ENRIQUEZ:

- Good day to everyone here, especially Ms. Leongson, good day po. To formally start, I would like to
introduce myself first to you and as well as my co-reporter.

- Jannah Reign Enriquez here with Mark Lee Decena and Maybelyn Endraca to report module 3 entitled
“THE FIRM AND ITS ENVIRONMENT”.

- It is important to understand the relationship between a firm and its environment because this
understanding is essential for the success and sustainability of the business. The firm and its
environment are closely intertwined, and various factors in the external environment can significantly
impact the firm's operations, strategies, and overall performance.

- So let’s start.

*next slide

ENRIQUEZ:
- But first I will discuss the objectives,
- By the end of the module, the students are expected to:
First identify the various forces/elements of the firm’s environment and summarize these forces using
SWOT Analysis;
Second is to describe the local and international business environment of a firm; and
Realize the effects of various forces/elements in business and our environment.

*next slide

ENRIQUEZ:
- These are the table of content
1. The Firm and It’s Environment
2. Components of the External Business Environment
3. Components of Internal Business Environment
4. Components of Environmental Forces and Environmental Scanning
5. The Local and International Business Environment of the Firm

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ENRIQUEZ:
1. THE FIRM AND ITS ENVIRONMENT (definition)

*next slide

- A manager undertakes several functions from planning to controlling. He must take decisions for every
type of activity. The decisions of the manager influence the working of an organization. Intelligence will
help a manager in assessing the present and future possibilities for the business. He will be able to
foresee the things in advance and take necessary decisions at appropriate time.
- Ang isang manager daw po yung nagha-handle or nag-undertakes ng several functions from planning to
controlling which means siya po ang may responsibilidad at obligado na mag decision sa bawat uri ng
activity sa loob ng organization. So if ikaw po bilang individual na gusto maging manager na may
ganitong responsibilidad, you should know na dapat sapat o sobra yung ability mo para i-handle ang
kahit anong job or organization. Being inteligent ay isa sa positive factor kapag nasa position kang
manager because it will help you to manage or assess the present and future possibilities for the
business. Right? So, ms. Endraca

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ENDRACA:
1. THE FIRM AND ITS ENVIRONMENT (parts)
- Business firm may be visualized as an institution in society surrounded by environment example are
various external forces influencing its functioning. It is said that business is a product of environment or
Business is the creation of its environment.
• Pwede daw po nating isipin na ang kumpanya ay isang institusyon sa lipunan na napapaligiran ng mga
bagay, halimbawa daw po nito ay yung ibat ibang panlabas na pwersa na iniinpluwensyahan yung paraan
ng pamamalakad o pagpapatakbo nito. Sinasabi rin dito na ang business ay produkto ng environment or
ang business ang lumilikha sa environment

- Business Environment refers to the factors or elements affecting a business organization. It may be
divided into the External and Internal Business Environments.

-Both external (outside) and internal (inside) business environment factors and elements may affect the
business firm’s performance, either positively or negatively.

- The external or environmental factorsare beyond the control of the business firm and the success of
the firm will depend to a very large extent on its adaptability to the environment its ability to properly
design and adjust the internal factors/variables to take advantage of the opportunities and to combat
the threats of the environment.
• Sinasabi dito na labas sa kontrol ng kumpanya ang mga external o environmental factors, at ang
tagumpay ng kumpanya po ay nakasalalay sa malaking bahagi ng kakayahan nito na mag-angkop sa
kapaligiran, ang kakayahan nitong maayos na i-disenyo at i-adjust ang mga internal na factors o variables
upang magamit ang mga oportunidad at labanan ang mga banta mula sa kapaligiran.

*next slide

ENDRACA:
2. COMPONENTS OF THE EXTERNAL BUSINESS ENVIRONMENT (A. GENERAL EXTERNAL BUSINESS
ENVIRONMENT)

*next slide

- A. GENERAL EXTERNAL BUSINESS ENVIRONMENT includes the: economic, sociocultural, politico legal,
demographic, technological, and world and ecological situations.
❖ Economic situations may affect management practices in an organization.
Inflation, rate of interest, changing options in stock market, people’s spending habit are some examples
of factors elements of economic situations.

