Decision making

Decision making can be regarded as the mental

processes (cognitive process) resulting in the
selection of a course of action among several
alternative scenarios. Every decision making
process produces a final choice. The output can
be an action or an opinion of choice.

Each activity of management is a result of its

decision making process. The decision involves
finding out what the situation is or changing it
and either finding out what the resources are or what they should be. Decision
making is a primary step in management planning. It is a mental exercise. It lies at
the core of the business activity and it is the real essence of the management.

Decision-making is not a separate function of management. In fact, decision-making

is intertwined with the other functions, such as  Planning, Coordinating, and Controlling.
These functions all require that decisions be made. For example, at the outset,
management must make a critical decision as to which of several strategies would
be followed. Such a decision is often called a strategic  decision because of its long-
term impact on the organization. Also, managers must make scores of lesser
decisions, tactical and operational, all of which are important to the organization's
well-being.

Managers are constantly called upon to make decisions in order to solve problems.
Decision making and problem solving are ongoing processes of evaluating situations
or problems, considering alternatives, making choices, and following them up with
the necessary actions. Sometimes the decision-making process is extremely short,
and mental reflection is essentially instantaneous. In other situations, the process
can drag on for weeks or even months. The entire decision-making process is
dependent upon the right information being available to the right people at the
right times.
 Decision Making Process

The decision-making process involves the following steps:

 Define and identify the problem.
 Develop potential alternatives.
 Analyze the alternatives.
 Select the best alternative.
 Implement the decision.
 Establish a control and evaluation system.

1. Define the problem

The decision-making process begins when a manager identifies the real problem.
The accurate definition of the problem affects all the steps that follow; if the
problem is inaccurately defined, every step in the decision-making process will be
based on an incorrect starting point. One way that a manager can help determine
the true problem in a situation is by identifying the problem separately from its
symptoms.
The most obviously troubling situations found in an organization can usually be
identified as symptoms of underlying problems. (See Table 1 for some examples of
symptoms.) These symptoms all indicate that something is wrong with an
organization, but they don't identify root causes. A successful manager doesn't
just attack symptoms; he works to uncover the factors that cause these
symptoms. 
 TALE Symptoms and Their Real Causes
1
Symptoms Underlying Problem
Low profits and/or declining Poor market research
sales
High costs Poor design process; poorly trained employees
Low morale Lack of communication between management and
subordinates
High employee turnover Rate of pay too low; job design not suitable
High rate of absenteeism Employees believe that they are not valued

Identify limiting factors

All managers want to make the best decisions. To do so, managers need to have the
ideal resources — information, time, personnel, equipment, and supplies — and
identify any limiting factors. Realistically, managers operate in an environment that
normally doesn't provide ideal resources. For example, they may lack the proper
budget or may not have the most accurate information or any extra time. So, they
must choose to satisfy — to make the best decision possible with the information,
resources, and time available.

2. Develop potential alternatives

Time pressures frequently cause a manager to move forward after considering only
the first or most obvious answers. However, successful problem solving requires
thorough examination of the challenge, and a quick answer may not result in a
permanent solution. Thus, a manager should think through and investigate several
alternative solutions to a single problem before making a quick decision.
One of the best known methods for developing alternatives is
through brainstorming, where a group works together to generate ideas and
alternative solutions. The assumption behind brainstorming is that the group
dynamic stimulates thinking — one person's ideas, no matter how outrageous, can
generate ideas from the others in the group. Ideally, this spawning of ideas is
contagious, and before long, lots of suggestions and ideas flow.
 3. Analyze the alternatives
The purpose of this step is to decide the relative merits of each idea. Managers
must identify the advantages and disadvantages of each alternative solution before
making a final decision.
Evaluating the alternatives can be done in numerous ways. Here are a few
possibilities:
 Determine the pros and cons of each alternative.
 Perform a cost-benefit analysis for each alternative.
 Weight each factor important in the decision, ranking each alternative
relative to its ability to meet each factor, and then multiply by a probability
factor to provide a final value for each alternative.

Regardless of the method used, a manager needs to evaluate each alternative in

terms of its
 Feasibility — can it be done?
 Effectiveness — how well does it resolve the problem situation?
 Consequences — what will be its costs (financial and nonfinancial) to the
organization?

