Business Organizations and Environments: MH Foods Expansion in Finland

This report examines the business environment surrounding MH Foods' potential expansion into Finland. It provides an overview of the company, including its vision, values, strategy, and financial performance, particularly focusing on its Frylight product. The report includes a PESTLE analysis of Finland, evaluating political, economic, social, technological, environmental, and legal factors, as well as Porter's Five Forces analysis applied to MH Foods. It identifies opportunities and challenges associated with the expansion, considering Finland's economic conditions, technological advancements, and social security. The analysis aims to provide a comprehensive understanding of the business scenario and inform strategic decision-making for MH Foods' venture into the Finnish market. Desklib provides access to this and similar solved assignments to aid students.

Running head: BUSINESS ORGANIZATIONS AND ENVIRONMENTS
Business Organizations and Environments
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1BUSINESS ORGANIZATIONS AND ENVIRONMENTS
Executive summary
The purpose of this following report is to demonstrate the various aspects of the business
expansion of the company MH Foods located in the United Kingdom. This company wants to
expand into the markets of Finland. The organization has been discussed through an overview.
The financial performance of the organization has been discussed here as well. Apart from that,
the pestle analysis on the chosen country Finland has been done. The porter’s five forces strategy
has been applied to the chosen organization. The opportunities and challenges in order to expand
the business have been described. The product chosen for this paper Frylight has been a very
effective cooking oil that is friendly for the health conditions as well.

2BUSINESS ORGANIZATIONS AND ENVIRONMENTS
Table of Contents
Introduction......................................................................................................................................3
Overview of the organization..........................................................................................................3
Vision of the organization...........................................................................................................4
Values..........................................................................................................................................5
Strategy........................................................................................................................................5
Financial performance of Frylight...............................................................................................6
Investment opportunities for Finland...............................................................................................6
Analysis of the business environments............................................................................................7
External business environment....................................................................................................7
Porter’s Five forces..........................................................................................................................9
Analysis on business scenario.......................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

3BUSINESS ORGANIZATIONS AND ENVIRONMENTS
Introduction
The purpose of this following paper is to describe the entire business environment of an
organization. The organization that has been chosen to compose this report is Frylight in United
Kingdom. One of the most important aspects of analyzing the business atmosphere of this
organization is to discuss about the challenges and opportunities the organization faces in this
competitive business environment. It is also very important to have an in-depth analysis on the
internal and external business environments of the organization. The most essential things about
the organization like the financial performance of the organization, the ownership structure of the
organization and the current international structure of the organization would be discussed as
well. The different segments of the business environment of the organization like the political,
economic, social, technological, environmental and legal issues would be discussed in this report
as well. The business scenario of the organization will be discussed here. These issues are very
significant to assess the business opportunities and environments for the organization. The
details about the organization and its operations would be discussed as well. The Pestle analysis
of the chosen country Finland will be discussed because the selected organization will be looking
to expand their business operations in Finland.
Overview of the organization
The chosen company MH food organization is generally considered to be one of the
companies in the food industry located at Erith in Kent in the United Kingdom (Dairycrest.co.uk
2018). They are the subsidiary company of the Dairy Crest. They have been constantly serving
the needs of the people about nutrition for more than 30 years now. The company always insists
the people for healthy eating and therefore healthy living. This is why they have been the most

4BUSINESS ORGANIZATIONS AND ENVIRONMENTS
preferred brand among the customers. They have been keen on innovating new types of products
in their fields that would be helpful for them indeed.
They have produced the first soy sauce, salad dressings and many others. The employees
in the organization are very much trained and they always look for the betterment of the skills so
they can serve the customers in a better way. They have gone on to innovate new products and
gain the trust of the customers. One of their most important products they have innovated in this
section is the Frylight i.e. generally a one calorie cooking spray used for cooking purposes
(Dairycrest.co.uk 2018). This brand has been noted as the primary oil brand in the United
Kingdom. The invention of this product has taken the reputation of this company to a grand
place as well. The company has always tried to produce new types of food with low sugar and
low salt. It has been calculated from the reports that Frylight has occupied the 14% of the market
share. They have collected the sales revenue of £150.7 million. It has also been viewed that the
annual performance of the sale of Frylight oil has grown up to a large extent. The volumes of
Frylight have been increased by 23%. The sales of Frylight have also grown up to around 19%.
After the acquisition merger with the Dairy Crest in the year 2011, the sales of Frylight has
completely doubled as well. This is the reason why the organization is being able to perform
much better in the last few years. They have won the IGD of the year as well.
Vision of the organization
The vision of the company MH foods is the fact their success has been built for their links
in the countryside. Their past heritage on dairy business and the efficiency of their people has
also impacted largely on this business as well (Dairycrest.co.uk 2018).

