Activity 1
Vision of organization
| Vision | The vision of Nippn relies on developing trust among its customers by providing effective and healthy quality products. Nippn focuses on continuous improvement and expansion of its services (nippn.co.jp, 2022). The organization aims to maintain and develop the satisfaction of its consumers through its products. | ||
| Quality | Evaluation
(high/low/moderate) |
Description and justification | Implication |
| 4Vs | Volume- moderate
Velocity – high, Value- high
Variety- high |
There are four elements of 4Vs for instance volume, variety, velocity, and value.
Volume: The element of volume is potentially moderate as there is an effective amount of data generated from multiple sources. The activities of operational management assist organizations in maintaining productivity levels. Variety: The element of variety is significantly high for the organization as it produces huge number of services. Nippn is associated with multiple businesses for instance flour milling, healthcare, machinery sales, biotechnology, pet care, frozen foods, frozen ingredients, and flaxseed products.Visibility of marketing objectives assists an organization in building brand trust in the market and developing trust among customers. Velocity:The management of the organization is focused on supplying effective quality products. Nippn operates in multiple countries for instance Thailand, China, America, and Indonesia. The element of velocity is potentially high for the organization as it focuses on expanding its services in foreign market. Value: This element is potentially high for the organization as effective value is important for the development. As per the opinion of Derakhshanet al. (2019), 4VS can support the management of an organization in developing flexibility in terms of producing services and products. Flexibility is essential in a business in terms of improving the quality of services. |
The top services of the organization are flour milling business, frozen food business, processed food business, nakashoku business, and food material business. The services of healthcare and pet care support the organization in developing trust among its consumers. The analysis of operational activities can support the management in developing its business activities effectively. Effective trust among customers is essential to increase revenue and improve customer retention. Nowadays, majority of consumers demand a healthy quality of products and services. As per the opinion of Agwu 2019), efficient operational practices, a variety of products, and visibility of objectives can support the management in developing its business performance. The management of the organization has developed its variety of products in terms of maintain the variety high. The increasing data amount has assisted the organization in maintaining its velocity high. The element of volume is moderate, velocity is high, and value is high as the management of the organization has maintained sustainability in its services. |
| SQFDC | Speed – high
Quality- high
Flexibility – Moderate Dependability- moderate Cost – moderate |
Speed: Innovation is essential in a business to develop services and opportunities. The element of speed is high as the organization has expanded its business in foreign countries. The management of the organization has focused on efficient sustainable planning and sustainable technologies in terms of developing its productivity level in foreign market. The market expansion has assisted the organization in maintaining the element of speed high.
Quality: The authority of Nippn operates its business practices in multiple countries, there is a requirement for effective communication, planning, honesty, and team to maintain the quality of its products. The element is potentially is high as the management maintain the quality effectively. Flexibility: There are multiple elements of the corporate value system in a business for instance teams, stimuli, communication, empowerment, risks, freedom, alignment, honesty, support, and communication. There is significant importance of innovation in a business to develop business practices and competitive advantages. The element is moderate as there is a lack of planning in its workplaces. Dependability: Professional development opportunities in the workplaces of Nippn can assist in improving employee retention effectively. The element has a moderate effect on its services. Cost: The element has a moderate impact in the business activities in Nippn as the management provides effective services at reasonable price. |
Cooperation among employees and effective communication can assist in developing business practices and improving the quality of products. As per the opinion of Derakhshanet al. (2019), in the present scenario, sustainability is essential in a business to develop trust in the market. Efficient analysis of the corporate value system can support Nippn in expanding its business practices effectively. A healthy and effective relationship with suppliers is essential to maintain the availability of resources and maintain the productivity level of employees. Suppliers play a critical role in an organization to increase the number of sales and improve the market position. The elements of speed, cost, and flexibility are essential in the development of an organization. The production level has increased due to the adoption of technology in producing food materials. Sustainable planning and quality of products increases the rate of revenue as well as its production level. |
Table 1: Nippn’s vision and characteristics
(Source: nippn.co.jp, 2022)
Activity 2
- A Evaluation of threats and opportunities
| Megatrend | Key issues affecting the organization | Impact and implication |
| Technology | ● Lack of technology in the workplaces of Nippn produces less productivity.
● Lack of technology hampers in making strategies and planning for next step (Twaissi, and Aldehayyat, 2021). ● Obstacle situations increase due to insufficient technology. |
● There is a potential effect of technology on decision making and strategic planning.
● Secondary Processing operations for food ingredients for instance noodle making, and bread making has assisted the organization in developing its productivity level. ● Nippn has established data systems effectively in terms of developing standard information systems. ● The revenue report of Nippn can be developed through effective quality of services and it is an essential tool for the organization to make improvements. |
| Social and demographic change | ● Social and demographic change affects the rate of sales of Nippn.
