i.

Introduction

When we say global strategic planning it is a process wherein you can examine a

multinational organizations internal and external environments to develop their strategic plan.

By looking at the international environment, the business is able to leverage its strengths and

overcome its weaknesses. Political, environmental, social and technological events can occur an

opportunities or a potential threats according to the examinees of the business. Because

multinational organization that do not undergo GSP process are positively face unexpected

challenges and unprepared to compete with the competitors in new international markets.

Synergy brought in the audience for the first time. In Ansoffs original creation the

synergy simply summed up as 2+2=5 effect. Which it can produce a combined return on the

firms resources greater than the sum of its part?

In fact, you need to consider that the external environment is more crucial when you are

operating at a global level, because the domestic level competition is very directional and

optimized, but in international level the competition is crucially important; or else survival is not

at all possible at global levels.

1
 I. Background of the study

In todays fast changing economic situation, every company is trying to assess its

performances regularly and produce products that can compete with every companies having the

same product. Aside from continuous innovations that they made, they also assess every now and

then their strategies on how to have a competitive advantages internationally. One of the

important factor to be considered when it comes to their strategic planning is the price of their

products. Organizational performance is obviously a central issue in strategic management

research. Several authors have analyzed the organizational performance in terms of corporate

strategy

It should be noted that studies, which examine the relationship between strategic

management tools and techniques and performance remain uncertain. Some of the studies have

argued that utilization of management tools and techniques influences organizational

performance. While other studies concluded that there were no clear relationship between

strategic management tools and techniques (SMTT) and organizational performance.

Global strategic planning is a process adopted and used by organizations from different

countries that operate not just domestically but also internationally for them to be able to

formulate an effective global strategy that will give them a strong competitive advantage to other

international organizations. Global strategic planning is a process of evaluating the internal and

external environment by multinational organizations including the factors affecting their

domestic and international operations. These evaluations will be the guide for them to formulate

their decisions about how they will achieve their long-term and short-term objectives including

their international objectives.

2
 Global strategic planning is different from normal domestic strategic planning, because,

in this case, organizations consider internal as well as external environments. In fact, the external

environment is more crucial to consider when you are operating at a global level because at a

domestic level competition is very directional and optimized, but at international level the

competition is crucially important to be considered; otherwise survival is not at all possible at

global level.

As of these days, having a global strategic planning and management that can compete

internationally is a very important factor that can give the organization an opportunity to be

known and be one of the contributors to successful strategies. With this regard, that strategy will

not only be beneficial to their own organization or country but also became a help for other

organizations and country to formulate their own globally competitive strategies.

3
 II. Significance of the study

The finding of this study will benefit the student of banking and finance in considering

that global strategic planning will be a big impact when it comes to any organizations. Through

this study regarding how strategic management works, as a finance student we were able to know

and have proper information that will help us on how to end up with an efficient, effective and

intelligent decisions specially when it comes to financial problems. As a business finance student

it is very important for us to know how crucial the role that global strategy plays when it comes

to government. Global strategy has been a factor that bring down barriers to world trade while

giving some degree of protection to some countries and industries all around the globe. Knowing

how global strategy works for the government, we were able to know how to consider this

strategy for future negotiations to other companies whether domestic or international.

III. CHARACTERISTICS OF GLOBAL STRATEGIC PLANNING

The characteristics of strategic planning that we identified as positively related to these

requirements and supporting the hypothesis are, understanding established procedures for

strategic planning, constraints on unit managers, the fit of strategic planning to management style

of top management, and strategic planning being more than a lip service. Others are

consolidating unit action plans into a system-wide action plan and top management involvement

in and commitment to strategic planning.

These characteristics also have positive relationships with mobility and accessibility.

Additionally, strategic plannings abilities to make transit agencies responsive to customer

demands and foresee areas of major future transportation opportunities have positive

relationships with meeting federal legislative requirements and improving mobility and

4
accessibility as we found. Together, these characteristics are principles of effective strategic

planning and are considered important in establishing strategic planning in public transit

agencies.

1. Understanding established procedures for strategic planning:

From our results, a characteristic of effective strategic planning systems in public transit

agencies is that employees must understand and know the established procedures in place for

strategic planning. This is especially the case of those with strategic planning implementation

responsibilities. This understanding may be accomplished through employee training or proper

documentation of established procedures for strategic planning and sharing it with all employees.

Such documentation could increase employee awareness of what is expected of those involved in

strategic planning.

