Political factors are important especially in food industry.

The company
policies are affected and its budget is also affected. Nestl provide food
assurance to provide assurance to the consumers that Nestls products are
manufactured, imported and distributed under the strictest hygienic and
sanitary condition. Besides that, to ensure that consumers do not buy any
fake products, Nestls products are always come with the seal of guarantee.
By having the seal of guarantees, consumers are now more confident and
trust of Nestls products. Strict quality control played a role in political factor
too. It means that Nestls products quality will not be different with other
countries. Consumers are guarantees with full satisfaction of the products all
over the world.
New three key economic bills/laws approved by the House of Representatives
during 2015 that may be an opportunity or threat to Nestl:
1. Republic Act No. 10667 (Philippine Competition Act) signed on July 21,
2015
The act seeks to level the playing field by prohibiting anticompetitive agreements, abuses of dominant positions, and mergers
and acquisitions that limit, prevent, and restrict competition. The
end goal is to provide benefits to consumers through more choices
and lower prices which market competition provides. Businesses,
whether big or small, will now be on equal footing as the law
penalizes anti-competitive agreements and abuses of dominant
players. The Philippine Competition Commission (PCC) can impose
administrative penalties of a maximum fine of P100 million ($2.2
million) on the first offense, and P250 million ($5.5 million) for the
second offense for anti-competitive agreements and abuses of
dominant position.
Things that consumers may expect from this law:
Protection from predatory prices
More products to choose from
Better products and services at better rates
More innovation as competition forces firms to maintain an edge
For Nestle it would be an opportunity because according to them,
they believe in the importance of free competition and are prepared
to compete successfully in todays business environment and will
always do so in full compliance with all applicable antitrust,

competition and fair dealing laws. On their code of conduct they

have established rules for the employees especially those who are
involved in marketing, sales and purchasing, or who are in regular
contact with competitors to adhere into in order to establish a fair
competition.
2.