1

COURSE SYLLABUS

Course Number: L&S10

Course Title: Philippine Business and Economic Environment
Semester/School Year: 2nd Semester / School Year 2016-2017

Instructors and Schedules:

Cat No. Section Class Schedule Room Faculty Name Faculty Email
LS 10 A W 1300-1500 SOM 103 SANGUYO, CHERYL J. cheryl.bluechips@gmail.com
LS 10 B M-W 1000-1100 SOM 102 PUEN, DAVID ALLEN Y. dpuen@ateneo.edu
LS 10 C SAT 0900-1100 CTC 304 TAN, ROSS KENDRICK S. rosskendricktan@gmail.com
LS 10 D T 1000-1200 SOM 305 AZURIN, JULIO MIGUEL P. jazurin@ateneo.edu
LS 10 E SAT 1000-1200 CTC 404 BENEDICTO, VINCENT DANTE R. vincent_benedicto@yahoo.com
LS 10 F TH 1000-1200 SOM 104 SABUG, FRUCTUOSO T., JR. fsabug@ateneo.edu
LS 10 G SAT 0800-1000 CTC 206 LADABAN, JUSTIN ROBERT G. jrladaban@yahoo.com
LS 10 I SAT 1000-1200 CTC 206 PANGILINAN, AXEL C. axelpangilinan@gmail.com
LS 10 J W 1100-1300 CTC 203 INGCO, JULIO III S. julio.ingco.03@gmail.com
LS 10 K SAT 1000-1200 CTC 408 PUYAT, GENEVIEVE MARIE V. viapuyat@gmail.com
LS 10 L SAT 1000-1200 SOM 205 UY, BERNADEE C. bernadee.uy@gmail.com

A. Course Description
The course presents a broad and interdisciplinary view of the Philippine business environment, including the
issues and challenges facing it. The course introduces you to basic concepts of management and organization, the
external and internal environment of business organizations, changing the business environment, and the competitive
environment and analytical tools. Issues and challenges include business ethics, triple bottom line, and special
considerations in Philippine business climate. The course further provides a survey of the factors influencing business
decision making in the Philippines and a framework for environmental and industry analysis. You will learn about the
business environment by actually visiting and examining a firm and its industry in groups of five or six, and then
submitting and presenting your industry research study, analysis, and recommendations to a panel.
B. Course Objectives (LO)
By the end of the course, you should be able to explain the interrelations between business and the other
sectors of society; share your reflections on the current issues and challenges facing the Philippine business
environment; determine national and international trends that will have an impact on business and management in the
21st century; and identify potential opportunities for business which exist in various industries here in the Philippines.
Furthermore, you should be able to reflect on critical processes, as well as develop insights and personal vision,
particularly in view of the Ateneo LS vision.
C. Course Outline, Timeframe and Readings

Week Topics Readings/Handouts

#
A BIG WARM WELCOME  Handouts: Syllabus, Industry Study Guidelines, Methods of Data Collection, List
TO EVERYONE! of Marketing and Research Organizations;
Introduction & Course
1
Overview  Euromonitor GMID (free inside Ateneo) http://www.portal.euromonitor.
com/portal/server.pt?
2

Introduction:
 Management (Robbins & Coulter) Ch.1 Foundations of Management &
 Basic Management
Organizations (incl. Management History Module)
Concepts
2
 History of Management
 The Essential Drucker – Chapters 1,2,3
 Service Learning
 Management (Robbins & Coulter) Ch.2 Constraints & Challenges for the Global
Manager

The External & Internal  Collins, James and Jerry Porras, “Building Your Company’s Vision”
Environment @http://harvardbusinessonline.hbsp.harvard.edu/hbsp/hbr/ (or Ch.11 of book
 External & Internal by Collins & Porrras, Built to Last)
3 Environment
 Mission, Vision & Values  The Value Chain @
 The Value Chain http://www.fao.org/fileadmin/user_upload/fisheries/docs/ValueChain.pdf
http://edbarrows.com/Resources/briefs/ValueChain.pdf

