7001 Managing Strategy Operations and Partnerships Assignment Sample 2024
ACTIVITY 4
A CRITICAL ANALYSIS OF THE INDUSTRY ENVIRONMENT
| Identification of the Industry in question | Food and Beverages Industry (frozen and readymade foods) | |
| Environmental Factor | Issues Pertinent to the Industry | Implications for the Industry |
| Political | There are various political reforms that affect the firm that belongs to the frozen food and ready-made food items. The government is very strict on the laws that govern the manufacturing and sales of food items. As it concerns the health of the people it is necessary that proper care should be taken in order to ensure that all the firms that operate in the firm are up to standard. | The strict regulations that are held in place by the government forces all the organisations in the industry to use more capital to ensure proper facilities regarding the protection and expiry dates. This increases the overall cost of production and reduces the shelf life of the products.
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| Economical | Over the past few years, the economy of the country has been on the rise Which included the increase in the standard of living of the people. The people have become capable of affording higher quality of life which in turn has affected their choice of food as well as other amenities. The firm has to offer them better options with higher price tags in order to satisfy their desires.
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The increase in the economic status of the people in the country has a positive impact on the firm as it can afford more sales of their better priced products earning the more profits than before.
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| Social | The people nowadays have become more health conscious and have reduced the intake of synthetically or chemically manufactured goods and prefer more organic food items. This has become a challenge to many companies in the firm as it affects the overall sales. The companies have to make sure that they use different chemical processes in order to ensure the long-lasting shelf life of their products and this practice is frowned upon by the consumers.
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Sales have drastically been affected due to their mindset of the people and the influence of foreign culture in their eating habits. The frozen food firm has a lot of competitors from abroad due to this change in trend.
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| Technological | Technology has become a boon to the industries by providing them with better methods and machinery that can increase the productivity as well as the shelf life of the products that they manufacture. The various missionaries that were invented over the period helped in reducing the labour cost and assisted in increasing the rate of manufacturing of the items.
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The technological factors has become a great assistance to the firm by providing them better products, manufacturing techniques and thereby increasing the profitability of the firm. It has also ensured that processing and storing of the raw material has become more easier than before which further increases the capabilities of the firms and factories. |
| Environmental | The regular concern of environmental among the citizens has created a several impact on the organization. | The presence of different laws, climate change, waste reduction, pollution and sustainability create severe impact on this organization. |
| Legal | The presence of different labour laws, taxation policies, and environmental laws are several factors. | It affects a crucial impact on this organization and changes its economic scenario. |
| Porter’s Forces | Strengths | Justification |
| Bargaining power of buyers
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Low | Bargaining power of the buyers are relatively low as most of these items are sold on a fixed price basis. But the competitors’ consumers have a lot of choices which makes the companies set an even price for their products. “Maslow’s Hierarchy of Needs” theory is applied to understand customer’s demands about different products of this leading organization.
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| Bargaining power of suppliers
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Low | The bargaining power of the suppliers are also very low because there are many choices for the industries or factories to take raw materials from. The basic ingredients that are required for the production of frozen food are very common and there are a lot of suppliers that can provide these items on A normal price which makes the Supplier bargaining power really low.
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| Competitive rivalry among competitors
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High | Competitive rivalry among the is also very high for this organization because of the established brands that are in the industry for a longer period of time. The organization faces severe challenges due to the presence of several rival organizations in this market. The threat of foreign industries and multinational corporations entering into the industry is also a course for competition. In this leading and aggressive market, the presence of different competitors and their market performances stands as a significant threat for this company.
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| Threat of substitute products
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High | There are a lot of substitute products available these days for the frozen food items and people tend to go for the substitutes for any minor inconvenience. The presence of different competitors brings several substitute products to meet different customer demands. In this aspect, the threat of substitute products for this organization is so high.
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| Barriers of Entry
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Low | Barriers of entry are relatively low for the frozen food industry as one just requires a proper factory that can process the food items and focus on technology that is used there.
