How McCain responds to changes in the external environment A McCain Foods case study
Page 4: Economic and political 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 in an oven or microwave. Rather than buying potatoes and making chips at home or taking the time to go to a fish and chip shop, it may be seen as more desirable to buy oven chips. Of course, it may be cheaper to make your own chips by peeling and cutting up potatoes. However, with growing affluence people prefer ready prepared oven chips.
Responsible eating and healthy exercise encourages everyone's health and well-being. McCain has risen to this challenge by creating a range of varieties e.g. McCain's Straight Cut Oven Chips, Home Fries, roast potatoes and wedges, to appeal to a variety of customers.
On political factors, the UK government has increased the pressure on food suppliers to come up with healthier foods. The government publicises and supports healthy eating by creating initiatives such as 'Healthy Schools'. This encourages pupils to think about the choices they make when choosing what to eat.
McCain supports the government's initiative. It believes that the foods that it provides, including potato based products, are nutritious provided that they are prepared in a healthy and simple way.
McCain Foods | How McCain responds to changes in the external environment