SWOT Analysis and Business Impact Assessment

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Questions and Answers

What document is required from the barangay hall after business registration?

Tax Identification Number

Barangay clearance (correct)

Mayor’s permit

Business continuity plan

Which of the following factors is NOT part of the initial evaluation for a business?

Leading businesses in the industry

Regulatory environment

Personal finances (correct)

Geographic area

When analyzing customers for a business, what is a primary consideration?

Cost of production

Supplier locations

Regulatory compliance

Target market identification (correct)

What is a primary source for suppliers in retail businesses?

Direct manufacturers Signup and view all the answers

Which type of permits may be necessary depending on the business nature?

Special permits Signup and view all the answers

Which aspect is critical when considering competition in an industry analysis?

Identification of major businesses Signup and view all the answers

What is essential for understanding economic and political factors in business?

Regulatory environment Signup and view all the answers

Which of the following identifies products that can be used in place of others?

Substitutes Signup and view all the answers

How does product differentiation impact a manufacturer's competitive edge?

It enables the manufacturer to charge higher prices. Signup and view all the answers

Which economic factor represents a period of declining economic activity?

Recession Signup and view all the answers

What environmental element does 'physical environment' in business analysis primarily focus on?

Population size and geography Signup and view all the answers

Which political factor is considered advantageous for business operations?

Strong governmental leadership Signup and view all the answers

What is one major aspect to consider in customer targeting strategies?

Cultural practices and consumption patterns Signup and view all the answers

What is the primary objective of a business?

To earn profit for the owners Signup and view all the answers

Which of the following best describes an industry?

A collection of businesses within a similar field Signup and view all the answers

In analyzing industry competition, which factor should be emphasized?

Strength and degree of market competition Signup and view all the answers

Which sector is primarily responsible for producing intangibles that support other producing sectors?

Service Signup and view all the answers

What is an example of a weakness a business might face?

Lack of training of workers Signup and view all the answers

What must businesses consider regarding the physical environment when identifying suppliers?

Geographical proximity and climate Signup and view all the answers

In the context of SWOT analysis, what does the 'T' stand for?

Threats Signup and view all the answers

Which economic factor can positively influence a business’s opportunity?

High government incentives Signup and view all the answers

What should be considered when identifying potential customers?

Customer demographics and preferences Signup and view all the answers

Which of the following represents a factor that might threaten a business?

Entry of competitors Signup and view all the answers

Which of the following terms describes a formal agreement between two or more parties to work together?

Partnership Signup and view all the answers

Study Notes

SWOT Analysis

A framework for evaluating a business, created in the 1960s, useful for assessing new ventures and identifying risks/rewards.
It's an analytical tool for overcoming challenges and discovering new markets.

Project Details

Project: SWOT Analysis and Business' Socioeconomic Impact
Task: Form a group and interview a Filipino-owned business in Qatar or the Philippines.
Submission Deadline: November 21
Presentation Dates: Nov. 24-28

Important Words (Activity)

INEBUSSS: BUSINESS
DTNSRIYU: INDUSTRY
TEATHRS: THREATS
PLISRUPES: SUPPLIERS
TSNHPIAPRER: PARTNERSHIP

Word Meanings/Relevance

real estate: Land and property
cooperative: Business organization with mutual benefits for members
strength: A positive attribute of the business
proprietor: Owner of a business
business: Commercial activity
opportunity: Favorable condition
partnership: Agreement between two or more parties
industry: Sector of the economy
weakness: Negative attribute of the business
corporation: A legal entity separate from its owners
SEC: Securities and Exchange Commission (Philippine regulatory body)
barangay clearance: Local government permission
threat: Harmful factor to the business
customer: A person who buys a good/service.
competition: Rivalry among businesses

Feasibility of a Business

Competition is common in the business world.
All businesses aim to be at the top, but at least some aim to survive.
Ways exist for success; even with uncertainty.
Determining feasibility involves assessing the viability of starting a business.

