Apecon 2

• The service and industry sectors account for about 91% of the country's GDP and provide about 76% of total employment
• Taxes levied on businesses also contribute a large chunk of the government's budget
• Businesses have a significant impact on society
• Stakeholders


  Parties who have an interest in the business organization
• Internal stakeholders


  Directly or financially part of the businesses' operations
• Internal stakeholders


  • Employees
  • Managers
  • Owners
  • Executives
  • Investors
• External stakeholders


  Outside parties who affect or are affected by the firm's business decisions
• External stakeholders


  • Customers
  • Suppliers
  • Government
• Impact of businesses on consumers


  Convincing them to purchase their goods and services
• Businesses need the support of customers to keep them afloat
• Consumer behavior


  Achieved through market research where firms collect, analyze, and report data through surveys, interviews, and observation
• Assumptions made regarding consumers

  • They are rational beings and are attracted to products that offer the most value
  • Humans will try to maximize their utility when consuming goods and services
  • People derive less and less satisfaction from the repeated consumption of a product
• Ways to influence consumer behavior

  • Providing value to customers
  • Connecting emotionally
  • Offering social responsibility
  • Excellent customer service
• Providing value to customers

  Offering the lowest prices or by providing the best quality product for a good price
• Connecting emotionally


  Firms may try to connect with consumers on an emotional level through their advertisements and promotional campaigns
• Despite the assumption of rationality, consumers also consider their emotions when making choices
• Offering social responsibility

  Firms may give consumers an opportunity to be socially or environmentally responsible by consuming their products
• Excellent customer service

  Providing the best experience in the hopes that it builds a customer's loyalty to a brand
• Impact of businesses on suppliers

  The business that firms provide to their suppliers
• If a firm is successful

  The expected increase in production will benefit suppliers
• If a firm has a poor sales period

  This might force them to cut production, negatively impacting the performance of their suppliers
• The relationship between firms and their suppliers is key
• Factors considered when choosing a supplier

  • Price
  • Reliability
  • Stability
  • Capacity
  • Location
• Price

  The main consideration, more important for newer businesses with limited financial resources
• Lower prices do not necessarily mean better value as initial lower costs may be offset by the consequences of using poor-quality inputs
• Reliability

  The supplier's ability to fulfill orders accurately and on time
• Stability

  Longer-term contracts challenge the stability of a supplier, those who are not financially or organizationally stable may cause problems
• Capacity

  For firms that produce at a larger scale, whether or not the supplier has the capacity to meet their needs
• Location

  The geographic location of a supplier, firms need to take into account lead time and shipping costs
• Impact of businesses on investors

  The relationship revolves around money, the business needs the investors for financial capital, while investors look towards the business to make them profit
• Successful businesses

  Can help investors earn profits
• Unsuccessful businesses


  Might lose investors money
• Stakeholders can be categorized as internal or external, and their interest may not be financial in nature
• The primary impact that businesses have on consumers is their efforts to influence consumer behavior towards purchasing their products
• The role that suppliers play in the performance of a firm shows the impact businesses can have on them
• The relationship that businesses have with their investors revolves around profits, the main goal of any investor is to yield a return on their initial investment
• In 2019, more than half of the revenue collected by the Bureau of Internal Revenue (BIR) came from income taxes
• The taxes collected in 2019 serve as one of the sources of funding that the government relies on for their projects
• For businesses to operate within a country, they are expected to abide by the rules of the government, including tax regulations
• Income tax rates in the Philippines

  • Self-employed individuals and professionals have the option to pay 8% of their total gross sales exceeding ₱250,000 (for those with gross sales not exceeding ₱3M)
  • Corporations pay 30% of their net taxable income