MANAGEMENT for

FILIPINOS

DR. CONRADO E. INIGO, JR. Ph.D., DBE

CONCEPT OF BUSINESS & DEVELOPMENT OF BUSINESS CULTURE

 BUSINESS

Any activity involved in the production and distribution of

goods and services, aimed to meet the economic needs of
consumers with an objective of eventually earning profit.

 The evolutionary growth of

various activities
developing from simple to
complex
RELATIONSHIP BETWEEN BUSINESS AND THE ECONOMY

pays for the goods and services

produces goods and services

ECONOMY BUSINESS

provides the factors of production

pays for the factors of production

RELATIONSHIP BETWEEN BUSINESS AND THE ECONOMY
 INDUSTRY

a group of business firms offering similar goods or services.

CLASSIFICATIONS:
i. Agricultural
ii. Manufacturing
iii. Trade
iv. Construction
v. Government
ELEMENTS OF A BUSINESS SYSTEM

LAND
(Materials)

CAPITAL BUSINESS LABOR

(Money) (Manpower)
ENTREPRISE

ENTREPRENEUR
(Management skill)
THE PROFIT MOTIVE

 PROFIT

the difference between the income an entrepreneur

receives from the sale of his goods and services and the
expenses he incurs to produce them

INCOME – EXPENSES = PROFIT

RESPONSIBILITY OF A BUSINESS ENTREPRISE

Owners Workers

Business Association Customers

BUSINESS
Labor
FIRM
Suppliers
Union

Community Government
WHY DO PEOPLE ENGAGE IN BUSINESS

5. SELF ACTUALIZATION NEEDS Realization of personal goal or ambition

4. SELF ESTEEM NEEDS Self-recognition or group satisfaction

3. LOVE AND BELONGING NEEDS Belongingness, affection, love & friendship

2. SAFETY AND SECURITY NEEDS Security, stability & protection from danger

1. PHYSIOLOGICAL NEEDS food, clothing, shelter, air & water

Abraham W. Maslow
KINDS OF BUSINESS
Business activity may be divided into three kinds:
i. Industry
ii. Commerce
iii. Services

I. INDUSTRIES
 involve the conversion of raw materials into finished
products or goods.
 industrial group can be divided into extractive industries:
farming, fishing and mining.
 (e.g. Nokia, Honda, San Miguel, Shell, Purefoods etc.)
KINDS OF BUSINESS

II. COMMERCE
 involves the process of buying and selling where the
goods are moved from the point of production to the point
of consumption
 (e.g. SM, Rustans, National Bookstore, Webster, etc.)

III. SERVICE ENTREPRISE

 primarily concerned with the satisfaction of the needs and
wants of the consumers.
 Subdivided into:
a. Public and community service (MERALCO, motion pictures)
b. Professional or trade services (CPA, Lawyers, Consultant)
KINDS OF ECONOMIC SYSTEM

1. CAPITALISM
 a system in which the means of production are owned and
operated by private individuals.
 A system of economic organization wherein privately-owned
capital, and property rights are privately invested with the
ultimate aim of personal gain.

2. SOCIALISM
 ownership of production and capital by the government and
the regulation by the society.
KINDS OF ECONOMIC SYSTEM

3. COMMUNISM
 A utopian economic system that implies a classless
society with no government as suggested by Karl Marx.

 Usually refers to the economic system in the People’s Republic

of China – the state owns and controls all means of production
CRITERIA IN CLASIFFYING PHASES OF ECONOMIC
DEVELOPMENT
A. MEANS OF LIVELIHOOD
1. Hunting and Fishing Phase
Our ancestors did not breed nor domesticate animals.
2. Pastoral Phase
creation of groups and the presence of a large number of livestock have made
man settle in an area for a longer period of time.
3. Handicraft Phase
a period of medieval guild or associations of artisan engaged in the same
trade. Items or objects were made by skilled and trained manual
laborers.
4. Agricultural Phase
continuous process to supply food
5. Industrial Phase
use of power and machines which led to mass production
CRITERIA IN CLASIFFYING PHASES OF ECONOMIC
DEVELOPMENT
B. EXTENT OF ECONOMIC ACTIVITY