2. Strategic planning must be more than a lip service:

If strategic planning procedures are distributed to employees, it makes them realize that it

is an agency-wide effort supported by top management. From the results, for strategic planning

to be effective in transit agencies it must be more than a lip service for employees to know its

importance. Thus, it must be evident through top management actions, and top management must

lead in emphasizing its importance to employees. In addition, there must be agency-wide

commitment to strategic planning and the implementation of its plans. This commitment could

involve creating a strategic planning department adequately staffed to facilitate and coordinate

strategic planning activities throughout the public transit agency. It could also involve the CEO

and other senior-level line and staff managers devoting adequate amounts of time to strategic

planning activities, instituting agency wide reward systems tied to individual and group

5
commitment and contributions to strategic 13 planning, and tying management performance to

credible and responsive strategic plans developed for their units.

3. Strategic planning must fit management style:

Yet, another characteristic of effective strategic planning found in this study is that it

must fit the management style of the top executive team and the reality of a transit agencys

decision-making process. This ensures that the resulting strategic plan would be implemented

and it would receive the support of top management. To ensure this fit indeed occurs, top

management must be involved in the development of the plan. Additionally, there must

continuous consultations between strategic planners and top management to ensure that the

provisions of the plan are consistent with the vision of top management.

4. Top management must be involved and committed to strategic planning:

Besides championing strategic planning throughout the agency, providing strategic

direction and ensuring that strategic planning fits top management style, we found that top

management of transit agencies must be involved and committed to strategic planning to make it

effective. This involvement and commitment could take the form of formal statements about

what types of services to provide, helping set goals and priorities, and developing a climate

supportive of strategic planning and its initiatives in the transit agency. When top management is

actively involved and committed to strategic planning, it could increase the flow of resources to

strategic planning initiatives, it could make employees perceive strategic planning as

participative, and it could create a feeling among employees of ownership of the strategic

planning goals, objectives, and outcome measures they helped develop. It could also make

employees be held accountable for strategic planning performance, and provide directions to

strategic planners in terms of where to focus the agencys limited resources.

6
 5. Consolidate unit action plans into a system-wide plan:

Another characteristic of an effective strategic planning we identified in transit agencies

is that each unit within an agency must develop its own action plan. Then, the action plans must

be combined into a system-wide strategic plan for the agency. This is a bottom-up approach

instead of a top-down approach and makes the various units take responsibilities for their plans.

Moreover, this approach allows employees to be involved and participate in the development of

the strategic plan. This finding is consistent with previous research that showed the bottom-up

approach is used by organizations with major divisions. The system-wide plan becomes a

reference document that drives decisions throughout the organization whereas the action plans

drive decisions in various units. The action plans may be developed by creating strategic

planning teams in the various units (or divisions) and charging each with the responsibility of

developing an action plan for its unit. An organization-wide strategic planning staff may also be

created to coordinate and integrate the action plans into a strategic plan for the entire

organization.

6. Top management constraints on unit managers:

Quite surprisingly, we found that a characteristic of effective strategic planning in transit

agencies is that top management imposes some constraints on unit managers. We had expected

otherwise because we thought these constraints could limit the flexibility required in developing

and implementing strategic planning. That we obtained our result, however, could show that top

management is active in strategic planning in transit agencies by specifying the parameters

within which it must be done.

7
 It may also show that top management purposefully imposes the constraints to ensure that

the resulting strategic plan aligns with the overall strategic direction of the organization and

conforms to legislative and other requirements. Thus, the constraints may not be intended to 14

affect plan implementation at the unit level or to intentionally limit resources to strategic

planning initiatives. Unit managers are still responsible for making strategic choices for their

units and aligning their unit plans with the strategic direction and priorities of their transit

agencies. Responsive to customer demands:

Another characteristic of effective strategic planning systems in transit agencies that we

found is that they use their abilities to meet customer demand as an internal measure of strategic

planning success. This finding is not a surprise since public transit agencies provide services to

transit users. Meeting customer demand allows these agencies to provide responsive services and

to satisfy federal legislative requirements for transportation planning as well in terms of being

comprehensive and having positive impacts on the community. Both community impacts and

comprehensiveness, as our results show, can be measured by mobility and accessibility, and

adequate consideration of stakeholder impacts respectively. Moreover, since public transit

agencies depend upon their customers for portions of their revenues and for their support, this

characteristic encourages transit agencies to focus their limited resources on those services their

customers want the most.

7. Ability to foresee areas of major future transportation opportunities:

The final characteristic of effective strategic planning in transit agencies is its ability to

foresee opportunities for future growth. This environmental scanning could involve cooperation

between agencies and jurisdictions, thus satisfying one of the federal legislative requirements

8
examined in this paper. It could also involve introducing new technologies and services to meet

new and ever changing customer demand.

Examples of Company engage in Global:

1. Bank of the Philippine Islands- established in 1851, BPI is known as the first bank in

the Philippines and in the Southeast Asian Region. In its 2014 annual report, the bank said that it

was serving seven million clients through a network of 825 branches in the Philippines, Hong

Kong, and Europe, along with 2,575 ATMs and cash deposit machines.

