III. External Environment: Opportunities and Threats
A.
Natural Physical Environment: Sustainability Issues
Ayala is aware of its impact on the climate and its consequences for local and global biomes. The
company advocates for environmental principles because it recognizes the importance of the
environment in the organization's long-term growth and in creating a better future for society. In
keeping with the company’s values, its environmental impact is carefully monitored through
Greenhouse Gas emissions while proactively protecting biodiversity in the Philippines through its
multifaceted initiatives.
Despite a drop in overall human activity resulting from global lockdowns and quarantines,
Greenhouse Gas emissions only experienced a brief dip before rapidly returning to pre-COVID levels.
The company’s emission levels have also been reduced due to local quarantining protocols, which
provided insights into strategies that could be implemented in the future to help reduce overall
emissions. Ayala proactively mobilizes the business units to address climate impact through three
key strategies: mitigation, adaptation, and innovation. As other companies are affected by climate
change due to greenhouse gas emissions on their own, it is a common concern how humanity affects
the environment and how it affects humankind in return.
B.
Societal Environment
a.
Economic
1.
Inflation Rate
A moderate inflation rate is necessary within the economy for companies like Ayala Corporation to
thrive. This will also help Ayala grow and will cause a contribution from the company an increase in
customer confidence and spending trends. As a result, the economy will benefit, and overall
disposable income will rise. On the other hand, higher inflation would lower disposable income and
overall growth, harming businesses and companies while reducing consumer confidence. Moreover,
a lower inflation rate will result in a significant increase in disposable income, which increases
competitiveness, mainly through pricing strategies that may lead to unethical price wars that will,
unfortunately, take unfair advantage of the consumer.
2.
Interest Rate
A low-interest rate will make it easier for Ayala Corporation to obtain bank loans. This business loan
would be used for the expansion and development of the company. Moreover, it will aid in
developing and constructing industrial infrastructure on a large scale. Individuals would also be able
to obtain personal loans if interest rates were moderate. Personal loans with low to average interest
rates will increase consumer purchases and consumption patterns. This, in turn, would increase
sales, consumption, and market penetration for Ayala Corporation.