5BUSINESS ORGANIZATIONS AND ENVIRONMENTS
They will look to innovate new and exceptional food for the entire generation that they
would love. They want to bring the best quality food to the people or their customers
(Dairycrest.co.uk 2018).
Values They always learn. They take their time to listen understand and then learn. They respect the people with whom they work with and grow stronger together
(Dairycrest.co.uk 2018). They care for the people as they act with responsibility to make the people do the right
thing (Dairycrest.co.uk 2018). They create. They always seek new ideas and suggestions to grow their business. They lead in their way to gain the success and deliver the products with pace
(Dairycrest.co.uk 2018).
Strategy
Some of their important strategies are to generate the growth by building the strong
positions in the branded and added value markets, to simplify the process, decrease the costs and
make sustainability, to generate the cash and decrease the business risks and to make
acquisitions where they would be able to generate the value. They will loom to co-operate with
the wider industry at the larger prospects (Dairycrest.co.uk 2018).
One of their main aims is to build a strong reputation for their Frylight product in the
industry and reduce the risks. This will help them to serve the customers in a better way indeed.
If they can simplify their products and imply the cost effective strategies, the trust of the
customers on Frylight will increase as well (Dairycrest.co.uk 2018).

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Financial performance of Frylight
The trading environments in the United Kingdom have been very much critical. In spote
of these complexities, Frylight has done quite a good job in the last few years. They have taken
some important steps that could help them to stay ahead of their competitors indeed
(Dairycrest.co.uk 2018). This can be taken as a long term strategy for them. The different
transformational sales have given them the scope for the simplified branded and value added
business probabilities that has the correct amount of potential for the growth. The entire financial
performance of the company has very good indeed despite there have been some price deflations.
This has decreased the sale revenues as well by 5.8% to £422.3 million (Dairycrest.co.uk 2018).
The company has faced the increase of the sales volumes by 1.7% across their most used brands
including Frylight.
Investment opportunities for Finland
One of the most important contexts that could be highlighted in this part of the report is
the fact that they have decided to venture into Finland. It is very important to understand the
geographical conditions of the country since they cannot deliver the best efforts without having
the knowledge about the country. The country of Finland is located in the Northern part of
Europe. The bordering countries of Finland are Norway, Sweden and Russia (Myerson and
Bichard 2016). The total area of the country is 338,145 sq km. The total population of Finland is
5,518,371. The country of Finland is considered to be a free market economy indeed. The
government is responsible for the foreign direct investment by the international organizations.
The recession in the year has impacted on the economic growth of the country but they have
begun to reorganize themselves in terms of the economic context. The total GDP growth rate of
the company has been 2.8% in the year 2017. The GDP rate can also grow up around 2-3% in the

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upcoming years as well. The total inflation rate of the country is around 0.8%. The
unemployment rate of the country is around 8.9%.
Analysis of the business environments
It is indeed important to analyze the business environment of the organization in the best
ways to consider the opportunities that will be needed by the organization to discover. These
things would have to be kept in mind by analyzing the six external conditions of the country in
which they are venturing.
External business environment
Political
Finland is considered to be a parliamentary republic country. All the citizens have their
proper rights to caste the votes in the municipal elections. The country can be taken as a
cooperative model state. The political system of the country is therefore stable and it can attract
foreign investors indeed (Newton 2014). If the investors are ready to put their money in Finland,
both the parties can benefit a lot. They are keen on reducing the political risks in the country
indeed. They have a good and peaceful international relationship with the neighboring countries.
Thus they can give bright opportunities to the investing organizations (Hamilton and Webster
2015).
Economic
It is very important to assess the economic risks of the country by making an important
evaluation on the various aspects. One of the most important things for the economy of Finland
is the exporting of the goods to many countries (Wild, Wild and Han 2014) The entire world is

