STRATEGIES THROUGHOUT THE DILEMMA: HIGHER EDUCATION INSTITUTION’S INCOME GENERATING PRACTICES AS BASIS FOR EXTERNAL ENVIRONMENT ASSESSMENT

Income-generating enterprises help to combat issues like poverty, unemployment


INTRODUCTION
Evaluation of the external environment is vital for the development of every business.The external environment analysis serves as the foundation for enterprises to make wise decisions (Shtal, et al., 2018) and as a trustworthy tool to assess gaps that have occurred in every enterprise (Pukla and Mohammad, 2021).Enterprise performance is impacted by how the external environment appears to incomegenerating enterprises through opportunities and threats (Hasbi, 2021).Income generation alleviated poverty, unemployment, and a lack of economic opportunities to improve peoples' ability to earn money and secure their life (US-AID, 2017), and provided alternate solutions to these concerns (UNESCO, 2021).As a result, incomegenerating activities around the world are centered on the development of livelihood programs to educate their communities (Boshoff, 2001), alleviate poverty, and empower women (FAO- UN, 2019) in the generation of income through entrepreneurial production.Their strategies, like the Philippine national governments, were to reduce poverty by empowering communities to achieve self-sufficiency (Charles, 2019).Income generation activities have become recognized among public Higher Education Institutions (HEIs) in order to address low funding and sustain operating expenses (Ahmad, Ng, &Ngeoh, 2015).Thus, the government promotes the establishment and growth of Income Generating Enterprises (IGEs) at State Universities and Colleges (SUCs) to augment university revenues (Miranda, Tenedero, Fiel-Miranda, & Celestino, 2016).According to Republic Act 8292, popularly known as the Higher Education Modernization Act of 1997, SUCs are urged to engage in IGE in order to supplement limited resources and become self-sufficient (Malate, 2011;Manasan& Revilla, 2015;Villarino, 2016).In compliance with this, IGEs were founded in HEI, mainly at Quirino State University (QSU).However, due to the emergence of external environmental factors such as devourer, specified disasters and diseases, and pandemic crises, low productivity and profitability were revealed in firms from 2018 to 2022.The capacity to put strategy into action is the most crucial talent for any IGE (Miller, 2020), hence a new way to managing strategy is required.This framework enables a thorough examination of the environment in which an organization operates and the development of potential business plans (Matovic, 2020).In order to identify the root causes of the operation's stellar performance (Español et al., 2021), the external environment factors of the IGEs were assessed.In either case, the external environment assessment will serve as a roadmap for the initiatives of the university.

Objective of the Study
Generally, the study aimed to evaluate the internal environment of HEI's IGEs in QSU.Specifically, the study aimed to: 1. Determine the external environment factors of the IGEs along with its; 3. Propose strategic management framework for IGEs.

Conceptual Framework
The paradigm of the study explains how the research is carried out.Figure 1 shows how the IPOO model (Input, Process, Output, and Outcomes) was utilized to indicate the greatest interest in the study's conduct.Brown's 1996 framework, also known as the IPOO model, suggested that it is at one end of a continuum ranging from hierarchical to process-focused frameworks (Neely, et al., 2000).