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| Stage in the industry life-cycle | Growth |
| Implications | The industry is in its growth phase which means that it has been bringing in a lot of profits and still have a lot of potential that can be explored. There are a lot of new companies that are joining the industry area by creating a lot of competition and at the same time offering more products and varieties to the consumers. |
| Issue | Survival Factor | Success factor |
| Changes in the regulations of the government | Getting updated with the new laws established | Creating an association and influence in the governmental sector to be prepared beforehand for the changes so that they can always remain at the forefront of the competition. |
Introduction
After Nippn Flour Mills was formed in 1896, the planet has evolved dramatically. Nippn, Japan’s earliest privatized automated flour grinding enterprise, inhabited a universe of small, concentrated marketplaces populated by individuals for whom primary safety care remained merely eating an appropriate meal. To suit the growing requirements of local customers in the later twentieth century, the firm started expanding above wheat grinding in the 1950s, expanding into fields like spaghetti, powder, packaged foods, and fully prepared foods. The expansion was matched by internationalization, with it launching operations in the United States, Thailand, China, and Indonesia, among other nations. NIPPN’s version reflects the firm’s future growth over wheat grinding and reaffirms the pledge to future development worldwide (foodnavigator-asia.com, 2022).
Discussion
Assessing the competitive advantage of Nippn with models
Porter’s value chain
| Threats of new entrants | Nippn is a well-known Japanese corporation. The majority of stores and eateries are stocked with their goods. They must now leave their imprint in developing countries where they have recently begun their firm by supplying their product variety to fast food joints in such countries. |
| Bargaining power of buyers | Market participants have demonstrated that they can effectively obtain market share by purchasing as well as financing the business. Nippn is a trademark that enables the firm to work with grocery and food service clients. This will allow the company to expand into new countries. |
| Threats of substitution | Substitute items are simple to develop, but the food sector requires confidence because health is dependent on them. NIPPN has earned consumer trust by being a prominent manufacturer in their country and delivering high-quality products.
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| Bargaining power of suppliers | Suppliers, such as those who work in supply chain management, maintain positive relationships with the company’s employees. Workers of the company also maintain excellent relations with others, resulting in a tight supply chain with little room for negotiation as a supplier. |
| Competitive rivalry | The food sector is crowded, but Nippn has carved out a niche for itself. The company’s reputation grows in the marketplace. NIPPN’s competitiveness isn’t succeeding with their plans since they have specific resources that have gained notoriety, and their products are of high quality, which helps to reduce competition and NIPPN has a strong position in the marketplace. |
VRIO comparison with success factors
Consumer trust and supply chain are two critical success criteria, and NIPPN has managed to achieve both. Their products are useful to customers, and they believe in buying from them since they know they will receive their products on time and that the items will be readily available to shoppers. NIPPN can maintain the rarity of its products since its customers are pleased with the results. It takes a long time to form a link with buyers, but once formed, if maintained, it results in a long-term buyer-supplier relationship. The firm’s products are not uncommon, but they have earned the trust of customers, making them unique in their own right.
Although the organization’s products are not uncommon, and many other companies produce similar products, product imitation does not result in sales revenue. It is necessary to make high-quality items and deliver them on time, which the company does extremely efficiently, and they have a robust supply chain that helps them deliver the products on time. The company is well-organized and growing. It has left its mark on both the homeland and two other countries. It is now ready to expand and thrive in a variety of other countries using novel tactics. The company has established a long-term competitive edge and is expanding globally.
