Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Business Administration Major in Business Management
By:
Adora, Jason Earl M.
Balajadia, Princess Alice V.
Dayrit, Lancel Kate D.C.
Galang, Gherome D.
Manalang, Orven Jefti T.
December 2018
STRATEGIC MANAGEMENT PLAN FOR AGTANG GENERAL MERCHANDISE
1. Economic
Many economic factors affect retail sales which can have a positive or negative
impact on businesses. The state of the economy decides the type of impact economic
factors have on retail companies. The economy consistently faces factors that can change
affluent middle-class, and high consumer confidence are combining in the Philippines to
create one of the most robust retail sectors in South-east Asia. With the Philippines‟
growing population now exceeding the 100m mark, 6.6% GDP growth in 2016, lower
inflation rates and a healthy consumer-driven market, the country presents significant
opportunities for retail products and services for both well-established domestic players
The tangible effects of these positive growth factors have resulted in Philippine
retail sales spiking 10.6% year-on-year in the first half of 2016, a significant jump from
the 6.9% growth experienced during the first half of 2015, according to data from the
Philippine Statistics Authority (PSA). Wholesale trade also edged upward over the same
period, up 8.6% compared with the 7.7% growth registered the previous year. Retail and
wholesale sales for the first six months of 2016 totalled P928.6bn ($19.6bn) and
Laws, regulations and other government policies can have a number of positive or
loans and subsidies, can help fledgling retailers grow or allow an established company to
keep costs low for consumers. However, government policies can also hinder businesses
by imposing regulations that increase costs, like requiring the development and integration
of new systems or procedures or establishing a minimum wage that small retailers may not
be able to afford. The retail industry also relies heavily on governmentsupported road and
(Treadwell, 2018).
Republic Act 8762, otherwise known as the Retail Trade Liberalization Act, is a
law that intends to promote both Filipino and foreign investors to forge efficient and
competitive retail trade in the interest of empowering the Filipino consumer through lower
prices, higher quality goods, better services and wider choices. Retail Trade is the act,
commodities or goods for consumption. Under Section 4 of the said law, a natural born
citizen of the Philippines who has lost his Philippine citizenship but who resides in the
Victorino Abrugar, an entrepreneur, wrote an article and listed some of the laws
Tax Reform Act of 1997 or Republic Act No. 8424 which amended the National
Internal Revenue Code (NIRC) is the law that governs the national taxation in the
STRATEGIC MANAGEMENT PLAN FOR AGTANG GENERAL MERCHANDISE
The Local Government Code of the Philippines or Republic Act No. 7160 is the
law governing local taxation in the Philippines, including the taxation on real
properties.
Labor Code of the Philippines (Presidential Decree No. 442) – is the law that
Intellectual Property Code of the Philippines or R.A. 8293 is the law that governs
The Corporation Code of the Philippines or B.P. 68 is the law that governs the
Social Security Act of 1997 or R.A. No. 8282 is the law that mandates employers
to register their business and their employees with the Social Security System
(SSS).
National Health Insurance Act of 1995 or R.A. No. 7875 is the act that mandates
employers to register their business and their employees with the Philippine Health
Consumer Act of the Philippines or Republic Act No. 7394 is the law that protects
the interest of the consumers in the Philippines, promote their general welfare, and
An archipelago state which is home to more than 100 million people, the
Generally speaking, Filipino consumers still make use of the informal sector, mainly in
the form of sari-sari stores (small neighbourhood stores), to shop for groceries and
personal care products. Sari-sari stores offer low prices and a greater degree of
spending, which was felt across all retail channels. 2017 was a good year for retailing in
the Philippines, as the majority of key players increased their outlets and sales, brands
emerged to provide more options for Filipinos, and companies continued to improve the
3. Technological
It might be unclear how technological factors can directly affect business, unless
you take a step back and look at all of the technology that was used in day-to-day life.
Think about the machines which are used to print on the t-shirts you buy, the computer
servers which are used to keep up the website(s) you own, or the fuel used to power the
car(s) you drive. Technology hugely dictates the way many things are done, in business or
speed/power, the ability of computers to create truly „random‟ numbers, engine efficiency,
4. Environment
small, is affected not only from internal organizational factors but, from several external
market trends and environment can be presented and to understand as to where the
there are unsuccessful marketing and lost revenues which can ultimately impact the health
Increasing issue of global warming and adverse weather conditions in the recent few years,
it is difficult for companies and organizations to operate equally in every type of weather
condition. Directly dependent businesses upon adequate water supply e.g., field sports or
Even consumers are becoming aware and keen about this factor and are prone towards
those brands which are saving the environment or supporting this cause.
STRATEGIC MANAGEMENT PLAN FOR AGTANG GENERAL MERCHANDISE
Pollution can also have an impact over business strategies. Pollution may cause
some major environmental events which can result in the disruption of supply chains or
an increase in the cost of raw material. Organizations need to monitor such events and
has an effect on businesses and the market environment. Now enterprises have realized
Green agenda is a plan where enterprises manage their operations in such a way so that
operations and activities which is beneficial not only company but, for the overall
environment as well.
Environmental policies are another external factor that can impact the strategy of
as well as other policy mechanisms that are concerned with environmental issues.
Environmental policy impacts businesses because the law implies organizations to change
their operational procedures and equipment so as to meet those standards which can cost
factor refers to the physical environment of a business. Natural resources are very
important for most businesses and many corporations have natural resources as their major
raw material. Lack of natural resources can hinder an organization‟s producing ability and