Unit 3: SWOT Analysis PDF

Unit 3: THE S.W.O.T. Analysis Project: SWOT Analysis and Business’s Socioeconomic Impact Form a group and interview an existing Filipino-owned business in Qatar or in the Philippines. Deadline of submission: November 21 Presentation of the project: Nov. 24-28 Activity: (20 minutes) Directions:...

Unit 3: THE S.W.O.T. Analysis Project: SWOT Analysis and Business’s Socioeconomic Impact Form a group and interview an existing Filipino-owned business in Qatar or in the Philippines. Deadline of submission: November 21 Presentation of the project: Nov. 24-28 Activity: (20 minutes) Directions: Arrange the letters to form important words. INEBUSSS BUSINESS DTNSRIYU INDUSTRY TEATHRS THREATS PLISRUPES SUPPLIERS TSNHPIAPRER PARTNERSHIP Directions: Choose a word and give its meaning/relevance. real estate cooperative strength proprietor business opportunity partnership industry weakness corporation SEC barangay clearance threat customer competition Competition is common in the business world. Every business tries to compete to be on the top, but to others at least to survive. But even if there are uncertainties in doing a business, there are still ways to ensure success. How would you determine the feasibility of putting up a business? The SWOT Analysis -was created in the 1960s by business gurus: Learned, Christensen, Andrews, and Book, in their book “Business Policy, Text and Cases.” -it is an analytical framework that can help a company meet its challenges and identify new markets. -it can help identify the business’s risks and rewards. -it is very helpful is assessing new ventures Image from: https://en.wikipedia.org/wiki/SWOT_analysis  Strengths Weaknesses Government incentives Difficulty of organization Low capital requirements Costly set-up Market acceptance Possible pollution Experienced leaders problems lack of training of workers Opportunities Threats Project may replace Entry of competitors imported good available in Time consuming the market production processes Will improve employee Opposition from residents welfare in the community Improved company reputation Business-it is an undertaking by a person or a group of persons (partners, stockholders). -it’s main objective is to earn profit for the owners. -it is just a small portion of an industry. Industry- it is an aggregation of the different businesses engaged in the same line of undertaking. Ex. Jollibee is a business firm that is part of the country’s fast food industry. Source: http://techandlifestylejournal.com/red-logos-fastfood/  Top Industries to Invest in the Philippines (accdg. to sciencepark.com.ph & cityglobal.com.ph) 1. Real Estate Examples: Ayala Land, SMDC, Aboitiz Land 2. E-commerce Examples: shopee.ph, lazada.com.ph, amazon.com 3. Construction Examples: Megawide Construction Corp., Engineering Equipment, Inc., Makati Development Corporation 4. Tourism Industry Examples: One Life Adventures, Wanderlands Travel, Intrepid Travel 5. IT, BPO, and Business Services Examples: call centers, business services, digital services 6. Manufacturing Industry Examples: Trans-Asia Phils. Manufacturing Industries Corp., Trust International Paper Corp., Orica Phils., Inc. 7. Retail Industry Examples: Puregold Price Club, Inc., SM Retail, Inc., Robinsons Retail Holdings, Inc. 8. Energy Industry Examples: Meralco Energy Inc., PNOC - Renewables Corp., Q-Trade Corporation 9. Agriculture Industry Examples: Dela Fuente Farm Corporation, Manila Mushrooms, Cacao Culture Farms https://citiglobal.com.ph/blog/ultimate-list-most-promising-industries-to-invest-philippines-2021/ Business Organization 1. Sole Proprietorship-it is owned by a single individual who is singly responsible for running the business and is accountable for all debts and obligations related to the business. https://www.quora.com/How-much-investment-is-needed-to-start- a-sole-manufacturing-company  Business Organization 2. Partnership-it is an agreement in which two or more persons combine their resources in a business with a view to making profit. Image from: https://economictimes.indiatimes.com/wealth/earn/what-is- limited-liability-partnership/articleshow/64132612.cms?from=mdr General partnership-all owners share the management of the business and each is personally responsible for and must assume the consequences of the actions of the other partners. Limited partnership-some members are general partners who control and manage the business and may be entitled to a greater share of the profit while other partners are limited and contribute only capital, and are liable for debts to a specific extent only. Ex. J & S Lucky Ink Company First Asian Distribution Trading Company, Ltd. Business Organization 3. Corporation-it is a legal entity that is separate from its owners, the shareholders. It has a life of 50 years and is renewable for another 50 years, where owners have limited liabilities, but Image from: corporations are burdened https://www.bworldonline.com/c orporate-governance-paradigm- by heavy taxes. under-the-corporation-code-of- the-philippines/  Business Organization 4. Cooperative-it 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 income. Image from: https://www.ilo.org/global/topics/cooperatives/lang-- en/index.htm Classification of Businesses as to the Size Based on the Worth of the Business Assets Below P 1,500,001 (micro business) P 