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McCain is a multinational company established in 1956 by McCain family in Canada.

Its
products are available in 130 countries. McCain has 57 production facilities on 6
continents and McCain employs over 20,000 people. McCain Food is built on the cutting
edge agronomy, superior technology and a global workforce to enable the brand to
deliver both variety and quality and live up to their slogan; Good Food, Better
Life. McCain’s supplies its products such as; Frozen Chips and vegetables, juices, pizzas,
entrees and desserts In the industry of frozen foods, McCain is a clear leader selling
around 45% of frozen potatoes in the UK alone. The McCain product most people
recognise is chips. It is in fact, the world’s largest producer of frozen chips (French Fries)
Objectives-
• Winning the biggest share of the total market
• Increasing sales
• Satisfying customers
• Making profit for shareholders.
A business’ ability to meet these objectives depends on two main groups of factors:
1. The internal strengths of the organisation – for example being able to make
the right products in an efficient way
2. Being able to identify external influences in the business environment and on
its consumers and adapt accordingly
Business Environment:
• Internal Environment:
They are referred to as internal forces because their influence is within the business
organisation including; the organisation goals, culture, structure and control, human
capital and additional resources (Tangible and Intangible assets) which can all be
implemented by the organisation. For example being able to make the right products in
an efficient way.
o Vision
To create good food and better life for our consumers, customers,
employees and the community we work in worldwide.
o Mission
To constantly win the customers and consumers by making them
smile with wide range of innovative products that are better and
fun to eat.
• External Environment:
The external forces are the attribute of the business environment that cannot be controlled
by any organisation. They are referred to as external forces because they are influence is
exerted outside the business organisation including; Social, Legal, Economical, Political
and Technological environments.
The external environment today is changing fast. It must then rise to the challenges posed
by change. McCain have a strong market focus. This means that it carries out research to
find out what consumers want. It then uses this market information to create products that
consumers want to buy.
McCain’s business focuses on frozen potato products and frozen light meals. It provides
consumers with a wide variety of cut and seasoned potato products through UK retailers,
like supermarkets and restaurants. McCain produces more specific potato shapes like
Potato Smiles, Crispy Bites and Sumthings (shaped as numbers) that appeal to younger
consumers. McCain also makes frozen pizzas.
These External Forces poses different influences that result into different effect towards
the Business organisation respectively. The success of any business depends how best
they analyse each environment and make necessary amendments accordingly in order to
use and/or counter act the effects of their influence. McCain Food, like any other
Organisation, is affected by these business environments, thus affecting their business
operations and activities.
Chips have come a long way since Walter Raleigh first brought the potato to this country
in the 17th century.
By the 1850s fish and chips were sold in the streets and alleys of London and in some of
Britain’s industrial towns.

If asked to name a typically English dish, most people will say ‘fish and chips’. Chips are
produced in lots of different shapes and sizes, ranging from those deep-fried in fish and
chip shops to today’s oven chips.
One of the biggest environmental factors affecting McCain in 2005/6 was the growing
concern about obesity, particularly in children. This case study shows how McCain has
risen to the challenges of this debate and other external challenges. McCain’s view is that
its chips can and do play a role in a healthy balanced diet and it is continually finding
ways to ensure McCain products are as healthy as possible.
SLEPT analysis
In order to be able to understand its customers’ requirements and respond to other
changes, it is important for a company to analyse its environment. A SLEPT analysis is a
tool that helps to analyse the environment.
These External Forces poses different influences that result into different effect towards
the Business organisation respectively. The success of any business depends how best
they analyse each environment and make necessary amendments accordingly in order to
use and/or counter act the effects of their influence. McCain Food, like any other
Organisation, is affected by these business environments, thus affecting their business
operations and activities.

Social trends
Social trends are one of the key factors affecting a business. Consumer buying patterns
are determined by trends. Just as the demand for some popular clothes are determined by
fashion, demand for food products is determined by eating patterns. Due to such patterns,
McCain takes a close note on their customers’ biggest concern (Obesity issues and
response to junk foods) and execute relevant actions to minimize such concerns so as to
maintain their customers.
Eating habits are always changing. Currently one in four of all British potatoes consumed
are eaten as chips. As people become more time conscious, they prefer to consume ready
meals that can be prepared quickly by heating in an oven or microwave as an outcome of
being too busy in their respective work environments. McCain will continually develop
their products in a way to satisfy their Market Share around the world because of the
close relationship it maintains with their customers.
Recently McCain and other food producers have seen falling sales as a result of
campaigns to encourage healthier eating.

