Mccain Food Case Study Summary

With McCain Foods’ increase in international expansion, the company faces varying risks in the global business environment and needs know how to manage them. When entering international markets, McCain Foods must be aware of the different marketing strategies that work in the host country to allow their product to relate to new consumers. Moreover, they need to adjust their operations in foreign countries and seek strategies to instill their product of fries into a culture where there is low consumption of fries. Subsequently, political changes often occur unexpectedly within countries and causes loss of a value in an investment. Political risks such as a shifting government systems and emerging laws cannot be anticipated. Through political risk analysis, McCain Foods is able to …show more content…
According to Hofstede’s work on global diversity and culture, Canada’s low uncertainty avoidance culture showcases their preference towards innovation whereas the Chinese culture displays high uncertainty avoidance culture. As a result, Chinese colleagues can have difficulty adjusting to McCain Foods’ openness to change. Moreover, Canadian culture prefers short term goals that result in instant gratifications whereas the Chinese culture displays more patience towards long term goals. This results in conflict if Canadian managers do not agree with their Chinese business colleagues’ suggestion of a possible plan that takes time to show instant gratifications. Additionally, the contrast between Canada’s low collectivism and China’s high collectivism creates problems in a group setting as Canadians emphasizes personal achievements during presentations whereas the Chinese places on group harmony. Overall, the contrasting beliefs and behaviours between Chinese business colleagues and Canadian managers can result in problems when working