SOCIO-

ECONOMIC
IMPACT STUDY
CHAPTER 4
 OBJECTIVES:
✗ Identify and explain the various
socioeconomic factors affecting business
and industry

✗ Analyze and evaluate the viability of a

business and its impact on the community

✗ Formulate recommendations and strategies

on how to minimize and maximize a
business negative impact and positive
impact, respectively 2
SIGNIFICANCE OF CONSUMER BEHAVIOR
IN BUSINESS
The consumer is the person who
buys the product business offers for sale.
Knowing how consumer satisfaction is
maximized will help a business in always
keeping the consumer’s welfare the
topmost priority.

3
THE PRODUCTION THEORY
PRODUCTION refers to the use of economic
resources to create goods and services that
will be used to satisfy human wants.

INPUT refers to the resources used to

produce goods and services.

OUTPUT refers to the product created as a

result of the combination of input in the
production process.
4
 SOCIO-ECONOMIC IMPACT OF A
BUSINESS:
Impact on the consumer
✗ A new business, especially one that is
innovative and focused on bringing
some new product or service to the
market, is always welcome to the
consumer who is looking value for his
money.

5
 SOCIO-ECONOMIC IMPACT OF A
BUSINESS:
Impact on the suppliers and investors
✗ A new business will also provide opportunities for
suppliers and investors.

✗ Many suppliers will now get a chance to sell to the newly

established business, which means income for them.

✗ Investors get to earn returns to their investments, with

capital plowed back into more investments and
generating more income for the economy.

6
 SOCIO-ECONOMIC IMPACT OF A
BUSINESS:
Impact on the Government
✗ The government will also benefit from
the establishment of new businesses,
through revenues earned on fees
collected from them and on taxes
imposed on the incomes of the
businesses.

7
 SOCIO-ECONOMIC IMPACT OF A
BUSINESS:
Impact on the households
✗ New businesses mean employment opportunities
for the Filipinos.

✗ Those who have jobs but are earning low-wages may

find better paying jobs with the new companies.

✗ Unemployed workers looking for work may have the

chance of being employed by these companies.

8
 SOCIO-ECONOMIC IMPACT OF A
BUSINESS:
Impact on the community
✗ Corporate Social Responsibility (CSR) has
become a growing trend among businesses
today.

✗ As a result of this, corporations and even small

businesses have increased their focus on projects that
provide scholarships to poor but deserving students,
allocating budgets for housing for low-income families,
like Gawad Kalinga.
9
BUSINES
S
ICONS

10
 PHILIPPINE BUSINESS ICON:
MANUEL V. PANGILINAN
✗ he was the 39th richest man in
the Philippines with a net worth
of US $39 million.
✗ He put up First Pacific Group, the
chairmanship of the PLDT as well
as of the Metro Pacific
Investments Corp. and the Smart
Communications, Inc.

11
 PHILIPPINE BUSINESS ICON:
Soccoro Ramos
✗ She was the 30th richest filipino
entrepreneur in the philippines
with net worth of $250 million as
of June 2012.
✗  founder of National Bookstore

12
 PHILIPPINE BUSINESS ICON:
Cecilio Kwok Pedro

✗ founder of Lamoiyan Corp.

(Hapee toothpaste)

13
 PHILIPPINE BUSINESS ICON:
Henry Sy
✗ founder of SM Group and
chairman of SM Prime Holdings,
Shoe Mart (SM)

14
 PHILIPPINE BUSINESS ICON:
Alfredo M. Yao
✗ Founder of Zest-O Corp (Zest-
O) .

15
 GLOBAL BUSINESS ICON:
Bill Gates
✗ Born in 1955, relatively young
entrepreneur Bill Gates founded
the world’s largest software
business, Microsoft, with Paul
Allen, and subsequently became
one of the richest men in the
world.

16
 GLOBAL BUSINESS ICON:
Indra Nooyi
✗ Forbes 100 Most Powerful
Women
✗ PepsiCo

17
 GLOBAL BUSINESS ICON:
Larry Page
✗ Larry Page is the co-founder of
Google, the world's number one
search engine and one of the
largest companies in history by
market cap.

18