SOCIO-

ECONOMIC
IMPACT STUDY
CHAPTER 4
 OBJECTIVES:
✗ Identify and explain the various socioeconomic
factors affecting business and industry

✗ Analyze and evaluate the viability of a business

and its impact on the community

✗ Formulate recommendations and strategies on

how to minimize and maximize a business
negative impact and positive impact, respectively

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SIGNIFICANCE OF CONSUMER
BEHAVIOR IN BUSINESS

The consumer is the person who

buys the product business offers for sale.
Knowing how consumer satisfaction is
maximized will help a business in always
keeping the consumer’s welfare the
topmost priority.

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THE PRODUCTION THEORY
PRODUCTION refers to the use of economic
resources to create goods and services that
will be used to satisfy human wants.

INPUT refers to the resources used to

produce goods and services.

OUTPUT refers to the product created as a

result of the combination of input in the
production process.

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SOCIO-ECONOMIC IMPACT OF A
BUSINESS:

Impact on the consumer

✗ A new business, especially one that is
innovative and focused on bringing some
new product or service to the market, is
always welcome to the consumer who is
looking value for his money.

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 SOCIO-ECONOMIC IMPACT OF A
BUSINESS:
Impact on the suppliers and investors
✗ A new business will also provide opportunities for
suppliers and investors.

✗ Many suppliers will now get a chance to sell to the newly

established business, which means income for them.

✗ Investors get to earn returns to their investments, with capital

plowed back into more investments and generating more income
for the economy.

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SOCIO-ECONOMIC IMPACT OF A
BUSINESS:
Impact on the Government
✗ The government will also benefit from the
establishment of new businesses, through
revenues earned on fees collected from
them and on taxes imposed on the incomes
of the businesses.

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 SOCIO-ECONOMIC IMPACT OF A
BUSINESS:
Impact on the households
✗ New businesses mean employment opportunities
for the Filipinos.

✗ Those who have jobs but are earning low-wages may find
better paying jobs with the new companies.

✗ Unemployed workers looking for work may have the chance of

being employed by these companies.

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 SOCIO-ECONOMIC IMPACT OF A
BUSINESS:
Impact on the community
✗ Corporate Social Responsibility (CSR) has
become a growing trend among businesses
today.

✗ As a result of this, corporations and even small businesses

have increased their focus on projects that provide
scholarships to poor but deserving students, allocating
budgets for housing for low-income families, like Gawad
Kalinga.

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BUSINESS
ICONS

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PHILIPPINE BUSINESS ICON:
MANUEL V. PANGILINAN
✗ he was the 39th richest man in the
Philippines with a net worth of US $39
million.
✗ He put up First Pacific Group, the
chairmanship of the PLDT as well as
of the Metro Pacific Investments
Corp. and the Smart
Communications, Inc.

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PHILIPPINE BUSINESS ICON:
Soccoro Ramos
✗ She was the 30th richest Filipino
entrepreneur in the Philippines with
net worth of $250 million as of June
2012.
✗ founder of National Bookstore

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PHILIPPINE BUSINESS ICON:
Cecilio Kwok Pedro

✗ founder of Lamoiyan Corp. (Hapee

toothpaste)

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PHILIPPINE BUSINESS ICON:
Henry Sy
✗ founder of SM Group and chairman
of SM Prime Holdings, Shoe Mart
(SM)

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PHILIPPINE BUSINESS ICON:
Alfredo M. Yao
✗ Founder of Zest-O Corp (Zest-O) .

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 GLOBAL BUSINESS ICON:
Bill Gates
✗ Born in 1955, relatively young
entrepreneur Bill Gates founded the
world’s largest software business,
Microsoft, with Paul Allen, and
subsequently became one of the
richest men in the world.

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 GLOBAL BUSINESS ICON:
Indra Nooyi
✗ Forbes 100 Most Powerful Women
✗ PepsiCo

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 GLOBAL BUSINESS ICON:
Larry Page
✗ Larry Page is the co-founder of
Google, the world's number one
search engine and one of the largest
companies in history by market cap.

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