1st Mini-Assignment Hand-In

McCain Foods Limited: Global Fries Good In Any Language!

Jonathan Da Costa
jonathan.dacosta@ryerson.ca
500646932
Ricardo Reyes
GMS200-191
February 4, 2015

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Jonathan Da Costa
Ricardo Reyes
GMS200-191
February 4, 2015

McCain Foods Limited

I. Entering a foreign market can be both challenging and rewarding, there are several risks
McCain Foods Limited would have to face when deciding to enter an international market. A
major issue when in a foreign market is packaging, as different countries speak different languages and have different set of norms. McCain Foods would need to change their packaging
to not only be in the correct language, but to also incorporate the proper information required
on the packaging to meet that country's requirements (nutritional information, ingredients,
manufacturing information). Then McCain Foods must research the market to see what marketing strategies work and don't work to gain recognition and break through the market. The
hardest challenge McCain Foods will face when entering a new international market is incorporating the food into a culture that doesn't normally eat that food item and making it a staple
item. Other challenges faced include; legal system, competition, trade agreements and logistics.
II. McCain faces several challenges when deciding to do business with their Chinese business
colleagues than when doing business in North America. Before doing business in China, it is
important to recognize what they value (modesty, politeness, patience, respect for elders).
When planning the meeting, you must take into a fact the Chinese calendar which celebrates
different events. Another thing to note, according to Hofstede, China ranks the highest in collectivism and has a much higher power distance ranking compared to the world average.

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III. In order to break into the Chinese market, McCain Foods decide use adapt the beachhead
method. The beachhead method is where McCain foods decide to start selling their product
in one specific area in China before branching out. They decided to start in Shanghai and focus all their resources in that one specific market, hoping to dominate the market segment
before branching out. McCain also decided to open up manufacturing plants in China so that
they could cut their cost of goods sold down and focus on getting the product of cheaply and
timely. For McCain Foods to integrate faster into the Chinese market, they could implement
a globalization strategy to is identify their competitive edge within the Chinese market and
use that to gain market shares and a customer base. Creating a competitive edge separates
your product from the rest, creating a product niche and gives consumers a reason to buy
your product over other good from their competitors.
IV. It is important for businesses to understand that different countries do business in different
ways and you should respect the etiquette of the country you're in. for instance, in Canada an
executive understands when it takes up to a month for a response on a business proposal.
Canadian executives are also generally one time and dress professional all the time. Where
as, in China time is very important, everything is expected to be either on time or early. Chinese executives do business formally and tend to act extremely elegant. As well as in India,
you are expected to never point your feet at a person, touching a head is discouraged and
lunch meeting is preferred. It is important to understand these cultural differences to ensure
meeting are done effectively. McCain uses managers and executives that are familiar with
these practises to ensure the meeting and business negotiations are flawless.

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Works Cited

Berry, Tim. "Dont Underestimate Beachhead Strategy." Bplans. 10 May 2010. Web. 5 Feb.
2015. <http://timberry.bplans.com/2009/12/the-power-of-beachhead-strategy.html>.
"Business Etiquette in China." The Canadian Trade Commissioner Service. 23 Dec. 2014. Web.
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did=107932&cid=512&oid=32>.
"China Business Etiquette, Culture, & Manners." Cyborlink. Web. 5 Feb. 2015. <http://www.cyborlink.com/besite/china.htm>.
Friedlein, Keith, and Thomas Murtagh. "Opportunities and Challenges for Manufacturers and
Distributors in Going Global." Wolf &amp; Company LLP. Web. 4 Feb. 2015. <http://
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Hall, Edward. "The Silent Language in Overseas Business." Harvard Business Review. 1 May
1960. Web. 5 Feb. 2015. <https://hbr.org/1960/05/the-silent-language-in-overseas-business>.
Pearl, Mona. "3 Keys to Successful Globalization." Industry Week. 19 Jan. 2012. Web. 5 Feb.
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Schermerhorn, John R, and Barry Wright. Management. Third Canadian ed. Toronto: John Wiley
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