ORGMAN 4TH QTR

• Environmental scanning


  The process of gathering and evaluating internal and external information to guide a business organization's operations and market strategies
• Environmental scanning


  • Provides insights to key decision-makers to inform their strategic planning and operational decisions, helping the organization adapt to market dynamics and capitalize on opportunities
• Three modes of environmental scanning

  • Ad hoc
  • Regular
  • Continuous
• Ad hoc environmental scanning

  Usually applicable only during a crisis situation to determine whether a problem is either internal or external to the organization
• Regular environmental scanning


  Conducted at least once a year or at set intervals to gather information about the business environment systematically
• Continuous environmental scanning


  Continuous collection of data on a wide range of environmental factors, facilitating continuous learning and adaptation within the organization
• Environments of the firm

  • Macro
  • Micro
  • Internal
  • External
• Macro environment


  Larger societal forces that impact the firm and are beyond its control
• Micro environment


  Factors that directly influence the firm but are uncontrollable to a certain extent, more immediate and specific to the operations and interactions
• Internal environment


  Factors and elements within the organization's control or influence, reflects the organization's strengths, weaknesses, capabilities, and overall operational dynamics
• External environment


  Factors and forces outside the organization's direct control but can significantly impact its operations and performance, encompasses both macro and micro environmental elements
• PESTEL analysis


  Political, Economic, Social, Technological, Legal and Environmental factors
• PESTLE only deals with external environment
• Political factors


  Government policies, regulations, and stability, which can impact business operations
• Economic factors


  Economic conditions, such as inflation rates, exchange rates, interest rates, and economic growth, affecting consumer spending and business investment
• Social factors


  Cultural trends, demographics, lifestyle changes, and societal values that influence consumer behavior and market demand
• Technological factors


  Advancements in technology, innovation, automation, and digitalization that can disrupt industries and create new opportunities or challenges
• Legal factors


  Laws, regulations, and legal frameworks that businesses must comply with, such as employment laws, industry regulations, and environmental regulations
• Environmental factors


  Considerations related to sustainability, climate change, environmental protection, and ecological concerns, which increasingly impact business operations and strategies
• SWOT analysis


  • Strengths
  • Weaknesses
  • Opportunities
  • Threats
• Strengths


  Characteristics of a business that give it advantages over its competitors, good performance, and a positive reputation in the business scene
• Weaknesses


  Characteristics of a business that make it disadvantageous relative to competitors, that need to be improved or changed may hinder the company's growth and performance
• Opportunities


  Elements in a company's external environment that allow it to formulate and implement strategies to increase profitability that can have a positive impact on the company if properly addressed
• Threats


  Elements in the external environment that could endanger the integrity and profitability of the business which may negatively impact the company that has no control but should be addressed to maintain its status in business
• Global management


  The management of businesses and organizations with operations in more than one country
• Global business


  Pertains to a business environment that poses challenges in the adaptations to the cultures and business conduct in foreign countries
• Forms of foreign business organizations recognized in the Philippines

  • Branch office
  • Representative office
  • Regional headquarters
  • Regional operating headquarters
• Branch office


  Organized to conduct activities of the head office from the host country, minimum paid-up capital of US$200,000.00, which can be reduced to US$100,000 if advanced technology is involved or if at least 50 employees are directly employed
• Representative office


  Fully supported by the head office and does not obtain funds locally, engages directly with clients of the parent company, initial minimum inward remittance of US$30,000 for operating expenses
• Regional headquarters


  Primarily performs supervision, communication, and coordination functions, acts as an administrative branch of a multinational company, does not generate income within the Philippines, required annual operating expenses of $50,000
• Regional operating headquarters


  Provides various services to affiliates, subsidiaries, and branches in the Philippines such as administration, planning, acquisition of raw materials, marketing, technical support, and research and development, derives income from activities in the country, requires a capital investment of US$200,000
• Ways international business environment increases profitability

  • Greater access to input
  • Lower production cost
  • Larger market for inputs
• Ways to compete in local and international business

  • Competing by lower cost
  • Competing by quality
  • Competing by speed
  • Competing by innovation
• Ways of expanding into international and global business

  • Exporting and importing
  • Licensing and franchising
  • Joint ventures and strategic alliances
• Roles of businesses in the economy


  • Wealth creation and sharing
  • Community development
  • Exports
  • Entrepreneurship
  • Job creation
  • Balanced regional development
  • Standard of living
  • GDP and per capita income
• Ethical issue


  Arises when an individual must choose between different options based on what is morally right or wrong
• Business ethics


  Refers to the moral principles and standards that guide businesspeople in their transactions
• Universalism


  Advocates for universal values such as honesty, respect, and cooperation that should apply to all people
• Egoism


  Prioritizes one's own interests and promotes actions that lead to the greatest benefit for oneself
• Utilitarianism


  Aims to maximize overall happiness or good outcomes for the greatest number of people