Analysis of Canadian Food Industry and Market

The assignment analyzes the Canadian food industry, identifying key macro-environmental factors such as political, economic, social, technological, legal, and environmental factors that affect the business performance of companies like Maple Leaf Foods. The report also conducts a competitor analysis to evaluate the strengths and weaknesses of existing and potential competitors. Additionally, it examines key success factors or drivers that influence industry change, including innovation in food packaging and foodservice. The assignment utilizes various sources such as academic articles and industry reports to provide an comprehensive understanding of the Canadian food industry.

Running head: BUSINESS STRATEGY
Business Strategy

Business Strategy 2
Definition of industry
The food industry is a combination of the diverse business that delivers foods products and
services consumed by the population (Ravindran and Jaiswal, 2016).
Macro-environment
Political and Economic factor
The politics play a crucial role in the business structure. It is because there is need to make a
balance between system of management and free markets. There are different factors that
could affect the food industry like government intervention in economic development, low
level of trade regulation and protection with respect to the food industry. The government
regulation could direct impact on the growth of business (Rotz and Fraser, 2015). The
leveling of growth rates, a higher level of disposal incomes could direct impact on business
success. The inflation rate of Canada is 1.6% that would be favorable for the investment. The
low investment rate could influence behavior of consumers.
Social and technological factor
The social factor could support to determine the mentality of Canadians towards food. Aging
population, wealth distribution, lifestyles trends, and education level are social factors. It is
found that Canadians give more preference to the healthy food that could be an important
aspect for the organization. It could support organization to obtain opportunity and easily
meet the demand of the market. The consumer of Canada is health conscious hence
organization is needed to the aging of boomers for getting a positive result.
There are many technical factors that could affect food industry like new discoveries and
innovation, the rate of advanced technology, and new technology platforms. Moreover, it is
found that consumers of Canada practices advance techniques that could be supportive for
easily influence consumers towards specified product and services (Fread, 2014). The

Business Strategy 3
advanced techniques could support industry to improve their efficiency and productivity.
Hence, it can be said that Canada could be beneficial to invest in the food industry.
Legal and environmental factor
There are certain legal factors that could affect the business performance like consumer’s
law, labor law, and safety standards. Organization should consider such factors to invest in
the food industry of Canada. The environmental factors could consider all factors that are
determined by the surrounding atmosphere (Lifshitz, 2015). Climate, weather and
geographical modification in the weather, and environmental offsets are considered in the
environmental factor. The climate of Canada is best for the food industry hence it can be said
that organization could invest in Canada and get a favorable outcome.
Industry environment
Competitor analysis / Strategic groups
The competitor’s analysis is effective for evaluating the strength and weakness of existing
and potential competitors. It will be effective to retain the company in the marketplace. There
are three major competitors of maple leaf food like Tyson Foods, Inc., George Weston
Limited, and Premium Brands Holdings Corporation. These companies have offered quality
product and services to their consumers at highest prices. Thus, it can be said that maple leaf
food could offer their product and services at reasonable cost with quality.
Key success factors or factors driving industry change
Innovation in the food packaging and foodservice could be supportive for maintaining their
position in the marketplace. Moreover, it is also addressed that when company only target om
those consumers who give more preference to environmental products then it could be
challenging for the organization (Ravindran and Jaiswal, 2016). For elimination this
challenge, organization should use innovative techniques and materials. It will also be
effective to get a positive outcome.

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References
Fread, G. (2014). Strategic Planning Analyses: The Food & Beverage Industry. Retrieved
from:
http://www.foodincanada.com/opinions/strategic-planning-analyses-food-beverage-industry/
Lifshitz, I. (2015). Key market drivers are reshaping the food industry. Retrieved from:
http://www.foodincanada.com/food-trends/key-market-drivers-are-reshaping-the-
food-industry-131364/
Ravindran, R., & Jaiswal, A. K. (2016). Exploitation of food industry waste for high-value
products. Trends in Biotechnology, 34(1), 58-69.
Rotz, S., & Fraser, E. D. (2015). Resilience and the industrial food system: Analyzing the
impacts of agricultural industrialization on food system vulnerability. Journal of
Environmental Studies and Sciences, 5(3), 459-473.