McCain has responded to this challenge in two main ways:


• by reducing quantities of salt and oil throughout its potato products. McCain
argues that these figures are very low already. For example, McCain’s Oven
Chips contain only 5% fat, 0.8% saturated fat and 62mg of sodium in every 100g
portion. They are made with only natural ingredients - specially selected potatoes
and sunflower oil.
• by seeking to get the message over that its chips are not unhealthy. The message
that it communicates through public relations campaigns and advertising is that
McCain products are made from simple ingredients such as whole potatoes and
sunflower oil.
A key way in which McCain has responded to changing customer tastes has been to
improve the nutritional make-up of its products. Chips are now pre-cooked in sunflower
oil instead of regular vegetable oil to reduce saturated fats. There is no added salt in oven
chips and added salt has been reduced by up to 50% in other potato products.
Legal
Responsible businesses not only abide by the law, they seek to create standards above
minimum requirements and maintain ethics in their business. McCain has to be aware of
a number of legal factors. In UK, the government has several agencies that are concerned
with maintaining a standard to the legal factors in need of achieving. The government’s
Food Standards Agency has recommended that firms put ‘traffic light’ labels to help
people understand what they are buying and make choices about their food intake.
• Red represents high levels of ingredients such as fats and salts.
• Green represents low levels.
Also featured on the labels are Guideline Daily Amounts (GDAs) that show how much
fat, saturated fat, sugar and salt each product contains. This helps the consumer to
achieve a consistently balanced diet.
All of McCain’s potato products are able to display the green label for saturated fat and
none of its products show a red label.

In the UK, advertising of products is supervised by a voluntary body within the


advertising industry It is called the Advertising Standards Authority (ASA). McCain
makes sure that all its advertising sticks rigidly within the requirements of the ASA. The
ASA sets out that all adverts must be:
• Legal
• Decent
• Honest and
• Truthful.
In addition McCain’s products comply with a range of laws, including:
• The Food Safety Act, covering the way in which food is prepared and served.
• The Trades Descriptions Act, which states that goods and services must be exactly as
described.
• The Weights and Measures Act – governing such aspects as giving the right weight on
packs.
McCain takes these responsibilities very seriously. It is important to build a reputation for
honesty and fair play.
Economic factors
Economy depends on the Economic system practiced by a respective Government in a
nation and in an overwhelming way, affects the decision making of the company.
Economic factors include changes in buying patterns as people’s incomes rise. For
example, as incomes go up people prefer to buy what they see as superior varieties of a
product type. We see this with the development of ready prepared foods. McCain has
determined the levels of income among their customers and has managed to produce
products that fit the purchasing powers of all customers by differentiating the products’
selling price by their weight and content.
As far as Economy is concerned, McCain must ensure a safety plan and strategy as a
result of the agreed decision in nullifying the effects of fluctuating levels of demand and
supply in the market.
Political Factors
Political business environment refers to government interventions towards business
practices by business organisation. The government of any country assures the protection
of their citizens and therefore administers Rules and regulations, policies, Tax
legislations and laws in need of organisations to abide. The UK government has increased
the pressure on food suppliers to come up with healthier foods. The government
publicises and supports healthy eating by creating initiatives such as ‘Healthy Schools’.
This encourages pupils to think about the choices they make when choosing what to eat.
Responsible eating and healthy exercise encourages everyone’s health and well-being.
McCain supports the government’s initiative. It believes that the foods that it provides,
including potato-based products, are nutritious provided that they are prepared in a
healthy and simple way.
This environment affects the decision making of McCain in a way that, all their business
activities (Marketing, advertising, operational activities, promotions, packaging) must
abide to the rules and regulation enforced by the government. The government itself as an
influential body has the power and right to support or restrict the business activities, by
means of tax imposed on the products, the company and its shareholders, so as to protect
their interests and specifications throughout the entire nation.
Technological Environment
Technological environment refers to the application of technology into an industry in the
market to bring about change and innovation thus enhancing production of goods and
services to the end users.
Food technology is one of the most dramatic technologies in today’s world since it
involves researching and developing new techniques for producing a large number of
diverse products and ensuring their respective shell life and quality. McCain is
continually being faced with such challenges and by applying technology to their
production sector; they have manage to provide solutions to problems such as; how to:
1. Freezing products while retaining flavours.
2. Maximizing natural nutritional characteristics.
3. Turn frozen products into an Oven Heated product.
In addition to that, McCain has manage to reduce the fat and salt content as a measure of
counter acting obesity by the use of technology, which was by using sunflower oil by
carefully extracted from their seeds. Potatoes possess a strong nutritional pedigree and
along its preparation using sunflower oil, it was possible to cut down saturated fats by
70% across the whole product range. For example, it is a little known fact that a potion of
chips contains four times more vitamin C than a portion of grapes. As a product, potatoes
are the second most important staple food in the world today (rice is the first), providing
essential carbohydrates that help us to generate energy.
Conclusion
Change in the business environment is an inevitable factor since it has a vast number of
sources. Businesses of today including McCain Food must keep up with the change,
become flexible and dynamic, so as to anticipate the consumers’ demands henceforth
decide on effective strategies and plans.
As it is observed that, different environments posses a different threat and opportunity
respectively to McCain Food and it is for a fact that decision making and way of
operation in the company is greatly affected by these business environments.
Consumers are increasingly becoming aware of food content and food issues to achieve a
healthier lifestyle and therefore the challenge for McCain has been, and will continue to
be, to prepare their products in the healthiest way possible; as far change is concerned,
McCain has market researchers and technologists who enable the company to keep in
tune with the changing business environment.
McCain’s advertising supports the company’s message that chips are nutritionally
acceptable provided they are made in the right way. McCain needs to focus to its
consumer’s feedback, in order to continue to give consumers the best value healthy chips
and other food products.

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