RIZAL TECHNOLOGICAL UNIVERSITY

Boni Ave., Mandaluyong City

College of Business and Entrepreneurial Technology

REPORT SUMMARY

CHAPTER 14 - (Survival and Growth of the Enterprise)

GROUP 12

NAME: SANTOS, ANDREW MIGUEL L. DATE: JUNE 8, 2020

SECTION: CBET- 01- 401A PROFESSOR: MS. ROLLYN TOLIVER

Business environment is dynamic, where it is evolving over time. It is more of survival

because a business venture must adapt quickly to its changes in order to attain its growth and
maturity. Business owners and managers have a great control over its decision making especially
in policy-making and day-to-day operations. In a simplest term, an owner can manipulate or
dictate its pacing to its internal environment because such environment is controllable factor.
However, in terms of external environmental condition it is way beyond control of the
management because such factor is considered as non-controllable circumstances. An efficient
and effective business venture must continuously to study its environment in order to maximize
its flexibility and adaptability. As a matter of fact, the environment that the business lives in is
together with physical, technological, socio-cultural, demographic, political, governmental,
environmental and economic influences will affect the survival and growth of the enterprise.

One of the external factors that affects the business growth is operating environment
because a business enterprise is constantly moving with its customers, retailers, suppliers, public
and its competitors. It is considered as an ‘eco-system’ of business environment where interaction
consistently exists and making an active business activities. One of the success of business
enterprise is creating a good relationship with its supplier, actually they can offer a trade and cash
discount in order to lower your cost of goods sold and producing a higher net income.
Furthermore, the reason why business venture was existing is because of the customers, that’s
 RIZAL TECHNOLOGICAL UNIVERSITY
Boni Ave., Mandaluyong City
College of Business and Entrepreneurial Technology

why it is appropriate to create healthy relationship with them so that they will promptly patronize
your products. At the other hand, competition in the market makes your business maximize its
strength and identify its weakness, in order to attain its stability and durability.

Secondly, Macro environment or simply as economic condition can also a big impact to
its business enterprise. National government is always tied up with business ventures because
they are both involved with economic development. Uncertainly, some economic policies cannot
adapt by just an ordinary entities like MSME’s that’s why it can be a threat or opportunity
depending on its nature. An active business environment can boost our GDP (Gross Domestic
Product) from that way it can employ work opportunities, however during this crisis the downfall
of our GDP is a big challenge for every entrepreneur and it creates a huge loop-hole for business
setting.

Next, Natural environment is about the weather and climate condition that can affect the
business enterprise. Most of business enterprise use this as an advantage to produce a product or
services that is appropriate to weather condition. At some point, natural disasters is way beyond
control of the management that’s why it is a problem for an entrepreneur on how to cope up with
it.

Then, Socio-cultural environment was need to consider by the management because as

we all know, we are having different cultures that’s why that culture must not turn into
discrimination. The management must respect its employees from culture that he or she lived in,
in order to have harmonious work-place and contribute meaningfully for the company’s
development.

Moreover, Technological environment is one of the crucial external forces that creates an
impact to business venture. As of a matter of fact, we are living in this modern world therefore
every business enterprise must know how to adapt the changes unless your business will be left
 RIZAL TECHNOLOGICAL UNIVERSITY
Boni Ave., Mandaluyong City
College of Business and Entrepreneurial Technology

behind. To increase its revenue, it’s important also to increase your production, man-power is not
enough to supply the needs for production that’s why it is efficient enough to adapt technological
advancement in order to generate more profit although there is a huge costs of it.

Another thing, Demographic environment is also need to consider in order to study the
market. Demographic information such as age, gender, family size, education and preferences are
need to know by entrepreneur because from that way he or she can research about the behavior
of the market and what strategies to formulate in order to capture it.

In addition, Political and regulatory environment is one of the external factors that
influence every business enterprise. Our national government has a power to impose taxes,
regulations and pronouncement in terms of business. As we all know organizational costs
incurred which includes taxes, registering our business and etc. can also affect our net income,
that’s why there must be just and equitable regulation about it.

Finally, International environment is also belong to the external factors because we are in
the world of globalization. Where our national government continuously making efforts to
coordinate with associations and unions just like ASEAN in order to foster the growth of our
business enterprise and to adapt the new business model that is applicable to its ever changing
business environment.