1st Term – 1st Exam | 1st Semester Formatted: Centered

Why Study Management?

Applying management skills can help you succeed in both your personal and professional lives.
• Develop Skills You Can Use in Your Personal Life - can develop skills to help you maintain and improve
your relationships with family, friends, and coworkers.
• Develop Skills You Can Use as a Manager or Employee - can work effectively in teams and share in
decision-making and other management tasks.
What Is a Manager’s Responsibility?
Managers and the Organizational Resources They Manage
• Manager is responsible for achieving organizational objectives through efficient and effective utilization of
resources.
• Efficient means doing things right to maximize the utilization of resources
• Effective means doing the right thing to attain an objective.
4 Managers Resources
1. Human Resources – are people often referred to as human capital and people are organizations' most
valuable assets.
2. Financial Resources – it takes money to make money and without proper finances, you don't have a
business.
3. Physical Resources – managers are responsible for making the products and services and ensuring that
necessary products, materials, and supplies are available when needed.
4. Informational Resources – need information to set objectives and decide how to allocate and use your
resources to attain the objectives.
Resources and Performance – The level of organizational performance is based on how effectively and efficiently
managers utilize resources to achieve objectives.
Four (4) Factors of Production
1. Land – Natural resources used in production, including raw materials and the physical space for production.
2. Labor – Human effort, skills, and expertise applied in the production process.
3. Capital – Manufactured resources, such as machinery, tools, and buildings, used to produce goods and
services.
4. Entrepreneur – Individuals who combine the other factors of production, take risks, and innovate to create
and manage businesses.
Three (3) Management Skills – The skills needed to be an effective manager

✔ Technical Skills – The ability to use methods and techniques to perform a task.

✔ Interpersonal Skills – The ability to understand, communicate with, and work well with individuals and groups.

✔ Decision-Making Skills – The ability to conceptualize situations and select alternatives to solve problems and
take advantage of opportunities.
Five (5) Management Functions

✔ Planning – The process of setting objectives and determining in advance exactly how the objectives will be met.

✔ Organizing – The process of delegating and coordinating tasks and allocating resources to achieve objectives.

✔ Leading / Directing – The process of influencing employees to work toward achieving objectives.

✔ Controlling – The process of monitoring and measuring progress and taking corrective action when needed to
ensure that objectives are achieved.

✔ Staffing – The process of recruiting, hiring, training, and developing employees to ensure the organization has the
right people in place.
Nonmanagement Functions – These are tasks or roles that do not fall under the direct responsibilities of
management but are essential for organizational operations. They include functions like Technical Work, Support
Services, and Operational Tasks.
The Transition to Management—Managing People
A current term for the transition is "go suit" defined as getting promoted to management and forgetting your basic job
skills once installed in an office.
Management Roles
A role is a set of expectations of how one will behave in a given situation.
Henry Mintzberg – the one who identified 10 roles and grouped these 10 roles into three management role
categories.

➤ Three (3) Management Roles

1. Interpersonal Roles

✔ Figurehead Role – they represent the organization in ceremonial and symbolic activities.

✔ Leader Role – they motivate, train, communicate, and influence others

✔ Liaison Role – they interact with people outside of their unit to gain information and favors
2. Informational Roles

✔ Monitor Role – they read and talk to others to receive information

✔ Disseminator Role – they send information to others

✔ Spokesperson Role – they provide information to people outside the organization
3. Decisional Roles

✔ Entrepreneur Role – they innovate and initiate improvements

✔ Disturbance Handler Role – they take corrective action during crises.

✔ Resource Allocator Role – they schedule, request authorization, and perform budgeting and programming
activities

