Introduction to Philippines

The Philippines is an UN-recognized country in Asia. It was one of the richest countries in Asia (after Japan). But, since the end of World War II, the Philippines economy faced a downward slide and now it is one of the poorest countries. The Philippines is the third largest English-speaking country in the world. The country is divided into three geographical areas: Luzon, Visayas, and Mindanao. It has 17 regions, 81 provinces, 136 cities, 1,494 municipalities, and 41,995 barangays. The Philippines has developing economy with agricultural and service sector base. The poverty line is 40% it means 40% of the population remain be poor. The large trading partners‟ of the Philippines are the US and Japan.

1. Area: 300,000 sq km (115, 830 sq miles), 7107 islands (7,108 at low tide)
2. Population: 100,617,630 (12th rank in population) (2014 Estimate)
3. Capital city: Manila, part of the Metro Manila conurbation
4. Largest city: Quezon City
5. Languages: Official Language(s): Filipino, English
National language: Filipino
6. Currency: Peso (1 Peso = 0.022 Dollar) (Mar. 2015)
7. GDP (PPP) : 29th largest economy in the world
: $751.770 Billion (2015)
: 6.1% growth in 2014
: 5.5% 5-year compound annual growth
: $6,985.680 per capita
8. Unemployment: 6.0% (2014)
9. Inflation (CPI): 2.40% (2015)

Demographic Details
Geography: Philippine
Location: Southern Asia, archipelago between the Philippine Sea and the south china Sea, east of Vietnam.
Geographic coordinates: 1300 N, 12200 E
Map references: Southeast Asia
Area: Total: 3, 00,000 sq km
Land: 298,170 sq km
Water: 1,830 sq km
Age structure: 0-14 years: 33.7% (male 18,493,668/female 17,753,359)
15-24 years: 19% (male 10,416,358/female 10,044,724)
25-54 years: 37% (male 20,031,638/female 19,796,545)
55-64 years: 5.8% (male 2,882,719/female 3,372,485)
65 years and over: 4.5% (male 2,103,596/female 2,773,139) (2014 est.)

Youngster population is high in Philippine so more growth opportunities.
Area comparative: Slightly larger than Arizona
Land boundaries: 0 km
Coastline: 36,289 km (Maritime Claims: territorial sea: irregular polygon extending up to 100 nm coastline as defined by 1898 treaty; since late 1970s has also claimed polygonal-shaped area in South china Sea up to 285 nm in breadth.

Good for Seaweed farming
Climate: Tropical marine; northeast monsoon (November to April); southwest ( May to October)

CULTURE ENVIRONMENT IN PHILIPPINES

Division of labor by gender: Traditional roles lead in rural areas, Women work in the gardens and care of the house and children and animals backyard. In urban areas, men work in the construction and maintenance of the machine and the drivers of passenger vehicle. Women work like teachers, employees, owners of sari-sari stores, distributors and providers of healthcare.

Family values:

A. The family is the heart of the social framework and also includes uncles, cousins, aunts, grandparents, and voluntary relation such as god parents, sponsor and close friends like a nuclear family.
B. It is general in Philippines the same family members are work in same companies.
C. In fact, many combined agreements state that special employment will be given to their family members who work in that company.

SOCIAL ENVIRONMENT
A. Social life: Filipinos are known for their kindness, patience and talent as well as having a wealthy culture and tradition due to foreign influences of Spanish and Americans.
B. Cost of living and wages in Philippines: The duties and taxes are high in Philippines so cost of living and wages are also average in Philippines. The regular wages are 25% on work.
C. Religion(s): Philippines are the only catholic country in the Southeast Asia. Roman Catholic is the main religion in the country. Terms like, Catholic, Christianity is interchangeably used to mean the religion Roman Catholic.
D. Minimum Age to Be Employed to work in the Philippines, one must be at least 15 years old.