Figure 1. Research Paradigm
In order to identify any external factors that might have an impact on the performance of the businesses, the IPOO model's INPUT component included both the analysis's findings and a summary of the IGEs' external environment, including its political, economic, social, technological, environmental, and legal aspects.The PROCESS component examines the data gathered using the descriptive-evaluative research approach by summarizing the IGEs situation for the HEI and analysing its external environment elements.The outcomes of the key informant interviews are ranked to show small to major operational difficulties.The information gathered through a strategic management analysis of known external environments has been thoroughly examined.
The OUTPUT component also contains a synopsis of the strategic factor analysis summary and the external environment analysis summaries from the IGEs.The final result of this study, which is represented by the OUTCOME component and may be This study used a descriptive-evaluative research design.The researcher can analyze the determined external environmental aspects of the income-generating firms with the aid of this study design, which also facilitates an in-depth examination and interpretation of the data acquired.As a result, the researcher will be able to disseminate substantial benefits and develop far deeper insights into the study with the use of this research methodology.In addition, key informant interviews, surveys, and in-person observations are used as support materials to improve the uncovered external environmental elements of IGEs that influence their performance in the running of the organization.The descriptive survey's objectives were to explain the current circumstances of IGEs' issues, define the management benchmarks to which they may be measured, and look into any potential connections between the enterprise practices.
This study was conducted at the Quirino State University -Diffun Campus's revenue-generating businesses.Based on their influence on the performance of the IGEs, external factor analysis and strategic factor analysis based on Frederick Taylor's Strategic Management Analysis were used to test the acquired data.Strategic elements were weighted from 1.0 (most important) to 0.0 based on the EFAS (External Factor Analysis Summary) (not important).Based on the likelihood that a factor will have an impact on the IGEs' strategic stance, the overall weight must equal 1.00.Based on the IGEs' reactions to each factor, a rating is assigned to it, ranging from 5.0 (great) to 1.00 (poor).To calculate each factor's weighted score, multiply its weight by its rating.The key results from the EFAS were included in the Strategic Factor Analysis Summary (SFAS), which was then used to evaluate the duration into three categories: short term (less than a year), intermediate term (between one and three years), and long term (three years).

RESULTS AND DISCUSSION
In accordance with the PESTEL assessments, the data from the study's instruments are discussed in this section.To support alternative strategies for Quirino State University's income-generating enterprises, specific constraints, challenges, and concerns were revealed.

Demographic Profile of Respondents
Table 1 presented the respondents' demographic profile.The most notable responses are reflected by the mode, and the impact of each response on the final results is expressed by the percentage.The findings of the interview showed that the majority of the workers were underage or close to retirement, which has a negative impact on the performance of the work force's production.This is supported by the finding that the average age of Filipino farm managers and or producers is currently 57 to 59 years old from the study carried out by Evangelista, Escalona, and Pigao (2022), farmers at the time reduced production because they were unable to manage difficult chores.Male farm laborers are suitable for carrying out physically difficult jobs linked with heavy farm productivity, according to Epitia (2019).The majority of them were married, and by toiling away to meet the demands of the home, they act as the family's "bread and butter", wherein majority of married people put their families before farm production, according to Ngeywo, Basweti, and Shitandi (2015) study.There was minimal training in IGE management and procedures, as less than half of the trainings fell within the range of 6 to 10. Participants had little expertise of how to handle IGE operations as a result.The respondents' manifestation of this factor, according to the same study, suggests that they are still learning how to run income-generating enterprises and how to use the processes and techniques involved in doing so, which is relevant to the performance of the enterprise's production (Danao-Manaligod, 2016).

External Environment Factors of Agricultural IGEs
The aforementioned opportunities and threats provide an emphasis of the political, economic, social, technological, environmental, and legal factors that affect agricultural income-generating enterprises with their external environment.
Political.Linkages to PLGU, other government agencies, non-government organizations (NGO) and private institutions.The IGEs' connections to other public and private organizations offer financial support, technological advancements, and advertising and marketing support.Additionally, participation in several programs including QLIFE, OTOP, MSMES, DTI, and DOLE expands the market for local goods.The built-in connectivity of enterprises to political matters empowers the communication process of IGEs transactions with the affiliated agencies and ensures the free and continuous flow of related information.Furthermore, these factors enable the development of a maximum decision-making process in addressing enterprises' political concerns, which were done primarily to evaluate the effectiveness of their goods (CLSU, 2014).Last but not least, the political connections are crucial for any business that aims to shape and direct the types of government decisions and the institutions that formulate policy (Watson et al., 2021).
Economic.PLGU Supports to agriculture and other livelihood program.As the province's "kailyans", the economy determines how the province is sustained.In order to meet the expanding demand, IGEs play a significant role in the province's economy by producing livestock and crops.With a province-wide population growth rate of 1.28%, the most recent census of population shows a strong rise in demand.As a result, the enterprises depended on its capacity to commit more time to production in order to create more farm products.Their primary goal, is to promote and impose agricultural enterprises' practice that contributes to financial failure and declining income (MINSCAT, 2019), as a result of economic intensification, and it made the smallest contribution overall (Ibañez et al., 2023).The continuous raising of livestock and crops devoted to sustaining the institution's income and enhancing its economic environment makes sense to the IGEs of the university.