 Handouts: Business Environment: Definition of Terms, Analytical Tools

 Management (Robbins & Coulter) Ch.7 Change & Innovation
The Changing Business
Environment:  Management (Robbins & Coulter) Ch.19 Appendix A - Managing
 Change & Innovation Entrepreneurial Ventures

 Introduction to  Principles of Entrepreneurship by U.S. Dept. of State/BIIP

Entrepreneurship http://www.ait.org.tw/infousa/zhtw/DOCS/enterp.pdf
4
 Analytical Tools:  Industry Life Cycle Analysis
 Industry Life-Cycle http://www.life-cyclemanagement.com/industry-life-cycle.php
Analysis http://www.enotes.com/small-business-encyclopedia/industry-life-cycle
 STEP-N

 Doing Business. WB 2012 Series: Economy Profile: Philippines

@http://www.doingbusiness.org/~/media/fpdkm/doing%20business/documen
ts/profiles/country/phl.pdf
The Philippine Business
 Doing Business in the Philippines 2014 by Quisumbing Torres
Environment
http://www.bakermckenzie.com/files/Publication/bf536345-2b7d-4221-a237
 Philippine
bb1a0a40661f/Presentation/PublicationAttachment/5e08e4a0-0f79-4487-
Investment Climate
8850-216c5a4a7703/bk_dbi_philippines_12.pdf
 Types of Business
 Doing Business in the Philippines by SGV& Co. @
Organizations
http://www.philippineconsulatela.org/Trade/01_Doing%20Business%20in%20t
he%20Philippines%202010.pdf
5  Small & Medium
Enterprise
 SMEs in the Phil. by Rhodora M. Leano @
http://www.cacci.org.tw/Journal/2006%20Vol%201/SMEs%20in%20the%20Phil
 Entrepreneurship
ippines.pdf
in the Philippines
 Success Factors Among Philippine Entrepreneurs by Munoz, Liao & Welsch.
Talk on CSR by League
Original paper submitted to the Annual Conference of the United State
of Corporate
Association of Small Business and Entrepreneurship (2005), Indian Wells,
Foundations
California, USA @
http://usasbe.org/knowledge/proceedings/proceedingsDocs/USASBE2005proce
edings-Munoz%2046.pdf
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 Market Structures or Models of Market Structures at

http://www.doge.us/govecon/MarketStructures.pdf
The Competitive
Environment  Supply & Demand/Market Analysis
 Market & Industry http://www.enotes.com/business-finance-encyclAnslysis opedia/supply-demand
Structure http://www.bized.co.uk/learn/economics/markets/mechanism/interactive/part
1.htm up to part3.htm
 Competing by
Cooperating  Porter. “The Five Competitive Forces that Shape Strategy.” Harvard Business
Review. Jan. 2008
6
 Analytical Tools
 Supply & Demand  Porter’s 5 Forces http://www.quickmba.com/strategy/porter.shtml
Analysis
 SWOT Analysis  Book : Executive Economics by Shlomo Maital, Chapter 10 – Industry
 Porter's 5 Forces Convergence & “Coopetition”
 Key or Critical Success
Factors  Critical Success Factors (KSFs)
http://www.mindtools.com/pages/article/newLDR_80.htm

7 Long Test #1
 Management (Robbins & Coulter) Ch. 3 Global Management

 Porter’s Diamond – Determining Factors of National Advantage

Special Topics on the
http://www.themanager.org/pdf/diamond.pdf
Philippine Business &
Global Environment
8-12  Poverty, corruption, rent-seeking, social entrepreneurship, natural environment,
(w/ Group
Porter’s Diamond, ASEAN Economic Community 2015, corporate social
Reports/Presentations)
responsibility

 Additional readings to be announced by the professor.

