Question

Single biggest climate macro environmental issue that phillsbury has to consider when entering in canadian market?

Answer 1

Pillsbury Company is one of the oldest and most recognized firms in America Food Retailing. This company is a leading brand in refrigerated dough products with varieties such as cookies, biscuit, pie crusts, bread and crescent rolls.

Political is a single biggest climate macro environmental issue that pillsbury company has to consider when entering in canadian market. If Pillsbury company decide to enter canadian market then it has to face issue of political barrier by canadian government. Trade agreements involving Canada and the United States have led to greater north-south trade flows of agricultural products and increased competition in the North American grain markets. The impact of this competition later became confliction between US and Canada regarding agricultural policies with respect to grains, wheat and barley. In canada, the government and the grains industry such as farmers, processors and handlers disagree to sell grains into US market whereas US government preferred less to import grains from canadian grain industry.

As Pillsbury is a US company and it deals refrigerated dough products such as cookies, biscuit, pie crusts, bread and crescent rolls which made with the use of wheat, grains and barley so it has to face many political barriers while entering canadian market. Both Canada and US governments have changed their trade agreements against each other due to political pressure in grains. The consequence of this, reduce in export & import in grains industry, reduce in the opportunities for the grains industry and less variety and barrier cost lead to rise prices of grains used products for the average canadian consumer due to which it will be very difficult to survive in the canadian market for the foreign food company.