✔ Negotiator Role – they represent their department during non-routine transactions to gain agreement and
commitment.
Three (3) Levels of Management
• Top Managers – people in executive positions such as CEO, president or vice president
• Middle Managers – sales manager, branch manager, or department head
• First-Line Managers – manager team or crew leader, supervisor, head nurse, and office.
Team leader is a newer management position needed in an organization that focuses on a team-based structure.
Non-management Operative Employees are the workers in an organization who do not hold management
positions.
Three (3) Types of Managers
1. General Managers oversee multiple departments or an entire business unit, focusing on overall strategy
and operational efficiency. They are responsible for the performance and success of their division, ensuring
alignment with the organization's goals.
2. Functional Managers lead a specific department or function (e.g., marketing, finance), ensuring that their
area meets its objectives. They specialize in their field and are responsible for the tactical execution and
management of their team's daily operations.
3. Project Managers are often team leaders. Also, coordinates employees and other resources across several
functional departments to accomplish a specific goal. Manage specific projects from start to finish,
coordinating resources and teams to achieve project goals on time and within budget.
A Brief History of Management
Two primary reasons you should be concerned about the history of management: to better understand current
developments and to avoid repeating mistakes.
Six (6) Management / Organizational Theories
1.
Classical Theory
Focuses on the efficiency of work processes and organizational structure, emphasizing specialization,
standardized tasks, and clear hierarchy.
• Scientific Management — Scientific Management Frederick Winslow Taylor (1856-1915) Father of
Scientific Management.
• Focused on analyzing jobs and redesigning them.
• Time and Motion Studies — Frank Gilbert (1868-1924) and his wife Lillian Gilbert (1878-1972)
• To develop more efficient work procedures.
• Gantt Chart – Henry Gantt (1861-1919) – He developed a method for scheduling work over some time.
Gantt chart is defined as a graphical representation of activity against time.
• Administrative Theory — Henri Fayol (1841-1925) Father of Modern Management who developed 14
Principles of Management
1. Division of Work is all about assigning specific tasks to employees allowing them to become more skilled
and efficient in those tasks.
2. Authority and Responsibility involve a proper balance between authority and responsibility to ensure that
employees carry out commands effectively.
3. Discipline is an effective operation of an organization that requires discipline from all members.
4. Unity of Command is when employees receive orders from only one manager to avoid confusion and
conflicting instructions.
5. Unity of Direction is when all team members should work towards the same goal under a unified plan.
6. Collective Interest over Individual Interest is about the organization’s goals that must take priority to keep
the team focused on shared objectives.
7. Remuneration is when employees should be paid fair wages that reflect the work they perform.
8. Centralization is when an authority is concentrated on decision-making at the top level of the organization.
9. Scalar Chain refers to a clear line of communication between employees and their supervisors.
10. Order is when resources should be properly organized and placed in the right location at the right time.
11. Equity is about managers treating everyone fairly and with kindness.
12. Stability of Tenure of Personnel is when organizations should strive to minimize staff turnover to improve
efficiency and stability.
13. Initiative is when employees should be encouraged to take initiative and contribute their ideas.
14. Esprit de Corps (Team Spirit) is a strong sense of teamwork and unity is a significant strength for the
organization.
• Bureaucracy Theory — Max Weber (1864-1920) and Chester Barnard (1886-1961).
This concept aimed to develop a set of rules and procedures to ensure that all employees were treated
fairly.
 • Integrative Conflict Resolution Mary Parker Follett (1868-1933). She emphasized the need for
worker participation, conflict resolution, and shared goals.
2. Behavioral Theory
Concentrates on human behavior, motivation, and leadership in the workplace, recognizing the importance
of social factors and employee well-being.
• Human Relations Movement - Elton Mayo (1880-1949)
• Hawthorne Effect - refers to the phenomenon that just studying people affects their performance.
• Hawthorne Studies
1. Illumination Experiments
2. Relay Assembly
3. Mass Interviewing Programme
4. Bank Writing Observation
• Hierarchy of Needs — Abraham Maslow (1908-1970)
Individuals must have fully met their needs at their current level within the pyramid before they are motivated
to achieve the needs of the next level.
• Self-actualization - Achieving potential ability and purpose. The desire to become the most that
one can be—involves personal growth and self-fulfillment.
• Self-esteem recognition - Satisfying the needs of the ego such as status, respect, prizes, and
recognition.
• Social Belonging - Satisfying social needs including family, friendship, belonging, and
acceptance.
• Safety Needs - Satisfying needs of safety including physical and emotional security, housing,
health, and finances.
• Physiological Needs - Basic survival needs, satisfying our innate and physical needs including
food, water, sleep, and sex.
• Theory X and Theory Y — Douglas McGregor (1906-1964)
• Theory X - Authoritarian, with close supervision and control, focusing on achieving efficiency
through strict managerial control.
• Theory Y - Participative, encouraging employee involvement in decision-making, fostering
autonomy, and supporting personal development.
3. Management Science - The management science theorists focus on the use of mathematics to aid in problem-
solving and decision-making.
During World War II, a research program began to investigate the applicability of quantitative methods to military and
logistics problems. After the war, business managers began to use management science (math) in three areas:
Algorithms Big Data, Pert/CPM Forecasting Models, and Management Information Systems.
 • Operations Research – Uses mathematical models and statistical analysis to optimize decision-making in
complex scenarios, often within logistics, scheduling, and resource allocation.
• Operations Management – Involves designing, overseeing, and improving production processes to
efficiently transform resources into finished goods or services.
• Information Management – Centers on collecting, storing, managing, and using information within an
organization to support decision-making and improve efficiency.
4. Systems Theory – Views an organization as a complex set of interrelated parts working together to achieve a
common goal. It emphasizes the importance of understanding the organization as a whole, including its interactions
with the environment, rather than focusing on individual components in isolation.
5. Sociotechnical Theory – Emphasizes the interplay between social and technical systems in organizations,
advocating for a balance between the needs of people and the capabilities of technology.
6. Contingency Theory – Suggests that the best management approach depends on the specific situation. There’s
no one-size-fits-all; managers must adapt strategies based on factors like environment, task, and organizational size.
The Environment Culture, Ethics, and Social Responsibility