8BUSINESS ORGANIZATIONS AND ENVIRONMENTS
suffering from the recession and this caused a slowdown in the Finnish economy as well. The
loss of profitability has caused severe impacts in the economy of Finland in the most ways.
However, the economic risk of Finland is not that much compatible with the other markets
(Cavusgil et al. 2014).
Social
Finland is socially very much secured. The living condition is quite decent and safe over
there. So if the MH foods decide to venture into the Finnish market with Frylight, their
employees could lead a better life indeed (Morrison 2017). The healthcare and education system
is very good and satisfactory indeed. These are the reasons they are one of the most socially
secured countries in the world. If the MH foods gets to venture into Finland, their employees can
also get the advantages of the healthcare system in the countries (Hamilton and Webster 2015).
The different things like the transportation, social security and others are provided in the best
ways in this country (Wild, Wild and Han 2014).
Technological
The implementation of technology is at the very high level in all over the world. Finland
is considered to be the technological leaders in the entire Europe. This is why there are huge
chances of advancement for the country in the technological sects (Morrison 2017). The
multinational companies always like to recruit and expand because of the technological brilliance
of the employees (Armstrong et al. 2015). The government and local entrepreneurs are giving
their best for the improvement in the technological fields. There is a very good relationship
between the public and private funding in the country. The R&D technology has been
implemented in this country for better benefits (Chang, Hwang and Peng 2013). MH foods can

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implement these technological advancements into the preparation of the Frylight. They can also
use the social media and technology for arranging the marketing campaigns.
Environmental
Finland has been designated as the most sparsely populated country in the entire Europe
for its location. The government of Finland can provide the people within the country with many
important protection policies for the nature and the environment. The functioning of these
policies are very much sincere and effective as well (Morrison 2017). As this is a great industrial
country, many industrial wastes are originated and they take care of these things in the best ways
indeed. They have enough resources to contribute into the investment of the environmental
policies. They are very much active on solving the pollution problems indeed (McQuivey 2013).
The air quality in the industrial areas has been developed so MH foods will find it easier indeed.
These things would be very much influential for them to set up the factories. They will have to
abide by the policies related to the greenhouse gas emissions (Armstrong et al. 2015).
Legal
The laws of Finland give the same rights to all of the people in the country. There are no
imposes on the foreign investors or the foreign levies that can be applied to the business sectors.
The firms are able to acquire the shares indeed. This is why they will be able to venture into
Finland without any worries (Newton 2014).
Porter’s Five forces
Supplier power

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The supplier power of the product is very low since there are very few suppliers in the
market. This is quite a unique product and there are very limited suppliers for this product. This
is why the company can change its prices in the countries they will expand into (Dobbs 2014).
Buyer power
The buyer power is very high as MH foods have the copyrights to these Frylight oil
sprays (Dälken 2014). There are many buyers because most of the health conscious people are
ready to buy these kinds of products. However, in the country like Finland, the costs are not
needed to be kept down as the economic condition of the country is quite stable now. (Morrison
2017).
Threat of new entries
The food industry has some new companies who have also promised to provide the
customers with the health friendly cooking oils. This is why the new startup companies can
prove to be real threats to MH food (Dobbs 2014).
Competitive rivalry
The competitive rivalry for Frylight is very high enough because of the presence of the
new companies in this business. This is why they need to find some strategies that could make
their businesses sustainable (Rothaermel 2015).
Threat of substitution
As of now, there are very few options that can work like the alternatives for this product.
So, the threat of substitutions is not that much present at the moment (Rothaermel 2015).

11BUSINESS ORGANIZATIONS AND ENVIRONMENTS
Analysis on business scenario
Business opportunities
There are certain opportunities that could be attributed to the operations of this business.
These opportunities will help to grow the expanse of the business
 This spray is very useful for the health as it is beneficial for the health as well (Smith
2013).
 There are several varieties of the Frylight like the Golden Sunflower Oil to the Creamy
coconut oil.
 The customers can save up to 100 calories for their health which will keep themselves fit.
 Frylight spray oil can expand into Finland very steadily as it is very cold over there and
the people look for good quality cooking oil all through the year (Tokic 2012).
 The expansion of Frylight into Finland will help the organization better social security.
 The people in Finland will be helped in great ways and thus they will be able to gain the
trust of the customers for their advancement in the business (Ritala 2012).
Challenges
MH Foods might face some challenges as well when they will venture into Finland for
their business expansion. These challenges are:-
 If the packaging of the bottles is not done properly, it could cause severe impacts in the
quality of the oil (Tokic 2012).
 The economic deflation could result in the less transaction of the Frylight sprays.
 If the environmental policies are not carried out properly, this could impact the business
of Frylight in great ways as well (Johnson 2016).