- Ang economic situations po ay pwedeng makaapekto sa pamamahala ng isang organisasyon, ilan sa

mga halimbawa ng factors element nito ang inflation o pagtaas ng presyo ng mga kalakal, rate of interest
o yung halaga ng interes na kailangan bayaran kapag nangutang, changing options in stock market o
pagbabago ng mga pagpipilian sa stock market, and people's spending habit or ang pag gastos ng mga
tao.

❖ Sociocultural situations include the customers’ changing values and preferences; customs can also
affect management practices in the companies.

- Tumutukoy po ito sa pagbabago ng pananaw at kagustohan ng mga mamimili na pwede pong

makaapekto sa mga pamamaraan ng pamamahala sa mga kumpanya. halimbawa po nito is yung
pagbabago ng kagustohan ng mamimili, so bilang negosyante need po nating baguhin o iayon ang mga
produkto sa kagustohan ng mamimili upang mapanatili natin sila bilang kustomer.

❖ Politico-legal situations refers to national or local laws, international laws, and rules and regulations
that influence organizational management.

- Eto po ang tumutukoy sa mga batas, regulasyon, at mga rules mula sa national o pamahalaan na maaari
ring makaapekto sa pamamahala sa isang organisasyon. halimabawa nito ay ang pagbabago ng batas na
pwede ring mag dulot ng pagbabago sa pamamahala ng isang kumpanya

*next slide

❖ Demographic situations may also influence some managerial decisions in organization such as gender,
age, education level, income, number of family members geographic origin, etc.

❖ Technological situations of companies involve the use of varied types of electronic gadgets and
advanced technology such as computers, microprocessors and others have revolutionized business
management.

❖ World and ecological situations are related number of global competitors and markets, as well as the
nature and conditions of the changing natural environment.

- Ito po ay tumutukoy sa mga global competitors and markets, pati na rin po yung mga pagbabago ng
kalikasan at kalagayan ng natural environment. halimbawa po yung mga kumpanya o market na may
parehas na produkto, so nag cocompete po sila para makuha ang atensyon ng kustomer

-Lahat po ito ay kailangan at mahalaga para sa mga manager habang naghahanda, nagsasaayos, nag-
eempleyo, namumuno, at nangangasiwa ng kanilang mga organisasyon. Need po itong isaalang alang
para sa desisyon making at hakbang sa pamamahala.
*next slide
Next topic is about

ENDRACA:
2. COMPONENTS OF THE EXTERNAL BUSINESS ENVIRONMENT (B. GENERAL SPECIFIC BUSINESS
ENVIRONMENT)
- B. GENERAL SPECIFIC BUSINESS ENVIRONMENT includes stakeholders, customers, suppliers, pressure
groups, investors or owners and employees.

➢ Stakeholders are parties likely to be affected by the activities of the organization.

- Ito yung mga taong maaapektuhan ng mga gawain ng organisasyon. halimbawa po is yung mga local
community, dahil ang kanilang kalusugan, kaligayahan at kaligtasan ang maaapektohan ng mga gawain
ng kumpanya

➢ Customers are those who patronized the organization’s products and services.

- Eto po yung indibidwal o kumpanya na bumibili ng produkto o serbisyo na inaalok ng organisasyon.

halimbawa po tayo kapag bibili ng mga bagay na kailangan o gusto natin.

➢ Suppliers are those who ensure the organization’s continuous flow of needed and reasonably priced
inputs or materials required for producing their goods and rendering their services.

- Ito yung nagbibigay ng mga produkto o pagbibigay ng mga serbisyo. halimbawa may irerenovate sa
ibang parte ng company, kukuha yung kumpanya ng supplier para supplyan ito ng mga materyales na
kakailanganin sa parerenovate.

➢ Pressure groups are special-interest groups that try to exert influence on the organization’s actions
and decisions.

- Eto po yung grupo na naghahangad na maka impluwensya sa mga desisyon at gawain ng organisasyon.