Issues based on the success factors
When it comes to the foodservice industry, brand loyalty is one of the most important factors. The customer will not buy anything until he has complete confidence in the things he wants to buy and consume. Through their products and services, NIPPN should establish mutually pleasant communications with their customers. Every day, the globe becomes more cognizant of environmental problems and human safety, particularly concerning food. The company must adapt to the changing times and shoulder the responsibility of ushering in a new era through transformation, always seeking advancement and growth. The company must also be ethically mindful of its social responsibilities and the food quality it provides to its customers. As we all know, the company is already well-liked by customers because it has consistently delivered high-quality goods for a long time. The company must continue on this route and produce their new line of products with the same level of quality and goodness. A firm must indeed earn the credibility of its customers to increase market share, and once this is accomplished, there is no turning back for any organization. NIPPN already works with supermarkets and restaurants; nevertheless, they must maintain their quality in naval products to preserve consumer trust and let the company succeed (NIPPN, 2022).
The supply chain is another crucial component of the success factor. Previously, the company only worked in three nations, one of which being its native country. It has since expanded and begun exporting to several additional countries. For these types of businesses, a good supply chain is essential because raw materials are the most important aspect in the food sector, and if they aren’t available, the output is nil. Also, if there is a delay in shipping or transit, raw ingredients may expire, which can cause a variety of problems and affect food quality to some extent. NIPPN should manage their cars and transportation to develop a supply chain so that raw materials may be delivered on time all over the world. Another factor to consider is the cost-effectiveness of the solution. The company must consider the costs of shipping because they determine the overall income earned; therefore, the company must be cost-effective while maintaining product quality, standard shipping, and prices. The basic characteristics of the success factors are met if the business meets these two components (NIPPN, 2022).
RACES model
RACES is a five-step process that helps businesses engage with their consumers across their entire consumer journey. These RACES criteria consist of five issues: does the company have the resources required, will the proposed plan be acceptable to main players, will the proposed plan be relevant to the rest of the strategic plan, will the proposal be effective in achieving desired goals, and, finally, will the recommendation provide a competitive edge in the market.
| RESOURCES | NIPPN must establish themselves for their new product line, which necessitates reaching out to their customers and establishing their logo, goods, and offerings everywhere. The company should make sure that they have all of the resources they really ought to have to conduct their business smoothly. As the company expands globally and diversifies its operations, it must evaluate its worth in the market and preserve it. To do so, they must develop strategies that will aid in their expansion. The company has a wide range of product lines and a robust supply chain, as well as the trust of customers, which allows them to lead in their industry (NIPPN, 2022). |
| ACCEPTABLE | The company makes all of its decisions after consulting with key stakeholders and partners and conducting market research. As a result, it would not be incorrect to declare that the ideas are acceptable to all important stakeholders, that they are likely to invest in the firm, and that they trust the company’s judgments, which include all of the proposals and the company’s expansion into new countries. The firm has certain distinctive methods that drive stakeholders to trust it, and they also observe customer faith in the company, which is critical for any business to succeed. |
| CONSISTENT | When a company expands its operations, it must stick to the plans that are currently in place. If a company can maintain its current tactics while adding new ways and expanding, it will be more consistent in terms of growth and other characteristics. NIPPN is a long-established organization with knowledgeable workers that does business with a variety of retailers and restaurants. They offer both raw materials and completed commodities, such as ready-to-eat foods. They are well-versed in the business’s advantages and disadvantages and can maintain it consistent with other tactics. |
| EFFECTIVE | A detailed image of the company’s strengths and potential expansion is offered. When a corporation understands its strengths and shortcomings, it is much easier to work on the weak parts while maximizing the positives by employing positive tactics. The proposal is effective since it meets all of the requirements and assists the company in accomplishing its objectives. |
| SUSTAINABILITY | NIPPN must incorporate its marketing strategy to get a successful outcome. It develops products by close collaboration with its key stakeholders, conducting marketing innovation study aims to comprehend the demands of clients and users and leverage their different experiences and technologies. After considering all of the firm’s characteristics, threats, and strengths, it can be concluded that the plan will provide the company with a long-term competitive advantage. (Ajansı, 2022). |
An explanation for resultant strategic direction adopted by Nippn
The resultant strategic decision refers to the plan that is required to be implemented within the organization so that they are able to fulfil their goals and are able gain a competitive edge in the marketplace over their rivals. The models and the RACES framework that has been used after analyzing the success factors based on Component 1 will help Nippn to come up with innovative strategies so that efficient progress can be integrated within the organization. The flexibility of the products in the marketplace will help in ensuring the better performance of the company. This will help to offer the customers a wide range of products so that the company is able to gain a competitive edge in the dynamic market.
