Mccain’s External Business Environmental Challenges

External Business environmental challenges on the business One of the biggest problems of McCain was obesity In children. This problem related to external challenges, which faced by the organization. McCain had to focused on the healthy problem occurred due to their products. McCain had to understand the dietary of the customers, which should be balanced as well as healthy. In relation to understand the customer’s requirement and other issues, it was mandatory for the company to analyses its environment whether it was internal or external.
Following figure show the external challenges: (http://yeomanry. Mom, 2014) After doing the slept analysis organization needs to examine those factors, which affects the business. When slept has been occurred then, company has to made changes according to the environment changes. Some external challenges is as below: Social Factors: It Is one of the Important factors that affects directly to the business. Consumer behavior depends resolute by the present trend. Habits Like eating, drinking changes with time to time. McCain sales growth declined due to some healthy eating patterns of the consumers.
McCain reduces the quantity of salt in their potato products. Mccain claimed that their potato products are lower in fats and saturated fats. McCain also promote its product to the public to increase the sales. They communicate with people through campaigns. McCain also made strong public relation with the help of advertisement. Legal Factors: Every company has to deal with the legal criteria set by the government. There must be some standard that are set by the company to meet with the government rules and regulations.

Government set standards on the behalf of consumers. They made various traffic lights labels which shows the quality of the product that help the nonusers to choose the right product. For example red dot represent high level of ingredients like fat and unsaturated fats and green dot represent low level of fat. There are some guidelines set by the government for the companies in relation of quality. Some of the guidelines are also called daily amount guidelines, which represent the daily intake of the fats and unsaturated fats.
Advertising also comes under legal factors. It supervised by the voluntary body that related to advertising industry. This special authority called advertising standards authority. Economic Factors: One of the mall challenges of the company Is people’s rolling Income. This was big problem for the company because as the Income rises then, people prefer to buy the superior varlets of the products. As the people becoming richer they prefer ready to eat meal and ready meals rather than buying potatoes and chips at home. So responsible for health.
Then, McCain introduces the various products like Mccain straight cut, oven chips, Home fries, roast potatoes etc. Technological factors: Technology is the most important challenges for the company. Food technology plays an important role in this modern economy. Some of the challenges for the companies like frozen products, muesli bars etc. One of the main challenges for the company how to retain the quality of the potatoes products. B. Two strength and two Weaknesses of McCain foods in emerging the organization sustainability. Strength McCain company toughly emphases on the quality of its products.
It hires more than 90 agronomist’s potato experts at 55 production facilities across 6 continents, to help local producers to grow best quality of potatoes and vegetables that the company can use those products in manufacturing its products and also confirm consistent supply. McCain Research Farms concentrate on emerging quality agricultural products. (An, 2014) McCain Company drives a Potato Processing Technology Centre in Canada and frequently improvisation’s manufacturing processes in order to increase efficiency and product value. An, 2014) The company’s thoughtlessly on keeping high quality levels for raw materials distinguishes its products from others intone market and increases the brand image. (An, 2014) Nakedness’s The company has slightest presence in developing the organic segments of food. Organic and natural food products are now becoming the rapid growing classification in food retail sector. Consumer awareness organic alternatives for food products and increasing health anxieties about Junk food have headed to chirography in this particular segment. An, 2014) Restricted existence in a reckless growing product sector mayhap an unfavorable mark on the company’s market share. Downtrends status McCain has been popular as a private company; it could face problems in getting money for outgrowth owing to its ownership status. Private ownership’s the company at a reasonable disadvantage. (An, 2014) (Strauss, 2014) Adaptability culture is the most corporate culture that McCain need to adopt for their tragedies. In adaptability culture, company develops in external environment. Company need to response as soon as possible when the company makes the decision.
It involves the high-risk decisions that get quick feedback from the environment. Managers need to encourage the company staff so that company needs to detect rapidly. Three reasons that make adaptability culture better than others are as below: 1 . The first reason is that it is flexible by nature. Whenever, company need to change the strategies according to customers needs then, company can change any time and very easily. Customer need changes according to time then, it is the first duty of the company to be focused the needs of customer. 2.
