Government

Distribution and Supply Chain risks Challenges in regard to the supply chain risk and distribution when opening a company in the Philippines include regulating the supply and demand of the materials. The company must evaluate to identify proper demand of the materials and have a sound storage unit for the material. When distributing materials from the United States to the Philippines, costs of storage must be considered and the distribution process must be regulated to identify the proper amount of materials that are needed to develop a process of distribution that allows the materials to be used and not wasted. Materials must be distributed in a way will keep the materials safe and useable even after distribution. Physical and Environmental Challenges The physical and environmental challenges of operating a business must be considered as well. Because the Philippines have a high rate of pollution and are at a high risk for natural disasters, storage units and materials must be maintained so that materials can be salvaged if a natural disaster should strike. When distributing the pollution factor should be considered and the United States should not ship materials in a way that will lead to higher pollution rates for the Philippines. This can be done by considering the regulations of the Environmental Protection Agency in the United States and considering regulations of the World Health Organization (WHO). Materials and products should be distributed and stored in a way that is environmentally friendly and can be structured to allow materials to be protected from and recovered if a natural disaster should happen. Social and Cultural risks Social and cultural considerations should be taken when outsourcing to the Philippines. Language barriers must be broken as the Philippines are mainly Spanish speaking individuals. Religion must be considered and all religious holidays should be observed by the company when operating in the Philippines. There are currently no active terrorist threats to the Philippines, the United States branch of the company should maintain proud political standings within the country and abide by all governmental regulations and procedures when proceeding with business in this country. The social and cultural risks can be prevented by maintaining respect for individuals and customers that both countries agree to. Cyber and Technology Cyber and technology threats are common when globalizing a company. Technology must be updated and ran so that all parties can communicate effectively and in a timely fashion. Companies can consider advanced computer systems and protection for these systems to operate effectively. Systems should be advanced and updated regularly to prevent business miscommunications or technology errors. Video and teleconferences can be held for major decision-making topics and when necessary, the company officials can travel between the two countries so that they are able to check up on the business and make changes to run the company effectively. Because technology glitches can slow down or cause loss of business, the technology resources should be reviewed on a regular basis. Miscommunications and loss of business deals because of technology can be a major threat to globalization. With regular monitoring of systems and an understanding of another countries culture, these types of communication barriers can be prevented.