Conclusion
NIPPN is dedicated to gaining all clients’ trust. “We continue to supply safe and high-quality products and services to all clients,” the company’s first principle states (NIPPN, 2022). They have built procedures and are promoting numerous activities to ensure food safety and security in compliance with the code of conduct. Nippn concludes by stating that this company can easily produce frozen and ready-made food. Though in today’s generation, everyone wants to save time, Nippn was able to manufacture time-saving meals quickly while still keeping every food safe and secure. The creation of new opportunities by decreasing the amount of waste generation or the huge pressure on the energy sources will help the company to gain a good image in terms of being environmentally active and socially responsible. The common gas undergoes a variety of operations to make the atmosphere safer. The company has devised several expansion tactics. The NIPPN has offered a thorough explanation for the resulting directives. A reason is also provided as to why these analyses were conducted and how this justifies the organization’s expansion efforts in various regions.
Proposal
The assignment has discussed various tools and frameworks that will be able to come up with strategies and innovative solutions for Nippn so that the company is able to earn huge profits and gain a competitive edge over its rivals in the marketplace. The cloud computing technologies that are used by the organization, as discussed in Component 1 of the assignment help the business to operate in an innovative way in the age of digitized technologies. This helps in improving the business performance and the organization delivering superior quality of products within the stipulated deadlines and that too at low costs (Gupta et al., 2018).
The easy access to the computer data and the proper arrangement of the data so that the consumers are targeted most specifically will help the company to eventually increase its brand loyalty. Enhanced security will be provided to the data that is stored within the systems of the organization, thus saving the data of the customers, stakeholders and the organization from getting leaked to hacklers who can harm the reputation and extort hefty amounts for the lost data.
This provides the company with enhanced flexibility and mobility and aids the organization in coming up with varied products suited to the tastes and preferences of the customers and aligning with the present and the future market trends. The increased collaboration with other stakeholders and investors will help the company to attract a large customer base and increase the engagement of the potential customers of the organization (Davydov et al., 2020). The proper market research and the assessment of the risks will help the organization to understand the market trends and the preferences of the customers so that effective tools and strategies apt for the organization can be chosen.
The PESTLE analysis and Porter’s 5 forces analysis that has been done for the organization will help in gaining a competitive edge in the market over their competitors. The PESTLE analysis will help the organization to assess their external environment that can have either a positive or negative impact on the decisions taken by Nippn (Bismark et al., 2018). This will help the organization to plan better for the development of the company. Porter’s five forces analysis that has been discussed in the Component of the assignment will help to identify the power that lies within the business situation. This will aid in identifying the strengths and the weakness of the company so that it can grow positively in the long run. This helps in assessing the competitive environment so that the company is able to strategize its products and gain a strong foothold in the marketplace and gain an upper hand over their rivals (Bruijl, 2018). This will help Nippn to increase its customer loyalty and prevent the customers from switching over to other brands for the same product being manufactured by other companies. The RACES framework that the company uses will help to engage the customers with the organization much more effectively.
The sustainability factor in the framework is a necessary aspect that the organization needs to focus on. This will help the company to gain a competitive edge over its competitors as more customer demands will be met along with the decreased carbon footprint on the environment. Sustainability will aid in creating long-term business value from the social, ecological and environmental perspective and attract a large number of customers who also try on reducing the carbon footprint so that the future world can eb made more habitable for future generations (Mitra & Buzzanell, 2018).