INDUSTRY TOUR –
Industry Tour (required activity w/ a report to be submitted/presented and
13 Feb 6, 2017 (Monday)
discussed in class afterwards)
President’s Day
Corporate social
responsibility, corporate  Management (Robbins & Coulter) Ch. 5 Social Responsibility & Ethics w/
14
governance, business Additional readings to be announced by the professor.
ethics
15 Integration/Long Test #2
Industry Study Group
15-17 Panel Presentations
Presentations

D. References
1. ______, Doing Business 2015: Philippines- Going Beyond Efficiency. IFC/World Bank. 2015. pp. 1-95
(downloadable in pdf file from http://www.doingbusiness.org)
http://www.doingbusiness.org/~/media/giawb/doing%20business/documents/profiles/country/PHL.pdf
2. ______, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises.
Comparing Regulation for Domestic Firms in 189 Economies. 11th edition. IFC/World Bank. 2012.
(downloadable in pdf file from http://www.doingbusiness.org)
http://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/Annual-
Reports/English/DB14-Full-Report.pdf
3. ______. Human Development Report 2011: Sustainability and Equity: A Better Future for All. UNDP 2011.
(downloadable from http://www.undp.org.ph/)
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4. ______. Philippine Development Plan 2011-2016. NEDA 2011. http://www.neda.gov.ph

5. Balisacan, Arsenio M., Multidimensional Poverty in the Philippines: New Measures, Evidence, and Policy
Implications. Revised Report: 8 October 2011 pp. 1-21 (www.undp.org.ph/)
6. Collins and Porras, Built to Last: Successful Habits of Visionary Companies, HarperCollins.1994.
7. Drucker, Peter F. The Essential Drucker. Butterworth-Heinemann. 2001.
8. Magretta, Joan. Understanding Michael Porter: The Essential Guide to Competition and Strategy. Harvard
Business Press Dec. 2011.
9. Maital, Shlomo. Executive Economics: Ten Essential Tools for Managers. New York. The Free Press. 1994.
[HD30.22 M34] Chapter 10: Economics of Cooperation.
10. McCoy, Alfred W. “An Anarchy of Families: The Historiography of State and Family in the Philippines” and
“Rent-Seeking Families and the Philippine State: A History of the Lopez Family.” An Anarchy of Families:
State and Family in the Philippines, Ateneo de Manila University Press 1994., Ch. 1 & 10
11. Palmer, Adrian & Bob Hartley. The Business Environment. Mc Graw Hill, 2002.Chapters 3, 4 & 6.
12. Porter, Michael E. The Five Competitive Forces that Shape Strategy. Harvard Business Review 2008
13. Robbins, Stephen P. and Mary Coulter, Management, International Student 11th Edition. Pearson Education,
2012.
14. Osterwalder, Alexander. Business Model Canvas. 2008
Canvas: http://www.businessmodelgeneration.com/canvas/bmc
http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf
15. Osterwalder, Alexander, Pigneur, Yves, and Smith, Alan. Value Proposition Canvas. 2012
Canvas: http://www.businessmodelgeneration.com/downloads/value_proposition_canvas.pdf
http://www.businessmodelgeneration.com/canvas/vpc
http://businessmodelalchemist.com/blog/2012/08/achieve-product-market-fit-with-our-brand-new-value-
proposition-designer.html

Note: Additional readings/handouts to be announced by each course facilitator.

E. Course Requirements
 Industry Research Study & other Group Reports/Assignments with presentation to a panel and/or whole class.
 Field trip, Long tests, quizzes, recitation, report on extra readings, reflection papers, online business
games/exercises.

F. Grading System
F.1 Grade Conversion for Final Marks
Final Mark Numerical Equivalent For a 3-unit course

A 92 to 100 3.76 to 4.00

B+ 87 to 91 3.31 to 3.75
B 83 to 86 2.81 to 3.30
C+ 79 to 82 2.31 to 2.80
C 76 to 78 1.81 to 2.30
D 70 to 75 1.00 to 1.80
F Below 70 Below 1.00
W Overcut Overcut
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F.2 Components of Final Grade

Industry Study
Final paper, group presentation and submission of partial outputs 30%

Other Group Work/Reports 15%

Individual
Tests/Exams 30% 45%
Homework/Reflection Papers 15%
Class Participation/Recitation 10%
100%