➢ Investors or owners provide the company with the financial support it needs.

- Ito naman yung nag poprovide ng financial support sa kumpanya. halimbawa yung may-ari at yung
taong may interest sa kumpanya para mag invest at gustong palaguin ang kumpanya

➢ Employees are comprised of those who work for another or for an employer in exchange of
salaries/wages or other considerations.

- Ito yung mga taong nag tatrabaho, tumatanggap ng sahod o iba pang benepisyo sa kumpanya.
halimbawa ang mga empleyado sa jollibee, mc do, call center at iba pa.
- Sinasabi rito na ang negosyo ay may mga internal factors at may kinakaharap na set of external factors.
ang internal ay maaaring makontrol samantalang ang external factors ay hindi dahil labas ito at hindi
agad malalaman.

*next slide

ENDRACA:
3. COMPONENTS OF THE INTERNAL BUSINESS ENVIRONMENT
- COMPONENTS OF THE INTERNAL BUSINESS ENVIRONMENT
An organizational Internal business environment is composed of its:
resources, research and development, production, procurement of supplies and products and services it
offers.

The organization’s internal environment is must also be subjected to internal analyses, internal strengths
and weaknesses, opportunities and
threats (SWOT)with regards to its:

▪ Resources (financial. Physical, mechanical, technological, and human resources)

- eto po ay tumutukoy sa mga yaman na makakatulong sa kumpanya. kasama po dito yung financial.
physical, mechanical, technological, and human resources. pinapakita po nito kung gaano karami ang
ari-arian ng kumpanya

▪ Research and development endeavors

- ito naman po yung proseso ng pag aaral at pagbuo ng mga bagong produkto, teknolohiya. sinusuri po
nito ang kakayahan ng kumpanya na mag imbento ng kanilang mga produkto na ayon sa
pangangailangan ng kustomer

▪ Production of goods

▪ Procurement of supplies (materials, inputs and finance)

- kung saan ang kumpanya ay kumukuha ng mga kinakailangang materials, inputs and finance. tinutukoy
naman po nito kung gaano kahusay ang kumpanya sa paghahanap at pagpili sa mga supplies na
kinakailangan para sa kanilang produksyon

▪ Products and services

- ito po yung mga produkto at serbisyong inaalok ng kumpanya sa kanilang customer. ini- aim naman po
nitong suriin ang kalidad, kakayahan ng produksyon at kuang paano ang mga products and services ay
nakakatugon sa pangangailangan ng mga customer
ang lahat po na ito ay kailangan sumailalim sa internal analyses, internal strengths and weaknesses,
opportunities and threats (swot) dahil nagbibigay daan ito sa organisassyon na magkaruon ng malalim na
pang unawa sa paligid, para sa mag mabuting pangangasiwa at success.

Let’s move forward to 4

ENRIQUEZ:
4. COMPONENTS OF ENVIRONMENTAL FORCES AND ENVIRONMENTAL SCANNING

*next slide

- Components of Environmental Forces and Environmental Scanning. As you read in the screen, ang
environmental scanning daw po ay involves seeking for sorting through date about the organization's
management o paghihiwalay at pag-uuri sa petsa tungkol sa environment ng isang organization. Proseso
po ito ng tinatawag nating "research". I know po na familiar na kayo sa research diba po? Nagagamit po
ito sa scanning sa pamamagitan nga po ng pag conduct ng research such as surveys, observation, and
other methods pa po gaya ng gathering and analyzing information para sa isang organization. Clear po?

- So if clear po, rito na po tayo sa Components of Environmental Scanning.

