How McCain responds to changes in the external environment
A McCain Foods case study

Page 1: Introduction

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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...
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Page 2: SLEPT analysis and social factors

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In order to be able to understand its customers' requirements and respond to other changes, it is important for a company to analyse its environment. A SLEPT analysisis a tool that helps to analyse the environment. To create a SLEPT analysis the company needs to examine the key environmental factors that affect its business. Having carried out the analysis it must then take action to respond to...
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Page 3: Legal factors

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Responsible businesses not only abide by the law, they seek to create standards above minimum requirements. Food labelling McCain has to be aware of a number of legal factors. The government's Food Standards Agency has recommended that firms put 'traffic light' labels on food to help people understand what they are buying and to help them make the right choices: Red represents high levels...
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Page 4: Economic and political factors

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Economic factors Economic factors include changes in buying patterns as people's incomes rise. For example, as incomes go up people prefer to buy what they see as superior varieties of a product type. We see this with the development of ready prepared foods. As people become cash-rich and time-poor they prefer to switch to ready meals and simple to prepare foodstuffs that they can quickly heat...
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Page 5: Technological changes

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Challenges of food technology Food technology is one of the most dynamic technologies in the modern economy. Food technology involves researching and developing new techniques for making products as diverse as ice cream, probiotic yoghurt, frozen oven chips and muesli bars. Each of these products involves finding technical solutions to problems such as how to: freeze while retaining...
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Page 6: Conclusion

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Change comes from a number of sources Social, Legal, Economic, Political and Technological. Change is the one constant in the business environment. This case study has illustrated how these changes have affected McCain, particularly in relation to its core products. Because McCain is a market-focussed company, it recognises that it has to respond to what its consumers want. There are clear...
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