Pandemic crisis.
The pandemic forced the national government to impose a lockdown, which restricts farm input mobility and raises their transportation costs.Due to the limited ability of workers to move around and perform services on some IGE operations, this also disturbs the production schedule and requires adjustments to its procedures.Farmers would stop producing owing to the pandemic (as they became ill), which would result in less food being available at higher prices (Jámbor, Czine, & Balogh, 2020).Moreover, Gregorio and Ancog (2020) claimed that a pandemic creates supply and demand shocks affecting all the relevant economic sectors, particularly agriculture, through mobility restrictions as a result of the imposition of community lockdowns, which result in a quantity reduction in farm labor that would translate to an overall reduction in agricultural output.Because of this, IGE production may tend to decrease, which is an effect of limited access to farm inputs and to market-produced products, which may result in profit losses and the depletion of farm produce.
Social.Cultural influence.The provincial government showcases self-reliance and imbues God-loving Quirinians with an entrepreneurial spirit that propels them towards advancement and prosperity (QLIFE, 2020).Moreover, the provincial government established the "Ono Town, One Product" program to promote entrepreneurship and job creation, which supports IGEs to manufacture, through the use of indigenous raw materials and local skills and talents (Quirino, 2021).The university IGEs cooperate with unity with the assistance of DTI, DOLE, and DA during their "Panagdadapun" festival, showcasing and promoting their rich cultural heritage and town products like high-value crops, wood and bamboo crafts, processed products, and skills competitions.Additionally, social enterprises should also work along the lines of ease in doing business, such as starting a business, paying taxes, getting credit, enforcing contracts, and closing a business (Ballesteros & Llanto, 2017).
Technological.Presence of advance technology.The acquisition of farm machinery through donations from government agencies supports the maximization of agricultural products that could address the scarcity of agriculturally based product supply in the province.The Intensified Farm Mechanization Program of DA provides new farm equipment and machinery to the university that simplifies the production and operations of IGEs (DA-RFOIII, 2021).Moreover, IGEs adapt artificial insemination (AI) for large ruminants and swine within the locality with 80-90 percent adaptability rates.Unfortunately, due to the resistance of farm managers and farmers to the variations of farm mechanization programs due to high operating costs and maintenance, most farm workers embraced traditional farming methods with inadequate learning capacity.According to the same research findings, various government agencies such as DA and DOST aided SUCs income-generating projects by providing technologically based machineries, equipment, and facilities that could help them reduce production costs.The De La Salle University (DLSU), University of the Philippines-Diliman (UP-Diliman), and Industrial Technology Development Institute (ITDI) affirmed the support of DOST's Technology Information and Promotion Division (TIPD), which promotes key technological innovation strategies (DOST, 2019).
Environmental.Calamities and diseases.The force majeure was a tragic event that resulted in significant losses to agricultural commodities and livestock.These natural calamities and climate change caused the IGEs to suffer losses and bankruptcy.Moreover, the DENR has recorded a minimal annual rainfall within the province and an inconsistent rainfall distribution throughout the years (DENR, 2010), which result in a lack of water sources and an unfilled pond, prompting IGE to limit the area of rice and high-value crop plantations, as well as livestock drinking sources.Furthermore, IGEs' physical location has undulating terrain and small landholdings, which limit the implementation and usage of farm machinery.Undulating terrain also poses difficulties in the establishment of water irrigation systems on IGEs.Agricultural IGE's location is also vulnerable to natural calamities and climate change; they totally hit the province, bringing out an adverse effect on the total land production, specifically agricultural commodities and livestock (Banaguas, 2016).Furthermore, the presence of ASF affected the university's piggery enterprise, dropping its market price until the total discarding of livestock, which resulted in a loss of worthless income.She also added that the country experienced all major types of natural hazards and is widely acknowledged as one of the most disaster-prone countries in the world (Riddell, 1990).Thus, environmental factors can inflict suffering on IGE operations and create threatening conditions for livestock and crops.
Legal.Legal laws and regulations.The laws and regulations were specified with direct support for enterprise implementation; this also serves as a guide for IGE's improvement to address proper allocation of funds and budgeting.The following are the laws and regulations imposed by the government sector that redirect the implementation of different IGEs of SUCs: LOI No. 872 (June 8, 1979), encouraged agricultural schools, colleges, and universities to participate in food production projects and authorized schools to establish a revolving fund (RF) from the income of food production programs.NBC 331 (November 27, 1980), authorized the establishment of a revolving fund (RF) for agricultural schools; provided guidelines to implement LOI 872 relative to the participation of government schools in the food production program; prescribed rules and procedures concerning the creation of a revolving fund (RF) for schools out of the income realized from agricultural projects; and created Fund 161.LOI No. 1026(May 23, 1980), directed the acceleration of manufacturing operations at national schools.COA Circular No. 84-239 (August 15, 1984), prescribed uniform procedures for proper valuation, recording, and reporting of products acquired or produced by government agencies.DBM Circular Letter No. 92-8 (November 18, 1992), provided guidelines on the establishment of a revolving fund (RF) of SUCs for the operation of auxiliary services and created Fund 164.DBM Circular Letter No. 94-5 (June 17, 1994), prescribed guidelines on the use of income and the creation, operation, and maintenance of revolving funds for various agencies.NCC 75 (March 1, 1995), prescribed the rules and procedures for granting honoraria to government officials and employees involved in special projects.RA No. 8292 (June 1997) provided powers to the SUC governing board to allow the school to generate more income through a more effective utilization of their existing resources and authorized the SUC governing board to decide on the use of school income for any reasonable purpose, which, in its discretion, may be necessary and urgent for the attainment of the objectives and goals of the university or college.And General Appropriations Act FY 2000 (Sec.4 of the General Provisions), which authorized the existing revolving fund to continue its operations except those that are reflected under "use of income," considered the revolving fund self-perpetuating and self-liquidating.
