ORGANIZATION AND MANAGEMENT

BUSINESS ENVIRONMENT

Jack Welch, former CEO of General Electric, once said, “If the rate of change from within the
organization is not as fast as the rate of change outside, then the end is near”

A. LOCAL BUSINESS ENVIRONMENT

Local business is driven by specific local conditions and market characteristics. At the local level,
the business must compete for employees, resources from suppliers at a competitive price, local advertising
and marketing channels.
The Philippines economic freedom is 57.1, making its economy the 107th freest in the 2012 Index.
The Philippines business environment, according to a researcher, is characterized as having a boom and bust
cycle. In spite of this situation, there are still large conglomerates such as those owned by Taipans Henry
Sy, Lucio Tan, John Gokongwei, George Ty, and the Ayalas, the Lopezes, among others, who have huge
resources have the flexibility to maneuver and seize opportunities quickly.

B. INTERNATIONAL BUSINESS ENVIRONMENT

The international business environment is the environment outside the Philippines and in different
sovereign countries, with factors that are distinct to the home environment of the organization and the
foreign country where the organization operates.

C. PESTEL ANALYSIS

Using the PESTEL Analysis, organizations will have a more organized and exhaustive manner of
analyzing the external factors that affect their businesses, including the determination of their impact as well
as inherent risks involved.
Political, Economic, Technological, Environmental, Legal

ACTIVITY NO. 1

Name: _____________________________________________ Yr & Sec: ________________

GENERAL INSTRUCTION: Answer each of the following questions correctly. Keep this activity sheet clean.

I. Identification
1) Who once said that “If the rate of change from within the organization is not as fast as the rate of change
outside, then the end is near”?

2) Media views, company/ technology image are examples of what kind of PESTEL factors?

3) It is the environment outside the Philippines and in different sovereign countries.

4) Current and future legislation are examples of what kind of PESTEL factor?

5) Who are the owner of the businesses in the Philippines that can withstand the major shocks and that are
flexible to maneuver and seize opportunities?

II. Analysis/ Reflection: Keep your answers brief. You can give examples. (5 pts each)
1) What do you think is the meaning of “the end is near” of former CEO’s statement?

2) If you are a small entrepreneur of a seasonal product (e.g. ice cream, ..) how will you cope up with
Philippines weather?

3) How does inflation affects businesses?

 ORGANIZATION AND MANAGEMENT
GOAL-SETTING PROCESS (PLANNING)

G “which stands for Goal-setting is the first stage of the management cycle. Goals are derived
from a sound and clear understanding of the vision and mission or purpose of the organization.

A. VISION, MISSION, AND VALUES

To be an effective leader/ manager of a business, he/she should ensure that his/ her personal vision,
mission, and values are aligned to those of the organization.
a. Vision
It is a commonly shared picture of what the organization wants and is committed to become
sometime in the future.
b. Mission
It is an enduring statement of purpose of an organization’s existence that distinguishes itself from
others.
c. Values
Values are fundamental and shared beliefs that will provide the organization’s behavior in
meeting its objectives and in dealing with others.

B. SWOT ANALYSIS

It stands for “Strengths, Weaknesses, Opportunities, and Threats”. It is a powerful planning tool.
 Capitalize on Strengths
 Reduce Weaknesses
 Use Opportunities
 Neutralize, Convert Threats into Opportunities

C. BALANCED SCORE CARD

The balanced score card must summarize the results of the SWOT Analysis from four perspectives:
the owner, customers, employees, and the store operations.

D. FOUR STEPS IN GOAL-SETTING

a. Data Gathering and Synthesizing Information

b. Formulating Alternatives
c. Deciding on Courses of Action
d. Establishing Goals
SMART – Good goals should be Specific, Measurable, attainable, Results-focused, and Time-
bound.
KRA’s – Key Result Areas. This can give focus and clarity to direction and efforts.

ACTIVITY NO. 2

Name: _____________________________________________ Yr & Sec: ________________

GENERAL INSTRUCTION: Answer each of the following questions correctly. Keep this activity sheet clean.

III. Identification
1) What are the four steps involved in goal-setting (planning)?

2) What is the meaning of SMART??

3) What are KRAs?

4) Who must make/create the vision, mission statement of an organization or business?

5) What is Balanced Score card?

IV. Analysis/ Reflection: Keep your answers brief. You can give examples. (5 pts each)
6) What is the importance of learning about vision, mission, and values?

7) How will you convert threats into Opportunities? Give example.

8) You are a new graduate of K12 and your parents cannot send you to college. An uncle of yours who just
retired from the government service heard about your having learned Modern Management and
Organization in Senior High School. He talks to you and asks you to help him put up a Karaoke Bar at your
Libmanan Centro. Because he is already sickly, he said he will rely on you completely to do the planning
and he is thinking of appointing you as the manager of the business. Excited about the offer, you tried
recalling how you might apply the initial steps in planning and goal-setting based on the GEMS concept. (10
points)