4. Select the best alternative

After a manager has analyzed all the alternatives, she must decide on the best one.
The best alternative is the one that produces the most advantages and the fewest
serious disadvantages. Sometimes, the selection process can be fairly
straightforward, such as the alternative with the most pros and fewest cons.
Other times, the optimal solution is a combination of several alternatives.
Sometimes, though, the best alternative may not be obvious. That's when a
manager must decide which alternative is the most feasible and effective, coupled
with which carries the lowest costs to the organization. (See the preceding
section.) Probability estimates, where analysis of each alternative's chances of
success takes place, often come into play at this point in the decision-making
process. In those cases, a manager simply selects the alternative with the highest
probability of success.

5. Implement the decision

Managers are paid to make decisions, but they are also paid to get results from
these decisions. Positive results must follow decisions. Everyone involved with the
decision must know his or her role in ensuring a successful outcome. To make
certain that employees understand their roles, managers must thoughtfully devise
programs, procedures, rules, or policies to help aid them in the problem-solving
process.

6. Establish a control and evaluation system

Ongoing actions need to be monitored. An evaluation system should provide
feedback on how well the decision is being implemented, what the results are, and
what adjustments are necessary to get the results that were intended when the
solution was chosen.
In order for a manager to evaluate his decision, he needs to gather information to
determine its effectiveness. Was the original problem resolved? If not, is he
closer to the desired situation than he was at the beginning of the decision-making
process?
If a manager's plan hasn't resolved the problem, he needs to figure out what went
wrong. A manager may accomplish this by asking the following questions:

 Was the wrong alternative selected? If so, one of the other alternatives
generated in the decision-making process may be a wiser choice.
 Was the correct alternative selected, but implemented improperly? If so,
a manager should focus attention solely on the implementation step to ensure
that the chosen alternative is implemented successfully.
 Was the original problem identified incorrectly? If so, the decision-making
process needs to begin again, starting with a revised identification step.
 Has the implemented alternative been given enough time to be
successful? If not, a manager should give the process more time and re-
evaluate at a later date.
 Types of Managerial decision

PROGRAMME AND NON-PROGRAMME DECISIONS: - 

Programmed decisions are concerned with relatively routine and repetitive problems.
Information on these problems is already available and can be processed in a pre-planned
manner. Such decisions have short-term impact and are relatively simply. They are, made
at lower levels of management. These decisions require little thought and judgment. The
decision maker identified the problem and applies the predetermined solution.
For example, if an employee is habitually late comer he can easily be dealt with under the
established procedure. Non-programmed decisions deal with unique or unusual problems.
Such novel or non-repetitive problems cannot be tackled in a predetermined manner. There
are no cut-and-dried of executive judgment and deliberation is required to solve them. To
order firing on a rioting mob, to impose curfew in the city, opening of a new branch are
examples of such decisions. The ability to make good non-programmed decisions help to
distinguish effective executives from non effective executives .

For Example: Mc Donald's decides to order beef patty stocks because the stocks are
three-quarters empty. Programmed decisions making are a routine that you make every
time so that the organization run smooth. Managers can develop rules and guidelines to
regulate all routine organizational activities. Most decisions are related to daily activities.

ROUTINE AND STRATEGIC DECISIONS:-

Routine decisions are made repetitively following certain established rules, procedures and
policies. They do not require collection of new data and can be taken without much
deliberation. Such decisions are taken generally by the executives at the middle and lower
management levels. Strategic or basic decisions, on the other hand, are more important
and are generally taken by the top management organizations. They relate to policy
matters and so require a thorough fact finding and analysis of the possible alternatives.
Launching a new programme, location of a new plant, installation of a computer system are
examples of strategic decisions.

For Example: When a personal officer hires a new sales employee, the first line supervisor
changes the part of operation, a sales manager apportions him with new branch, and the
accountant makes entries into his books. It’s like a routine decision taken by the employees
who are repetitive in nature and they involve the application of familiar principles to a
situation.

POLICY AND OPERATIVE DECISIONS:-

Policy decisions are of vital importance and are taken by the top management. They effect
the entire organization. They are generally taken by top management or the very senior
executives of the organization. But operating decisions are taken by the lower management
in order to put into action the policy decisions.

For Example: The bonus issue is a policy matter which is to be decided by the top
management and calculation of bonus is an operating decision which is taken at the lower
levels.

Proactive and Reactive Decisions

Proactive decisions are those made in anticipation of certain changes in the external
environment while, reactive decisions are those taken as a result of changes happenend in
the environment. The success of a proactive decision requires accurate predictions of the
future trends, while a successful reactive decision requires very swift action in response
to the changes in the environment.