✦ Internal Environment – Refers to elements within the organization, such as employees, management,
organizational culture, and internal processes, which influence its operations.
• Mission – The organization’s purpose and primary goals, guiding its overall direction and decision-making.
• Management and Culture – Management sets the tone for organizational culture, which includes shared
values, beliefs, and norms that influence behavior and performance.
• Resources – The assets available to an organization, including human resources, financial capital,
equipment, and technology, which are utilized to achieve its goals.
• Structure – The organizational framework, including the hierarchy, roles, and responsibilities, which defines
how tasks are coordinated and carried out.
• System Process – The sequence of activities that convert inputs into outputs. It includes:
• Input: Resources (e.g., raw materials, information) that enter the system.
• Transformation: The process of converting inputs into outputs.
• Output: The final product or service delivered by the organization.
• Feedback: Information received about the output that helps in adjusting processes and improving
future performance.

✦ External Environment – Involves factors outside the organization, including market conditions, competitors,
economic trends, regulations, and social and cultural influences, which impact the organization’s success.
• Factors
• Customers: People who buy and use the organization's products or services.
• Competition: Other businesses offering similar products or services.
 • Suppliers: Companies providing the raw materials or services needed by the organization.
• Labor Force: The availability and skills of workers in the market.
• Shareholders: Individuals or entities that own shares in the organization.
• Society: The broader social environment and public expectations.
• Technology: Technological advancements affecting business operations.
• The Economy: Overall economic conditions influencing business performance.
• Governments: Regulatory bodies affect the organization through laws and policies.
All the factors listed are indeed considered external environmental factors. They are outside the organization’s direct
control but have a significant impact on its operations and success. These factors are commonly included in
frameworks like PESTLE (Political, Economic, Social, Technological, Legal, Environmental) analysis, which is used
to assess the external environment.
Organizational Culture Artifacts are visible, tangible elements of an organization's culture. They include:
• Heroes – Individuals who are admired and emulated for their accomplishments and contributions to the
organization.
• Stories – Narratives shared within the organization that convey its values, history, and cultural norms.
• Slogans – Catchy phrases or taglines that reflect the organization’s values or mission.
• Symbols – Logos, mascots, and other visual representations that signify the organization’s identity and
values.
• Rituals – Regularly performed activities or routines that reinforce the organization’s culture.
• Ceremonies – Formal events or celebrations that honor achievements, milestones, or cultural traditions.
In the context of organizational culture:
• Behavior: The actions and conduct of individuals within the organization, reflect how work is done and how
people interact.
• Values: The core principles and standards that guide decision-making and behavior within the organization.
• Assumptions: The underlying beliefs and perceptions, often taken for granted, that influence behavior and
values in the organization.
Learning Organization
A learning organization fosters a culture of continuous improvement and adaptation. It emphasizes sharing
knowledge among its members to stay relevant in a changing environment.
Social responsibility and Sustainability
• Responsibility refers to an organization's ethical obligation to act in the best interests of society. This
includes considering the impact of its actions on the environment, community, and broader society.
• Sustainability – Involves creating long-term value by considering how a company operates in the
ecological, social, and economic environment. It focuses on meeting current needs without compromising
 the ability of future generations to meet theirs.
______________________________________________________________________________
Take Note:
• 4M Resource – 1) Men, 2) Money, 3) Machine/Material, and 4) Moment.
• SMART – Specific, Measurable, Achievable, Realistic, and Time Bounded.
• Underemployment – Not aligned with what you studied.
• Human beings are naturally resistant to change.
1st Term – 2nd Exam | 1st Semester