2. Philippine Long Distance Telephone Co.- PLDT is arguably the largest

telecommunications company in the Philippines. According to research from GSMA Intelligence,

PLDT owned 68% of Philippine cellular subscribers in 2011, after acquiring Sun Cellular. Apart

from Sun Cellular, PLDT operates three other cellular networks Smart, Talk N Text, and Red

Mobile. PLDTs Beneficial Trust Fund also owns stakes in broadcasting and publishing. The 86-

year old company is also listed in the New York Stock Exchange.

3. Metropolitan Bank and Trust Co. - Latest figures from the Bangko Sentral ng Pilipinas

list Metrobank as the second largest bank in the country in terms of assets. The bank reported a

full-year net income of P20 Billion in 2014. Its total resources for that year grew by 16% to P1.6

trillion, from P1.4 trillion in 2013.

4. Ayala Corporation- the conglomerate traces its roots to a distillery established in 1834

through a partnership between Antonio de Ayala, a poor Basque immigrant, and Domingo Roxas,

who own farms in Batangas and Laguna.

9
- Ayala is the largest shareholder of the Bank of the Philippine Islands, which also made it

to Forbes Global 2000 list. Apart from BPI, it controls four other businesses listed in the

Philippines Stock Exchange- Ayala Land, Globe Telecom, Manila Water and etc.

Process and Procedures

The global strategic management process helps the managers to decide on what strategies

to be used. It is an ongoing process in which it should be flexible to be able to cope up in

different kinds of circumstances. It is a continuous assessment of every strategy that the

organizations use.

Strategic management process has following four steps:

1. Environmental Scanning- Environmental scanning refers to a process of collecting,

scrutinizing and providing information from internal and external environment that

affects the strategic purposes. It helps in analyzing on what factors of the internal and

external company that has a big impact on organizations strategies. After executing the

environmental analysis process, management should continually evaluate it and strive to

improve it on a more effective and efficient way.

2. Strategy Formulation- Strategy formulation is the process of deciding on which is the

best course of action for accomplishing organizational objectives and hence achieving

organizational purpose. After conducting environment scanning and continuously

evaluating it, managers formulate corporate, business and functional strategies for the

organization. Managers form the strategies by considering the internal and external

factors from the conducted environmental scanning.

10
 3. Strategy Implementation- Strategy implementation implies making the strategy work as

intended or putting the organizations chosen strategy into action. Strategy

implementation includes designing the organizations structure, distributing resources,

developing decision making process, and managing human resources. Managers should

make sure that the formed strategies should be used in action and is having the proper

outcome thatll benefit the organization.

4. Strategy Evaluation- Strategy evaluation is the final step of strategy management

process. The key strategy evaluation activities are: appraising internal and external

factors that are the root of present strategies, measuring performance, and taking remedial

/ corrective actions if ever there are failed strategy that are formed during strategic

formulation. Evaluation makes sure that the organizational strategy as well as its

implementation meets the organizational objectives as well as its international objectives.

These components are steps that are carried, in chronological order, when creating a new

strategic management plan. Present businesses that have already created a strategic management

plan will revert to these steps as per the situations requirement, so as to make essential changes.

Figure 1 Components of Strategic Management Process

11
Definition of Terms

1.Global.means there is not only one country involved or what we call nationwide but rather

worldwide that involves almost all other countries around the globe.

2.Strategy.The organizations way to surpass their competitors. It is a way that the organizations

use to compete and defeat their enemies without them knowing.

3.Process.means something is not done in a one-hit basis but rather a step by step basis tin order

to achieve the goal of the organization.

4.Crucial.This is used to describe something which is extremely important to organization. It

means that something plays an important role wherein it can affect the success rate of a plan

when this changes.

5.Scanning.It is the way of collecting data and information in and out of the organization.

6.Formulation.The process of creating something like strategies based on the scanning done in

and out of the organization.

7.Trends.are things that fail the test of time. In order to build a successful organization, strategic

management has the ability to adapt and overcome changing customer needs and demands,

government regulation and laws, markets, business and technological innovations, economies

and geopolitically-driven economic events.

12
Trends

Population trends decreasing population in developed countries, while increasing population

in developing countries, and increased life expectancy.

Science and Technology- includes the internet and other computer components as well as GPS,

genetically modified food, etc.

Technological trends include not only the glamorous invention that revolutionizes our lives, but

also the gradual painstaking improvements in methods, in materials, in design, in application,

unemployment, and the transportation and commercial base. They diffusion into new industries

and efficiency" (John Argenti).

Increasing integration and interdependence- include all areas of economic life as well as an

increasing exchange of products and services across national borders through trade.

