Social

1. Growing Demand for products and services to maintain social status in emerging markets with growth
of economy also comes the growth in living standards of the people of the country. People of Philippines
will have more purchasing power with increase in their income, with the rise in income also rise the
need to maintain and showcase the status to the society. Almost all of ayala business ventures will come
in handy to fulfil this need. For example real estate, automotive sector, banking, Utilities all these would
help in fulfilling the demand of the citizen Philippines

2. Growth prospects are subjected to certain downside risks: looking from external front increasing
global interest rates could weaken the Philippine currency peso, and this could adversely affect capital
inflows to the Philippines resulting in surge of domestic inflation. Global crude oil prices are expected to
rise in 2017, which could also increase inflationary pressures. Hence, there are chances that Ayala
Corporation may have to cope up to decrease in demand due to higher inflation rates, so proper
mitigation strategy and implantation on this front becomes a necessity for the company.

Political

1. After effects of Trumps policies: After having put behind the times of dictatorship, and now living
under the federal government, Philippines have seen good years of political stability in the past few
years. Philippines have been successful in providing a positive political atmosphere under the leadership
of President Rodrigo Durterte. However, post the election of Donald Trump as the US president there is
fear that Trumps Trade and immigration policies could weaken the economy of Philippines. The
merchandise trade has experienced minimal affect as the Philippines export to US is very less. But
Philippines service export has had to bear brunt of Trumps protectionist policies. The BPO companies
which were mostly serving the US firms, have seen a gradual decline in their revenue with many US
client preferring to not extend their contract with the Philippine companies. The scenario for
manufacturing sector is still good and is expected to remain healthy due to president Duterte policies on
promoting the sector. Ayala Corporation has not been affected too much after trumps election which
could be attributed to their readiness to take on all possible contingencies.