I.

Philippines Business Trends Reports

The business trend that is being featured is the digital transformation and online
trends in the marketplace. Digital transformation and online trends are revolutionizing the
way businesses operate and interact with customers. This trend is driven by the increasing
adoption of digital technologies, such as cloud computing, artificial intelligence (AI), and
mobile devices. As a result, businesses are moving their operations online and developing
new digital products and services. One of the key factors in the rise of this trend is the
emergence of e-commerce. In 2022, the Philippine eCommerce sector was estimated to have
grown by 31.3 percent to reach P500.9 billion.1 This sudden rise came as no surprise as the
Philippines boasts a whopping 85.16 million internet users which helped skyrocket
e-commerce growth.2 Another big trend which contributed to the rise of the trend is the
growth of mobile shopping. With 92% of Filipinos preferring to use their mobile phones to
shop online, it has forced businesses to create an option to access their services through a
mobile phone in order to keep up with the growing demand.3 Digital transformation and
online trends are here to stay. Businesses that are able to adapt to these trends will be
well-positioned for success in the years to come. However, businesses that are slow to adopt
these trends will be at risk of being left behind.

With that being said, it’s time to talk about entrepreneur Mark Cuban’s billion dollar
company, the Dallas Mavericks and how the trend of digital transformation affects its
operations. As the Dallas Mavericks isn’t really your typical business, the effects of digital
transformation aren’t really that typical either. Starting off with the positives, the trend of
digital transformation could lead to enhanced fan engagement. The digital era offers
opportunities for the Dallas Mavericks to connect with fans on a global scale through various
digital platforms. Social media, mobile apps, and online streaming can be utilized to engage
fans during games and off-season, creating a more loyal and widespread fanbase. The
business also becomes open to creating more revenue streams by selling merchandise online,
offering streaming services, and developing new digital products and services. It also receives
a significant boost in its marketing and advertising which can help them to reach more fans
and increase brand awareness. However, as the NBA has 29 other teams, the Mavericks will
receive an increased competition for attention as the digital landscape is highly competitive,
and attention spans are limited. The Dallas Mavericks may face challenges in standing out
amid the plethora of content and engagement options available to sports fans especially
against bigger market franchises such as the Los Angeles Lakers, and the New York Knicks.
The power of social media, as discussed before, could be an opportunity for the Mavericks to
capitalize on, however, while positive engagement is beneficial, negative feedback can spread
quickly and impact the team's reputation. Managing the team’s online reputation becomes

1
“The State of Philippine Ecommerce,” ZhenHub, accessed December 3, 2023,
https://zhenhub.com/blog/state-of-philippine-ecommerce/.
2
“The State of Philippine Ecommerce,” ZhenHub, accessed December 3, 2023,
https://zhenhub.com/blog/state-of-philippine-ecommerce/.
3
Nico Chan, “Filipino Online Shopping Behavior: Statistics & Trends,” Spiralytics, accessed December 3,
2023, https://www.spiralytics.com/blog/filipino-online-shopping-behavior-statistics-trends/.
crucial and one wrong move could greatly harm it. The emergence of streaming services also
poses a threat to the company as some people would rather watch games from home than
travel to the arena. The company will receive its fair share of challenges when it comes to
properly implementing digital transformation to its operations. The biggest challenge being,
finding a way to balance the need to innovate with the need to maintain their traditional fan
base. Although following the trend of digital transformation is important, the Mavericks need
to find a way to keep both traditional and digital fans happy. To support this entrance into the
digital world, the Mavericks would also need to invest a significant amount of resources
which in and of itself is already a big challenge.

In conclusion, the trend of digital transformation and online trends is a significant

force reshaping the business landscape, including sports organizations like the Dallas
Mavericks. As outlined, the impact on the Mavericks is nuanced, presenting both
opportunities and challenges. While the digital transformation trend presents challenges, it is
an inevitable and necessary evolution for sports organizations to remain relevant and
competitive. As an entrepreneur and owner like Mark Cuban, embracing digital trends,
understanding the fan base, and investing in innovative yet balanced strategies can position
the Dallas Mavericks for success in the ever-evolving sports and entertainment landscape.
The key lies in strategic decision-making, smart resource allocation, and a keen
understanding of the dynamic intersection between sports and the digital world. The
Mavericks' ability to effectively navigate this trend will likely shape their success in the years
to come.

II. The Philippines’ Business Environment

Throughout the course, I gained a comprehensive understanding of the Philippine
economy and business landscape. It is characterized by a dynamic mix of large corporations
and a significant presence of Micro, Small, and Medium Enterprises (MSMEs), both serving
as critical drivers of economic development. This blend contributes to growth, employment,
and income generation. The course highlighted key industries such as wholesale retail trade,
accommodation and food service activities, manufacturing, other service activities, and
financial services. A fundamental takeaway from the course is the significance of conducting
a thorough analysis of both internal and external factors when evaluating companies. This
holistic approach to analysis ensures a comprehensive understanding of the business
environment, allowing for strategic decision-making and risk management. The outlook for
the Philippine economy appears promising, given its diversified economic structure and the
crucial role played by both large corporations and MSMEs. The challenge lies in navigating
and leveraging the synergies between these entities to foster sustainable and inclusive growth.
By embracing innovation, fostering entrepreneurship, and adapting to global trends, the
Philippines can position itself for continued economic development.