Governance- How national and international laws govern the economic activity and

transnational institutions.

These trends are often interdependent and cannot be easily separated. The various factors

associated with trends in globalization has been shown to affect population growth. In addition,

advances in technology can have significant impacts on society. Technology has allowed global

commercial transactions to take place at increasingly faster rates, and at greater volumes across

national borders. This has also led to other challenges regarding global commerce, which involve

the complex coordination, interaction and compliance of current international and domestic laws.

13
Political

Political forces include the outcomes of elections, legislation, and court judgments, as

well as the decisions rendered by various commissions and agencies. Among the most

important government actions are: regulation, taxation, expenditure, takeover (creating a crown

corporation, and privatization.

Social

For an organization to survive, the product or service must be wanted, thus consumer

behavior is considered as a separate environmental behavior. Behavior factors also affect

organizations internally, that is, the employees and management.

Economic trends

Coming from a slow start in the first half (H1) of 2015 due to weak government

spending, the economy bounced back in H2, bringing full year growth to 5.8 percent in 2015.

Among the major economies in the region, the Philippines is behind China and Vietnam only.

Issue

Global population growth, demographic change, and increasing affluence and

urbanization- will lead to growth and demand for products and services.

Global climate and other environmental changes

Environmental impacts- of farming, fishing, food processing and manufacture, storage,

transport, retail, consumption and waste disposal: negative impacts can include increasing

water and land use, soil erosion and degradation and loss of biodiversity.

14
 Social- drivers include urbanization, demographic changes, issues of land tenure,

governance and international security, changing patterns of consumer needs, preferences,

choices tastes, habits and practices, affecting the demand for the products and services.

Economic- issues of trades, land tenure, trends in production and demand in potential for

shocks, food markets and their volatility, supply and distribution, regulation, affordability

and availability(particularly in the developing world) with associated globalization.

Political- drivers such as changes in government policy and political instability

Main Export Partners:

Japan- 21.3%,

1. Electronic equipment

2. Wood

3. Machinery

4. Ores, slag, ash

5. Copper

6. Medical, technical equipment

7. Nickel

8. Vehicles

9. Iron or steel products

15
10. Ships, boats:

US- 14.7%

1. Electronic equipment

2. Machinery

3. Knit or crochet clothing

4. Animal/vegetable fats and oils

5. Medical, technical equipment

6. Clothing (not knit or crochet)

7. Leather, animal gut articles

8. Vegetable/fruit preparations

9. Aircraft, spacecraft

10. Vehicles

China- 12.4%

1. Machinery

2. Electronic equipment

3. Ores, slag, ash

4. Medical, technical equipment:

16
 5. Oil

6. Fruits, nuts

7. Plastics

8. Vehicles

9. Organic chemicals

10. Copper

Hong Kong - 8.0%

1. Electronic equipment

2. Machinery

3. Medical, technical equipment

4. Gems, precious metals

5. Fish

6. Fruits, nuts

7. Vegetable/fruit preparations

8. Vehicles

9. Ores, slag, ash

10. Leather, animal gut articles

17
Singapore- 7.3%

1. Electronic equipment

2. Machinery

3. Oil

4. Medical, technical equipment

5. Tobacco

6. Aircraft, spacecraft

7. Plastics

8. Fruits, nuts

9. Fish

10. Vegetable/fruit preparations

South Korea- 6.0%

1. Electronic equipment

2. Ores, slag, ash

3. Oil

18
 4. Medical, technical equipment

5. Machinery

6. Copper

7. Fruits, nuts

8. Tobacco

9. Knit or crochet clothing

10. Food waste, animal fodder

Germany- 4.1%

1. Electronic equipment

2. Machinery

3. Medical, technical equipment

4. Meat, seafood preparations

5. Knit or crochet clothing

6. Other chemical goods

7. Animal/vegetable fats and oils

8. Aircraft, spacecraft

9. Clothing (not knit or crochet)

19
10. Leather, animal gut articles

Taiwan- 3.5%

1. Electronic equipment

2. Machinery

3. Organic chemicals

4. Medical, technical equipment

5. Vehicle

6. Copper

7. Fish

8. Gems, precious metals

9. Food waste, animal fodder

10. Oil

Thailand- 3.4%

1. Electronic equipment

2. Machinery

3. Vehicles

4. Medical, technical equipment

20
 5. Tobacco

6. Oil

7. Copper

8. Plastics

9. Soaps, lubricants, candles

10. Iron or steel products:

Netherlands- 3.1%

1. Electronic equipment:

2. Animal/vegetable fats and oils

3. Aircraft, spacecraft

4. Organic chemicals

5. Machinery

6. Furniture, lighting, signs

7. Medical, technical equipment

8. Wood pulp

9. Vegetable/fruit preparations

10. Leather, animal gut articles

21
 Figure 2 Major export partners of the Philippines

SWOT and PEST Analysis

a. SWOT Analysis

Table #1

Strengths Weaknesses Opportunities Threats

The cultural Global strategy
The efficiency of a The major risk to
differences of enables the
global strategy is that pursuing a global
employees may company to
it enables a company strategy is that a
have a negative introduce their
to leverage one-size-fits-all

economies of scale. effect for the old product into approach does not

Economies of scale organization. new markets work in all markets.