*First, developing competitive mindset na umaangkop or nag aadapt sa mga uncertainties sa

environment like may mga unpredictable po na mga pangyayari so dapat po mas mag develop yung
mindset natin.
*Second, considering business scenarios like considering both unfavorable and favorable future
condition. Hindi dapat tayo naka-focus sa mga positive side ng business, dapat tinitignan din yung mga
hindi kanais-nais na mangyayari sa mga susunod para maagapan or mapaghandaan.
*Next, business prediction or business forecasting. It allows organization po para gumawa ng informed
decision about resource allocation, budgeting and risk management. Tools din po ito para ma-predict
yung mga developments in business such as sales, expendenture, and profits.
*Then the SWOT Analysis, alam ko familiar na rin kayo rito dahil napag-aralan po ito sa subject na
entrepreneurship back in shs. Anyways, SWOT refers to STRENGTHS, WEAKNEAKNESSES,
OPPORTUNITIES, AND THREATS. Later on po may malawak na discussion tayo tungkol dyan. Ito naman po
yung structured and used planning method to evaluate business ventures or pakikipagsapalaran ng mga
negosyo.
*Lastly, benchmarking. Process of measuring and comparing ng mga sariling produkto, serbisyo at
kasanayan sa kinikilalang industy leaders to identify areas of improvement.

*next slide

- Let's move forward to SWOT ANALYSIS na po.

- SWOT ANALYSIS - is a basic straight forward model in environmental scanning which helps the
company identifying four key elements: Strength, Weakness, Opportunity, and Threat

*next slide
• Strengths – it is the quality that produces a competitive advantage with the company. It belongs to
internal environment and expects to affect the company in a positive manner. Example nito yung
mga loyal customers mo na bumabalik balik sa business niyo because of the quality ng products or
services.
• Weaknesses- It is quality that puts the company at a disadvantage. It belongs to internal
environment and expects to affect the company in a negative manner. Halimbawa naman nito yung
mga price increase na ingredients kunwari sa isang baked product, so kapag tumataas yung demand
ng isang bagay o produkto ibig sasabihin tataas din yung presyo nito so possible na hindi nalang
bilhin or lumipat sa ibang mga business wherein mas mura.
• Opportunities – it is a factor in the external environment that is expected to work favorably and
positive effect towards company operation. Press/media coverage of your company is an example,
like i-feature yung business mo is big opportunity syempre parang promoting na rin at posibleng
may mahikayat yung media na i-try yung products sa business niyo.
• Threats - it is a factor in the internal environment that is expected to have a negative effect on the
company operation. Halimbawa naman dito yung mga competitors, the more competitors mas may
posibilidad na doon na pumunta yung mga buyer or customer mo. Maraming katulad sa products,
maraming kaagaw sa customers. Isa lang ito sa threath.
*next slide

- Another example po yung SWOT ANALYSIS OF STARBUCKS. Tingnan niyo po sa screen yung mga
example and try to analyze bakit nga ba siya kabilang sa strength? sa weakness? sa opportunities? at sa
threaths? Clear po?

- Mr. Decena, you may now proceed to discuss the local and international business environment of the
firm. Thank you!

DECENA:
thank you ms. Enriquez. And finally we have
5. THE LOCAL AND INTERNATIONAL BUSINESS ENVIRONMENT OF THE FIRM

*next slide

- The Worldwide Environment refers to the external business environment (such as sociocultural, natural,
politico-legal and economic, technological factors) around the world. While the Globalization refers to
changes in the dimensions of external environment that result increased interdependence and integration
among people and organizations around the world.

- Ang Worldwide Environment daw po ay tungkol sa mga bagay na nakaka-apekto sa global na kalakaran
ng negosyo, kabilang ang mga sosyokultural, natural, pulitikal-legal, ekonomiya, at teknolohiya. Sa
kabilang banda, ang Globalization naman ay tumutukoy sa mga pagbabago sa mga aspeto ng paligid
natin,na nag reresulta sa mas malalim na interdependence at integrasyon sa pagitan ng mga indibidwal at
organisasyon sa buong mundo. Ibig sabihin nito, mas nagiging magkakalapit na ang mga tao at negosyo
sa pandaigdigang antas.
- Understanding the local and international business environment of the firm requires managers of
organizations to sharpen their cultural intelligence.

- Cultural Intelligence is an individual’s ability to favorably receive and adjust to an unfamiliar way of
doing things. This will enable them to develop their ability to accept and adapt to different cultures, both
local and international, that may affect the organization to which they belong.