For Example: Banks use thick steel and concrete vaults with advanced electronic systems
to prevent and detect break-ins. Many companies, from convenience stores to casinos, use
cameras to record business activities, the idea being that cameras both deter theft and
help identify perpetrators when thefts do occur. All of these examples represent
proactive approaches to securing a company's infrastructure. 

Intuitive and Systematic Decisions

Systematic decisions a manger approaches the problem to take a decision in a step by step
and analytical fashion. Managers taking such decision first make an action plan, then
gather information required to facilitate the decision making process. On contrary
intuitive decisions are more flexible and spontaneous at times may be creative. They deal
with problems considering “hunches” or “gut-feelings”.
For Example: Mc Donald’s franchise owner in India systematically planned the menu, need,
targeted teenagers and children’s and accordingly decided the programme. This is
referred as systematic decision.

Philippines

The Philippines (Filipino: Pilipinas, officially known as the Republic of the Philippines,
Filipino: Republika ng Pilipinas), is an island country located in Southeast Asia with Manila
as its capital city. The Philippines comprises 7,107 islands in the western Pacific Ocean,
sharing maritime borders with Indonesia, Malaysia, Palau, the Republic of China, the
People's Republic of China, and Vietnam. The Philippines is the world's 12th most populous
country with a population of 90 million people. Its national economy is the 46th largest in
the world with an estimated 2008 gross domestic product (GDP) of over US$154.073
billion. There are more than 11 million overseas Filipinos worldwide, about 11% of the total
population of the Philippines. It is a multi-ethnic country. Ecologically, The Philippines is
considered to be among 17 of the most megadiverse countries in the world.

CAPITAL:   Manila

LOCATION: Southeastern Asia, archipelago between the Philippine Sea and the South
China Sea, east of Vietnam . It is surrounded by by the Philippine Sea from the east, by
the South China Sea on the west, and by the Celebes Sea on the south.
 SOCIAL & CULTURE

Philippine culture is a fusion of pre-Hispanic Austronesian

(Malayo Polynesian) civilizations mixed with Hispanic, and
American. It has also been influenced by Chinese, Arab, and
Indian cultures.

The Hispanic influences in Philippine culture are derived from

the culture of Spain. These Hispanic influences are most evident
in literature, folk music, folk dance, language, food, art, and
religion. Spanish colonialists introduced Iberian, and Mexican
dishes, such as arroz valenciana, to those of the Mexican
cuisines (adobo preparation is the only exception as Philippine adobo is made with soy
sauce, vinegar, garlic, bay leaves, and peppercorns unlike the tomato, corn, avocado, and
potato in Mexican adobo). Philippine cuisine is a mixture of Asian, Oceanian, European, and
American dishes.

Filipino and English are the official languages of the Philippines, but more than 180
languages and dialects are spoken in the archipelago.

Philippine tradition exhibits festivities known as barrio fiestas

(district festivals) to commemorate their patron saints. One of
the most visible Hispanic legacies is the prevalence of Spanish
surnames, and names among Filipinos. This peculiarity, unique
among the people of Asia, came as a result of a colonial decree,
the Clavería edict, for the systematic distribution of family
names, and implementation of the Spanish naming system on
the inhabitants of the Philippine Islands. A Spanish name, and
surname among the majority of Filipinos does not always denote
Spanish ancestry.

Filipinos are lovers of art. Their art is reflected in the things they do and way they believe
in daily life. The best examples of architecture of the sixteenth to the nineteenth century
are the churches built by the Spaniards with the help of the Filipinos. They are structures
built in Baroque style with elaborate curved arches, altars and images of saints.
THE CATHOLICS CELEBRATIONS AND PRACTICES:

In spite of the diverse religious groups in the Philippines each with its particular practices;
the Filipinos believe in only one God who is almighty and omnipotent. Religious practices
show concern and love for one's neighbors. Among the Catholics, the Ten Commandments
set the standard of behavior. They keep images of their saints at home and every church
has a patron saint.   The Lenten season is as significant to the Filipinos as Christmas.
Christian Filipinos commemorate the passion and death of Jesus Christ with as much
sincerity and seriousness as His birth.