Foreign Trade Policy
According to the Global Enabling Trade Report 2012, the rank of Philippines is 72nd out of 132 countries. It measured the factors, policies, services, areas of market access, border administration transport and communication infrastructure and business environment.
In the area of market access the Philippines jumped 14 from 64 and in terms of efficiency of import-export procedure it looks 48 spot from 55. And access to imported inputs at competitive prices identifying potential market and buyer’s corruption at the border and other concerns it places 62 out of 132 countries. FDI

The Philippines foreign direct investment policy is very liberal also release to any corporation or financier that would like to spend in it. An assured laws control how much of a corporation foreign business can own in a host country and if a company can fully incorporate in that country. These laws set a level, or proportion, at which a corporation can own a corporation or market share in the Philippines. At present, the Philippines allow 100 percent foreign ownership of Philippine retail trade enterprise with a rewarded up assets of $2.5 million. The limits on how much advertise share a corporation can own in the Philippines are a little stricter. For any corporation looking to spend in the Philippines, 60 percent of any domestic market is necessary to be Filipino owned and 40 percent can be foreign owned. This income that any foreign business can own up to 40 percent of a market share based in the Philippines.

Food Processing and beverage industry
A. It is one of the most dominant primary industries and it accounts for 40% of the total number of manufacturing output in Philippines.
B. And it is contributing 20% in GDP of the country.
C. The food processing industry is comprised of fruit and vegetable; fish and maritime crop; animal protein and fowl crop; flour and bakery crop; drink and confectionery; dairy food; food condiments and seasonings; food supplement; bottled irrigate; snack food; and fat and oils.

Packaged food industry
A. Packaged food sales totaled US$9.1 billion in 2011. Dairy products reported the highest Market share of 17 percent, in which bakery (14 percent), oils and fats (11 percent), Sweet and savory snacks (8 percent) and dried processed food (8 percent).
B. The highest compound annual growth rate (CAGR) was in frozen processed food (10 percent), followed by meal solutions (7 percent), canned Preserved food (7 percent) and chilled processed food (7 percent).
PEST ANALYSIS
POLITICAL ANALYSIS
Democracy: Constitutional republic with a presidential system
Labor laws: The minimum age for employment is 15 years old, Working hours 8 hrs./day, 5 days/week
Foreign investor can invest (ownership): 100%
Corporate Tax (averaged 2006-2014): 31.67%
Vat: 12%

A.
B. There is a law that a woman who is employed cannot do marriage, so women of Philippines might not take interest in job, and so it can affect business in which women is needed.
ECONOMIC ANALYSIS
A. The Philippines rank is 19th out of 41 countries in the Asia Pacific region. And 44th the biggest economy on the earth According to HSBC estimates. The stock market is one of the best performers in the region.
B. Economy has been on a solid path of economic expansion. The govt. has pursued a series of governmental reforms to increase the industrial environment and build up private sector for reduce unemployment. But regulatory efficiency has been not improved. And over last 5 year the economy has been develop at average annual rate of 5%.
C. Unemployment : 7.3%
D. Inflation : 3.6 %
E. Corporate tax rate : 30%
F. Regional are taxed : 10% on taxable income
G. The Philippines had a steady flow of positive economic news recently. The highest rating for the country since 2003 and equivalent to that of Indonesia.
H. The gross domestic product of the Philippines grew CAGR of 11% during 2001-2012, according to the country’s central bank, outperforming all other growth rates in the region except China’s. Economists expect similarly strong growth in the second quarter.
SOCIAL ANALYSIS
A. Filipinos are known for their kindness, patience and talent as well as having a wealthy culture and tradition due to foreign influences of Spanish and Americans.
B. Rice & coconut is a main clip for a man serving of food for Filipino men cannot have enough money to eat without rice.
C. The Philippines is the third largest English-speaking nation in the earth.
D. Filipinos consider in the need for social acceptance and believe that education can supply upward mobility.
E. Filipino Peoples Business Meeting Etiquette, Business Negotiation, Dress Etiquette, Business Cards shows Etiquette for establish good business in Philippines.
TECHNOLOGY ANALYSIS

GSM Data Terminal:

The GSM Data Terminal will give companies the convenience of a wireless access to different information using mobile phones that will lead to limitless Short Message Service (SMS) applications
.