G. Classroom Policies
1. Maximum allowable cuts: 3 absences or 6 hours.
2. Students are required to follow the JGSOM Dress Code in all JGSOM classes.
3. Students are required to uphold intellectual honesty in all class requirements and activities. This includes the
need to use quotation marks for verbatim statements lifted from another work and to cite all sources in
research work through footnotes and/or bibliographies. The school punishes cheating and plagiarism (which
includes extensive “cutting and pasting” even with a footnote) with an F not only in that particular requirement
but in the whole course IF that requirement carries a grade which constitutes more than 10% of the final grade.
For group work, the members are expected to review the final paper before submission to ensure that violations
have not been incurred. Students may submit a preliminary draft via Turnitin to verify what portions were lifted
from previously submitted sources.
3. The use of laptops in class is not allowed unless it is used for team reports.
4. The Student Handbook will serve as a guide for all school policies.
5. Other classroom policies will be announced in class by each course facilitator.
H. Consultation Hours - To be announced by each course facilitator.
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LS10 Philippine Business and Economic Environment (PBEE)

Industry Study Guidelines
(2nd Semester, SY 2016-2017)

Project Objective: You are asked to conduct an industry research for a particular sub-sector/ industry of the economy by
studying the market and industry environment, the industry structure, and the influence these have on a specific firm or
firms in the industry. You are expected to conduct library and internet research as well as do field work by actually
observing/visiting firms in the industry and interviewing managers/owners and other industry stakeholders (customers,
suppliers, dealers, competitors, etc.). The professor may recommend industries in particular sectors, e.g. agriculture,
health and wellness (medical and/or wellness tourism), etc. The professor may also require submission of the final
report through Turnitin, an Internet-based plagiarism-prevention service created by iParadigms, LLC.

NOTE: Studies on multinational companies (or their local subsidiaries or franchisees/marketing agents) and/or other
very large companies (i.e. more than one billion pesos in annual sales) especially industries like malls, telecoms, banks,
insurance, quick service or fast foods restaurants, are not recommended (e.g. SM, PLDT, BPI, SunLife, Jollibee, Nestle,
CocaCola, San Miguel, etc.) as well as small firms with total assets below P15 million excluding property and/or annual
sales below P30 MM. Very large firms with multiple products, divisions and departments usually operate in multiple
industries with very complex environments that may be confusing for students just starting to learn how to analyze the
business environment while business exposure may be too narrow or limiting for a small and/or very simple enterprise
such as a backyard farm, repair shop, janitorial services, security or manpower agency, food kiosk, small retail outlet or
convenience store.

Desired Results:
1. Comprehensive research of industry with relevant information based on sound research methods and field
work.
2. Critical analysis of data obtained.
3. Proper documentation of research work.
4. Appreciation of the relevance of data gathered and findings for the stakeholders

OUTLINE: Basic format (font 12, spacing 1.5 lines, 1” margin on all sides), use standard PICS format for cover page):
Executive Summary This part of the report (2-3 pages) summarizes the entire paper, and should be written last. It must
include an overall assessment of the attractiveness of the industry (poor to good), the competitive structure
(competitors, market share), supply-demand outlook, implications and recommendations for the specific firm and
industry. Excluding cover page, table of contents, executive summary and attachments, the main body of the industry
study should cover between 10-20 pages.

I. The Research
1. Methodology (scope & limitations of study, type of data gathered, research methods used,
resources utilized)
2. Significance of research findings.

