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CANADA CULTURAL ISSUES

Canada has a population of 34,327,000 people and consists of people from various ethnic
groups like English (21%), French (15.8%), Scottish (15.2%), Irish (13.9%), German
(10.2%), and Italian (5%). 16.2% population belongs to minority groups amongst which
biggest group is of South Asians. Nearly 60% of new immigrants hail from Asia (including
the Middle East). By 2031, one in three Canadians could belong to a visible minority
group. Canadian culture has been greatly influenced by immigration from all over the
world. Many Canadians value multiculturalism and see Canada as being inherently
multicultural. Canada has the highest per-capita immigration rate in the world, driven
by economic policy and family reunification, and is aiming for between 240,000 and
265,000 new permanent residents in 2010. By the 1990s and 2000s, the largest
component of Canada’s immigrants came from Asia, including the Middle East, South
Asia, South-East Asia and East Asia. Canada also accepts large numbers of refugees.
About 16.5% of Canadians declare no religious affiliation, and the remaining 6.3% are
affiliated with non-Christian religions, the largest of which is Islam (2.0%), followed
by Judaism (1.1%). Therefore, Support for religious pluralism is an important part
of Canada's political culture.

The statistics given above gives a brief picture of Canada’s demographic factors and
shows that cultural diversity in Canada is considerably high due to the presence of
various ethnic groups. Amongst this group South Asian number is not less and therefore
there is a strong potential market for them. This has not only opened market
opportunities, but has also made Canadians more open and cooperative to numerous
ethnic groups and minorities. Moreover, trend of foreign immigration to Canada is
constantly rising especially amongst Asians and Pakistani’s therefore, future holds a
great deal of potential in Canadian market for Asian’s and Pakistani’s firm. Also, the
Canadian government has often been described as the instigator of multicultural
ideology because of its public emphasis on the social importance of immigration, as well
as the ethnic diversity of its native inhabitants. Multiculturalism is reflected in the law
through the Canadian Multiculturalism Act and section 27 of the Canadian Charter of
Rights and Freedoms. Considering these factors, it is expected that Engro will be
accepted, acknowledge and accepted for their work there.

Beside this, considering a good number of Muslims residing in Canada, Halal products
lines always have a great demand. Till now, Muslims do not go for brand names for such
products and rather look for convenience so that they get required product right on time.
Company like Engro, which has a strong prospective and well established in Pakistan with
reasonable financial resources will have an added advantage if it expands it operation to
Canada by establishing itself as a pioneer of branded Halal food products lines on which
people can trust.

Coming up to language, English and French are the mother tongues of 59.7% and 23.2%
of the population respectively. Over six million people in Canada list a non-official
language as their mother tongue. Some of the most common non-official first languages
include Chinese (mainly Cantonese; 1,012,065 first-language
speakers), Italian (455,040), German (450,570), Punjabi (367,505)
and Spanish (345,345). Although, majority of Canadians are not aware of urdu language,
awareness with Punjabi language amongst minorities cannot be neglected. Moreover,
Pakistani’s and engro management are competent enough to deal business matters in
English. Therefore language further opens up a gateway for expansion and
communicating as Pakistani citizens that Engro will hire for foreign operations in Canada
can communicate well in both English and Punjabi.

LEGAL REQUIREMENT

In order to comply with registration requirement in Canada, Engro will need to decide its
business structure and whether it plans to extend it operation to one province or all over
Canada as legal requirement differs from province to province. Engro will have to sign for
business number (BN) which will be a single account number for dealing with the federal
government regarding taxes, payroll, import/export and other activities. Engro can open
several different accounts such as goods and services tax/harmonized sales tax, payroll
deductions, corporate income tax, import/export with this single account number. If
prospective earning is more than 30,000$, company will need to apply for GST as a part
of registration.

As Engro’s management will not be fully aware of legal requirements and may need
regular suggestions from competent authority it is advisable to have expert advice and
experience of an accountant to help with its business plan, tax and fiscal issues.
However, besides getting help and information from these accountant and lawyers,
Engro shall make a point to get updated information on tax reforms along with it impacts
on business profitability. As Engro major focus will be halal food products, it must obtain
a permit issued by the Food Ministry of Agriculture, Fisheries and Food (MAPAQ) in order
to operate food establishment.

Moreover, Department “Environment Canada” uses a number of acts, regulations and


agreements to fulfil its mandate of protecting canada’ environment. Environment Canada
uses regulations to place strict controls on areas governed by these acts. It also enters
into agreements with individual or multiple parties to define mutual commitments, roles
and actions on specific environmental issues.