THE FIESTA CELEBRATIONS:

Fiestas are held on the birthday of the patron saint

celebrated with the holding of a novena, a nine-day
devotion of masses followed by special prayers of
praise to the patron saint. The plaza around t5he
church is decorated with colorful buntings. On the
ninth day which is the feast day of the saint, a high
mass is celebrated by one or several priests. Suddenly
the plaza is transformed into a mini-market where
ready-made clothes, toys, fruits, and native delicacies
are sold. A brass band plays after the mass and then
makes a round of the immediate vicinity playing popular Filipino songs, marches and
kundimans. This sets a happy, festive mood in the community with residents going on
splurge entertaining relatives and friends from other towns.

    The town fiesta is an event that the residents look forward to. Three or four months
before the fiesta the family takes good care of a piglet and chickens earmarked for the
fiesta. Of course, the fiesta is an occasion when friends and relatives can be together,
enjoy each other's account of the past year's experiences and partake of the palatable
dishes prepared for a day.

IMPORTANT RELIGIOUS GROUPS

The Philippines is one of two countries in Asia, and the
Asia-Pacific region with Roman Catholic majorities; the
other being East Timor. The Philippines is separated
into dioceses of which the Archdiocese of Manila is
the main primacy. About 90% of Filipinos identify
themselves as Christians, with 81% belonging to the
Roman Catholic Church. 2% are composed of
Protestant denominations, and 11% either to the
Philippine Independent Church, Iglesia ni Cristo, and others.The Philippines is also well-
known for its Baroque-style churches. They are a part of the long list of UNESCO World
Heritage Sites.

Approximately 5% of Filipinos are Muslims, and are locally known as Moros, having been
dubbed this by the Spaniards due to their sharing Islam with the Moors of North Africa.
They primarily settle in parts of Mindanao, Palawan, and the Sulu archipelago, but are now
found in most urban areas of the country.

Most lowland Muslim Filipinos practice Islam, although the practices of some Mindanao's
highland Muslim populations reflect a mixture with Animism. There are also small
populations of Buddhists, Bahá'í, Hindus, Sikhs, and animists, which, along with other non-
Christians, non-Muslims and those with no religion, collectively comprise 2.5% of the
population.

Philippines religiosity

religion percent

Christianity   90%

Islam   5%

Others   5%

Lifestyle

ABOUT THE FILIPINO CLOTHES:

Their ancestors, both men and woman wore two-piece clothes; a collarless, short-sleeved
jacket and strip of cloth wrapped around the waist and in between the legs. The women
wore the baro, a wide-sleeved jacket and a skirt of cotton cloth wrapped about the waist.
The Filipina wardrobe was later modified.   They say is a long skirt which touches the
floor. It has a kola or train which means the woman holds to keep it clean she moves.
Printed satin is the usual material used for the says; brocade for gala use.

   Over this says, a tapis with tassels on the edges is worn. Beneath the saya and tapis is
the enagua, a slip with lace edging.    The elegant clothes of the Filipino women are
properly taken care of. Women give special attention to their clothes especially those
made of fibers such as fina or sinamay.

ABOUT THEIR MANNER OF DRESSING:

 The washerwoman would sort out the white from the

colored ones. The plain from the printed, the cotton
and satin from those made of fibers. Dirt was removed
using a wooden palu-palo or by trampling upon the
clothes laid out on smooth rocks. Round sabon intsik or
Chinese soap and blue tina were essential washing
materials.

  After washing, some clothes were starched. The

starch used was made from rice lugaw pressed with a wooden sandok or ladle form a
cheesecloth duyan (hammock) tied tto the clothes line at four points. Below this was a
wooden batya or basin to catch the starch. This was then gently patted on the barong
tagalog and butterfly sleeves of the women's baro. The starched clothes were later
stretched into shape and dried on the flat galvanized iron sheets.   Stains are removed
from the clothes by dropping calamansi juice on the stained spots after which the clothes
are bleached in the sunlight.   Starched clothes were sprinkled with water before pressing
with a flat iron filled with glowing charcoal.

ABOUT THE FILIPINO HOUSES:

   The houses vary in the same style depending on their location and social status and taste
of the family. Houses of the Filipinos are usually made of wood and nipa. Later galvanized
iron replaced nipa for roofing.

   In some towns, barrios, and cities, houses made of nipa and bamboo are still to be found.
Some have sawali walls and cogon roofings. Most of the houses especially the older ones
are situated high above the ground for better ventilation and reduced humidity. In the
past, building a house was fast and inexpensive. Houses were built then through the help of
friends and neighbors.

