Task 2

Marketing objectives and internationalization

In the modern and competitive economy, McCain Foods Company must as well strive to achieve a global presence. This will involve expanding its roots to other foreign markets which will lead to increased competitiveness and profitability of the company. However, the expansion strategy must be in line with the marketing objectives associated with the organization. The ever increasing demand of healthy foods in different parts of the world makes it necessary for the company to ensure that its presence is felt in almost every part of the world.

In its expansion process, the 4ps (product, place, price and promotion) will be of great importance. This is because the company is guided by a clear vision statement of ‘’Good Food, Good People and Good Business’’ all of which can be achieved through adequate consideration of the marketing mix. This will ensure that the company will deliver quality products to all people in different parts of the globe. The McCain Food company is guided by a philosophy of ‘’McCain It’s All Good’’. It is for this reason that the company is always striving to make good products from good ingredients to all good people all over the world (Hanna & Middleton, 2008).

In its attempt to achieve a global presence, the company has also maintained a good differentiation strategy. For instance, the company has different lines of products which includes but not limited to McCain Wedges, McCain Home Roasts, McCain Sweet Potato and McCain Micro Pizza which are common products in UK. However, it is important to note that the company has other differentiated products in other different parts of the world. For instance, the company sells other varieties such as frozen vegetables, desserts and ready meals. Other products associated with the company include curly fries and thin crispy fries which make the company assert its presence globally. Continuous differentiation and price discrimination can be a great strategy for the company’s internationalization strategy.

Theories in globalization

Globalization is a very vital strategy that companies adopt to create international presence. This is usually achieved through developing manufacturing or sales and distribution facilities in different parts of the globe. McCain Food Company has also embraced such strategies in an attempt to increase its presence in different parts of the world.

In its attempt to develop an effective globalization strategy, McCain Food Company has been involved in several mergers and acquisitions. These are very vital steps in a company that aims to remain competitive and sustainable over the years. This is because there several benefits associated with such activities through integration. These integration practices can either be vertical or horizontal but all of them are of great importance in achieving globalization.

For instance, McCain Food Company has been involved in several mergers and acquisitions in the recent past as the company tries to remain competitive and increase its global presence. For example in 2012, the company acquired CêlaVíta B.V which was a German company. Other mergers and acquisitions include; PinguinLutosa, Kitchens of Sara Lee and Charcuterie la Tour Eiffel just to mention but a few. All these acquisitions and mergers have resulted to expanded presence of the company in major continents all over the world (Wadlow, 2011).

The approach to the globalization strategy adopted by McCain Foods was a polycentrism approach. This is an approach whereby the different entities in different parts of the world will have different marketing objectives and policies. This has been very critical to the company since it has been able to introduce its differentiated products to the different customers all over the world. For instance, acquisition of the CêlaVíta B.V increased the company’s presence in other parts of Europe as well as promoting the new product chilled potato. The differentiation has also helped the company adopt the several cultural and social differences in different parts of the company.

Behavioral trends and macro environmental factors affecting consumer behavior in McCain Food

The fast food industry is a dynamic industry and McCain Food Company will not be an exception. This is because its profitability will depend on consumer behavior in terms of deciding on which product to consume. Several external environmental factors play a great role in determining the consumer behavior f the products. Some f these factors include demographic, cultural, social, economic and political factors (Enz, 2010).

To start with, cultural factors have been very significant in major consumer decision making. The whole world has experienced the increased sensitization of the consequences of poor feeding habits. Several lifestyle diseases such as diabetes have been of major concern to many consumers in different parts of the world (Ahmed & Nanavati, 2014).

Different lifestyles by consumers in different parts of the world have also been significant in consumer behavioral change. For instance, it is evident that microwaveable snacks have resulted to different changes in lifestyles. The need for healthy foods by many consumers has necessitated the need for McCain Food to be responsive to such changes. This will also help the company act within the laws and regulations as stipulated by the company. To respond to such demands, the company has been very sensitive to calories levels in the food product. The McCain Food always tastes good and always ensures that the levels of calories consumed never exceed the calories used.