Global strategy
can save a company and gain There are
may result in
money in labor, information for differences in
the difficulty
packaging and the development different kinds of

22
 and limited of product and
marketing material markets like
ability to adjust saving the launch
costs, too. particular tastes or
of a product's
and change to
their sensitivity to
Global strategy can most recent
meet the
pricing.
broaden learning version for well-
customer needs
opportunities for the developed Deciding in which
and satisfaction
organization due to markets.
overtime and country a product
diversity of operating
higher The organization will be popular is
environments.
Using a global transportation will have the also a problem. If a
opportunity to company estimates
strategic planning costs.
exploit another incorrectly, the
that can compete
country's mistake could cost it
internationally can
resources - labor, a fortune.
give the
raw materials
opportunity for the A global strategy

organization to includes an

acquire more usable operational risk such

Operational
and important as employment laws
flexibility - shift
or corporation laws.
information that production as
If these laws change
can help them in costs, exchange
in the country where
the future. rates, etc. change
a company
over time.
manufactures its

global product, then

that could ruin

23
 everything.

Another threat is the

security of a

country, like if ever

a war breaks out,

employees go on

strike or a natural

disaster occurs

where a company

manufactures its

global product, then

it may not be able to

fulfill its

obligations.

b. PESTEL Analysis

POLITICAL

Political

Political forces include the outcomes of elections, legislation, and court judgments, as

well as the decisions rendered by various commissions and agencies. The political sector

of the environment presents actual and potential restriction on the way an organization

operates.

24
 Among the most important government actions are: regulation, taxation, expenditure,

takeover (creating a crown corporation, and privatization. The differences among local,

national, and international subsectors of the political environment are often quite

dramatic. Political instability in some areas makes the very form of government subject to

revolutionary changes.
In addition the basic system of government and the laws the system promulgates, the

political environment might include such issues as monitoring government policy toward

income tax, relative influence of unions, and policies concerning utilization of natural

resources.

Political activity may also have a significant impact on three additional governmental

functions influencing a firm's external environment:

* Supplier function. Government decisions regarding creation and accessibility of private

businesses to government-owned natural resources and national stockpiles of agricultural

products will profoundly affect the viability of some firm's strategies.

* Customer function. Government demand for products and services can create, sustain,

enhance, or eliminate many market opportunities.

* Competitor function. The government can operate as an almost unbeatable competitor in the

marketplace, Therefore, knowledge of government strategies can help a firm to avoid

unfavorable confrontation with government as a competitor.

In general, the impact of government is far-reaching and increasing.

ECONOMIC

This forces refer to the nature and direction of the economy in which business operates.

25
Economic factors have a tremendous impact on business firms. The general state of the economy

(e.g., depression, recession, recovery, or prosperity), interest rate, stage of the economic cycle,

balance of payments, monetary policy, fiscal policy, are key variables in corporate investment,

employment, and pricing decisions.

The impact of growth or decline in gross national product and increases or decreases in

interest rates, inflation, and the value of the dollar are considered as prime examples of

significant impact on business operations.

To assess the local situation, an organization might seek information concerning the

economic base and future of the region and the effects of this outlook on wage rates, disposable

income, unemployment, and the transportation and commercial base. The state of world

economy is most critical for organizations operating in such areas.

TECHNOLOGICAL

Technological forces influence organizations in several ways. A technological innovation

can have a sudden and dramatic effect on the environment of a firm. First, technological

developments can significantly alter the demand for an organizations or industry's products or

services.
Technological change can decimate existing businesses and even entire industries, since

its shifts demand from one product to another. Moreover, changes in technology can

affect a firm's operations as well its products and services.

These changes might affect processing methods, raw materials, and service delivery. In

international business, one country's use of new technological developments can make

another country's products overpriced and noncompetitive. In general,

26
 The rate of technological change varies considerably from one industry to another. In

electronics, for example change is rapid and constant, but in furniture manufacturing,

change is slower and more gradual.

