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

Mini-Assignment Da Costa 2
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 lan-guages 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 mar-keting 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 incor- porating 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 logis-tics. 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 col-lectivism and has a much higher power distance ranking compared to the world average. Mini-Assignment Da Costa 3
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 fo-cus 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