tools can be used to put strategic planning processes
in place to further a company or individual's success.
UNEMPLOYMENT RATE IN PH
POVERTY

HUNGER
2014
23.48 MILLION
CHILD LABOR

2015
21.69 MILLION