1,500,001-15,000,000 (small business) P 15,000,001-P 60,000,000 (medium business) Excess of P 60,000,000 (large business) For sole proprietorship and partnership-100% Filipino owned. For corporation-at least 60% owned by Filipino It should be registered with the appropriate government agencies. Choose the Best Name for Your Small Business Your business branding starts with a name. Make sure to pick a name that not only describes what you have to offer but also will have an easy recall among consumers. Once you’ve come up with at least three potential names for your business, verify if it’s trademarked or another business is already using it. If there’s none, register your business name with the Department of Trade and Industry (DTI) if you’re a Sole Proprietorship. Securities and Exchange Commission (SEC) for Partnership and Corporation Cooperative Development Authority for Cooperative In the Philippines, small business owners still need to acquire documents to prove that they’re running a legitimate enterprise. This is one rule you shouldn’t ignore before starting your business, lest you’ll get into trouble with the law later on. After your DTI business registration, you need to get the following permits from the local government where you plan to build your business: Barangay clearance issued by the barangay hall Mayor’s permit/Business permit issued by the municipal or city hall Tax Identification Number and BIR registration documents SSS, PhilHealth, and Pag-IBIG registration as an employer and for new employees Special permits depending on the nature of your business, such as registration with the Food and Drug Administration for food businesses and with the Bangko Sentral ng Pilipinas for pawnshops, remittance centers, and other financial institutions. Tools in Evaluating a Business 1. the geographic area which your business will cater to 2. the size and outlook of the industry 3. description of the product 4. the buyers have to be identified 5. the regulatory environment 6. the need to identify the leading businesses in the industry 7. factors that will affect the growth of the business  Industry Analysis Competition Who are the major businesses in the industry? Are there locations close to your proposed business? Your aim is to win their customers. Image from: https://newslatefilms.com/2015/04/16/managing- market-competition-with-corporate-videos/  Industry Analysis Customers Who will you sell your product to? The target market must be identified. Image from: https://www.custome rservicemanager.com/ how-do-you-define-a- customer/  Industry Analysis Suppliers Every retail business needs suppliers from whom one can source raw materials, intermediate products, or even the finished goods one intends to resell. May source from direct manufacturer, distributors, or imports. Image from: https://alidropship.com/dropshipping- wiki/supplier/  Industry Analysis Substitutes These are goods that can be used in place of another. The more differentiated the product is, the greater the edge of its manufacturer because this can convince the customers to buy their product instead of that of Image from: https://boycewire.com/substi the competition.image fr tute-goods-definition/  Environmental Analysis Economic Forces This involves a look at economic factors such as income of the people, economic conditions such as inflation, recession, prosperity, demand, and supply in the market. Image from: https://en.wikipedia.org/wiki/Inflation  Environmental Analysis Physical Environment This includes a look at the population size, the geography of the place where business will be located, land distribution, climate, and in today’s global warming situation. Image from: https://en.wikipedia.org/wiki/Philippines  Environmental Analysis Political Factors The type of government, the stability and strength of the government, and good leadership are factors that can be an advantage to a business. Image from: https://en.wikipedia.org/wiki/Rodrigo_Duterte  Environmental Analysis Cultures and Lifestyles It is important to study cultural practices such as celebrations, trends in consumption patterns, as a means to identify the goods and services that will fit into these celebrations and spending behavior. Image from: https://www.facebook.com/philippineroots/  Environmental Analysis Competition The degree of competition in the market and the extent and strength of competition are all very vital in determining the success or failure of a business. Image from: https://newslatefilms.com/2015/04/16/mana ging-market-competition-with-corporate- videos/  The Economy’s Producing Sectors 1. Agriculture, Fishery and Forestry -it includes farming and cultivation of agricultural products, fishing, and extraction of forest products. 2. Industry -it is supposedly processes raw materials from agriculture, fishery and forestry into intermediate products that are further processed into final products. -Electricity, Gas and Water -Manufacturing -Mining and Quarrying -Constructing  The Economy’s Producing Sectors 3. Service -it produces the intangibles supporting and complementing production in the other sectors as well as among its own industries. -Trade -Transporation -Banking and Finance -Public Service (Government) -Real Estate -Private Services Reference: Applied Economics (2017) by Rosemary P. Dinio and George A. Villasis