ORGANIZATION AND

MANAGEMENT
ENVIRONMENTAL FORCES AND
SCANNING
 ENVIRONMENTAL SCANNING
- is a process of gathering, analyzing and dispensing
information for tactical or strategic purposes.
- The environmental scanning process entails obtaining both
factual and subjective information on the business
environments in which a company is operating or considering
entering.
 BUSINESS ENVIRONMENT
- according to Stephen P. Robbins & Mary Coulter,
“Environment refers to institutions and forces that affect
organizational performance”

1. External Business Environment

2. Internal Business Environment
 External Business Environment
- may be defined as all those conditions and forces which are
external to the business and are beyond the individual
business unit, but it operates within it.
- refers to the environment that has an indirect influence on the
business. The factors are controllable by the business.
 Types of External Business
Environment

1. Macro External Business Environment

2. Micro External Business Environment
Macro External Business Environment

1. Political
2. Economic
3. Social PESTEL
4. Technological
5. Environmental
6. Legal
Micro External Business Environment

1. Customers
2. Suppliers
3. Employees CSEMCS
4. Media
5. Competitor
6. Shareholders
 Internal Business Environment
- is composed of the elements within the organization,
including current employees, management, and especially
corporate culture, which defines employee behavior.
 Internal Business Environment
1. Products
2. Machinery PMOO
3. Organizations’ Structure
4. Organizational Culture
 Internal Business Environment
1. Products
- is the item offered for sale. A product can be a service
or an goods.

1. Machinery
- refers to specific machines or machines in general that
business uses to produce products or in making
business operations.
 Internal Business Environment
3. Organizations’ Structure
- the formal structure of an organization is the
hierarchical arrangement of tasks and people.
- this structure determines how information flows within
the organization, which departments are responsible
for which activities, and where the decision-making
power rests.
 Internal Business Environment
4. Organizational Culture
- the organizational culture is an organization’s
personality. Just as each person has a distinct
personality, so does each organization.
- the culture of an organization distinguishes is from
others and shapes the actions of its members.
 THE LOCAL AND
INTERNATIONAL BUSINESS
ENVIRONMENT OF THE FIRM
 Cultural Intelligence
- is an individual’s ability to favorably receive and adjust to an
unfamiliar way of doing things. This will enable them to
develop their ability to accept and adapt to different cultures,
both local and international, that may affect the organization
to which they belong.
Monochronic Cultures
- refer to cultures wherein people tend to do one thing at a time
- these cultures emphasize punctuality and sticking to set rules

Polychronic Cultures
- are more flexible as regards time
- accomplishing many different things at once is also common
for these cultures
 Cultural Dimensions
1. Power Distance
- the degree to which a society accepts or rejects the
unequal distribution of power among people in
organizations and the institutions of society.

1. Uncertainty Avoidance
- the degree to which society is uncomfortable with risk,
change and situational uncertainty.
 Cultural Dimensions
3. Individualism-Collectivism
- the degree to which a society emphasizes individual
accomplishments versus collective accomplishments

4. Masculinity-Femininity
- the degree to which a society values assertiveness
and feelings of material success versus concern for
relationships
 Cultural Dimensions
5. Time Orientation
- the degree to which a society emphasizes short-term
thinking versus greater concern for the future or
long-term thinking
PHASES OF ECONOMIC
DEVELOPMENT
 ECONOMY
- encompasses all activity related to production, consumption
and trade of goods and services in an area.
- applies to everyone from individuals to entities such as
corporations and governments.
- the economy of a particular region or country is governed by
its culture, laws, history and geography, among other factors,
and it evolves due to necessity.
 Means of Livelihood
1. Hunting and Fishing Phase
- Ancestors obtained food by hunting and fishing

1. Pastoral Phase
- Presence of large number of livestock

1. Handicraft Phase
- items or objects were made by skilled and trained
manual laborers (sculptures, jewelry, furniture)
 Means of Livelihood
4. Agricultural Phase
- concept of land ownership. Began to work as a farmer
or fisherman

5. Industrial Phase
- presence of manufacturing companies. Machineries
were used
 Extent of Economic Activity
1. Household Economy
- the needs of the family were satisfied first through the
contribution of the family members.