II. The Firm and its Internal Environment

1. Background History – when/where did the firm start, who started it, how did it grow through the
years, current size in terms of assets, revenues, and employment, preferably with financial
statements (income statement and balance sheet available at the Securities & Exchange Commission
for partnerships and corporations) for the last 3-5 years in an annex so that growth trends in assets,
revenues, gross margins, operating and net profits as well as relevant profitability, efficiency and
liquidity ratios can be derived.
2. Ownership & Management Profile - key owners and decision makers; connection and/or affiliation
with government agencies, financial institutions, other industries if any; simplified organizational
chart;
3. Mission/Vision/Values, Big Hairy Audacious Goals (BHAGs), if any, of the organization;
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4. The firm’s Value Chain (what the firm does from day to day that adds value to it's products or
services) identifying elements of the Value Chain where the firm is particularly strong (has an
advantage over competitors) or weak (has a disadvantage).
a) Primary Activities – e.g. Inbound logistics(transportation, materials handling and storage of raw
materials), Operations (manufacturing process, facilities and equipment), Outbound logistics
(transportation, handling, storage & distribution of finished goods), Marketing/sales (target
market & 4 P’s of marketing – product, price, place, promotion), and Service (during and after
sales)
b) Secondary Activities or Enablers – e.g. Procurement (supply chain), Technology development
(R&D), Human resources, Firm infrastructure (accounting & control systems and other support
systems)
5. Qualitative description of the firm's major assets and/or resources:
a) what the firm owns such as physical resources (manufacturing, transportation & warehousing
facilities), financial resources (equity and credit resources), and intangibles (patents, brand
awareness and/or loyalty, location of branches, etc.) that competitors may not have or would find
difficulty acquiring;
b) what the firm knows (e.g. extent of education and experience of its people, access to advanced
technology) that may give the firm a huge advantage over new entrants or competitors;
c) what the firm does very well (e.g. certain systems and procedures like Manufacturing, Quality
Control, Marketing processes, or Management Information Systems or Networking Systems) that
other firms may find very hard to copy.

III. The Industry and its Competitive Environment

1. Industry definition (boundaries, what is part and not part of industry);
2. Background history (origins, significant events or major shifts, milestones of the industry esp. in the
Philippines; recent problems/challenges and/or opportunities/threats);
3. Current industry size in terms of sales and number of firms, (statistics of industry revenues and
profits over the previous 3-5 years, estimated size of market, direct and indirect employment
generated, contribution to GDP) and importance to and/or inter-relationships or inter-dependence
with economic sectors / other industries;
4. Market structure (monopoly, oligopoly, perfect or monopolistic competition) & supply-demand
conditions (scarcity, surplus or stable equilibrium); stage of industry life cycle (embryonic, growth,
shake-out, maturity, decline);
5. Major players, their influence & brief background (growth & performance in the last 3-5 years with
estimate of market share and financial resources plus a qualitative description of their industry power
or influence);
6. Leading practices & competitive strategies in the industry esp. by the leading players in:
 Marketing/Sales & Competition e.g. market/product/brand development & positioning,
industry innovations, varieties offered, range of quality vs. prices offered, variety of
packaging used, credit extension for customers, extent and intensity of advertising and
promotions, distribution channels & strategies, expansion & diversification strategies;
 Operations/Logistics e.g. procurement of materials, production facilities, engineering, quality
control, technologies and processes employed;
 Financial & Human Resources Management e.g. primary funding sources, recruitment and
selection, training and development, compensation and benefits;

IV. The National and Global Environment

1. Socio-cultural environment (recent developments/changes in demographic, psychographic, socio-
cultural trends and drivers of market demand)
2. Technological environment (emerging technologies and their impact on industry practices)
3. Economic trends (business cycle, supply-demand analysis with forecasts and identification of drivers
of market growth, analysis of industry capacities and ability or constraints to meet demand)
4. Political or Regulatory environment (government policies & plans for the industry, laws, regulations
affecting the firm and the industry)
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5. Natural resource environment (effect of pollution, climate change on industry)

6. Global environment (developments that may have an impact on the industry)

V. Industry Analysis and Recommendations

1. Analysis of market structure, supply-demand conditions, industry life cycle including implications on the industry;
2. Analysis of industry structure using Porter’s 5 forces and implications on industry;
3. SWOT analysis for the firm (major strengths, weaknesses, opportunities, threats) and implications;
4. Key or critical success factors (what it would take for the firm to survive and flourish in this business);
5. Conclusion with Recommendations for the firm as well as for the industry

Resources:
Based on consultations with your instructor, and your own creativity (interviews with companies with similar
businesses, personal knowledge, etc.), you are STRONGLY ENCOURAGED to use all possible (but ethical) means to obtain
information. The challenge is to obtain enough relevant data that will enable you to meaningfully understand the
business & its environment,

Project Deadlines: (tentative)

Week 3 : Submission of Grouping and Three Proposals for Potential Industries
Week 6 : Submission of draft of Parts I and II (to be graded)
Week 9 : Submission of draft of Part III (to be graded)
Week 15 : Submission of complete paper (final draft)
Week 18 : Final Presentations (w/ 2 hard copies + a soft copy in CD or submitted to Turnitin if your
professor is registered)

All submissions must be done during your class hours in weeks specified. Any group changing proposals in the middle of
the semester will not be given any special consideration, and will be expected to submit the same output as the other
groups.