Marketing Management – Lifeblood of a business. Essential for understanding customer needs, driving sales, and
sustaining growth. It involves strategizing to effectively promote and sell products or services, ensuring the company
remains competitive in the marketplace.
Introduction to Marketing: Marketing, Market, and Marketers.
• Marketing – The process of creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, and society.
• Market – A group of consumers or organizations interested in a product or service, willing to purchase it,
and having the resources to do so.
• Marketers – Individuals or organizations responsible for promoting and selling products or services to
potential customers.
Selling Concept
1. Sales Volume – Focuses on increasing the number of products sold.
2. Short-term Orientation – Prioritizes immediate sales over long-term customer relationships.
3. Aggressive Promotion – Uses high-pressure tactics to push products to consumers.
4. Little Emphasis on Customer Needs – Less focus on understanding what the customer truly wants or
needs.
Marketing Concept
1. Customer Orientation – Focuses on meeting customer needs and wants for long-term satisfaction.
2. Integrated Marketing – Involves aligning all functions of a company (sales, production, etc.) to focus on
customer satisfaction. Emphasizing the importance of a coordinated and holistic approach where all
departments work together to deliver superior customer value.
Product, Production, and Societal Concept
The Production Concept focuses on making products affordable and accessible by emphasizing efficient production
to reduce costs. It works best in price-sensitive markets.
The Product Concept emphasizes superior quality and features, assuming that customers are attracted to products
with exceptional attributes. It focuses on creating high-performance items, believing that excellence will naturally
draw buyers.
In contrast, the Societal Marketing Concept balances customer needs, company profits, and societal welfare,
encouraging sustainable practices that benefit both consumers and the environment.
Core Concept in Marketing: Needs, Wants, and Demands
1. Needs are basic human requirements, such as food and shelter.
2. Wants are desires for specific products or services that can satisfy needs, influenced by culture, personality,
and individual preferences (e.g., wanting a burger instead of just food).
3. Demands are wants that are backed by purchasing power; when someone is able and willing to buy a
desired product or service.
Value and Satisfaction Core Concepts
• Value – The perceived benefits a customer gets from a product compared to its cost. It’s the balance
between what they receive (quality, service, etc.) and what they give up (money, time, effort).
• Satisfaction – The degree to which a product’s performance matches customer expectations. High
satisfaction occurs when a product meets or exceeds expectations.

4Ps – Product, Price, Place, and Promotion

• Product – What you’re selling: features, benefits, and how it meets customer needs.
• Features, Benefits, Quality, Design, and Branding

Basis Services Goods

Intangibility Intangible e.g., doctor treatment Tangible e.g., medicine

Different customers having different demands e.g., Different customers getting standardised
Inconsistency mobile services demands fulfilled. e.g., mobile phones

Simultaneous production and consumption. e.g., Separation of production and consumption.

Inseparability eating ice-cream in a restaurant e.g., purchasing ice cream from a store

Cannot be kept in stock. e.g., experience of a train

Inventory journey Can be kept in stock. e.g., train journey ticket
 Participation of customers at the time of service Involvement at the time of delivery is not
Involvement delivery. e.g., self-service in a fast food joint possible. e.g., manufacturing a vehicle.