The different geographic boundaries have also played a significant role in consumers’ decision making. In most cases, the different products offered by the company do not suit the different needs by different consumers all over the world. To be responsive to such problem, the company has adopted a differentiation and price discrimination to match consumer needs. For instance, all products distributed to china are packaged in red to please the Chinese consumers. UK consumers have a great taste for evened potatoes and the company ensures it provides only what is demanded by the market. The different income levels are also a major factor that should be considered.

International human resource management

The globalization strategy is faced with numerous challenges as businesses try to achieve them. One of the challenges involves dealing with the human resource in the process of achieving globalization strategy. As a company goes global, it is crystal clear that it must seek human resource from the different parts of the world that the company intends to expand its operations. All companies must have an adequate strategy to deal with human resource since human capital is always important a vital factor of production. The company has over 20,000 people in different parts of the world and this increases the essence of the company to deal properly with human resource (Longenecker, 2009).

One of the factors that affect the international business in McCain Food is the endless conflicts expected in different workplaces. The company operates in over 160 countries worldwide. Although the company’s human resource department strives to have those employees whose ambitions match those of the organization, there is a high likelihood that people from different cultural background may not operate harmoniously. The international human resource must deal with such vices amicably.

The different cultures from the different parts of the world will also be a major concern for human resource. This is because different countries have different labor laws which could be a major cause of alarm. Some countries have different roles and definitions, for instance definition of a minor varies in different countries and may result to child labor. Other major concern is the definition of working hours per day in different countries. These differences have been of major concern to McCain food but the human resource department has tried to cope efficiently.

International marketing

International business management will also be affected by international marketing. The food industry has been a very dynamic industry and McCain Food Company must ensure it is at par with other international competitors as far as marketing is concerned. For instance, the company is introducing new products to different markets and this necessitates need for extensive promotion.  A positive marketing mix must be adopted to ensure that positive results are achieved.

The distribution mechanisms and sales mechanisms have also been of great concern as far as international marketing is concerned. These mechanisms require that the right product is placed at the right place at the right time. For the company to achieve this, it is important to carry out an extensive research to determine where and what the consumers need. However, the company has also leveraged on this vice through continuous mergers and acquisitions which has enabled continuity in the flow of products in the company.

International logistics

In order to achieve a success in international business, it is important to have viable logistics. However, this is not always the case since logistics in international trade may be quite difficult due to different factors that should be considered. For instance, the different trade agreements in different states may prove difficult as far as logistics are concerned. However, McCain Food Company has always strived to ensure that logistics works to their advantage. It is for this reason that the company has always embraced external companies for advice in major decision making. For instance, major mergers and acquisitions effected by McCain have as a result of advice from Atlas Advisors. This has been critical in ensuring that the company has over the years made profitable decisions.

References

The marketing mix in the food industryA McCain Foods case study. (n.d.). Retrieved November 4, 2014, from http://businesscasestudies.co.uk/mccain-foods/the-marketing-mix-in-the-food-industry/conclusion.html#axzz3I7tKvXPS

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Ahmed, S., & Nanavati, A., 2014. India-Canada Trade and FDI Bilateral Flows: Performance, Prospects and Proactive Startegies (First edition ed., Vol. Volume 1). Ottawa: Allied.

Enz, C., 2010. Hospitality strategic management concepts and cases (2nd ed.). Hoboken, N.J.: John Wiley & Sons.

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Hanna, J., & Middleton, A., 2008. Ikonica: A field guide to Canada’s brandscape. Vancouver: Douglas & McIntyre.

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Longenecker, J., 2009. Small business management: Launching and growing new ventures (4th Canadian ed.). Toronto: Nelson Education.

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MacLachlan, I., 2001. Kill and chill: Restructuring Canada’s beef commodity chain. Toronto: University of Toronto Press

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Plunkett, J., & Research, L., 2000. Plunkett’s food industry almanac. Houston, Tex.: Plunkett Research.

Wadlow, C., 2011. The law of passing-off: Unfair competition by misrepresentation (4th ed.). London: Sweet & Maxwell/Thomson Reuters.

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