● It hampers the market segmentation of business practices and production level of the organization. ● Social and demographic change affects the decision making and policies of workplaces. |
Social and demographic change has a crucial impact on the marketing strategy of business and can be a high rate of threats in the business of Nippn.
An appropriate analysis is required before implementing strategies and planning. Adoption and innovative ideas can assist in overcoming the challenges of social and demographic change. |
| Resource scarcity and climate change | ● Climate change has a critical effect on the business practices of Nippn and taking initiatives for a healthy environment.
● Resources scarcity and climate change affect the productivity level of businesses. ● It hampers the trust of consumers in packaging style and product’s quality. |
● It can be a threat to business and highly affects the production and decision making of Nippn.
● The availability of resources is essential in a business to produce an effective quality of product. ● Identification of risk factors can support the management of Nippn in developing sustainability in its business practices. |
| Leadership | ● Ineffective leadership plays a crucial role in the production rate of the organization.
● Poor leadership hampers profit and revenue (Soni, 2020). ● It affects fulfilling the needs and requirements of the market. |
● In expanding services, the management has focused on its leadership styles to maintain the productivity level.
● There can be a potential effect on the performance of the firm (Seethaler-Wari, 2018) ● Lack of motivation can occur among employees in the workplaces of Nippn. ● Efficient and effective leadership is required to reduce the impact of difficulties and develop future opportunities effectively. |
Table 2: Opportunities and threats
(Source: Seethaler-Wari, 2018)
- B Recommendation
| Megatrend | Technology |
| Recommendation | Implementation of advanced technology can assist Nippn in developing its productivity level and identifying risk factors. As stated by Rivera (2021), effective planning and sustainable strategies are required to maintain the popularity and brand value of the market. In the present scenario, majority of consumers prefer sustainability in services and products. The management of Nippnneeds to focus on the sustainable implementation of technology in terms of developing its productivity level and maintaining the quality of services. As the organization belongs food industry, the management of the organization need to focus on the quality of products effectively. The implementation of technology can enhance the revenue of the organization. |
| Justification | The authority of Nippn is committed to the safety, quality, and sustainability of the environment. There is a wide range of businesses on food for instance flour milling business, food ingredient business, processed food business, and frozen food business. The capital of Nippn in 2021 was almost ¥12.24 billion, and the sales of 2020 were almost ¥344.80 billion (nippn.co.jp, 2022). The management of the organization can maintain the productivity level, storing data of its consumers, and providing effective customer services. Positive customer services can assist the organization in developing customer retention effectively. The management of the organization needs to focus on the megatrend of technology in terms of establishing as effective brand value and increase the share of market. In the era of technology, innovation and implementation are essential to develop services. Implementation of technology can support the management in developing its revenue and providing effective customer services. |
| Potential implications | The number of customers and customer retention can be developed due to sustainable business practices in Nippn. As per the opinion of Gustafssonet al. (2019), advanced technology can assist in decision making and monitoring activities of the supply chain. The management of Nippn can provide positive customer services with the use of technology. Effective value towards suppliers can assist in building trust with suppliers and maintaining the availability of resources. The rate of annual revenue can be enhanced with the implementation of sustainable technology. |
Table 3: Recommendation
(Source: Gustafssonet al. 2019)
Activity 3
Analysis of integration maintained by the company
Business integration is generally a strategy that improvises Nippn with its future development. Business integration has given a chance to the company of being started with more business ideas that assist to generate a huge amount of revenue. In the fiscal year of 2021 Nippn has gained 329.5 billion yen which has consisted of flour milling with 29.7%, foods with 59.6%, and 10.7% in others (nippn.co.jp, 2022). The business of Nippn with this integration technique brings prosperous outcomes as they have desired.
Businesses that Nippn focuses on right now are in the food industry sectors. Manufacturing and marketing of wheat flour, as well as secondary processed foods and beverages, have given the company a huge profit that has compelled them to start business initiatives in others as pet food products. Health care products also have been provided for the consumers to find their niche. Business integration ideas aid a lot to achieve their succession plan of having the brand to be famed in overseas countries (Lestari et al. 2020). Nippn has a biotechnology business that helps other businesses to maintain the quality of the products for gaining customers’ trust.
The main motive of business expansion with integration is nothing but to gain the trust of the consumers in the company and its product. In countries like the United States, China, Thailand and Indonesia, Nippn has initiated its business with proper analysis of each place as these countries have a good marketing size as well as a good economic formation (nippn.co.jp, 2022). The ideas of making the plan of business integration to be executed, the market segmentation and targeting have been analyzed because each country is initiated with an individual marketing plan. In China, the company has started the business of premix products as well as a manufacturing house.
Premix and frozen dough products business in Thailand has been executed by Nippn as well as in Indonesia. In the United States, manufacturing and sale of pasta catch huge profits and positive outcomes (nippn.co.jp, 2022). The business of dried noodles, frozen ingredients, ready-made meal business, machinery sales and others provide the company to look forward with more planning to be implemented for gaining better future scopes. The sedate pace in the business integration makes the company successful with the generated revenue amount (Schebestaet al. 2020). Proper market segmentation with the targeted customers has given the idea an exert force in business integration as well as its expansion.