Top Industries to Invest in the Philippines

Real Estate: Ayala Land, SMDC, Aboitiz Land
E-commerce: Shopee, Lazada, Amazon
Construction: Megawide Construction Corp., Engineering Equipment, Inc., Makati Development Corp.
Tourism: One Life Adventures, Wanderlands Travel, Intrepid Travel
IT/BPO/Business Services: Call centers, business services, digital services
Manufacturing: Trans-Asia Phils., Manufacturing Industries Corp., Trust International Paper Corp., Orica Phils., Inc.
Retail: Puregold Price Club, Inc., SM Retail, Inc., Robinsons Retail Holdings, Inc.
Energy: Meralco Energy Inc., PNOC - Renewables Corp., Q-Trade Corporation
Agriculture: Dela Fuente Farm Corporation, Manila Mushrooms, Cacao Culture Farms

Business Organizations

Sole Proprietorship: Owned by one person, solely responsible for debts.
Partnership: Two or more people combine resources to generate profit.

General Partnership: All owners share management and responsibility.
Limited Partnership: Some partners manage, others contribute capital with limited liability.

Corporation: A separate legal entity from its owners (shareholders), with a 50-year lifespan (renewable). Owners have limited liability, but corporations pay significant taxes.
Cooperative: People with similar needs work together to provide goods/services, or use resources to enhance income.

Business Classification Based on Worth of Assets

Micro business: Below P 1,500,001
Small business: P 1,500,001-15,000,000
Medium business: P 15,000,001-P 60,000,000
Large business: P 60,000,000 and above

Choosing a Business Name

Make a name that describes your business and is memorable to customers.
Check if the name is trademarked or already in use.
Register your business name with the appropriate government body (DTI for sole proprietorships, SEC for partnerships/corporations, Cooperative Development Authority for cooperatives).

Business Documents Required in the Philippines

Legitimate documents are needed to prove business legitimacy.
A business should be registered with the Department of Trade and Industry.
Additional permits are needed from local government bodies, including barangay clearance, Mayor's permit/business permit, tax identification number, and BIR registration.
Registration with SSS, PhilHealth, and Pag-IBIG is required as an employer for new employees.
Special permits (depending on the nature of the business) are needed from the Food and Drug Administration, and Bangko Sentral ng Pilipinas.

Business Evaluation Tools

Geographic area served
Industry size/outlook
Product description
Buyer identification
Regulatory environment
Leading businesses in the industry
Growth-affecting factors

Industry Analysis

Competition: Identify major competitors and their locations; aim to win customer loyalty.
Customers: Identify your target market.
Suppliers: Identify sources of raw materials, intermediate products, or finished goods to be resold.
Substitutes: Evaluate other products that can replace yours.
Economic Factors: Evaluate factors such as income, inflation, recession, and economic conditions, including supply and demand.
Physical Environment: Consider geography, population, climate, and global warming issues.
Political Factors: Evaluate government type and stability, as well as the leadership.
Cultures and Lifestyles: Assess cultural practices, consumption trends, celebrations, and spending behavior.

Economy's Producing Sectors

Agriculture, Fishery, and Forestry: Farming, cultivation, fishing, and forest product extraction.
Industry: Processes raw materials from agriculture, fishery, and forestry, into intermediate and final products. (Ex: Electricity, Gas, Water, Manufacturing, Mining, Quarrying, Construction)
Service: Provides intangible support to other sectors and industries. (Ex: Trade, Transportation, Banking, Finance, Public Service/Government, Real Estate, Private Services)

Reference

Applied Economics (2017), by Rosemary P. Dinio and George A. Villasis

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Description

This quiz focuses on SWOT analysis, a vital framework for evaluating businesses and understanding their socioeconomic impact. It involves interviewing Filipino-owned businesses in Qatar or the Philippines to identify strengths, weaknesses, opportunities, and threats. Engage in critical analysis and discover the dynamics of the business landscape.