The IGEs closely resemble the aforementioned laws and regulations.Like other SUCs, adapt toward and carry out national government-imposed laws and regulations to compensate for the lack of resources, the strategy of decreasing the MOOE in SUCs has put strain on the ability of the SUCs to conduct important programs and initiatives due to a shortage of funding.Top-performing IGEs were encouraged by promoting income-generating enterprises.Towards the end, they are expected to implement IGEs to help raise funds for such programs and projects (Guimbaolibot, 2020).Thus, the need to establish an income-generating enterprise is important to help the university fill in the gap created by the inadequacy of funds.
The external factor perceived as having an excessive impact on the operation of IGEs is shown in the table below.The analysis of the EFAS is indicated, along with the relevant weights, ratings, and weighted score used to evaluate the effects.Comments highlighted the specific causes of the factors that were identified.Notes: 1. List of Opportunities and Threats in column 1. 2. Weight each factor from 1.0 (most important) to 0.0 (not important) in column 2 based on the IGE's strategic position.Total weight must sum 1.0.3. Rate each factor from 5.0 (outstanding) to 1.0 (poo) in column 3 based on the cooperative's response to that factor.4. Multiply each factors weight times its rating to obtain each factors weighted score in column 4. 5. Use column 5 (comments) for rationale used for each factor.6. Add the individual weighted score to obtain the total weighted score for the cooperative in column 4.This tells how well the cooperative is responding to the factors in its external environment.
Major factors with established connections to PLGU, other governmental organizations, non-governmental organizations (NGO), and private institutions get a weighted score of 0.8 because they offer resources for financial aid, technological advancement, and marketing promotion.The Department of Agriculture's mandated initiatives, which are funded by all IGEs and farm sectors in the province, have the same weighted score of 0.8 for the presence of advanced technology.The proper implementation and execution of planned laws under the national government specify the submission of every university in engaging in income-generating ventures to reinforce the university's resources and close the budget gap.Additionally, opportunity also dictates the imposed legal laws and regulations with a 0.45 weighted score.Legal rules and regulations support capitalization, proper funding distribution, input acquisition, and record administration systems to increase each IGE's productivity and profitability.With a weighted score of 0.42, economic growth contributed to the province's economic provision through the PLGU by promoting agriculturally based products to its "kailyans" and other nearby towns.The most recent population census shows a rapid rise in demand, with a 1.28% growth rate of the province's population.Additionally, the performance of IGE is impacted by cultural influence, which has a weighted score of 0.36, as a result of the province government's encouragement of entrepreneurial spirit through agricultural programs.
The external environment element that has been found as having a severe impact on IGE performance.This indicates that the IGEs were exposed to a wide range of risks, including natural hazards, which occur at different levels and at different progressive scales.Major majeure induced by disasters and diseases vulnerability, weighted score of 0.20.As a result, it lowers corporate productivity and resulting in losses and low profits.Due to the pandemic crisis' significant negative effects on IGE's operations, it has a weighted score of 0.18.The forced closure of all booths and merchants, which prevents the movement of farm inputs and raises the expense of transportation, as well as the lack of availability of farm products as a result of the lockdown enforced by the national government.The IGEs identified external environment elements have an average response to its opportunities and threats, according to the results, which were summarized with a weighted score of 3.21.The study includes a breakdown of IGEs' strengths and weaknesses in relation to the impact of determining their corresponding durations.Table 3 shows the strategic factor analysis summary (SFAS) of the internal environment factors that were chosen for the IGEs operation.in Column 1. 2. Weight each factor from 1.0 (Most Important) to 0.0 (Not Important) in Column 2 based on that factor's probable impact on the company's strategic position.The total weights sum to 1.00.3. Rate each factor from 5.0 (Outstanding) t 1.0 (Poor) in Column 3 based on the company's response to that factor.4. Multiply each factor's weight times its rating to obtain each factor's weighted score in Column 4. 5.For duration in Column 5 check appropriate column (short term-less than 1 to 3 years, long term-over 3 years).
The total result of 3.21 weighted average implies that the IGEs' performance is under average condition.The situational analysis shows that majority of the opportunities have indeed been identified as long-term; connections to PLGU, other government entities, non-governmental organizations (NGO), and private institutions suggest ongoing support from their various competitive programs, which reduce operating costs and are advantageous for profit maximization; the national government's imposed legal laws and regulations have appeared significant in the generation of IGEs; and this supporter's IGE's demands will be supplemented by a variety of financing sources for this project.Technology tends to vary from an initial innovation depending on its adaptability to usage and implementation; therefore, the existence of sophisticated technology only lasts for a limited time.Lastly, threats incorporated into an external environment factor that have the potential to devastate IGE production demand a fast response to prevent losses and damages.A pandemic crisis prevents all agricultural inputs and products from entering the market quickly because lockdowns are implemented.Disasters and diseases have a terrible impact on agricultural products and cattle.The output of cattle and crops is severely impacted by this unpredictable force majeure.IGEs should therefore take preventative action before the crisis occurs.

