Name : Raymart S.

Iringan STEM 12-1

The business environment has a wide array of influences that either directly or indirectly affect
it’s performance and decision making as a whole. Therefore, these should be critically analyzed by
keeping in mind the various factors through calculating the risks you will take as an entrepreneur.

Consequently, the Industry environment are the forces that cannot definitely be controlled but
may have a very significant impact. Moreover, by knowing these factors, it will allow the entrepreneur
itself to adjust by acting or reacting in accordance to the situation he is in.

The business where I applied these concepts is A Gas Station

The Industry Environment

Government- It handles the system and differs for every country you live in by providing
proper information about the guidelines
Application: The tax collection appropriate for the size of your business is provided by the
Bureau of Internal Revenue or the Department of Trade and Industry if your business is
producing goods.
https://www.bir.gov.ph/index.php/registration-requirements/primary-registration/application-for-
tin.html
Customers – Are the consumers of not only the goods but also the services, customers make
the possibility of running the economy to fulfill their adequate need or want. The customers are
the basis of who will consume your product and how would you continue to improve your
product for the customers to come back or even add. These is the primary subject for profit
generation as demand increases .
https://www.investopedia.com/terms/c/customer.asp
Suppliers- They provide the raw or fundamental materials you need to continuously run your
business by outsourcing other companies by getting what’s necessary to fulfill the demand.
Application: A gas station would not continue to run if the supply of the gas itself is not
sufficient , therefore without supply, it will critically impact and cause a chain reaction to your
business.
Employees- the essential work force that does daily tasks to achieve a certain goal in the future
of your business. Comparing it to the human body, it’s the blood of your business especially if
you are running a corporation.
Application: All tasks necessary in my given business will not be accomplished in a short
amount of time without adequate man power, There is a line of cars needing fuel, can you
supply the demand needed? essentially No, since gas stations are not really automated and
cannot plug the pumps by themselves.
Creditors- In simple words, this is the Kickstarter on your business since you cannot continuously run
your business without it. But in exchange, there is a specific interest in the financial aid when you repay
it back at a certain amount of time. Failure to do so will lead you to loss of money.

https://www.bdo.com.ph/personal/remittance-services/personal-loan/overview

Application: This is specially found at situations where you are just starting your business, I
would like to franchise a gas station to an area with rapidly growing number of vehicles but have
insufficient funds, therefore I will consult a creditor.

Competitors- One who offers similar products or services, this cannot be viewed negatively or as a
hindrance because competition is always natural and cannot be prevented. Competition always brings
the drive for innovation.

Application: There are large variety of companies that also offer fuel. What do we do? We raise
the competition by continuously improving the quality and price of fuel in that certain area by adjusting
different factors in your business by showcasing uniqueness and advantage.