IMPACT OF COVID-19 IN BUSINESS

A Comprehensive Overview of Business Performance in the Philippines

Before and After COVID-19

BSA2A-GROUP 5
 I. INTRODUCTION
i. Country Analysis

This country analysis provides an analysis of multiple factors concerning the

comprehensive overview of the country before and after COVID19. These factors
include information regarding the country’s Economic Indicators, Government Policy,
Political Scenario and Economic Outlook. The purpose of this is to understand the past
and current environment of the country because of the pandemic and to compare and
contrast each. In addition, we also evaluate any breaks or trends in the data that are
present.
 ii. Brief of the Country

Since the end of the Second World War, the Philippine economy has had a mixed history
of growth and development. Over the years, the Philippines has gone from being one of the
richest countries in Asia (following Japan) to being one of the poorest. Growth immediately
after the war was rapid, but slowed over time. 
2016 saw the election of President Rodrigo DUTERTE, who has pledged to make
inclusive growth and poverty reduction his top priority.  The administration wants to reduce
the poverty rate to 17% and graduate the economy to upper-middle income status by the end of
President DUTERTE’s term in 2022.
However, the need to finance rehabilitation and reconstruction efforts in the southern
region of Mindanao following the 2017 Marawi City siege and the current COVID19 crises
may compete with other spending on infrastructure.
 II. THE COUNTRY
i. Political Analysis
Before After
The Duterte government’s top priorities include: During COVID-19, many protocols and laws are provided by
• combating illegal drugs and crime the government include:
• promoting rapid infrastructure development • wearing facemasks and face shields
• sustaining economic growth and making it more inclusive
• disbursements include COVID-19 initiatives that are
• enhancing peace and development in Mindanao
continuously being implemented and delivered by various
• and reorienting the Philippines’ foreign relations government agencies
• administration’s strategy to flatten the curve
To support these goals, the government has:
• significantly increased spending on infrastructure • the progress a mass testing
• raised the salaries of government employees • chief executives are demonstrating proactive and exemplary
• expanded existing social development programs governance
• revived the stalled peace process with the Moro National • dozen individuals have been summoned to the National
Liberation Front (MNLF) and the Moro Islamic Liberation Bureau of Investigation on allegations of spreading “false
information” on the coronavirus
Front (MILF)
• entered into negotiations with the communist insurgent
• and established a closer relationship with China
 ii. Economic Analysis
Before After
• economic growth slowed in the first half of 2019, Economy may lose between P276.3 billion and
driven by a rapid deceleration in investment P2.5 trillion, depending on how the coronavirus
growth due to contraction in public spending and pandemic develops in the next few months
weaker global economy
Risks remain tilted to the downside, with
• Philippines expects to sustain progress in poverty Capital Economics seeing a longer downturn for the
reduction global economy due to the following factors:
• economy remains strong and is projected to grow • direct virus-related disruption that lasts longer
• Introduced universal healthcare than expected
• free education from pre-school up to a basic • risk of lengthier recession or even another
university degree level financial crisis as companies turn insolvent
• combating drug trafficking, maritime piracy and • central banks have limited monetary space
Islamist terrorist groups • higher unemployment
• the country is building closer ties with its • downturn in consumer spending
neighbors, Indonesia and Malaysia
 iii. Social Analysis
Before After
In response to the COVID-19 pandemic, the Philippine
There have been various problems for
government is pursuing a four-pillar strategy to safeguard
decades in areas like:
Filipinos from its impacts. These are: 
• birth control • Pillar 1: Emergency support for vulnerable groups and
• Corruption individuals 
• Pillar 2: Expanded medical resources to fight COVID-19 with
• Pollution
an increased budget 
• Traffic • Pillar 3: Fiscal and monetary actions to finance emergency
• pollution are real concerns initiatives and keep the economy afloat with an increased
budget 
• the oligarchy bordering on dynastic rule • Pillar 4: An economic recovery plan to create jobs and sustain
growth, which will be funded by pillar 3
The Social Amelioration Program (SAP) is under the first
pillar of providing emergency support or lifeline assistance to
vulnerable groups. While the delivery of SAP under the DSWD
was relatively successful, it also encountered problems and
challenges along the way.
  iv.  Technological Analysis
Before After
• 4th place in southeast Asia in being technologically Filipinos in innovation exploded when inventing
ready or designing things to ensure safety and the health of
• currently stands is not as favorable as compared to the citizens. These locally made machines that helped
the government in responding to the threat of COVID-
other countries in the region 19 are:
• will make steady progress in improving cyber
• “Go clean disinfection chamber”,
security, creating e-government portals and raising
internet connectivity speed, • Trams+
• demand for tech products, services, and automation • LISA robot; and
across sectors is on the rise. 
• The project RAMDAM.
• the use of smartphones and social media has
permeated every socio income class in the This just leaves us the conclusion that Philippines
Philippines can cope up with the technological requirements and be
world class in developing machines and softwares to
• educational organizations have blended traditional aid us the this battle against COVID-19.
learning methods with technologies to increase the
digital literacy of the average Filipino
 v.  Legal Analysis
Before After
• It is given that in registering for a business, - As only businesses involve in the value
physical appearance is important when chain of essential commodities are
passing the required permits and any legal
documents operational here in the Philippines, the rest
of the people who wanted to establish their
• Because technology has also advantages,
information passed through online own business are having a hard time
platforms is not certainly secured, there are complying with the requirements
computer hacking, introduction of viruses,
- Since almost all businesses are now
and piracy of copyrighted documents
working from home, they need to find ways
to migrate their policies, procedures and
safeguards to a work-from-home setting in
order to comply with the law
 vi. Environmental Analysis
Before After
• tropical climate and friendly population, the Philippines • air quality improved during the COVID-19 lockdown in
provides a great environment for foreigners willing to work in March many were surprised to learn that the majestic Sierra
the country Madre mountain range was visible from the heart of the
• . Salaries are not as high as in other countries of the region, but metropolis
the authorities are committed to not only improve the country's • photos of clear skies, breathtaking sunsets and the Sierra
economy but also to develop more sustainable cities, especially Madre as a backdrop to the sprawling city went viral just a
in Manila
week after the government suspended public transportation
• tourism is nonetheless on the rise thanks to and non-essential businesses in an effort to curb the spread
smart ways to promote the Philippines of the virus
• enabling a growing number of visitors to explore Manila, • By following in the footsteps of other nations battling the
Boracay or the Philippine UNESCO world heritage sites. COVID-19 pandemic, the Philippine government
• on some rainy days, thick haze would blanket the sprawling inadvertently helped reduce air pollution in Metro Manila
metropolis of the Philippine capital, leaving the city skyline
barely visible.
• unfortunately, Filipinos have become used to Metro Manila’s
air pollution
 III.       SWOT ANALYSIS
i. Strengths ii. Weaknesses
• Social Media • Competitor 
• 24/7 Marketing • Distraction 
• Strong Customer Relationship • Limited Knowledge
• Creativity  • Limited Customer
• inadequate infrastructure levels
• large population that is young
• low fiscal revenues
• qualified and with good command of
English • governance shortcomings and high corruption
perceptions
• Tourism is also one of the strengths of the
• high levels of income inequality
Philippines with thousands of beautiful
islands and a lot to offer • terrorism in the South of the country
 III.       SWOT ANALYSIS
iii. Opportunities iv. Threats
• Customers Loyalty • Strong Competition with other Business
• Social Media Presence • Market Demand
• Innovation of the Product • Changing Consumers Preferences
• Market Trends • Conflict of Channel
• Availability of the Price and the Quality of • Supplier Dependence
the Product
• threats to economic sustainability was
• Target Customer obvious
• Online Business • current academic status for learning
• Solid Current Business Location
• Partners
 IV. GUIDELINES AND RECOMMENDATION
IN ENTERING THE MARKET
i. The International Market
Before the Pandemic After the Pandemic
• rise of digital behavior such as remote working
• Many companies are beginning to see
and learning, telemedicine, and delivery
themselves as international rather than services
national acting on a global arena
• including regionalization of supply chains and a
• the world market continues its upswing further explosion of cross-border data flows
• with the last year’s major events, which Coronavirus has accelerated three of the key
composed of the US and China Trade geopolitical trends:
war, North Korea-U.S. Nuclear Talks, • de-globalization
US and Iran Tension but despite of that • the inevitable growth of nationalism and “my
the global order was in flux well before nation first” 
the COVID-19 crisis • how the world will now see China
 ii.Market entry strategy
Often, business owners have the ambition to venture internationally. By selling your
product or service in another country, you can introduce your company to huge markets,
increase your sales and profits, gain brand recognition, reduce the risk of only operating in one
market and extend your product’s life cycle. There are several things to consider before
entering the international market.

