Component 2: Corporate strategy for Nippon in next 10 years

Introduction

Today’s world of business is filled with extreme competition which makes it a requirement to constantly align business processes with a strategic approach. Firms around the world are constantly trying to take help from that of various innovative methods to help deliver better business results. Nippin is an important firm associated with that of manufacturing flours that is useful for manufacturing various kinds of products.

VRIO analysis

Through using this VRIO analysis, Nippon can be involved in great strategic planning along with decision-making. It helps the company to activate high competitive advantages. This analysis helps in the internal analysis of the company through evaluating company resources (Goyal, 2020). It helps in highlighting internal resources and prioritizing competitive edges effectively.

Table 8: VRIO analysis

(Source: Dixit et al. 2021)

Strategic decision-making has become extremely essential in this world of terse competition across that of diverse kinds of businesses. The first strategy of various modes of expansion has been highlighted as this is quite common across various industries across different parts of the globe. For any firm be it from that of an Asian country or that of a European one, it becomes extremely difficult to chalk out current market scenarios from an outsider’s perspective.

The practical idea about consumer’s tastes as well as that of various modes of cost-effectiveness can only be learned from that o0f an insider’s perspective. According to the opinion of Dixit et al. (2021), local organizations are mostly ready to help and associate with these giant firms as they tend to get a lot of resources in terms of money as well as that of technological support. Besides an attractive marketing approach, decisions right from that of the corporate level tend to help create a lot of attractions for various consumers as well. In many cases, this is considered as the base that ends to drive positive business outcomes for that of various different associated factors that tend to operate in any organization.

As per the opinion of Alhawamdeh and Alsmairat (2019), this is possible only after analyzing a particular market to some extent as well. This ensures that the main rein of control is not left out to that of other people from that of a principal firm. Stages that have been shown in terms of the RACE approach helps to visualize better various requirements of that of a particular firm.

Every different stakeholder tends to analyze a particular situation be it expansion or more integration of various processes with that of another partner through individual perspectives. As per the opinion of AYGÜN and SEZGİN (2021), vertical integration helps in cost-effectiveness for already established processes as well so that a form can focus more upon various other facets like that of innovation as well as other creative ventures.

In this age of extreme competition, digital media have become an important tool in the hands of various managers as well as their associates to expand the business. This is considered as one of the pillars of making strategic choices for that of a diverse range of businesses. Marketing through that of a properly aligned corporate strategy helps to tap rightly into that of various different people at the right time in the right format. An organization that can properly market itself in terms of its various deliverables has already won half the game. According to the opinion of Chellappan (2021), organizations around the world are constantly trying a new form or another kind of an interactive marketing tool as well which helps in increasing the convenience of various shoppers as well. The development of a suitable corporate strategy is extremely important as per today’s context as it helps various decisions to trickle down quite easily to that of various levels of an organization. These two facets of cost-efficiency as well as that of marketing have been discussed as two important strategies for Nippn as it tends to make an organization very strong in terms of growth as well as that of business expansion.

Key challenges faced by Nippn

Nippn is an established firm that kicked off its journey through that of manufacturing of flours and is now focusing on expansion both vertically as well as horizontally. Nippn’s success factors have mainly been associated with that of its early diversification in terms of expanding into various product range quite early in its journey. Besides this organization have already expanded to various countries like that of the United States as well as to that of other parts of Europe. The identification of challenges is essential in terms of developing its business practices. The bargaining power of suppliers can affect the business activities of Nippn hugely. The management of the organization needs to focus on sustainability in terms of developing its business activities and they can face sustainable challenges. A healthy relationship with suppliers is required in terms of developing its business strategies.

Nippn faces key challenges in maintaining corporate strategies for enhancing business reputations. It faces several kinds of issues just like: High bargaining power in both “suppliers and buyers”. Hence, it has a high risk of “new entrants” (Yudiono, Wilopo and Iqbal 2019). As it is customer-centric, hence the “bargaining power of buyer” is high. As the product preference of customers has been changed, thus the threat of “new entrants” has been increased day by day. The main reason of the high risk of “bargaining power of supplier” is the dependency of the company on the “supply of raw materials” (Hernández and Garcia, 2018).

This organization is trying to align itself with that of various rising megatrends like that of a general change in that of society as well as that of demographic scenario as well as that of the general scarcity of resources. As per the opinion of Abdollahbeigi and Salehi (20218), diversification in terms of the general population, as well as that of various other factors, can be best tapped at by diversifying the product range itself to a certain extent as well that of expansion. Both of these policies have been quite well undertaken by this organization by the name of Nippn.

Resources across this world are limited as compared to that of increasing need as posed by that of a growing population with a growing need for articles for consumption. In this context, effective steps to meet up with that of client and customer demands are best handled when a firm has got access to that of a wide range of resources. This organization is currently in such a position where it can quite ably take hold of various resources from that of a diverse range of locations at quite a cheap cost. This becomes possible only when organizations are able to better deal with diverse range operations that are going on in that of various countries in a strategic manner.

Diverse sets of factors can be chalked out that tends to ensure success for that of various firms. These success factors however need to be contingent on a firm’s position as well as that of a particular industry with which it is currently associated. Besides, kinds of products, as well as that of services produced by that of a particular firm, also tend to play a major role in shaping its choices for competitive advantage. As per the opinion of Andriyantoet al. (2019), in in-service industries, there is more of s focus to create innovative service practices as well as that of centralized Customer Relationship Management (CRM). Manufacturing firmstend to focus more upon using different practices like that of Total Quality Management (TQM) technique is quite a common one as per today’s scenario that is used by diverse sets of firms to reduce defects in their products as well as to match up with that of required quality standards.

