Physical Environment the beliefs and customs of the people.

- It is composed of the natural elements that ➢ Values

are inherent in the Earth.
➢ Traditions
- It is divided into climate, physical resources
and wildlife. ➢ Literacy Level

● Climate ➢ Consumer Psychology

The entrepreneur must consider the prevalent ➢ Time Orientation

climatic condition of the area where he/she
intends to open the business to determine ➢ Lifestyle Patterns
whether it can withstand or is fit to the climatic
condition in the local area. ➢ Professional Career Roles

● Physical Resources ● Political forces

The entrepreneur must critically assess the These are the various elements usually
availability of raw materials in the locality comprising the political parties, political
before opening a business. He/She must systems, and other related political groups that
evaluate if the available raw materials to be substantially influence the political stability of
used for the proposed business are sufficient for the country.
a long-term operation.
➢ Trade Regulations
● Wildlife
➢ Taxation
The entrepreneur must ensure that his/her
business contributes to the preservation and ➢ Government Stability
not the destruction of the ecological system of
the local community and our country in general.
➢ Unemployment
It is also an entrepreneur’s task to become a
model of social responsibility and
environmental awareness.
➢ Workers Benefits

Societal Environment ➢ Election Practices

● Cultural Forces
- It is generally composed of social, political,
cultural, economic, legal and technological
Culture basically refers to the integrated
forces.
characteristics of a group of people or ethnic
group in a particular society.
- It is highly advised that the entrepreneur
should critically evaluate the effects of the
➢ Religion
changes in all the forces of the societal
environment.
➢ Language
● Social Forces
➢ Beliefs
These are elements in society resulting from
➢ Customs
human interactions that can influence the
thoughts, behavior, attitude, actions, and even
➢ Education
● Economic forces
These are factors which are primarily caused by
changes or movements in the Philippine
economy that have direct or indirect effects on
the entrepreneurial venture.
➢ Interest Rates
➢ Inflation Rates
➢ Monetary Policies
➢ Income
➢ Exchange Rates
➢ Employment
● Legal Forces
These are the elements and bodies that are
directly involved in the legislation and
interpretation of laws and ordinances directly
affecting the business.
➢ Product Control
➢ Health and Safety of the Workers
➢ Advertising and Promotion
➢ Exercise of Profession
➢ Education Administration and Fees
● Technological Forces
These refer to the trends and developments in
computer and information technology that
have an impact on business.
➢ Internet
➢ Social Media
➢ E-commerce
➢ Technological Advancement
➢ Technological Infrastructure
Industry Environment
It is the external environment layer where the
trends and changes are easily and immediately
felt by the business. The industry environment
is considered the immediate environment of the
business where it conducts its various
operational activities.
● Government
It refers to the system that handles the affairs
of a particular country. Since the government
usually has jurisdiction over the major
activities happening within its territory,
including international trade relations, the type
of government system operating in a particular
country highly influences the business.
● Suppliers
They refer to the individual persons or
companies that provide the required materials,
parts or services to the business.They play a
crucial role in the production of goods or
services.
They can adversely affect the production
process by delaying the delivery of the required
raw materials and supplies or services, or by
providing defective materials.
● Customers
They are the buyers of goods and services
produced or rendered by the business.
● Competitors
They are the forces existing in the industry
environment that produce, sell, or render
products or services which are similar to those
of the business.
● Employees
They are the workers of the business who are
highly responsible for the production of goods
or delivery of services to the consumers. They
help ensure the quality and quantity of products Things to Consider when Hiring an Employee
or services provided to the customers.
● Educational Attainment
● Creditors
● Skills
They refer to banks, financial institutions, and
financial intermediaries engaged in the lending ● Experience
of money to the borrower usually for a fee or
charge in the form of interest. Hiring may be done through

Additional Notes ● Interview

Mandatory Health Benefits: ● Screening

● Insurance ● Pooling of Applicants

● SSS (Private Company) ● Training

● Meal Allowance Strategic Ways to Surpass Competitors

● Pension ● Focus on your customers

● Pag-IBIG ● Know their weaknesses

● Philhealth ● Trends

● 13th Month Pay ● Promotions

● Sick Leave ● Focus on your business

● Emergency Leave To make your business better, you need a

Unique Selling Proposition.
● Maternity Leave
You need to set a criteria in selecting suppliers
● Paternal Leave because your product’s quality heavily relies on
them.
● Magna Carta for Women

● The structure of an infrastructure must be

safe.

Types of Competitor:

● Direct Competitor

● Indirect Competitor

There are different criterias in hiring an

employee.

An HR Manager hires the applicants.