College of the immaculate conception

Cabanatuan city
Graduate School – Masters in Business Administration

Final Examination

Philippine Business Environment

1st Semester 2020-2021

1.) Discuss the importance of assessing the business environment in terms of the
profitability of a certain organization.
2.) What is PESTEL analysis? Discuss its importance in terms of its application in planning
for the business enterprise.
3.) Discuss SWOT analysis. Prepare a SWOT analysis in your respective organization.
4.) Discuss current trend, issue or news and explain its impact to a certain organization.
(Example TRAIN law and its affects to Automobile industry) – Do not used this one.
5.) How would you assess the Philippine Business Environment nowadays? Use these
following factors:

a. Employment rate
b. Rules and Regulation perataining to business entities
c. Corporate income tax
d. Foreign rekation
e. Safety and security

Answers:

1.) The importance of assessing PBE in terms of profitability to a certain organization for
them to plan and foresee all the factors in establishing your business but most especially
on how your company to continue operations and to explore certain opportunities that
come to our way. Profit is the main objective of a business. Profitability is more
achievable if you are Assessing PBE.
2.) A PESTEL analysis helps an organisation identify the external forces that could impact
their market and analyse how they could directly impact their business. It’s important
when undertaking such an analysis that the factors affecting the organisation are not just
identified but are also assessed – for example, what impact might they have on the
organisation? The outcomes of a PESTEL analysis can then be used to populate the
opportunities and threats in a SWOT analysis.

PESTLE stands for:

Political-government
Economic-economy and its performance
Social-Emmerging Trends
Technological-Technological Innovation
Environmental-Surrounding Environment
 Legal-Legal and Allowed
3.) SWOT ANALYSIS is a technique used to determine a company’s Strenght, Weaknesses
Opportunities and Threats.

SWOT analysis on our Company

Strengths :
11 Years Experience
Well Known
Established Accounting Firm
Cater Other Provinces

Weaknesses:
Few Staffs
2 CPA only
Run by Family
Focus on BIR Clients

Opportunity:
Foreign Clients
Manila Clients
Online Client
Cooperative

Threats:
New Accounting Firm
Loss of Clients
Loss of Staff

4.) Pandemic
Private Educational Institution – many students are transferring from private to public
schools, due to this pandemic the world are facing now. Many private school losses 50%
of their students which results to closed their operation for this school year 2020-
2021.Private institution could not operate with the downfall of enrolees if this continuous
many more would follow.

5.) Employment Rate

With the pandemic employment rate are on the downfall especially in NCR and other
Province under stricter Quarantine Guidelines. I hope with the softening of the Quaratine
Guideline for other establishment it would star to Rise up.

Rules and Regulation

Duterte Administration is focusing on controlling the virus and are implementing stricter
rules and regulation pertaining to business establishment operation. Safety precautions
are always to be implemented.
Corporate Income Tax
With The TRAIN 2 lowering The corporate income tax in the Philippines it will encourage
new corporation to do business here in our country and to file the right taxes due to
lowered income Taxes.

Foreign Relation
Philippines has stron relation with china and other Asian country, even USA is saying
that they are here to support us despite Pres Duterte Moving Away from them.

Safety and Security

With the Fight against drug by Pres Duterte Administration I think this is a double edge
sword making the citizens uncomfortable and safe with this moement.