• Price – The amount customers pay for the product, influenced by factors: cost, competition, and perceived
value.
• Pricing Strategy, Discounts, Payment Terms, and Perceived Value
• Place – Distribution channels and locations where the product is available, ensuring it reaches the target
market effectively.
• Distribution Channels, Logistics, Market Coverage, and Location
• Promotion – Strategies to communicate and persuade potential customers: advertising, sales promotions,
public relations, and personal selling.
• Advertising, Sales Promotion, Public Relations, Personal Selling, and Digital Marketing
Supplemental Elements in Marketing
• People – The individuals involved in the marketing and sales process and their impact on the customer
experience.
• Customer Service, Sales Team, Company Culture, Training and Development
• Process – The procedures and systems used to deliver the product or service to customers.
• Operational Efficiency, Customer Experience, Quality Control, Technology
• Physical Evidence – The tangible elements that help customers evaluate and perceive the product or
service.
• Packaging, Branding, Physical Environment, Document

Segmentation
The process of dividing a broad consumer or business market into sub-groups of consumers based on
some type of shared characteristics. This helps businesses target their products or services more effectively.
Reasons why it is important
1. Better Targeting and Personalization
• Allows marketers to focus on specific customer groups and tailor messages.
• e.g., A gym offers personalized promotions for seniors and athletes.
2. Efficient Use of Resources
• Helps allocate budget to the most relevant audiences.
 • e.g., A restaurant chain targets ads in cities where it operates, not everywhere.
3. Increased Market Competitiveness
• Helps businesses stand out by targeting niche markets.
• e.g., A vegan food brand focuses on health-conscious customers to compete with mainstream
brands.
4. Improved Customer Retention
• By understanding customers' needs, companies can foster loyalty.
• e.g., A clothing brand uses customer data to offer personalized discounts.
5. Enhanced Product and Service Offerings
• Enables companies to create products that fit specific customer needs.
• e.g., A phone company offers budget, mid-range, and premium models for different segments.
6. Better Competitive Positioning
• Helps a brand position itself clearly in a crowded market.
• e.g., A luxury watch brand positions itself as a symbol of status and precision.
7. Improved Decision-Making
• Data from segmentation helps guide marketing strategies and product development.
• e.g., A fast-food chain decides to expand vegetarian options after analyzing a growing demand
from a health-conscious segment.
Types of Segmentation
1. Demographic Segmentation
• Divides the market based on characteristics like age, gender, income, education, etc.
• e.g., A luxury car brand targets high-income individuals.
2. Geographic Segmentation
• Based on location, like cities, regions, or countries.
• e.g., A surfboard company markets to coastal regions.
3. Psychographic Segmentation
• Divides consumers based on lifestyle, personality, and values.
• e.g., A yoga brand targets health-conscious individuals who value wellness.
4. Behavioral Segmentation
• Focuses on consumer behavior, like usage rates, brand loyalty, or benefits sought.
• e.g., A coffee brand markets differently to heavy coffee drinkers vs. casual drinkers.
 5. Technographic Segmentation
• Based on consumers' use of technology, like device preference or tech skills.
• e.g., A mobile app company targets tech-savvy smartphone users.
6. Needs-based Segmentation
• Divides the market based on specific needs or problems that consumers are trying to solve.
• e.g., A skincare company offers products for dry skin, sensitive skin, and acne-prone skin.
Positioning Map
Also known as a perceptual map—it is a visual tool used in marketing to depict how a brand or product is
perceived relative to competitors in terms of specific attributes or dimensions. It helps businesses understand how
their products are positioned in the market compared to other offerings and identify opportunities for differentiation
and strategic positioning.
1st Term – 3nd Exam | 1st Semester