Competitive advantage is gained by that of various firms in terms of a strategic choice in terms of selection of a suitable location, a suitable clientele as well as being near that of various available resources. According to the opinion of Ali and Anwar (2021), moreover, organizations that can develop various innovative practices in terms of developing certain new trends in manufacturing or other such sectors can also derive a lot of profits.

Economies of Scale are an important scenario that tends to help firms gain a competitive advantage over that of various different counterparts. In concluding a certain stage of operations, organizations tend to get a huge amount of competitive advantage in terms of more efficient use of resources because of reduced costs. Usage of resources can be more efficiently done at these stages as well which helps firms to gain a lot of benefits.

RACES evaluation

The RACES framework is quite suitable to help firms develop a certain kind of strategy that helps them become more successful in a situation of extreme competition. There are multiple elements of RACES strategy for instance resources, acceptable, consistent, effective, and sustainable.  The management of the organization needs to focus on the strategies ofcollaboration with other organizations, joint ventures, and efficient supplier base.

Evaluation with RACES

Resources: The management of the organization can focus on collaboration with other organizationsas the organization has the availability of resources.  Effective base of suppliers can support the organization in maintaining the availability of resources. Nippn being a firm that is fast diversifying as well as expanding through that of various countries needs to adopt some corporate strategies to suit its needs.Setting up a marketing plan that best serves the needs of diverse places and caters to tastes of diverse tastes is going to be of huge advantage in terms of expansion propositions. In the home country of Japan, there is a particular preference for certain kinds of products which are not the case for that of other parts of the world. So, a broad policy is not going to be helpful in enhancing business practices across far and wide.

Acceptable: The stakeholders in an organization have different responsibilities that are need to be maintained. Nippn can take up various strategies like that of Joint Ventures as well as that of Collaborations with that of various kinds of organizations as well.  There can be effective acceptability among stakeholders of these three strategies. This is going to help Nippn be able to tap into that of a diverse set of local products that are more easily available at cheaper costs than to export.

Consistent: The strategies can support the organization in maintaining consistent. Markets across this world are moreover becoming extremely dynamic which make it difficult sometimes for various firms to chalk out a proper scenario for getting in an advantageous position over that of others. According to the opinion of Na et al. (2019), in terms of its long-term plan, an organization can start using more of various analytical tools at its corporate level to be able to better analyze its various internal as well as that of external trends. Consistency in strategies is essential in the development of an organization. The strategies can help Nippn in improving its revenue as well as its market share.

Effective: There is a significant effectiveness in the in the straggles of collaboration with other organizations, joint ventures, and efficient supplier base. The strategies can support the authority of the organization in achieving the aim of increasing market share and expanding business. Marketing policies of this organization have got to be made in such a way so that it reaches quite easily to that of various kinds of people. In terms of marketing policies, this organization needs to act accordingly to that of various diverse local trends. As per the opinion of Hitka et al. (2019), the creation of attractive as well as suitable marketing policies is without a doubt going to be a handier tool to help many people become converted into loyal customers for any particular firm.

Sustainable: Data Analytical tools are going to facilitate bringing up a certain visual map in terms of certain general trends that are helping other firms have a competitive advantage. These trends then can quite easily be integrated into that of decision-making processes and if possible better solutions can also be sorted out. There is an effective sustainability in the strategies of joint venture, and developing supplier base.

Justification

The strategies of joint venture and efficient supplier base can support the management of Nippn in developing its profit, and improving its business opportunities. Sustainable strategies are essential in establishing long term objectives. The strategy of joint venture can support Nippn in improving its competitive advantages and enhancing the rate of productivity.  In terms of Converting operational processes have to be realigned to this new venture right from that of corporate level. After completion of communicating various scenarios to that of all those people who are part of these processes, feedback is needed to be taken. This feedback also needs to be implemented in that of various business decisions as well to make everyone feel more engaged. It can be stated that after the evaluation with RACES, the strategies of joint venture and efficient supplier base, there is an effective acceptability, consistency, acceptability, effectiveness, and sustainability in these strategies. The strategies can help in maintaining the availability of raw materials as well as developing the productivity level of the firm.

Defending proposal:

According to the analysis, it can be said that the VRIO analysis of the company, Nippon has been done. Through this analysis, it can be known about the company resource or asset. It helps the company to achieve high competitive advantages in a significant way. Thus, key challenges of the company have been described. Those risks are such as “bargaining power of supplier”, “bargaining power of buyer” and “threat of new entrants” effectively. Based on the RACE analysis, it can be known about the company resources, effectiveness, consistencies, sustainability, and acceptability’s. A great justification has been provided based on this RACE analysis.

Conclusion

It can be concluded from the above discussions that businesses around this world are fast expanding which makes it an urgent need to develop various strategic decisions at the corporate level. Nippn was a firm in that of food as well as that of processed food need to strategize a certain number of issues at the corporate level. In this context, strategizing through focusing upon that of a diverse range of sectors is going to give this firm huge benefits from that of its organizational point of view. Nippn’s corporate strategy selected over here, therefore, discusses various processes like that of partnership with that of other forms that may subsequently give this organization economy of scale as well.

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