A Correlation Study of the Expanding SM Group of Companies Vis-a-Vis the Deteriorating Philippine Economy

Abstract

The long term or overall objective expected in the study would be an attempt to provide a holistic view on SM Group of Companies and its subsidiaries’ operations with emphasis on SM investments, Inc., SM Prime Holdings, Inc., and Shoe Mart, Inc. vis-a-vis the socio-economic situation in the Philippines. Based on the objectives set forth by the investigator, an inferential study particularly a correlation study, guarantees to obtain answers to the research problem. Triangulation, or the combination of various research methods and techniques, both qualitative and quantitative, was employed in the study so as to acquire credible data and to reduce the chances of bias. Other tools of data collection are survey questions, observation checklists, case study guide, company/industry study guide, and interview guide. Descriptive statistics are for the tests of hypothesis, the chi-square tests, etc. will suffice. In Chapter VII, this study verify that the usual money spent depends on the amount of the daily wage. Income is then directly proportional to the money spent, which eventually contributes to SM’s profit. As the capability to meet the Daily Cost of Living decreases, consumer spending also decreases. This study also substantiates the assumptions of the Engel Law, Historical-Materialism, consumer psychology, ‘economies of scale’, among others.