Changing technology can offer major opportunities for improving goal achievements or threaten

the existence of the firm. Therefore, "the key concerns in the technological environment involve

building the organizational capability to (1) forecast and identify relevant developments - both

within and beyond the industry, (2) assess the impact of these developments on existing

operations, and (3) define opportunities"

These capabilities should result in the creation of a technological strategy. Technological

strategy deals with "choices in technology, product design and development, sources of

technology and R&D management and funding".

The effect that changing technology can have upon the competition in an industry is also

dealt with other chapters. Technological forecasting can help protect and improve the

profitability of firms in growing industries.

SOCIAL

Social forces include traditions, values, societal trends, consumer psychology, and a

society's expectations of business.

The following are some of the key concerns in the social environment: ecology (e.g.,

global warming, pollution); demographics (e.g., population growth rates, aging work

force in industrialized countries, high educational requirements); quality of life (e.g.,

education, safety, health care, standard of living); and non-economic activities (e.g.,

charities).

27
 Moreover, social issues can quickly become political and even legal issues. Social forces

are often most important because of their effect on people's behavior. For an

organization to survive, the product or service must be wanted, thus consumer behavior

is considered as a separate environmental behavior. Behavior factors also affect

organizations internally, that is, the employees and management.

A society's expectations of business present other opportunities and constraints. These

expectations emanate from diverse groups referred to as stakeholders. Stakeholders

include a firm's owners (stockholders), members of the board of directors, managers and

operating employees, suppliers, creditors, distributors, customers, and other interest

groups - at the broadest level, stakeholders include the general public.

Determining the exact impact of social forces on an organization is difficult at best.

However, assessing the changing values, attitudes, and demographic characteristics of an

organization's customers is an essential element in establishing organizational objectives.

Environmental Factors in Strategic Planning

For any business to grow and prosper, managers of the business must be able to

anticipate, recognize and deal with change in the internal and external environment. Change is a

certainty, and for this reason business managers must actively engage in a process that identifies

change and modifies business activity to take best advantage of change. That process is strategic

planning.

The following diagram provides examples of factors that are agents of change and need

to be considered in the strategic planning process. Explanation of these factors is found

below.

28
Internal and External Environment

All businesses have an internal and external environment. The internal environment is

very much associated with the human resource of the business or organization, and the manner in

which people undertake work in accordance with the mission of the organization. To some

extent, the internal environment is controllable and changeable through planning and

management processes.

The external environment, on the other hand is not controllable. The managers of a business have

no control over business competitors, or changes to law, or general economic conditions.

However the managers of a business or organization do have some measure of control as to how

the business reacts to changes in its external environment.

Internal Environment Factors

Table below identifies important aspects of the internal environment that can significantly

impact on the well-being of a business or organization. Generally the strategic planning process

will examine the strengths and weaknesses of the organization, and it is likely that significant

discussion will center on the relative strength of internal environment factors.

Table 2: Factors in the internal environment and their effect on the business/organization

Factor Influence on the organization

Human Resource The knowledge, experience and capability of an

organization's workforce is a determining factor of success.

For this reason, organizations pay particular attention to the

29
 recruitment of staff and also to engage in the training of staff

and volunteers to build the organization's capability. In

pursuing both recruitment and training strategies, an

organization is often limited by its financial strength.

Nevertheless, training of staff is an essential aspect of good

business management, and even in difficult financial

circumstances is an achievable strategy.

Organizational Culture The culture within the organization is a very important factor

in business success. The attitudes of staff and volunteers,

and their ability to "go the extra mile" makes a very

significant difference. Negative attitudes can severely impact

on the organization's ability to implement strategies for

development despite however thorough the planning

processes. Positive attitudes of staff and volunteers will not

only make the management task easier but also will be

noticed and appreciated by customers of the business or

members of organization.
Organization Structure Businesses and organizations may be impeded by their

structure, constitution and/or forms of governance.

Organization structure is essentially the way that the work

needed to carry out the mission of the organization is

divided among its workforce.

Management Although it is often hard to find volunteers, the organization

structure of the non-profit organization can be very flexible

30
 by appointing volunteers as needed.
The capability of the management team and the leadership

styles employed by managers will also have a major impact

on the morale of staff (and volunteers in a non-profit

organization) and organization culture. More contemporary

forms of management involve workers in decision making

processes and trusting that, although managers and workers

have different viewpoints, they largely benefit by working

together to achieve the business objectives.

Assets The internal environment of the organization can be made

richer or poorer by its assets. For example, the organization's

premises can be pleasant and uplifting, or demure and

depressing. The availability of equipment is another asset

that can significantly impact on the internal environment. If

equipment is in short supply or not of the expected standard,

then staff may be hindered in the performance of their

duties, or if equipment is used by customers then customer

satisfaction will fall.

Financial Strength Financial strength is a factor in its own right that influences

the internal environment of the organization. Despite

however good other internal factors may be, it is very

difficult for an organization that is too short of cash to

implement strategies within the strategic plan. If the

organization struggles financially this can impact on staff

morale as budgets need to be excessively tight.