Finance – Considered the "backbone" of an organization, finance provides the necessary resources for operations
and growth. It involves managing funds, investments, and financial risks to ensure the organization can sustain its
activities and make informed decisions for future investments and expenditures.
Nature and Functions of Money
1. Nature of Money
Money is best understood by its role in trade rather than its physical form. It serves as a medium of
exchange, replacing barter by acting as a go-between for transactions. Anything widely accepted as a
payment is considered money. “Medium of Trade”.
2. Concrete Functions of Money
a. Money as a Medium of Exchange – Facilitates transactions by acting as a bridge between buyer and
seller. Example: Using money to buy goods instead of bartering products.
b. Money as a Means of Payment –Used to settle transactions, whether current or future.
Example: Paying for a service with cash or credit.
c. Money as a Store of Value – Can be saved and used in the future without losing value.
Example: Savings stored in a bank to use later.
3. Kinds of Money – Paper & Metal money.
a. Commodity Money – Has intrinsic value (e.g., gold, silver, cattle). It was commonly used in trade before
transitioning to metals like silver or gold.
b. Fiat Money – Issued by the government currency (e.g., paper money) without intrinsic value but accepted
as payment due to tradition and trust.
Example: Modern currencies like the peso or dollar.
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Two (2) Types of Financial Decisions
1. Equity Financing – Involves raising capital by selling shares of the company to investors. The
company does not incur debt, but ownership is diluted since shareholders gain a portion of the company.
Equity investors take on more risk because they share in profits, but are not guaranteed returns. Example:
Issuing common stock or preferred stock.
2. Debt Financing – Involves borrowing money that must be repaid with interest. The company retains full
ownership but must meet regular interest and principal payments. Debt can be a cheaper form of financing if
the interest rates are low, but it increases financial risk due to the obligation to repay. Example: Taking out
loans, issuing bonds.
Two (2) Types of Inflation
1. Demand Pull Inflation – Occurs when the overall demand for goods and services exceeds the
economy’s ability to produce them. Leads to higher prices because consumers are willing to pay more,
often due to increased income or availability of credit. Common during periods of economic growth and high
consumer confidence. Example: A booming economy where people have more disposable income, pushing
prices upward.
2. Cost-Push Inflation – Happens when the cost of production rises, leading to an increase in the prices
of final goods and services. Can be driven by factors like rising wages, increased cost of raw materials, or
supply chain disruptions. Businesses pass these higher costs onto consumers, leading to inflation even
without a change in demand. Example: An oil price spike that increases transportation and production costs
across industries.

The Fundamentals, Sources, and Bases of The Credit System

• What is Credit?
Credit allows a party to obtain goods/services with the promise of future payment. It involves
 lending without immediate repayment but with the expectation of returning the amount or its equivalent in
the future.
• Classification of Credit
1. According to User
a. Consumer Credit – Short/intermediate term loans for personal use items/services (e.g., cash loans).
b. Bank Credit – Loans provided to businesses by commercial banks.
2. According to Purpose
a. Agricultural Credit – Funds for agricultural activities (e.g., farm equipment, operational costs).
b. Industrial Credit – Loans for high-capital projects (e.g., mining, infrastructure).
c. Commercial Credit – Business loans for goods and services.
d. Real Estate Credit – Loans for real estate purposes (e.g., land acquisition, construction).
e. Export Credit – Credit for foreign trade backed by shipments or services.
3. According to Maturity
a. Short-term Credit – Loans repayable within one year.
b. Medium-term Credit – Loans with 1-5 years maturity.
c. Long-term Credit – Loans with a maturity of over 5 years.
4. According to Manner of Payment
a. Lump sum basis – Full payment made at once at a future date.
b. Installment basis – Payment made in staggered amounts over an agreed time.
5. According to Loan Release
a. Lump sum release -- Full loan amount given at once.
b. Installment release – Loan provided in portions based on pre-agreed terms.
6. According to Security
a. Secured Credit – Loan backed by collateral (e.g., physical assets).
b. Unsecured Credit – Loan without collateral (e.g., personal loans).
7. According to Granting Process
a. Direct Credit – Loan given directly by a bank to its customer.
b. Discount Loan – A loan where interest and charges are calculated when the loan is granted.
 The Nature of the Basic Concept of Banking System
Classification of Banks

✧ Universal and Commercial Banks – Share similar powers and functions.

I.Universal Banks
• Acting as an investment house.
• Investing in non-allied enterprises.
• Owning up to 100% equity in thrift/rural banks or non-financial enterprises.
• For listed universal banks: Owning up to 100% of voting stock in one universal/commercial bank.

