Comparative

Environment
Frameworks
RYAN ANTHONY MANUBAY FREDDIE C. MERO, PhD
Reporter Professor
 A comparative environment
framework can help analyze the
business environment in the
Philippines compared to other
countries or regions. This framework
involves assessing various factors that
impact businesses.

This framework is used to

compare the business environment in
the Philippines with other countries or
regions, helping businesses make
informed decisions about market entry,
risk management, and strategic
planning.

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1. Economic Factors:

•GDP and Growth Rate: Compare the Philippines' GDP

and economic growth rate with target markets.

•Inflation Rate: Analyze inflation rates and their impact on

pricing strategies.

•Exchange Rates: Assess currency stability and

exchange rate risks.
2. Legal and Regulatory Environment:

•Business Regulations: Compare ease of doing

business rankings and regulatory burdens.

•Legal System: Understand the legal system, contract

enforcement, and property rights protection.

•Taxation: Analyze tax policies and incentives for

businesses.
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3. Political Environment:

Political Stability: Assess political stability and the

risk of political disturbance

Government Policies: Evaluate government policies

and their potential impact on businesses.
4. Market and Consumer Behavior:

•Market Size and Growth: Compare the size and potential growth of the Philippine market
with others.

•Consumer Behavior: Understand consumer preferences, purchasing power, and behavior.

5. Infrastructure and Technology:

•Infrastructure Quality: Evaluate the quality of transportation, communication, and

logistics infrastructure.

•Technological Readiness: Assess the level of technological adoption and

innovation.
6. Cultural and Social Factors:

•Cultural Sensitivity: Understand cultural norms and

values that may impact marketing and operations.

•Workforce Skills: Compare the skills and education levels

of the Philippine workforce with target markets.

7. Environmental and Sustainability Factors:

•Environmental Regulations: Analyze environmental regulations and sustainability initiatives.

•Consumer Preferences: Consider consumer demand for sustainable products and practices.

8. Market Entry and Competition:

•Barriers to Entry: Identify market entry barriers and competitive landscape in the Philippines.

•Competitor Analysis: Analyze the presence and strategies of local and international
competitors.
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9. Risk Factors:

•Currency Risk: Evaluate currency exchange rate risks and hedging strategies.

•Political and Regulatory Risks: Assess political and regulatory risks that may affect
business operations.

10. Future Outlook:

•Economic Forecasts: Consider economic growth projections and emerging market trends.

11. Industry-Specific Factors:

•Consider industry-specific factors relevant to your business, such as sector regulations,

supply chain dynamics, and consumer trends.

12. Legal and Ethical Considerations:

•Understand local laws, customs, and ethical norms that may affect business practices.
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13. Market Research and Surveys:

• Conduct market research and surveys to gather specific data and insights about the
Philippine market and target regions.

14. Expert Consultation:

• Seek advice from local experts, industry associations, and government agencies for in-
depth insights.

By using this comparative environment framework, businesses can make data-

driven decisions when expanding into or operating within the Philippine market and better
understand how it compares to other potential markets.

This framework should be adapted to specific industries and businesses, as

different sectors may face unique challenges and opportunities. It's essential to conduct
thorough research and gather up-to-date data to make informed decisions about market
entry, expansion, and risk management in the Philippine business environment compared
to other potential markets.
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