31
External Environment Factors

Table below identifies important aspects of the external environment in which the

business operates. The business cannot control these aspects but can respond to change if needed.

The main problem for business managers is to be able to respond early to change in the external

environment, and this depends on how soon any change is identified. Some external

environmental factors such as economic conditions are reported daily in the media and managers

have a wealth of information on which to develop strategic plans. However, some external

factors may be difficult to identify, particularly of the pace of change is very slow or is hidden

from view.

Table 3: Factors in the external environment and their effect on the business/organization

Factor Influence on the organization

Economic conditions Prevailing economic conditions of the nation will have an

effect on the spending patterns of citizens. Increases in interest

rates and/or a high level of unemployment will depress

consumption of non-essential goods and services. For

example. When people experience financial hardship, they

will spend much less on sport and recreation, holidays, new

cars and luxury goods. Economic conditions are global as well

as national, and when there is a global financial crisis as in

2007, changes in the external environment can be dramatic.

Market(competition) The strength of business competition is a constantly changing

factor in the external business environment. Not only will

32
 competitors come and go, but they will also change marketing

strategies, product lines and prices. Often such changes are not

heralded and business managers must be alert as to what

competitors are doing

Technology Technological change has been rapid in the last 50 years and is

a factor in the external environment that constantly exerts

pressure on the business or organization. If businesses do not

adapt sufficiently quickly to technological change, they risk

losing market share. It's not just that technological change

affects the design of products, but even the delivery of

services can change.

Climate change Climate change is an insidious threat because the pace of

change may be recognizable only if considered on a decade-

by-decade basis. The effect of climate change will not fall

equally on all nations and all businesses. Businesses that

depend directly on a good supply of water e.g. agriculture,

field sports will be adversely effected if climate change results

in reduced rainfall. However the flow on effects of drought

will eventually work their way through to all businesses in the

effected community.
Legal Taxation is one of most obvious changes in law through

legislation. Sometimes taxation changes occur overnight with

little warning and sometimes there is plenty of time for the

business to prepare. Other law changes that commonly affect

business include Workplace Health and Safety, Industrial

33
 Relations, Consumer Protection and Environmental Law.
Media The media is undergoing rapid and significant change. The

main driver of this change is technology and the rise of the

internet. Newspapers once carried many pages of job adverts

but now this business is conducted by online recruitment

companies such as Seek.

Political Like law, changes in government policy can be well notified

and discussed, or without warning. As an example of how

government policy has an effect, is that many organizations

depend on government financial assistance. When there is a

change of government, such funding assistance can disappear

in a short space of time.

Demographic There is constant change in the make-up of the population.

Some of these changes include an increasing proportion of

elderly citizens, increasing number of two-income families,

the age at which people marry is increasing, increasing ethnic

diversity, suburbs which were once dominated by young

families now have few. These demographic changes can have

a significant effect locally. For example, a sport club which

once prospered can begin to decline as the local area has less

and less children.

34
Documentation

35
36
37
38
Name: Shiela Encina

Course: Bs Banking & Finance

Year & Section: 4C

Good day! I am Shiela Encina from Binabalian, Candelaria, Zambales, 19 years of age. I

am a graduating student and currently taking up Bachelor of Science in Banking and Finance at

Ramon Magsaysay Technological University. Being a finance student is not easy, there are

times that I almost gave up and think about shifting into another course but as time goes by I

realized that this is where I belong, to be a finance student. To be honest this course is not my

first choice but when I learned about finance world and etc. I think its a blessing in disguise

that my first choice is already out of slot.

If the time comes that I will apply in some random banks or companies in the near future

I am going to do everything no matter what it takes just for them to hire me. As fresh graduate

of course we do not have a job experience and such but I am willing to learn everything. I can

also adjust for the job that they are willing to give me. I am also a hardworking, trustworthy,

goal-oriented and responsible.

If they are going to hire me in the near future I will assure them that I will be a

hardworking employee. I will make sure that they are not going to regret that they hire me as

their employee. And lastly, I will assure them that there is no room for mistake if they will going

to hire me.