To continue with my point, MSMEs are the backbone and future of the Philippines
and there are statistics that support this notion. 99.59% of businesses in the Philippines are
MSMEs and they contribute to 65.10% of the country’s total employment.4 These statistics
alone are enough to show how important MSMEs are to the overall business environment of
the Philippines. Furthermore, as MSMEs make up almost all of the businesses in the
Philippines, they can cover any business sector which allows for quicker adaptation to
changing market conditions, economic downturns, or unforeseen disruptions, thereby
enhancing the overall stability of the national economy. With this belief in MSMEs, the
easiest way to support them is by buying and promoting products or services that MSMEs
offer. Another way to help MSMEs is by advocating for policies that support their growth and
sustainability and supporting initiatives that provide easier access to finance for MSMEs,
including microfinance programs, low-interest loans, and grants.

One of the MSMEs that I have really enjoyed supporting is Chubby Chicken, a
chicken restaurant in Katipunan. Me and my friends really enjoy eating at that place and it's
always fun as it takes us away from the big franchises like McDonalds and Jollibee. The
place gives off an authentic vibe and it feels more personal as the employees are almost
always the same whenever I go there. Although Katipunan is littered with MSMEs, that place
is always my favorite to go to not just because of how comfortable it is but also because of
the memories I have. That is what I think makes MSMEs really special, and completely
different from larger companies.

III. Business Ethics, Social Responsibility & Sustainability

Business ethics, social responsibility, and sustainability are integral concepts in
strategic management, collectively shaping the success of organizations. Business ethics,
encompassing the application of ethical principles and moral values, sets the foundation for
principled decision-making. Social responsibility, as the obligation to benefit society, aligns
business practices with societal expectations. Sustainability, emphasizing long-term viability
and environmental stewardship, ensures that business practices stand the test of time without
compromising future generations. The interconnection of these concepts is evident: business
ethics provides the moral framework for decision-making, social responsibility guides a
business's impact on society, and sustainability secures the long-term viability of business
practices.

Recognizing that a business cannot thrive on profit alone, it must embody its own set
of ethics and responsibility. Strong ethical standards not only build trust within the company
but also foster a positive organizational culture, making the business more attractive to top
talent. Similarly, social responsibility aligns business practices with societal expectations,
enhancing the company’s reputation and attracting customers, thus creating a competitive
advantage. Sustainability, vital for a business's longevity, not only meets societal expectations
but also results in cost savings and resource efficiency.

4
“MSME Statistics,” Department of Trade and Industry Philippines, accessed December 3, 2023,
https://www.dti.gov.ph/resources/msme-statistics/.
 In today's dynamic and interconnected business landscape, companies face a myriad
of challenges in their pursuit of ethical conduct, social responsibility, and sustainability.
These challenges stem from a complex interplay of factors, including the need to balance
competing interests, navigating global regulations, and managing stakeholder expectations.5
The challenges faced by companies usually fall under three categories, balancing competing
interests, managing stakeholder expectations, and navigating global regulations. Businesses
often face pressure to prioritize short-term profits over long-term sustainability or to make
ethically questionable decisions to gain a competitive edge. Furthermore, meeting the diverse
expectations of stockholders can be challenging due to a difference in priorities and values.
Lastly, businesses operating across different jurisdictions may face varying and evolving
regulations related to ethics, social responsibility, and sustainability.

As aspiring business leaders and future owners, the responsibility lies in embracing
and applying these concepts to drive positive change. The first step to applying these
concepts is by establishing a strong ethical foundation within the company, which I believe
starts from the top. In order to get my employees to buy-in to my plans, I need to lead by
example by personally committing to ethical behavior and social responsibility. Furthermore,
engaging in activities to help support local communities will be one of the top priorities of the
company. Transparency is also something that is important to building an ethical and socially
responsible company. By being open about ethical practices, social responsibility initiatives,
and progress in sustainability goals, organizations build trust with stakeholders. Although
applying these principles is obviously easier said than done, it is imperative that we, as future
business leaders, actively campaign for the practice of ethics and social responsibility. In
doing so, we contribute not only to the success of our businesses but also to the well-being of
society and the preservation of our planet for generations to come.

5
Kara Anderson, “Navigating the Maze: Ethical Standards in the Modern World,” Greenly, accessed December 3,
2023,
https://greenly.earth/en-gb/blog/company-guide/navigating-the-maze-ethical-standards-in-the-modern-world.
 REFERENCES

Anderson, Kara. “Navigating the Maze: Ethical Standards in the Modern World.” Greenly.
Last modified November 22, 2023. Accessed December 3, 2023.
https://greenly.earth/en-gb/blog/company-guide/navigating-the-maze-ethical-standard
s-in-the-modern-world.

Chan, Nico. “Filipino Online Shopping Behavior: Statistics & Trends.” Spiralytics. Last
modified November 13, 2023. Accessed December 3, 2023.
https://www.spiralytics.com/blog/filipino-online-shopping-behavior-statistics-trends/.

“MSME Statistics.” Department of Trade and Industry Philippines. Last modified October 6,
2023. Accessed December 3, 2023. https://www.dti.gov.ph/resources/msme-statistics/.

“The State of Philippine Ecommerce.” ZhenHub. Last modified May 3, 2023. Accessed
December 3, 2023. https://zhenhub.com/blog/state-of-philippine-ecommerce/.