Activity 4
Evaluation of Industry environment.
| Identification of industry | Food industry | |
| Environmental factor | Issues | Implication |
| Political | The political factors for instance labor law, hygiene, restrictions on trade, health and safety, and taxation affects the industry effectively (Tzouvelekiset al. 2021). | The safety laws, proper hygiene, quality of foods, health and safety need to be maintained by the organization to reduce the impact of political risks. |
| Economic | Economic factors play a critical role in business to develop services. Population, prices and tastes of goods, wages, and consumer’s income can affect the business practices of Nippn. | Efficient analysis of the market is required to reduce the impact of economic factors. Economic factors can affect the productivity level and revenue effectively (Perboli, and Rosano, 2019). |
| Social | Safety and hygiene are effectively required in the food industry. The social issues for instance cultural norms, accommodation, nutrients, and religious values can affect business practices Nippn. | Effective monitoring of the product manufacturing process is required to mitigate the risk. Social issues can affect the production level of businesses. |
| Technology | Lack of advanced technology hampers the productivity level and implementing policies in the workplaces. Technological factors like automation in business can assist in reducing human error (Savastanoet al. 2018). | Implementation of technology can assist in reducing the impact of risk factors from business. As per the opinion of Moreno-Luzon et al. (2018), effective analysis of the market, demand of customers, safety concerns and automation, are required to develop trust. |
| Legal | Management faces multiple challenges of legal factors and retaining customers for instance equal opportunities and rights, health and safety, product safety, advertising laws, and consumer rights. | The laws and regulations related to the food industry are required to reduce the legal risks and balance the supply and demand of Nippn. |
| Environment | Pollution control, food packaging, food safety, and manufacturing processing can affect the growth of the food industry (Kayikciet al. 2020). | Effective understanding and analysis of customers’ expectations can assist in fulfilling the needs of customers by following government regulations and rules. |
Table 4: Environmental factors
(Source: Kayikciet al. 2020)
| Porter’s force | Strength | Justification |
| Bargaining power of suppliers | High | The risk of bargaining power of suppliers is potentially high for food industry as there is a limited number of suppliers. As suppliers play a critical role in food industry, there is a requirement of a healthy relationship with suppliers to maintain the availability of raw materials. |
| Threat of new entrants | High | Nowadays many businesses enter the food industry due to which the risk is potentially high. The threats of new entrants can affect the productivity level of firms in food industry. |
| Bargaining power of buyers | Moderate | The bargaining power of buyers relies on the quality of products in food industry. The threat is potentially moderate for the industry. Effective quality of products can assist in overcoming the threats of bargaining power of buyers. |
| Threat of substitutes | Moderate | The threat of subs6titide is significantly moderate for the food industry. Cost of change and performance of substitute analysis is required to develop business practices (Zhao and Dou, 2019). |
| Rivalry among competitors | Moderate | The threat of rivalry among competitors is potentially moderate for the food industry. Effective pricing strategy need to be developed in food industry. |
Table 5: Porter’s force
(Source: Zhao and Dou, 2019)
| Stages in industry life cycle | Start, growth, succession, maturity, and transition |
| Implication | Food industry has an effective market share worldwide. There is a requirement of variety of products with effective quality. The food industry is in the stage of growth as majority of firms stars their business in the food industry. Variation and quality is increasing rapidly in the food industry due to which the industry in in the stage of growth. |
Table 6: Industry life cycle
(Source: nippn.co.jp, 2022)
| Issues | Survival factor | Success factor |
| Sustainable challenges | Effective policy and strategies are required in the good industry for its success. Since the needs of the market rely on sustainability, sustainable planning is required to develop trust among people. There can be multiple sustainable challenges for instance public policy, cost involvement, generating reports, and managing sustainability programs (Tien, 2019). | Sustainable business activities in manufacturing can assist in improving effective brand value. The mitigation of sustainable challenges can assist the organization in gaining its objectives in a certain period (Megawanet al. 2021). |
| Communication gap | Visibility and communication are essential in the development of food industry in developing its market share effectively. As per the opinion of Nugrahaet al. (2021), effective motivation and cooperation among employees can assist in reducing communication gaps. | Communication can support the food industry in developing its success and improving future opportunities. Cooperation and engagement among employees can assist in improving decision making, problem-solving, and bringing innovative ideas. |
Table 7: Issues
(Source: Megawanet al. 2021)
References
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Agwu, E.M., 2019. Impact of Stakeholders’ Analysis on Organizational Performance: A Study of Nigerian Financial Organizations. International Journal of Strategic Decision Sciences (IJSDS), 10(4), pp.64-80. Available at:https://www.igi-global.com/article/impact-of-stakeholders-analysis-on-organizational-performance/238863
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