   Today there are only few bamboo houses. Most

houses are already built of strong materials like hollow
blocks, wood, galvanized iron and glass windows.

   Modernity has not entirely changed the architecture

of the Filipino houses. The batalan is stall a part of the
houses in Luzon and is used as an open bathroom, a
place for water jars or tapayan and a place for washing.
The modern batalan is made of concrete and is still
adjacent to the kitchen.   The banguerahan, a storage shelf and drainer before the dish
rack was introduced, is still a part of a few modern houses. The modern banguerahan is no
longer enclosed with bamboo spikes but is screened.   

The old house of before were not painted. The present ones are painted in varied colors
and built styles. The old houses were built high on the ground and the space below calle4d
silong was fenced with bamboo to keep pigs, dogs, and chickens out.   Chairs, tables, beds
and other furniture are found in most hours. Many Filipinos, particularly t6he Tagalogs,
still prefer to sleep on bamboo or wooden floors instead of on beds.

      
 BUSINESS ETIQUETTE & PROTOCOL

Relationships & Communication:

Filipinos thrive on interpersonal relationships, so it is advisable to be introduced by a third

party. It is crucial to network and build up a cadre of business associates you can call upon
for assistance in the future. Business relationships are personal relationships, which mean
you may be asked to do favours for colleagues, and they will fully expect you to ask them
for favours in return.
Once a relationship has been developed it is with you personally, not necessarily with the
company you represent.

Therefore, if you leave the company, your replacement will need to build their own
relationship.
Presenting the proper image will facilitate building business relationships. Dress
conservatively and well at all times.

Business Meeting Etiquette:

Initial greetings are formal and follow a set protocol of greeting the eldest or most
important person first. A handshake, with a welcoming smile, is the standard greeting.
Close female friends may hug and kiss when they meet.
Use academic, professional, or honorific titles and the person's surname until you are
invited to use their first name, or even more frequently, their nickname.

Appointments are required and should be made 3 to 4 weeks in advance. It is a good idea
to reconfirm a few days prior to the meeting, as situations may change.
Avoid scheduling meetings the week before Easter. Punctuality is expected. For the most
part your Filipino colleagues will be punctual as well.Face-to-face meetings are preferred
to other, more impersonal methods such as the telephone, fax, letter or email. Send an
agenda and informational materials in advance of the meeting so your colleagues may
prepare for the discussion. The actual decision maker may not be at the meeting. Avoid
making exaggerated claims. Always accept any offer of food or drink. If you turn down
offers of hospitality, your colleagues lose face. It is important to remain for the period of
social conversation at the end of the meeting.

Business Negotiation:

You may never actually meet with the decision maker or it may take several visits to do so.
Decisions are made at the top of the company. Filipinos avoid confrontation if at all
possible. It is difficult for them to say 'no'. Likewise, their 'yes' may merely mean
'perhaps'. At each stage of the negotiation, try to get agreements in writing to avoid
confusion or misinterpretation. If you raise your voice or lose your temper, you lose face.
Filipinos do business with people more than companies. If you change representatives
during negotiations, you may have to start over. . Negotiations may be relatively slow. Most
processes take a long time because group consensus is necessary.
Decisions are often reached on the basis of feelings rather than facts, which is why it is
imperative to develop a broad network of personal relationships. Do not remove your suit
jacket unless the most important Filipino does.

Dress Etiquette:

Business attire is conservative. Men should wear a dark coloured, conservative business
suit, at least for the initial meeting. Women should wear a conservative suit, a skirt and
blouse, or a dress. Women's clothing may be brightly coloured as long as it is of good
quality and well tailored. Appearances matter and visitors should dress well.

Business Cards:

You should offer your business card first. Make sure your business card includes your
title. Present and receive business cards with two hands so that it is readable to the
recipient.
Examine the card briefly before putting it in your business card case.
Some senior level executives only give business cards to those of similar rank.
 TRADE PRACTICES

The current state of the Philippine market:

A lot of people underestimate the Philippine economy because of negative press coverage
in the past related to extremism and an unsafe business environment.However, the
Philippine economy continues to achieve growth despite political challenges. Its growth is
fuelled by large inflows of funds from millions of overseas Filipino workers; increased
investor interest for the local workforce, as it still has one of Asia's highest literacy
rates; and an investment-friendly government. As in any emerging economy, there will be
the usual challenges of dealing with the lack of infrastructure and pro-business policies
but the positives outweigh the negatives.