The way you company treats its clients' information matters. In Canada, most businesses
have to comply with the Personal Information Protection and Electronic Documents Act
(PIPEDA) which regulates how company may collect, use and disclose the personal
information they collect as they do business.

When advertising the benefits of product, Engro must be truthful. It must not make
claims or use promotional techniques that are false or misleading. Engro needs to make
sure those products that they intend to launch are not restricted by Canadian
government. Engro shall make sure products do not contain any material or substance
that are poisonous, toxic, flammable, explosive, corrosive, infectious, oxidizing or
reactive which is or is likely to be a danger to the health and safety of the public. Engro
shall keep a check on ingredients for this purpose. It shall see if all mandatory safety
requirements are met and required licences or product approvals are taken from
government.
The label that company puts on its product is an important way of communicating the
value of its product to potential customers. Company can use the label to sell the
benefits of its product to your clients, but it must follow a few rules about labelling when
you do so. All mandatory information on food labels must be shown in both official
languages, i.e. French and English, except the identity and principal place of business of
the person which may or may not be in English or French. The common name of a
product must be shown on the principal display panel of the food label (i.e., main panel)
in both French and English. The common name must not be misleading. For example, it
shall not incorporate words unwarranted by the composition of the food, it shall not
improperly suggest a place of origin and shall not resemble, directly or phonetically, the
name of another product for which it is an imitation or substitute. If you produce a food
product that contains ingredients that people are often allergic to, you need to be aware
of proposed labelling requirements for food allergens, gluten sources and added
sulphites. Also, engro shall also make sure not to engage in business practices that could
unfairly reduce competition in industry.

INTERNAL MANAGEMENT (HR REGULATIONS)

Beside the external challenges and requirements that Engro will need to fulfil, few
internal challenges also requires due attention. Management style exercised by Engro
and other firm in Canada is marked by huge differences therefore; before Engro actually
starts its operation it shall have a clear understanding of management style and HR
regulations.

Applying Hofstede’s cultural dimension it can be find out that Canada is known as low
power distance countries as compare to Pakistan which is high power distance countries.
Therefore, while operating in Canada, Engro shall make sure that their management
style does not contradict with that of Canadian in order to ensure successful running of
business and employee’s support in form of hard work. Similarly Canada is marked high
by in individualism whereas Pakistan is known for collectivism. Therefore, in Canada
Engro shall make sure that employees effort are recognized and rewarded rather than
their seniority. Unlike Pakistan uncertainty avoidance is weak in Canada therefore Engro
shall expect ambitious employees who are constantly looking for better opportunities. In
order to keep best workforce, employee’s effort shall be recognized and rewarded
accordingly. Unlike Pakistan, Canada is marked high in masculinity and therefore
management style shall incorporate this factor appropriately

While operating in Canada, Engro will have to ensure that recruitment and interviewing
practices are not discriminatory, employee record with basic information on employee is
properly updated, employee's social insurance number (SIN) is verified, and employees
have complete certain tax forms for payroll purposes. To ensure that employees are
treated fairly, the federal and provincial governments in Canada have established
employment standards with regard to minimum wages, annual vacations and other types
of leave, public (statutory) holidays, hours of work including standard hours, overtime
and emergency requirements. Engro will you are required to pay its employees at least
the minimum wage established for the province or territory. When paying to employees,
Engro will also need to take off taxes and other deductions and remit them to the
government. There are provincial and territorial standards that set out the number of
hours an employee can be required to work per day and per week. The standards on
hours of work also set out rules on things like eating breaks and rest periods. Public
holidays are meant to be off for employees. As an employer, Engro has the responsibility
to create a work environment where there is no discrimination or harassment and
employees are treated with respect. Engro shall comply with certain regulations and
standards for the safety of your workplace to ensure the health and safety of all of
employees while they are working.

Although, all these HR regulations mentioned above are also present in Pakistan’s
employment conventions, companies are least bothered about them due to lack of
accountability and poor implementation of laws. However while operating in Canada,
Engro cannot enjoy any of such leverages and so has to make sure that these rules are
followed strictly.

ECONOMICAL FACTORS

From an economic point of view Engro does not have many challenges to have as
economy is well established and public finances are available. Government is committed
to cutting red tapes and barriers to business through its regulations. Canadian federation
business shows high optimism for doing business in Canada especially for its News
Brunswick province. Considerably stable GDP and foreign currency, Canada seems viable
option for investment. Engro can take a advantage of fully developed economy
technology and resources.