1. Household Economy
needs of the family were satisfied largely by the efforts and
contributions of all members of the family.
2. Village Economy
an economic and social relations among various families
3. National Economy
grouping villages into bigger and broader social units and
develops economic activities on a nationwide scale.
4. International Economy
includes international trade and diplomatic cooperation.
CRITERIA IN CLASIFFYING PHASES OF ECONOMIC
DEVELOPMENT
C. MEDIUM OF EXCHANGE

1. Barter Economy
direct exchange of goods for goods, services for services, goods for
services or services for goods.
2. Money Economy
Money is anything which is characterized by its general
acceptability, it redeemability in precious metal, or public acceptance
in any institution using it
3. Money and Credit Economy
Credit is the power to obtain economic goods and services in
exchange for the promise to pay the agreed equivalent at some
future time.
LEGAL FORMS OF BUSINESS OWNERSHIP

1. Sole Proprietorship
a form of business ownership organized and managed by only one
person.
2. Partnership
a business organization where two or more persons contribute money,
property, or talent to carry on a business.
a. Limited partner – limited liability
b. General partner – unlimited liability
3. Corporation
an artificial being created by the operation of law, having the rights
of succession and the powers, attributes and properties expressly
authorized by law or incident to its existence.
COMPARATIVE ATTRIBUTES OF BUSINESS OWNERSHIP
ADVANTAGES DISADVANTAGES
START ANEW BUSINESS OR BUY AN EXISTING ONE?

“IT DEPENDS”
1.Nature and kind of business
trading = better buying a company
restaurant = new marketing approach

2.Availability of opportunities for acquisition

classified advertisement for opportunities such as banks and other
financial institutions or companies being sold.

3.Personal biases
your own satisfaction
THE PROJECT FEASIBILITY STUDY

Feasibility Study
 Sometimes called a project study, it evaluates the viability of a
business undertaking.
 The objective is to guide the project promoters, business
executives, and financial managers in determining the actions
they must take on a project in order to bring about its successful
operation.
 The preparation of study covers:
1. Collection of data
2. Analysis of the collected data
3. Formulation of recommendations based on the analysis
VARIOUS ASPECTS OF PROJECT FEASIBILITY STUDY

Marketing Aspect
determine the quantity of the product that can be sold at a
certain price given the competitive situation
Organizational and Management Aspect
determine the effectiveness of the organizational set-up and the
qualifications of the individuals who will make up the organizations.
Technical Aspect
determine to what extent the project meets the technical
soundness criteria.
Financial Aspect
determine cost, capital and earning performance
Socio-Economic Aspect
determine social and economic benefits
THE ENTREPRENEUR AND THE MANAGER

Entrepreneur
 Conceives an idea out of his own visualization then turn the idea
to reality.

Manager
 Usually employees in the business enterprise, though some may
become shareholders or partners
POSITIVE VALUES OF A FILIPINO ENTREPRENEUR

1. PAKIKIPAGKAPWA TAO
 covers concern for:
hiya = loss of face
pakikisama = togetherness
pakikibagay = adjusting or adapting to other people
malasakit = concern
utang na loob = debt of gratitude
amor propio = self esteem
bayanihan = cooperative spirit
 a value favorable to entrepreneurship because it is against
any form of exploitation. Entrepreneur does not cheat his
customers
POSITIVE VALUES OF A FILIPINO ENTREPRENEUR

2. BAHALA NA
 in situations where we are not sure of our ability to accomplish
things, we let the fate decide the outcome and do the best we can
believing that GOD has a compassion

3. PAKIKIPAGSAPALARAN
 risk-taking

4. GAYA-GAYA
 inclination to learn and adjust to new ways

5. UTANG NA LOOB, HIYA, AWA, BAYANIHAN

 support
POSITIVE VALUES OF A FILIPINO ENTREPRENEUR

6. KASIPAGAN

7. PAGTITIPID

8. PAGTITIIS

9. PAGTITIMPI

10. KATAPATAN