Proposed IGE's Strategic Management Framework
The framework provides the structure on which IGEs execute their strategic statement, environmental scanning, strategy design, strategy implementation, strategy evaluation, and control.

Figure 2. IGE's Strategic Management Framework
IGE's vision and purpose, as well as the VMOSA Framework (Vision, Mission, Objectives, Strategies, and Action Plans), must be defined initially because they serve as the framework for strategic management.The environmental scanning, which aims to study the IGE's profile and identify its internal strengths and shortcomings, was added to this.The process of developing a strategy entails evaluating the opportunities and threats of IGEs using external factor analysis (through PESTEL, which is then screened by strategic factor analysis to identify important variables that significantly affect the performance of the agricultural enterprises.This framework directs a business through the process of building a strategy that is employed in advance of embarking into income generating enterprises.The sub-stages include analysis, strategy creation, and target setting.Implementation guarantees a strategic structure's ability to supply strategy.The review of each phase, from the strategy's statement up to the process of execution, is outlined in the strategy evaluation and control.After the plans were on track, monitoring was implemented to polish them for success and to send feedback that may be changed.

Table 1 .
Profile of Respondents

Table 2 .
External Factor Analysis (OT) Summary

Table 3 .
Strategic Factors Analysis (SWOT) Summary List each of the most important factors developed in your IFAS and EFAS Tables Legend: Duration S (Short term); I (Intermediate); L (Long term)