Favorability of the Philippines for foreign investors:

When lined up with India, China and Vietnam, the Philippines appear to be well positioned
for the long term. It is emerging as the next frontier in the business process outsourcing
(BPO) sector, because like India, it has a highly-educated workforce. This enables Filipinos
to perform more sophisticated tasks such as knowledge process outsourcing (KPO) for
medical diagnosis, legal work and design.Similar to Vietnam, it has one of the region's
highest proportion of young people, who are adept in Internet technology. Filipinos' good
command of English, however, gives them an obvious advantage over their Vietnamese
counterparts.Since there is still much room for growth, wages and business costs are low
and not rising as fast as those in China.The most promising industrial sector in Philippines
Philippines is a big country, therefore, promising sectors vary from region to region. For
Metro Manila, one of the hot sectors to look out for is retail. Many Filipinos are well-
travelled, so they have a higher level of appreciation for sophisticated retail
experiences.Outside of Metro Manila, BPO in the fields of information technology, legal
services and design will be suitable for Singaporean companies seeking lower costs and
scalability.
Tourism is also expected to be strong in the coming years, and there are many under-
developed tourist destinations in the country. In recent years Koreans and the Chinese
have overtaken the Japanese in making up the highest percentage of tourists. With warm
personalities and innate musical talent, Filipinos are natural hosts.

Cebu is becoming an attractive investment and tourist destination. With budget airlines
directly to Cebu from Singapore, more Singaporeans will be expected to visit. Cebu has
also begun to compete internationally for ship-building projects. With a large workforce,
deep water port and increased foreign participation, the Philippines can emerge as a
regional powerhouse in marine construction.The other new sector that should be taken
note of is the country's nascent green economy. There is rising awareness of the
importance of sustainable resource use in the Philippines. The government and the local
business community, for instance, have begun exploring the possibility of turning
wastelands into power plants. Access to clean water is also a concern to a growing Filipino
population, so there are also opportunities for development in that industry.

Types of businesses most likely to flourish in the Philippines:

If you are in the service sector, many skilled personnel are ready to join your workforce.
Filipinos are highly adaptable and intelligent, so it isn't difficult to imagine giving more
responsibilities to Filipino staff and eventually bringing them over to the local
headquarters. If you are in the creative business, you will also be able to find many talents
to fill your ranks, as the Filipino culture has an innate appreciation for beautiful visuals and
colours.As indicated earlier, the supply sector is open to innovations. Metro Manila is
undergoing a lot of infrastructural change, with new roads and highways being built to
enhance both intracity and intercity connectivity. The process is slow at times, but it will
be needed to sustain growth.

Initial steps companies should take if they are interested to expand into the
Philippines:

Singapore companies must first change their mindsets about the Philippine market and be
more adaptable. Unlike Singapore, things are rather dynamic in the Philippines. Singapore
companies might find that certain conditions to not be ideal, but they will see over time
that Filipinos adapt very well to the work required.

Before setting up operations in the Philippines, it will be essential to visit the place a few
times and meet with relevant partners. As for the type of company structure, you might
want to review your commitment first before coming in 100 percent. It will be good to take
a phased-in approach, because sometimes the location might not be suitable to attract the
type of employees you want or some unfavorable conditions might emerge.

We advocate that you have a long-term vision before setting up in the Philippines. You will
need some patience to develop scalability before moving forward. At the end of the day,
it’s all about building relationships, so staying within the same province will help in terms of
networking and business approvals.

Obstacles likely to face by companies when expanding into the Philippines:

Some companies might find the difference in communication style challenging. Filipinos are
communal in nature, so smaller Singapore companies must be prepared to answer all queries
and clearly communicate the goals of the company with all staff. Singaporean companies
must also frequently communicate and clarify objectives to minimize misunderstanding. It
is important for Singapore companies to treat its entire staff well; else word will go
around, making it tough to recruit good managers in the long run.

Working with local government agencies can also be a challenge. Singapore companies must
not expect the same level of efficiency that they have experienced here.

Aspects which differ Philippine business environment/culture from others:

As in most Asian business cultures, don't just come in and start your business pitch. Aim
to be a friend. Then get to know your new friends in the Philippines before you discuss any
possible business together.Importance of maintaining local contacts for foreign companies
looking to expand into the Philippines:

It's very important, because local contacts that have connections with the local
authorities will be better facilitators for set-up issues. Local contacts will also be able to
provide reliable feedback on the possible talent base of the area and the state of the
economy.