Pricing Strategies

The expansion of US businesses into Canada seems like an obvious decision to make. The common thought is that they are both in close proximity and both speak the same language so the business opportunities should be the same. Until recently, however, the Canadian market was hard to penetrate: the Canadian dollar was weak, costs were higher, and real estate space was limited. The future looks brighter now that the dollar is strong and the economy is rebounding (Austen & Clifford, 2012). White Castle needs to understand many aspects of the business environment in Canada as it considers expansion.

Logistical Environment

The free-trade agreement in the '80s and '90s between Canada and the US posed a threat to the Canadian people. It was feared that the agreement would deindustrialize the country as corporations shifted production to low-wage states in the US; that Canada, whose main exports were unprocessed natural resources, would become even more like humbled workers for the US; that regional development would suffer; and that the government would begin matching Canada's social programs with those of the United States to drive down wages and production costs in Canada (Robinson, 1990). In stark contrast, "Canada is a prosperous society with a highly educated workforce, substantial natural resources, modern infrastructure, well-functioning public organizations and sound financial institutions. The country's high standard of living and quality of life is sustained through a diversified, open economy that respects the rule of law, pursues free trade, supports innovation, fosters competition and welcomes foreign investment" (bennettjones.com, 2012). In comparison to the economy of the US, Canada's continuously growing economy, ranked ninth in the world, is a favorable climate for business investment. Its $1.6 trillion economy and profitable banks that thrived during the financial crises because of conservative lending show its strength internationally. Canada ranks high in both investor protection and lack of red tape. And while others suffer from increasing unemployment rates, Canada has improved its levels and has an ever growing educated workforce (connect2canada.com, 2013).

Political and Legal Environment

Peace, order, and good government are goals of the Canadian government and these words tell about the history of Canadian political culture. There is a strong tradition of loyalty, compromise and tolerance in Canadian political culture. Change is typically slow and worked out through compromise between interest groups, regional consultations, and the government of the day. With Canada's recent tradition of liberalism, individual rights took the forefront of political and legal importance for most residents. This can be seen in the support for the Charter of Rights and Freedoms, a relatively free economy, and liberal attitudes toward homosexuality, women's rights, and other egalitarian movements. However, there is also a sense of collective responsibility in Canadian political culture, which is demonstrated in general support for universal health care, gun control, foreign aid, and other social programs (Fries, 2009).

Fries (2009) notes "the key policy governing regulation in Canada is the Cabinet Directive on Streamlining Regulation (CDSR) that came into effect on April 1, 2007. The function of the CDSR is to ensure that use of the government's regulatory power results in the greatest net benefit to Canadian society.

Cultural Differences

Although there are similarities in approach to business between the US and Canada, there are also some differences. Canada is officially a bilingual country and the linguistic heritage of the French-speaking minority should be recognized. Canada has encouraged a multi-ethnic approach to its immigration policies, and as such, cultural diversity is recognized and respected.

Business meetings in Canada are more formal and restrained than in the US. People expect the right to be heard and listened to in meetings situations, regardless of rank or status. Communication styles are reserved and understated, with the possibility of an overstatement. Detailed preparation prior to meetings is expected; decisions are not usually made until all the facts are presented. Canadians are direct in their communication style and can usually be taken at face value without trying to decipher messages or meanings.

Looking at the historical realities of both countries help to explain differences: the US revolted against the UK and has adopted values of individualism, change, and future-orientation, along with the benefits to be gained by constantly challenging limits, authority, or barriers. Canada, on the other hand, slowly and carefully legislated itself into independent existence from Britain. Additionally, Canadian settlers were living in a geographical area that prevented individuals from challenging limits: in the vast north of Canada, the Great Canadian Shield, that topographical feature of wild and frozen tundra, prevents individuals from acting independently on their own, and does not promote the value of overcoming limits (Foster, n. d.).

Potential Market Barriers

White Castle likely will find that doing business in Canada is easier than in many other countries. One clear advantage is the geographic location; the shared border. "Canada's current majority Conservative federal government further enhances the ease of doing business in the country. Prime Minister Stephen Harper's business-friendly outlook combined with the Canadian government's general backing of President Obama make for friendly relations between the U.S. and Canada" (Post & Vorro, 2011). Given Canada's educated workforce and pursuit of innovation, experts say there is ample opportunity for US companies to cross the border and do business in Canada (2011).

A challenge could be in the French language which is prevalent in Quebec. The city's language watchdog, The Office Quebecois de la Langue Francaise, asks businesses to modify their commercial brand names to include some French (Banerjee, 2012). It may require a change to their signs, either giving themselves a generic French name or adding a slogan or explanation that reflects what it is they're selling. The push for businesses to change their signs started years earlier amid controversies over whether the use of French in Montreal was declining (2012).

Product Adaptations

In order to meet the needs of international customers, White Castle will have to adapt to suit regional or individual markets. A possible market in Canada to target is the primarily French-speaking