The Local andInternationalBusinessEnvironment in theFirm

By Pearl Miumi Asato Salvador

WHAT IS A BUSINESS ENVIRONTMENT?

•
B u s i n e s s o p e r a t e s w i t h i n a c o m p l e x n e t
w o r k o f p o l i t i c a l , l e g a l a n d i n s t i t u t i
o n a l f r a m e w o r k c o n d i t i o n s -
t h e " s o - called"businessclimate.
•
T h e d e f i n i t i o n o f b u s i n e s s e
n v i r o n m e n t m e a n s a l l t h e i n t
e r n a l a n d e x t e r n a l f a c t o r s t h a t a f f e c t h
o w t h e c o m p a n y f u n c t i o n s i n c l u d i n g e m
p l o y e e s , c u s t o m e r s , m a n a g e m e n t , s u p p
l y a n d d e m a n d a n d b u s i n e s s r e g u l a t i o n s .

WHY STUDY BUSINESS ENVIRONTMENT?

•
Development of broad strategies to ensure
sustainability
•
To foresee the impact of socio-economic
changes at the national and international
levels on firm’s ability
•
Analysis of competitor’s strategies and
formulation of effective counter measures

A conducive local business climate reduces the costs ofdoing business, unleashes economic
potential and attractsinvestment. In contrast, if the local business climate isshaped by
problematic governance patterns, politicalguidelines, laws and regulations and
ineffectiveadministration, private and public sector pay enormousand unnecessary costs with
negative impact on economic
THE LOCAL BUSINESS ENVIRONTMENT
THE PHILIPPINE BUSINESSENVIRONMENT
•
Philippines imposed foreign ownershiprestrictions.
•
17 procedures and 80 days to establish foreign
owned business.
•
Constitution prohibits foreign companies from
buying land.