industry and environment

• Business


  A small portion of an industry, an undertaking by a person or group of persons who are partners, or of stockholders who own a juridical entity known as a corporation, with the main objective of earning profit for the owners
• Industry


  The aggregation of the different businesses engaged in the same line of undertaking
• Steps to put up a business


  1. Industry analysis

  2. SWOT analysis
• Forms of business organization from legal point of view

  • Sole proprietorship
  • Partnership
  • Corporation
  • Cooperative
• Sole proprietorship


  Owned by a single individual who is singly responsible for running the business and accountable for all debts and obligations, enjoys exclusive control and decision-making as well as gets all the profits but also shoulders all losses and has unlimited liability
• Partnership


  An agreement in which two or more persons combine their resources in a business with a view to making profit, with a partnership agreement and profits divided among the partners according to the terms of agreement
• Types of partnership


  • General partnership
  • Limited partnership
• General partnership


  All owners share the management of the business and each is personally responsible for and must assume the consequence of the actions of the other partners, all have unlimited liability
• 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, take no part in control or management, and are liable for debts to a specific extent only
• Corporation


  A legal entity that is separate from its owners, the shareholders, no shareholder is personally liable for the debts, obligations or acts of the corporation, directors and officers can bear liability for their involvement, has perpetual existence
• Cooperative


  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, with equal say in decision-making, open and voluntary membership, and surplus earnings returned to the members according to the amount of their patronage
• Classification of businesses by size based on total assets

  • Micro business (below P1,500,001)
  • Small business (P1,500,001 to P15,000,000)
  • Medium business (P15,000,001 to P60,000,000)
  • Large scale business (over P60,000,000)
• For any form of business organization, the business must be registered with the appropriate government agencies
• For sole proprietorships and partnerships, 100% must be owned and capitalized by Filipinos, for corporations, at least 60% of the outstanding capital stocks must be owned by Filipino citizens
• Business activity conducted may be within major sectors of industry, services, practice of profession, or operation of tourism-related businesses and agri-business
• The choice of which form of business organization may be a personal preference of the owner, based on his objectives, his available resources, and the scope of operations
• Key factors to consider in analyzing the industry

  • Geographic area the business will cater to
  • Size and outlook of the industry
  • Description of the product
  • Identification of the buyers/target customers
  • Regulatory environment
  • Leading businesses in the industry
  • Factors that will affect the growth of the business
• SWOT analysis


  An analytical framework that can help a company meet its challenges and identify new markets, identify the business's risks and rewards, and identify the internal and external forces that may affect the business, very helpful in assessing new ventures
• Components of SWOT analysis

  • Strengths (internal factors)
  • Weaknesses (internal factors)
  • Opportunities (external factors)
  • Threats (external factors)
• Strengths and weaknesses refer to the internal factors, resources and experiences readily available to the business proponent, including financial resources, physical resources, human resources, access to natural resources, trademarks, patents, copyrights, and current processes