A major British international food retailer has appointed you as a Essay

A major British international food retailer has appointed you as a consultant. The company is considering investing in one of th - Essay Example This paper will seek to analyze the political, economic, cultural and ethical risks that might affect Asda’s expansion into an Asean member state particularly Philippines. The paper will also identify and evaluate business opportunities in this country. Political analysis Asda is a high street supermarket located in Britain retailing a large variety of food products and may deliver at a customer’s doorstep upon an online order (Oxford Business Group, 2009:26). This company is planning to expand its investment prospects into Philippines as part of its long-term investment plans and looking into this country’s political system can help the business consultant understand the kind of risks or opportunities that the company should expect to face (Schwab, 2011:46). Generally, political stability and the system of governance of a country act as a substantial factor of consideration at times when a firm is planning to invest internationally (Hill, 2011:70). This is so be cause, every country in this world maintains unique and/or different political and economic systems pointing out that when doing business in any overseas country; it is advisable that you be familiar with that country’s market availability and its leadership structure (Cavusgil, Knight and Tiesenberger, 2011:49). The Philippines’ political system is not that complex, but for a British food retailer like Asda, changing its structure to accommodate certain rules and regulations is necessary (Daniels, Radebaugh and Sullivan, 2011:89). The Philippines’ political system is a structured framework constituting a presidential, democratic and representative republic, where the president is both the head of government and the head of state within a system characterized by pluri-form multi-party (Menipaz and Menipaz, 2007:84). Reliable sources establish that different political systems influence the functioning of a business. Philippines have a transitional business enviro nment where the political structure allows for international investment. Since 1986 when Corazon Aquino took over as the president of Philippines, the country formulated its political system with constitutional amendments being the first to change (Schwab, 2011:62). The country’s political administration system has three bodies, which consist of the judiciary, executive and the legislative branch. It has other administrative divisions that facilitate the proper administration of the cities, municipalities and barangayas among other regions. Despite a bit of political turmoil at times, there is no surmountable business pressure or threat posed by these issues (Oxford Business Group, 2009:50). Adequately, the people of Philippines are peaceful and they have a strong liking for investors from the west a particularly in such countries as Britain and the United States (Menipaz and Menipaz, 2007:106). Thus, Asda is at a considerable position to expand its food retailing services in to the Philippines since the political system of this country allows for favourable working conditions. Bearing in mind that political issues erupt at any given time, Asda should prepare for such risks in the