39
 Shiela Encina

Harrieth Avecilla

Bachelor of Science in Banking and Finance

Bsbf-4C

Im Harrieth Avecilla,currently a fourth year student taking bachelor of science in

banking and finance at Ramon Magsaysay Technological University.. I took my primary

education at Panan Elementary school,while my Secondary education in Ramon Magsaysay

Technological University(Botolan campus).Im living at Panan,Botolan,Zambales,Im a second

child.I love to read mystery stories,Fan fiction and also current issues. When I was in Elementary

I joined different events and programs ,While in high school Im one of the participants in

sabayang bigkasan.Im nice person when you are nice to me.Im friendly, jolly and easy to

approach.im also computer literate

Through the years of my study Ive gained a lot of knowledge that I can use to the

journey Im going to conquer.I know that I can be efficient and effective in your company.I can

give all my effort in order to be an asset and Im willing to adopt and enhance myself in order to

be profitablemy willingness and perseverance to be part of a company is enough to to prove that

Imcapable to do my job.I do not not any work experience but through the exposure to seminars

40
and communications. I know I can handle the pressure .I also know how to socialize in different

kinds and behavior of people.I show initiative and demonstrate strong interpersonal relationship

Name: Bugarin,Valerie R.

Course: Bachelor of Science in Banking and Finance

Year and Section: 4C

Im Valerie R. Bugarin, im 19 years old. Im now in 4th year College and taking up

Bachelor of Science Major in Banking and Finance. I know I have a capabilities and skills. I

know I will be asset in the company that I will enter soon.

41
 Name: Danna Mae Lesaca

Course: BS in Banking and Finance

Year and Section: 4C

I am Danna Mae Lesaca, from Botolan, Zambales. I am a college students taking

up Bachelor of Science in Banking and Finance in Ramon Magsaysay Technological

University. Ive learned important factors about finance and how it works, but through

attending different seminars such as the National Finance Summit, Stratmark, and about

leadership I enhanced my skills and learned how businesses works. Also I experienced as a

leader in making business proposals in our marketing subject. And Im already to take

more experience, and more learning that the business world can offer . Im thankful for all

the challenges I encountered since I was in primary years, that now Im fine with some

rejections and well ready to face the reality.

42
Jopreilyn D. Blanc

Bachelor of Science in Banking and Finance

4C

I am Jopreilyn Devillena Blanco, a 19 year old banking and finance student and currently on my

4th year at Ramon Magsaysay Technological University-Iba Campus. When I first enter college, I

really dont have any course to take in mind, I just got dragged by my friend and we took up BS

Accountancy. I became an accounting student for 2 years but I end up not taking the battery

exam for 3rd year and thats why I needed to shift into a new course. I have 2 courses in mind,

either BSBA major in Marketing or BS Banking and Finance, and yes I decided to take up my

current course because I think that this is more related to my previous course. I thought itll be

boring but no, I end up loving this course so much. I think that it will really give me the

opportunity to be a better person in the future. I really am proud to be one of the future bankers

of the business world someday. I want to explore more about the finance and banking system not

just the Philippine monetary system but every countries monetary systems. I am enjoying the

studies regarding how important the role of banks and monetary values in each and every

country. I mat not yet be a suitable banker after I graduate but I am very much willing to explore

the outside world of school and learn something new. I believe that being a banking student is a

pleasure for every person who wanted to be someone, someday.

43
Merros L. Mejia

Bachelor of Science in Banking and Finance

4C

My name is Merros L. Mejia. Im on my 18 years of existence. A banking and finance

student at Ramon Magsaysay Technological University currently in a 4 th year level in college. I

would like to share my ideas by working in your company. Im sure you can handle an employee

like me, who has a job experience, being a saleslady and a lotto teller at the same time with my

Aunts business for 4 years and until now. I raise my confidence by working in there, just by

talking to them face to face. I did learn how to manage the customers complaint by suggesting a

solution to their problems. Concentrate on work time can make your job more accurate. Next

thing is your behavior towards the customer on how you communicate with a hot-tempered

person sometimes and most importantly your behavior with the other workers.

I may not good in studies, not really a mentally deficient person though but an average

student as they say. But I can easily cope-up with the lessons I may not understand. Im eager to

learn a new techniques and ideas. I want to explore the business world by working in your

company.

44
 I will really appreciate it if you hire me as one of your employee. I will never turn your

world upsidedown when you chose me. I will surely do my best as I can.

45
Mariel C. Carreon

Bachelor of Science in Banking and Finance

4C

My name is Mariel C. Carreon. 19 years of age, from Santiago, Botolan, Zambales. Im a

4th year student of Banking and Finance at Ramon Magsaysay Technological University. I would

like to apply my experience fro my last job by working in your company. I work from Bataan for

2 months in East Cam Tech. Corporation. I learned how to socialize with other people, I also

learned how to manage my time. And specially, I realized that time is really matter to our daily

lives. I joined Mutya ng Botolan last 3 years, and fortunately I got the 3 rd runner-up position. By

joining that pageant, i enhance my self-esteem. And that is an advantage in a work because if Im

shy I can hardly cooperate with my workers.

I may not a studious person, but I know in myself that I can achieve my goals someday.

And I believe that I can contribute my skills in your company.

46