Page 49 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Retail Business Environment

Notes

Case Study How McCain Responds to Changes in the External
Environment

Introduction
Businesses have a number of objectives. Typical examples include:

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:

The internal strengths of the organisation for example being able to make the right
products in an efficient way.

Being able to identify external influences in the business environment and on its
consumers and adapt accordingly.
The external environment today is changing fast. The external environment consists
of everything outside the business. This case study shows how McCain needs to
identify changes in the external environment. It must then rise to the challenges
posed by change.
McCain Foods
The McCain product most people recognise is Oven Chips. McCain is the world’s largest
producer of chips. McCain buys 12% of the British potato crop. McCain is also one of the
world’s largest frozen foods companies.
McCain is a privately owned company with 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 is the world’s largest producer of chips. McCain buys 12% of the British potato
crop. McCain’s business is broader than just chips, with a range as wide as frozen potato
specialities and frozen light meals. It provides consumers with a wide variety of cut and
seasoned potato products through UK retailers, like supermarkets and restaurants. These
include roast potatoes, potato wedges, hash browns, waffles and potato croquettes.
McCain produces more specific potato shapes like Potato Smiles, Crispy Bites and
Sumthings (shaped as numbers) which appeal to younger consumers. McCain also makes
pizzas.
Chips have come a long way since the potato was first brought to this country by Walter
Raleigh 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 McCain’s 5% fat Oven
Chips.
Contd...

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