Vous êtes sur la page 1sur 19

Applied Economics

CHAPTER 3
Industry and
Environmental Analysis:
Business Opportunity
Identification
LESSON 3.7
Competitiveness
and Efficiency
Chapter Learning Objectives
• To identify principles and tools in creating a
business
• To apply SWOT analysis as a tool in evaluating
a business opportunity
• To understand that Porter’s Five Forces of
Competitive Position Analysis can be applied as
a tool in evaluating a business opportunity
• To analyze the activities in the circular flow of
economic activity in an effort to relate the
concept to the putting up of a business
Chapter Learning Objectives
• To make a simple industry analysis
• To identify the factors which are taken into
account in an environmental analysis
• To describe the economy’s three main producing
sectors and show how important they are in
making a choice of what business to establish
• To state the importance of competitiveness and
efficiency in the economy
Chapter Learning Objectives
• To explain the value of international trade in
how one can set up a business
• To show the role tourism plays in the economy
and how it can be utilized as business
opportunity
• To identify and assess small business
opportunities
Terms to Remember in
Chapter 3
• Business • Cooperative
• Industry • Micro business
• Competition • Small scale business
• Target market • Medium scale business
• Suppliers • Large scale business
• Distributors • SWOT Analysis
• Exports • Porter’s Five Forces of
• Imports Competitive Position
• Sole proprietorship Analysis
• Partnership • The Circular Flow of
Economic Activity
• Corporation
• Physical flow
Terms to Remember in
Chapter 3
• Financial flow • Service sector
• Household • ASEAN
• Business firm • Infrastructure
• Raw materials • Liberalization Policies
• Intermediate goods • Policy
• Final goods • Productivity/Efficiency
• Industry analysis • Technology
• Environmental analysis • Tourist
• Agriculture, Fishery and • Tourism
Forestry sector
• Industrial sector
The Philippines’ Global Competitiveness

Factors for Global Competitiveness Index


The Philippines’ Global Competitiveness
What is the standing of the Philippines versus her
East Asian neighbors in terms of labor efficiency?

Labor Efficiency of East Asian Countries in 2009


The Philippines’ Global Competitiveness
The country’s main producing sectors ‒
AGRICULTURE, INDUSTRY, and SERVICE ‒
also struggle with one another as they
compete for the use of local resources.

Sectoral Shares Output Sectoral Shares Employment


(2013) (2013)
The Philippines’ Global Competitiveness
Here is a graph showing the comparative efficiencies
of the country’s main producing sectors.

Sectoral Productivity (2008)


The Philippines’ Global Competitiveness
In AGRICULTURE and FISHERY…

 These combined industries are the least competitive despite the


country’s natural resources mainly due to human factors affecting
efficiency, as well as the uncontrollable nature occasionally
disrupting production and causing damage to crops.
 Moreover, socio-economic and governance factors, made worse
by liberalized trade, explain why the country’s the agriculture
industry lacks the technology, skills, market competition, and
even credit enabling efficiency to be at least self-sufficient in
food.
 The same socio-economic and governance factors limit efficiency
in the fishery sector that it can hardly produce a surplus for
export.
The Philippines’ Global Competitiveness
In MANUFACTURING…

 The manufacturing industry is hardly competitive even in the


ASEAN region due to limitations of size and structural support,
which smother manufacturing efficiency especially of the
technology and skills to grow and compete in a global context.
 The industry lacks government support to deepen technology and
production, so that the fewer enterprises of much larger scale are
into the final production stages of electronics, machineries,
chemicals, petroleum, and garments.

 Lack of government support fails to challenge micro enterprises


to grow toward higher technology and creativity levels.
The Philippines’ Global Competitiveness
In TRADE and TRANSPORT…

 The trade industry supported by the transport industry is also


handicapped by the limited size of its establishments.
 On top of the limitation of size in the trade industry, 30% of trade
establishments crowd in Metro Manila serving only 13% of the
country’s population.
 Separating the transport industry from trade, we will also see that
the fair majority of the businesses are also micro in scale, like
land transport and transport support services, which also crowd
in the National Capital Region.
The Philippines’ Global Competitiveness
In INTERNATIONAL TRADE…

 Electronic products hardly contribute to local output and


employment being import-dependent and without much need for
technology.
The Philippines’ Global Competitiveness
In TOURISM…

 Although tourism is an emerging industry as expenditures of foreign tourists


on related services such as hotels and restaurants, transport and
entertainment grew by 29% in 2012, the truth is that the country lags behind
even in the ASEAN region as a tourist destination with a minimal share in
total tourist arrivals.

Tourist Arrivals per 100 Population (2011)


The Philippines’ Global Competitiveness
But there are opportunities in SMALL BUSINESSES.

 For small farmers and fishermen:


• They can tap urban consumer markets and distribution
centers with cooperative efforts to minimize the impact of
limitations of size and inadequate farm-to-market facilities.
• They can engage in the cooperative activities not only of
sharing/collectively owning resources to preserve freshness
or delay perishability of goods at lower cost.
• Collectively, they can gain direct and faster access to market
networks to command higher product prices as well as
cheaper production input.
• They can access credit for expansion on collective credibility.
The Philippines’ Global Competitiveness
But there are opportunities in SMALL BUSINESSES.

 The country’s growing population also affords cooperating micro


enterprises in the manufacturing, trade, and transport of new
consumer markets for growth and expansion.
 In the tourism industry, micro businesses can help maximize
tourist arrivals and destinations with timely support and
substitute services for big establishments strengthened by
cooperative efforts.

Vous aimerez peut-être aussi