• Scope: They offer a wide range of financial services, including commercial banking, investment
banking, and other financial services like insurance and leasing.
• Services: In addition to regular banking services (loans, deposits), they engage in activities like
underwriting, trading securities, and offering investment products.
• Regulation: They are subject to more stringent regulatory requirements due to their broad range
of operations.
• Universal Banks in the Philippines:
1. Al-Amanah Islamic Investment Bank of the Philippines
2. ANZ Banking Group Ltd. (from Australia)
3. Asia United Bank Corp. (AUB)
4. Bank of the Philippine Islands (BPI)
5. BDO Unibank, Inc. (BDO)
6. China Banking Corp. (Chinabank)
7. Deutsche Bank AG (from Germany)
8. Development Bank of the Philippines (DBP)
9. East West Banking Corp. (Eastwest)
10. The Hongkong & Shanghai Banking Corp. (HSBC) (from HK)
11. ING Bank NV (from Netherlands)
12. Land Bank of the Philippines (Landbank)
 13. Metropolitan Bank & Trust Co. (Metrobank)
14. Mizuho Bank, Ltd. – Manila Branch (from Japan)
15. Philippine National Bank (PNB)
16. Philippine Trust Co. (Philtrust)
17. Rizal Commercial Banking Corp. (RCBC)
18. Security Bank Corp. (SBC)
19. Standard Chartered Bank (Standard) (from UK)
20. Union Bank of the Philippines (Unionbank)
21. United Coconut Planters Bank (UCPB)
II.Commercial Banks
• Scope: They primarily focus on traditional banking services such as accepting deposits, offering
loans, and providing other banking products like savings accounts, checking accounts, and credit
services.
• Services: Unlike universal banks, they typically do not engage in investment banking or other
financial services.
• Regulation: They have fewer regulatory requirements since their activities are more limited to
traditional banking.
• Commercial Banks in the Philippines:
1. BDO Unibank, Inc. (BDO)
2. Metropolitan Bank and Trust Company (Metrobank)
3. Bank of the Philippine Islands (BPI)
4. Land Bank of the Philippines Philippine National Bank (PNB)
5. Security Bank Corporation (Security Bank)
6. China Banking Corporation (Chinabank)

✧ Thrift Banks – Comprise savings and mortgage banks, private development banks, and microfinance thrift
banks. Focus on accumulating savings and investing them.
Government Banks
1. Land Bank of the Philippines (LandBank)
2. Development Bank in the Philippines (DBP)
Owner of Corporation
1. Stockholder
Barter System
Founded in 1851, the Bank of the Philippine Islands (BPI) is a universal bank and it is the first (1st) bank in the
Philippines and in the Southeast Asian region.
The maximum deposit amount in a Philippine bank depends on the bank. Here are the maximum deposit
amounts for some Philippine banks as of January 31, 2021:
• Philippine Veterans Bank – No limit
• PNB – P50,000
• PSBank – P25,000
• RCBC – P25,000
• Robinsons Bank – P50,000
• Security Bank – P100,000
• Unionbank – P500,000
However, your deposits are insured up to P500,000 (about $10,000) in the Philippines, which applies to the total
amount of money you have on deposit in a bank, not to each individual account.
Services Offered by Banks
1. Accepting Deposits – The primary function of banks is to hold depositor funds.
2. Loan Services – Banks lend money to generate revenue through interest.
3. ATM Services
a. Replace human tellers for basic transactions (deposits, withdrawals, inquiries).
b. Benefits: 24-hour availability, lower labor costs, convenience.
4. Bank Guarantee – Banks guarantee payments to third parties on behalf of customers.
5. Check Payment – Checking account holders receive checkbooks for transactions.
6. Collection and Payment Agreement – Banks handle credit instruments (e.g., promissory notes, bills of
exchange).
7. Consultancy – Banks provide financial, legal, and market advice through hired experts.
8. Credit Cards – Allow purchases on credit with immediate payment by the bank.
9. Debit Cards – Electronically withdraw funds directly from the holder’s account (PIN required).
10. Discounting Bills of Exchange – Banks discount bills of exchange as a lending method.
11. Foreign Currency Exchange – Banks handle foreign currencies to support international trade and
transactions.
12. Home Banking – Conduct financial transactions from home rather than a physical branch.
13. Mobile Banking – Banking transactions via mobile device (balance checks, payments, etc.).
 14. Online Banking – Access account data and perform transactions via the Internet.
15. Overdraft – Allows account holders to withdraw more than their deposits.
16. Priority Banking – Automatic debit arrangements for utility bills and credit card payments.
17. Private Banking – Personalized services for wealthy clients and high-net-worth individuals.
18. Remittance of Funds – Transferring funds from one place to another via checks or drafts
.