- Ang Cultural Intelligence ay may napakahalagang papel sa kakayahan natin na mag-angkop sa iba't
ibang kultura sa pamamagitan ng pagpapabuti ng kanilang kakayahan na maunawaan, kilalanin, at
maayos na mag-navigate sa mga kaugalian, paniniwala, at praktis ng iba't ibang kultural na kapaligiran.
Ito'y nakakatulong upang mapanatili ang positibong ugnayan at makabuo ng magandang
pakikipagtulungan.

*next slide

- Anthropologist Edward T. Hall, as cited by Schermerhorn (2008) noted that the way people approach
and deal with the time varies across cultures.

1. MONOCHRONIC CULTURES refer to cultures where people tend to do one thing at a time. It
emphasizes punctuality and sticking to set rules.

2. POLYCHRONIC CULTURES are cultures more flexible on time and it is used to accomplish many
different things at one time.
- May dalawang uri ng culture pagdating sa oras: ang Monochronic culture at Polychronic culture. Sa
monochronic, isang gawain lang ang ginagawa at binibigyang-diin nito ang pag tapos ng isang gawain sa
itinakdang oras at pagsunod sa mga itinakdang patakaran or rules. Sa polychronic naman, mas maluwag o
mas flexible ang oras ng pag gawa at may magkasabay na pag gawa ng maraming bagay o gawain.

- The culture of different countries is rooted in their history, religion, traditions, beliefs, and deep- seated
values, and because of these, managing globally can be very complicated. And beside the cultural
environment, the politico-legal and economic environments must also be considered. Some countries
have stable laws and good political climate while others have an opposite -unstable and risky political
climate.
- Ang kultura ng iba't ibang bansa ay binubuo ng kanilang sari-sariling kasaysayan, relihiyon, tradisyon at
paniniwala. Ito ay may mahalagang papel sa pamamahala sa pandaigdig,dahil maaaring magdulot ito ng
komplikasyon sa pag mamanage, kaya’t kailangan din nating isa alang-alang ang cultural environment,
the politico-legal at economic environments ng bawat isa.

- Okay, do you have question po? Clarification? If none, may question po kami. Kindly cooperate.

*next slide

DECENA:
* QUESTIONS:
1. What is the title of our lesson? How do you define it?
- Raise your hand nalang po if you want to answer *pag sumagot, mag thank you lang then basahin yung

ANSWER *
Answer: THE FIRM AND ITS ENVIRONMENT, A manager undertakes several functions from planning to
controlling. The decisions of the manager influence the working of an organization. He must take
decisions for every type of activity.

2. In general specific business environment, what is the role of pressure groups?

- Raise your hand nalang po if you want to answer *pag sumagot, mag thank you lang then basahin yung

ANSWER *

Answer: Pressure groups are special-interest groups that try to exert influence on the organization’s
actions and decisions.

3. What SWOT stands for?

- Raise your hand nalang po if you want to answer *obvious naman yung sagot mag thank you ka
nalang*

Answer: Strengths, Weaknesses, Opportunities, Threaths

4. What is the difference between the "Worldwide Environment" and "Globalization" in the context of

the business environment? answer *pag sumagot, mag thank you lang then basahin yung ANSWER *

Answer: The "Worldwide Environment" refers to the global external business environment, while
"Globalization" denotes increased interdependence and integration among people and
organizations worldwide

5. According to anthropologist Edward T. Hall, how do monochronic and polychronic cultures differ in

their approach to time management? *pag sumagot, mag thank you lang then basahin yung ANSWER *

Answer: According to anthropologist Edward T. Hall, monochronic cultures emphasize doing one
thing at a time, punctuality, and sticking to set rules, while polychronic cultures are more flexible
with time and focus on accomplishing multiple tasks simultaneously

*next slide

DECENA:
* CLOSING

We have come to the end of our discussion on Module 3: The Firm and Its Environment. I hope you
all have gained new knowledge from today's session. We are grateful for your time and attention as
we delved into our topic. Thank you very much, and have a great day!