WEEK 8

(image from: http://en.wikipedia.org/wiki/File:Makati_skyline_mjlsha.jpg)

       For this week, we disucussed how PLDT was a monopoly during the 1970's. There was such a thing called a "party line"which was a telephone line or circuit shared by two or more subscribers. During this time, companies used to be a monopoly. Examples would be Philippine Airlines and Microsoft. If you wanted to travel to another city or country, you would only have one choice which is PAL. Airplane fare is also very expensive compared to the prices today. Some companies already have competition today, which removes the their monopoly position in the market. Customers or consumers have other choices which affected them. For PAL, the fare is now lower compared to before since other airlines lowered their prices. There are also more choices for air travel such as Cebu Pacfic, Zest Air, AirAsia and Tiger Air Philippines.

       I think that I am lucky to experience innovation and technology because based on the stories, it was hard to communicate and do things during the past because of the lack of resources and choices. Today, we are given the different privileges such as traveling  to other cities or countries for a lower cost, having faster and better communication lines, innovative transportation like cars, buses and trains.

       Another topic that we talked about were the businesses that were unjust. An example of this would be San Miguel Beer, their main competitor was Beer na Beer. Both companies or brands cater the same market, they have similar products which is Pale Pilsen beer and the bottles look same. Due to this factor, the bottles were returned to the wrong company. Beer na Beer bottles would be with San Miguel and vice versa. Since San Miguel beer was the market leader or the leading brand, they had a lot of Beer na Beer bottles returned to their plant. Instead of returning or exchanging the bottles with Beer na Beer, the company broke or destroyed the Beer na Beer bottles which was unethical, because of this a law was passed stating that companies should still respect their competitors.

      I think what San Miguel did was wrong because even if Beer na Beer was their competitor, it would be better to have a healthy competition. When they broke or damaged the bottles there would be effects for Beer na Beer. Production would be more expensive and less productive since there would only be a few bottles available and the company needs to order or make new bottles.

       From monopoly companies, we also talked about some oligopoly companies. Examples would be Maynilad and Manila Waters. These two water companies cater the same market, however consumers do not have a choice between the two because the companies are available based on location. We also discussed ethical rules and watched a video about Microsoft.

      For the other meeting, we started the class by discussing the oil depots. Miss was suggesting that the oil depots be transferred to other parts of the country. However there would be effects which would be more cost, more time and less productivity.

      Another company that was mentioned is Figaro. It is a filipino company, and buys local coffee and supports the local farmers that plant the coffee beans. The company also promised to help improve the skills of the farmers and help the community. 

      For this meeting, we also watched a video about Electronic Development Corporation (EDC). It is a company that uses geothermal energy and help the community and environment. I believe that the company has a great concept wherein they would not only want to earn but they are also doing their part for the society and the environment.  

       Another company that we talked about was Diageo, which is a beverage company that provides alcoholic drinks.  The company needs clean source of water for their products, therefore they are rehabilitate places and provide economical capital. The company has a project of conserving water in Africa. Diageo is involved in critical issues such as: Environment, Human capital, and Social capital. In their website, it states that "Our sustainability & responsibility strategy, which covers our social, environmental and economic impacts, is key to living that purpose and to delivering our long-term success Key impact areas include: alcohol in society, water, environment, communities, our people and compliance and ethics."

       I think that most businesses should follow the footsteps of the companies mentioned above. These companies are not only concerned in making money or profits, instead they want to help society and the environment. As said in a Chinese proverb, "Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime." This is what the companies are doing especially for the communities where their businesses or companies are based, which is a good thing because the people in the community would be able to sustain for themselves.