1. Village Economy
- economic and social relations spread among various
families

1. National Economy
- grouping of villages into bigger and broader social
 Medium of Exchange
1. Barter Economy
- done during primitive era, exchange was done which
was the direct exhange of goods for goods, services
for services, goods for services or services for goods.

1. Money Economy
- there came to circulate in the market certain objects,
such as bars of metal, buttons, tools, and utensils
which were stable in value, durable and generally
accepted by the public. Money was used as the
“medium of exchange”
 Medium of Exchange
3. Money and Credit Economy
- due to increase in volume and frequency, it became
imperative to allow others to purchase one’s goods or
engage one’s service with payments to be paid at
some future date.
- CREDIT is the power to obtain economic goods and
services in exchange for the promise to pay the
agreed equivalent at some future date.
FORMS OF BUSINESS
ORGANIZATIONS
Organization
- a collection of people working together to achieve a common
purpose.

Business Organization
- a collection of people working together to achieve a common
purpose in relation to their organization’s mission, vision,
goals, and objectives, sharing a common organizational
culture.
 FORMS OF BUSINESS ORGANIZATIONS
1. Single Proprietorship
2. Partnership
3. Corporation
4. Cooperative
Single Proprietorship
- a form of business that is owned, managed and controlled by
an individual.
- it is the simplest and the most numerous form of business
organization.
Types of Single Proprietorship
1. Self-employed Business Owner
- is someone who conducts a trade or business with the
intent of making a profit.
- the self-employed individual may conduct the business
on a full-time basis or as a part-time venture.
Types of Single Proprietorship
2. Franchise
- the sole proprietor, also referred to as a franchisee,
pays a fee to franchisor in exchange for the right to
use tha company brand.
- the franchisee is obligated to follow a predetermined
business model that controls such areas as
operations, marketing, pricing and the ability to
expand.
- the franchisee must also pay the franchisor royalties,
which are typically a percentage of the franchise unit’s
gross sales.
Partnership
- two or more persons bind themselves to contribute money,
property, or industry to a common fund with the intention of
dividing the profits among themselves.
- two or more persons may also form a partnership for the
exercise of profession.
-
Types of Partnership
1. General Partnership
- an association of two or more persones that carry on as
the co-owners of a business in order to generate a profit.
- the default rule is equality between all members and the
only way to change this is through a formal written
agreement.
- each partner possesses an equal voice in management
and the authority to act as agent for the partnership.
- each partner can be held liable for all debts of the
partnership, and for torts committed by other partners
within the course of the partnership’s business.
Types of Partnership
2. Limited Partnership
- is formed by two or more persons, having one or more
general partners and one or more limited partners.
- a limited partner has no voice in the active management of
the limited partnership, which is conducted by the general
partner(s).
- every limited partner’s liability is limited to the capital he
has contributed to the partnership
Types of Partnership
3. Limited Liability Partnership
- partners will receive the same beneficial taxation provided
by a general partnership, and will also be shielded from the
debts and liabilities of the business.
- every partner in an limited liability partnership will be
protected from the actions of other partners.
Corporation
- is an artificial being created by operation of law, having the
right of succession and powers, attributes and properties
expressly authorized by law or incident to its existence.

Sec. 2 of B.P. Blg. 68 (Corporation Code of the Philippines)

Types of Corporation
1. Business Corporation
- a corporation formed to engage in commercial activity
for a profit.
- another name for this type is a “for-profit” corporation

1. Close Corporation
- a corporation whose stock is freely traded and is held
by only a few shareholders who are often within the
same family
- the requirements and privileges of Close Corporations
vary by jurisdiction
Types of Corporation
3. Controlled Corporation
- a corporation in which the majority of stock is held by
one individual or firm.

4. Cooperative Corporation
- a corporation primarily organized for the purpose of
providing services and profits to its members rather
than for a corporate profit.
- the most common kind is one formed to purchase real
property such as an apartment building, so that its
shareholders may lease the apartments.
Types of Corporation
5. Foreign Corporation
- a corporation that is registered in one state, but is also
“authorized to do business” in one or more different
states.
- usually created to take advantage of tax breaks and
state incorporation laws.