Employees have self-rule to make decision and also act freely to meet the new needs of customers. Employees should know regarding their decision. If the employees participate a lot in the responsiveness to customers then, those decision will be highly value and appreciated. 3. Company need to be creative as well doing experimentation on new products according to the customers need. For example, In the market, there is customer need come in front of the company and company start working on it then, many can easily introduce the new product.
Vision & Strategy (http://www. McCain. Com, 2014) Some of the company objectives are as below: Acquire the highest market share Boost the sales of the company Satisfy the customer and its need Personalization for shareholders Growing together business strategy customers and consumers through the development of our people, stewardship of the environment and our actions as a responsible corporate citizen We believe that social responsibility is an expression of how we conduct all aspects of our business and cannot be defined within a single program or policy.
This belief is reflected in the Growing Together business strategy we introduced in 2005, which is anchored by three interdependent pillars: Distributed and networked leadership: Developing people as leaders at all levels of the organization and collaborating through learning and project networks to leverage our global scale and best practices. Market facing: Making decisions at the closest level to the customer and creating demand for our products through innovation, value, differentiation and in the way we interact with our customers and consumers. Global CARS report, 2009) Corporate social responsibility: Making good, nutritious food on the principles of sustainability and food safety and supporting our employees, customers and consumers in their aspiration for a Better Life. Coach section of this report – Respecting our Environment, Inspiring Wellness and Positively Impacting our People – describes the policies, practices and initiatives that underpin our strategy and the progress we are making on our Journey of continuous improvement in advancing our goals in a socially responsible manner. Global CARS report, 2009) Advantages and disadvantages of Management-by-objective Management by Objectives MOB can likewise be alluded as Management by Results or Goal Management, and is focused around the presumption that contribution prompts responsibility and if a worker takes part in objective setting and additionally setting norms for estimation of execution towards that objective, then the representative will be roused to perform better and in a way that straightforwardly helps the accomplishment of authoritative goals. Advantages of Management by Objectives 1 .
Since Management by targets (MOB) is a result-turned process and concentrates n setting and controlling objectives, if urges chiefs to do unity gritty arranging. 2. Both the top managers and the Juniors realize what is anticipated from them and consequently there is no part imprecision or disarray. When both top managers and subordinates know each other about there work then, there will be no confusion between them. Disadvantages of Management by Objectives 1 . MOB can be accomplishing because it has the complete backing of the top management.
If the McCain top manager will not supportive with there staff then, the strategies will no completed. Whatever, strategic plan made by the management should be related to staff. 2. They may be less weight to co-occur with the administration during setting objectives and goals and these objectives may be set unreasoningly high. This may low down their assurance and they may get to be suspicious about the logic behind MOB. Control System to improve Production process and product quality Controlling is one of the most important functions, which consist planning, organizing, staffing and directing.
It is important because It help the company to correct the errors and to take corrective action so that divergence from tankards are minimized and the set goals of the company are achieved in the desired manner. Control in management means to improve the production process, Feed forward Control Concurrent Control Feedback Control Afterwards Afterwards is a communication term that refers to regulate impact to a person or a company from which anybody can expect output. Feed Forward is not like pre- feedback, because it helps to measure an output and also help in sending the feedback.
For example, if pre-feedback is occurred during quality and production process which is really easy for the organization to get an idea of the output. It also involves a document of review and giving post information regarding the production and quality process. Concurrent control will be control that happens in the meantime as a task is happening. This observing and controlling comprises of the courses of action that project execution so that potential issues might be distinguished in a promising way and correct procedures could be made, when needed, to control the execution of the task.
If any project is under process in production unit then, concurrent control strategy can be used during that process. It will help the managers to observe and intro and of course, actions can be taken for correct execution of the process. Feedback is a method in which data about the past or the present impacts the same phenomenon in the present or future. As a part of a chain of its effect and causes that forms a circuit, the occasion is said to “feedback” into itself. Feedback” exists between two sections when each affects the other. As a company tries to improve its performance, feedback helps to make some adjustments. Feedback helps to motivate the people in the work place. When anybody receives positive or negative feedback, hat person decides how to apply that feedback on his or her Job. In the production and quality process of the company, if any employee receive the positive feedback then, that person will automatically motivated towards company.