STI College Lipa
Bachelor of Science in Tourism Management
Strategic Management
Reinald Zach Ramos
BSTM 3.2A
BDO Unibank PESTEL Analysis
POLITICAL ECONOMICAL
1. The Philippine government has implemented [Link] Philippines' financial institutions could be
policies to strengthen the country's financial utilized for money laundering and terror
inclusivity. financing.
2. The Duterte administration has reduced the [Link] corona virus pandemic has had a significant
country's crime rate. influence on the country's economy and financial
sector.
SOCIAL TECHNOLOGICAL
1. The high youth population encourages shifting 1. To increase banking penetration in the
financial structures that are conducive to growth. country, digital banking would be used.
2. During the epidemic, cyber risks have escalated
in the Philippines.
ENVIRONMENTAL LEGAL
1. Climate change has a direct impact on the 1. The FIST bill will allow banks to outsource their
country's socioeconomic sector. nonperforming assets (NPAs) to asset
management firms.
2. Local banks have created green bonds to
combat environmental degradation. [Link] order to protect traditional local banks in the
Philippines, guidelines to regulate internet banks
will be drafted soon.
Strategic Management
SM Investments Corporation
Competitive Threat of Threat of new
Supplier power Buyer power
rivalry substitution entrants
Bargaining power Buyers in a Retail industry in Treat of Treat of new
of suppliers is retaining industry the Philippines is substitutes in entrants is low for
fairly low. It have moderate Highly retailing SM Investment
should be noted level of bargaining competitive. industries is high given that the
that the power. This can Competitors have since substitutes retailing and
suppliers are be attributed to opened a large are easy to find. department store
highly dependent high amount number of new The tendency in industry is a
on retailers and of discounts, retail stores, retail is not to highly
would dread promos or sales resulting in specialize in one concentrated
losing their offered reduced demand, good or services, market at the top.
business contracts by SM sales volume and but to deal in a SM Investment
with large Department income. SM Malls wide range of has been around
retailers such as Stores and compete with products and for more than 60
SM Supermalls different national and services which years and their
who is known retail stores inside international can buy in many strategic
to be the largest the mall. Buyers retail chains/malls different places. positioning
multi-channel can in the Philippines Given the continuing growth
retailer in the easily compare such as Robinsons economic makes it difficult
Philippines. prices from one Mall, Walter condition in the for new entrants.
Hence, the store Marts, Ayala Philippines,
position of SM to another in Malls, 7-Eleven, customers will be
Malls is further order to reduce and Puregold. The inclined towards
strengthened their competitive discounted prices,
and negotiation cost. pressures, the specialty
are positive in especially those shops or
order to arising in Tiangge/Ukay-
get the lowest connection with ukay and online
price from the the expansion shops offer
suppliers. strategy, causes products of at a
negative impact much cheaper
on financial price.
condition and
results of
operations.
Strategic Management