Accountabilities:
1. Information must be soundly based, and NOT fabricated (amounts to intellectual dishonesty and will be dealt with
accordingly). Understandably, however, some types of information need to be assumed without any hard basis. This
will be allowed on a case-to-case basis, depending on the circumstances of the business and product/ service.
2. Late submissions, as well as messy ones (not stapled, different paper sizes, some handwritten and some
typewritten), are absolutely unacceptable. When in doubt, always remember that you are being prepared for the
real thing. Do it well in the way professionals or business executives would do it.
3. This is a group work, and as such, all members are required to participate in its preparation. A group may kick any
one out if he or she does not participate in which case he or she will have to submit and present his/her own
industry study.
4. Plagiarism (see syllabus) will be reported to ADSA and punished with an automatic F for the course. Your papers may
be uploaded to Turnitin, a software that can detect segments copied/pasted from published data as well as from
dissertations or term papers. The professor may allow the groups to submit a draft to Turnitin for checking purposes
before submission of the final report.

Grading:
This group project comprises 30% of your final grade (10% for the 3 partial submissions, 20% for the final paper with
presentation). The group grade may be adjusted depending on each member’s level and quality of participation
using a forced-ranking method to be administered at the end of the semester. The adjusted grade for group work for
each group member may therefore not always be the same. Free riders will be penalized.
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Grading Criteria for Paper & Panel Presentation:

1. Comprehensiveness of Research Data (25%)
* covers most critical aspects of industry/ company environment
2. Depth of Environmental Analysis (25%)
* correct use of appropriate tools; sound analysis and conclusions
3. Clarity/Organization (25%)
*clear, concise, grammatically correct, well organized, easy to read/understand
4. Layout/Presentation (25%)
* interesting and effective with helpful tables, charts, illustrations, photos, videos, etc.

*For a service learning experience (to be explained by your professor i.e. for NGOs / Socially-oriented Industries), you may study and actually help a non-profit
institution which may also benefit from your research and analysis.
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Leadership & Strategy Department

John Gokongwei School of Management

L&S 10 Philippine Business & Economic Environment

INDUSTRY STUDY PRESENTATION
2nd Semester SY 2016-2017

Panelist: __________________________________
Industry/Company: _____________________________________
Date/Time/Venue: __________________________________

INDUSTRY STUDY
Factors Weight Grade
Comprehensiveness of Research Data
(covers most critical aspects of
25%
industry/company environment)

Depth of Environmental Analysis

(correct use of appropriate tools 25%

Final Report
(clear, concise, well organized) 25%

Oral Presentation
(interesting and effective with visuals,
25%
creative, clear)

TOTAL WEIGHTED SCORE 100%

ENCIRCLE FINAL GRADE

A B+ B C+ C D F
Poor
Very Fair to
Excellent Good Fair (Fail)
Good good Barely Passing
92 – 100 83 – 86 76 – 78 Below
87 – 91 79 – 82 70 – 75
3.76 – 2.81 – 1.81 – 70
3.31 – 2.31 – 1.00 – 1.80
4.00 3.30 2.30 Below
3.75 2.80
1.00

Panelist’s Name & Signature: ___________________________

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Ateneo de Manila University

John Gokongwei School of Management
Project Information Cataloging System (PICS)

Class Project Information and Cover Sheet

Name of Student/s: (Surname, Firstname, School Year: Sem:

MI) Subject Code:
Course Name:

Teacher(s):

(Information below this line and in this colunm for

use by Faculty &/or PICS staff only.)
Grade: Call Number:
Project Title: Functional Area:

Client: Comments:

Industry Category:

Abstract (150 words or less)

Author(s)’ Recommended Key Words