SWOT Analysis and Business Impact Assessment

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.

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

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

Business Organizations

1. Sole Proprietorship: Owned by one person, solely responsible for debts.
2. 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.

3. Corporation: A separate legal entity from its owners (shareholders), with a 50-year lifespan (renewable). Owners have limited liability, but corporations pay significant taxes.
4. 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

1. Agriculture, Fishery, and Forestry: Farming, cultivation, fishing, and forest product extraction.
2. Industry: Processes raw materials from agriculture, fishery, and forestry, into intermediate and final products. (Ex: Electricity, Gas, Water, Manufacturing, Mining, Quarrying, Construction)
3. 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