Economics: Basic Concept Overview

Economics, derived from the Greek words 'oikonomia' (management of a household), is a social science focused
on the efficient allocation of scarce resources to meet unlimited human wants and needs. It addresses three
fundamental economic questions and includes key concepts that form the basis of economic study.
The fundamental economic problems it addresses include:
a. What products to produce? Organizations must determine which goods to create, prioritizing between
necessities and luxuries, given that resources are limited.
b. For whom should these products be produced? This distribution issue relates to purchasing power;
wealthier individuals typically access more goods, while poorer individuals may struggle to afford necessities.
c. How and how much to produce? Businesses need to identify cost-effective production methods to determine
the volume of goods to manufacture, balancing efficiency and cost.
The Law of Demand – Demand refers to consumers' willingness and ability to purchase products at various prices.
Key points include:
a. Quantity Demanded – The amount of a product consumers are willing to buy at a given price, represented
in a demand schedule.
b. Demand Curve – A graphical representation showing the relationship between price and quantity
demanded.
c. Price Elasticity
i.Inverse Relationship – When prices increase, demand typically decreases.
ii.When prices decrease, demand generally increases, assuming all other factors remain constant (ceteris paribus).
d. Hoarding – If consumers anticipate future price increases, they may hoard products, leading to a temporary
increase in current demand, even if prices rise.
e. Direct Relationships – Certain products, like necessities, may have a direct relationship with demand,
where increased consumer income raises demand for these goods even if prices rise
 The Law of Supply – Supply indicates the willingness of producers to offer products at certain prices. Important
aspects include:
a. Quantity Supplied – The amount of a product producers are willing to sell at a given price.
b. Supply Curve – A graphical representation showing the relationship between price and quantity supplied.
c. Price Elasticity – When prices rise, the quantity supplied usually increases; when prices fall, the quantity
supplied typically decreases, also under ceteris paribus conditions.
i.Direct Relationship – When prices rise, the quantity supplied usually increases.
ii.When prices fall, the quantity supplied typically decreases, also under ceteris paribus conditions.
d. Hoarding – Producers may withhold supply in anticipation of future price increases, impacting market
availability and potentially raising prices.
e. Inverse Relationships – If production costs increase, the supply of products may decrease, even if prices
remain stable, demonstrating an inverse relationship between production costs and supply.
Ceteris Paribus Assumption – We are holding other things constant except price.

Three (3) E’s in Economics

1. Effectiveness – The attainment of goals and objectives.
2. Efficiency – Proper allocation of resources.
3. Equity – Justice and fairness.
• The Equity Train Law refers to legislation aimed at promoting social equity and justice by ensuring
fair treatment, access to resources, and non-discrimination for all individuals.
Scarcity – Scarcity refers to the fundamental economic problem arising from limited resources in relation to unlimited
human wants and needs, leading to the necessity of making choices.
Four (4) Factors of Production (CELL)
1. Capital – Man-made resources used to produce goods and services (e.g., machinery, tools).
2. Entrepreneurship – The ability and willingness of individuals to take risks to create and manage a
business.
3. Land – Natural resources used in production (e.g., minerals, water, forests).
4. Labor – The human effort, skills, and abilities used in the production process.
Factor Payment
1. Interest – Payment for the use of capital.
2. Profit – Earnings from entrepreneurship after all costs are deducted.
3. Rent – Payment for the use of land.
 4. Salaries/Wages – Compensation for labor provided by workers.
Market Equilibrium – Market equilibrium occurs when the quantity demanded equals the quantity supplied (Qd =
Qs). Key points include:
a. Transactions – The interaction of buyers and sellers results in transactions where they agree on a price.
b. Equilibrium Price – The price at which the market clears, meaning no surplus or shortage exists.

Macroeconomics vs. Microeconomics

• Macroeconomics – Focuses on the economy as a whole, analyzing broad economic sectors and national
or global trends.
• Microeconomics – Examines individual economic units, such as households and producers, and their
decision-making processes.
The Circular Flow Model – Visually represents the flow of goods, services, and money within an economy. Key
components include:
a. Two Flows – The model includes tangible goods and services flow and cash flow between households and
businesses.
b. Economic Interactions – It illustrates how households provide factors of production to businesses, which in
turn produce goods and services that households consume.