• Choosing the country • Franchising

• When to enter • Joint Venture
• Scale of Entry • Foreign Direct Investment
• Exporting • Wholly Owned Subsidiary
• Licensing • Piggybacking
 V. CONCLUSION
i. Analytical Summary
In entering the Philippine Market, as a foreign investor, exporting strategy is the most
recommended strategy. Even before the pandemic, the country greatly favored the imported
brands and goods, and will continue to do so in this pandemic. The rising trend of online
shopping will promote the import of international products, and will be the best business
opportunity, at least, in the next few months or years.
In the perspective of a Filipino business venturing into the international market, since our
country is known for the great craftsmanship and labor group, it is better to manufacture the
needed products here. Although the technologies are somewhat lacking in comparison to
technologically-advanced countries, the labor and quality of raw materials makes up for it.
 ii. Concluding statements
COVID-19 will leave a lasting imprint on the world economy, causing permanent changes and teaching
important lessons.
We may have have limited number of critical care beds in the country to care for patients who need
ventilators for acute respiratory distress caused by viral pneumonia. But we have a government that is
willing to listen to advice from the scientists and so have implemented community quarantine as a way of
slowing down transmission and ‘flattening the epidemic curve’. The next few weeks should tell how
effective these efforts to control COVID-19 will be.
In conclusion, Covid-19 looks like a “bend but won’t break crisis” for globalization. International flows
are plummeting, but globalization — and opposition to globalization — will continue to present business
opportunities and challenges. Careful attention to the drivers of globalization’s future can help companies
navigate through and even profit from globalization’s turbulence. A volatile world of partially connected
national economies expands possibilities for global strategy even as it complicates the management of
multinational firms. Now is the time for global corporations to show their value by harnessing the best of
the world’s capabilities to end the pandemic and bolster the recovery.
 THANK YOU!
BSA2A GROUP 5
Birosel, Satchel Adrienne
Catalino, Jerome  Ornedo, Alyza Angela
Duhig, Chris King Viloria Roman, Tricia Kate.
Jabel, Jay Ann Transfiguracion, Cayla Mae
Licay, Lois Marie Usudan, Usudan
Yan, Dem Anjelo Lyn