6. Non-Profit Corporation
- a corporation organized for some purpose other than
making a profit.
- non-profits are typically granted special tax treatment
Types of Corporation
7. Private Corporation
- a corporation founded by and composed of private
individuals principally for a non public purpose, such
as manufacturing, banking, and railroad corporations
(including charitable and religious corporations)

8. Professional Corporation
- a corporation that provides services of a type that
requires a professional license.
- these are typically corporations made up of architects,
accountants, lawyers, physicians, veterinarians, etc.
Types of Corporation
9. Public Corporation
- a corporation whose shares are traded to and among
the general public
- these are government-owned corporations that
engage in activities benefiting the general public,
usually while remaining financially independent.
- such a corporation is managed by a publicly appointed
board.
Cooperative
- a duly registered association of persons, with common bond
of interests, who have voluntarily joined together to achieve a
lawful common social or economic end, making equitable
contributions to the capital required and accepting a fair
share of the risks and benefits of the undertaking in
accordance with universally accepted cooperative principle.

cooperative code of the philippines

Types of Cooperative
1. Credit Cooperative
- is one that promotes and undertakes savings and
lending services among its members.
- it generates a common pool of funds in order to
provide financial assistance and other related financial
services to its members for productive and provident
purposes.

1. Consumer’s Cooperative
- the primary purpose of which is to procure and
distribute commodities to members and non-members.
Types of Cooperative
3. Producer’s Cooperative
- is one that undertakes a joint production whether
agricultural or industrial.
- is is formed and operated by its members to undertake
the production and processing of raw materials or
goods produced by its members into finished or
processed products for sale by the cooperative to its
members and non-members

4. Marketing Cooperative
- is one who engages in the supply of production inputs
to members and markets their products.
Types of Cooperative
5. Service Cooperative
- is one which engages in medical and dental care,
hospitalization, transportation, insurance, housing,
labor, electric, light and power, communicaiton,
professional and other services.

6. Multipurpose Cooperative
- is one which combines two or more of the business
activities of these different types of cooperatives.
Types of Cooperative
7. Advocacy Cooperative
- is a primary cooperative which promotes and
advocates cooperativism among its members and the
public through socially-oriented project, education and
training, research and communication, and other
similar activities to reach out to its intended
beneficiaries.
Types of Cooperative
8. Agrarian Reform Cooperative
- is one organized by marginal farmers majority of which
are agrarian reform beneficiaries for the purpose of
developing an appropriate system of land tenure, land
development, land consolidation or land management
in areas covered by agrarian reform

9. Cooperative Bank
- is one organized for the primary purpose of providing a
wide range of financial services to cooperatives and
their members
Types of Cooperative
10. Dairy Cooperative
- is one who are engaged in the production of fresh milk
which may be processed and/or marketed as dairy
products.

11. Education Cooperative

- is one organized for the primary purpose of owning
and operating licensed educational institutions,
notwithstanding the provisions of Republic Act No.
9155 otherwise known as the Governance of Basic
Education Act of 2001
Types of Cooperative
12. Electric Cooperative
- is one organized for the primary purpose of
undertaking power generation, utilizing renewable
energy sources, including hybrid systems, acquisition
and operation of sub-transmission or distribution to its
household members.

13. Financial Service Cooperative

- is one organized for the primary purpose of engaging
in savings and credit services and other financial
services.
Types of Cooperative
14. Fisherman Cooperative
- is one organized by marginalized fishermen in
localities whose products are marketed either as fresh
of processed products.

15. Health Services Cooperative

- is one organized for the primary purpose of providing
medical, dental and other health services
Types of Cooperative
16. Housing Cooperative
- is one organized to assist or provide, access to
housing for the benefit of its regular members who
actively participate in the savings program for housing.
- it is co-owned and controlled by its members.

17. Insurance Cooperative

- is one engaged in the business of insuring life and
property of cooperatives and their members.
Types of Cooperative
18. Transport Cooperative
- is one which includes land and sea transportation,
limited to small vessels, as defined or classified under
the Philippine maritime laws, organized under the
provisions of this code.

19. Water Service Cooperative

- is one organized to own, operate and manage water
systems for the provision and distribution of potable
water for its members and their households.
Types of Cooperative
20. Worker’s Cooperative
- is one organized by workers, including the
self-employed, who are at the same time the members
and owners of the enterprise.
- its principal purpose is to provide employment and
business opportunities to its members and manage it
in accordance with cooperative principles.