The production of the products by the company is large which makes it a suitable supplier to other companies located across Korea and Japan. These advantages and the strategies adopted by the company will help it to grow in the long run and increase its customer loyalty.
The VRIO framework and Porter’s chain that are used as tools for coming up with innovative strategies for resolving the issues and improving the performance of the company have been discussed in this assignment. The VRIO framework in relation to the success factors helps in facilitating a systematic analysis of the tangible and intangible resources and capabilities of the company along the value chain of Nippn (Sridharan, 2021).
This helps in identifying the existing competencies so as to formulate the best strategies required for the growth of the company. Porter’s value chain analysis helps in realizing the different steps and strategies that Nippn can utilize so that the company is able to grow as well as retain its strong firm hold in the dynamic marketplace.
This helps to get a fuller picture and a better understanding of the factors that can drive the company towards earning more revenues. This also helps in identifying the changes and the points of differentiation that will make the company gain brand value and equity in the age of constantly developing technologies and worldwide globalization (Islami, Mustafa & Topuzovska Latkovikj, 2020).
References
Ajansı, N. (2022). Japanese NIPPN rebrands to become diversified all-around food company. Magazinebbm.com. Retrieved 26 February 2022, from https://magazinebbm.com/blog/japanese-nippn-rebrands-to-become-diversified-all-around-food-company-1691.
Bismark, O., Kofi, O. A., Frank, A. G., & Eric, H. (2018). Utilizing Mckinsey 7s model, SWOT analysis, PESTLE and Balance Scorecard to foster efficient implementation of organizational strategy. Evidence from the community hospital group-Ghana Limited. International Journal of Research in Business, Economics and Management, 2(3), 94-113. https://www.ijrbem.com/doc/60.pdf
Bruijl, G. H. T. (2018). The relevance of Porter’s five forces in today’s innovative and changing business environment. Available at SSRN 3192207. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3192207
Davydov, D. S., Riabovol, D. A., Kramarenko, A. O., & Kvitka, A. V. (2020). The role of cloud technologies in the digital economy. Бизнес информ, (8), 171-177. https://cyberleninka.ru/article/n/the-role-of-cloud-technologies-in-the-digital-economy.pdf
Gupta, S., Meissonier, R., Drave, V. A., & Roubaud, D. (2020). Examining the impact of Cloud ERP on sustainable performance: A dynamic capability view. International Journal of Information Management, 51, 102028. https://www.sciencedirect.com/science/article/pii/S0268401219308849
Islami, X., Mustafa, N., & Topuzovska Latkovikj, M. (2020). Linking Porter’s generic strategies to firm performance. Future Business Journal, 6(1), 1-15. https://link.springer.com/article/10.1186/s43093-020-0009-1
Mission & Value | About Us | NIPPN (NIPPN CORPORATION). NIPPN (NIPPN CORPORATION). (2022). Retrieved 26 February 2022, from https://www.nippn.co.jp/en/aboutus/mission_value/index.html.
Mitra, R., & Buzzanell, P. M. (2018). Implementing sustainability in organizations: How practitioners discursively position work. Management Communication Quarterly, 32(2), 172-201. https://journals.sagepub.com/doi/abs/10.1177/0893318917724234
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NIPPN: Diversifying, globalizing and rebranding to serve fast-changing food and nutrition markets. foodnavigator-asia.com. (2022). Retrieved 26 February 2022, from https://www.foodnavigator-asia.com/Headlines/Promotional-Features/NIPPN-Diversifying-globalizing-and-rebranding-to-serve-fast-changing-food-and-nutrition-markets.
Responsibility | NIPPN (NIPPN CORPORATION). NIPPN (NIPPN CORPORATION). (2022). Retrieved 26 February 2022, from https://www.nippn.co.jp/en/responsibility/index.html.
Sridharan, M. (2021). Think Insights – VRIO: A resource-based framework for sustained competitive advantage. Retrieved 26 February 2022, from https://thinkinsights.net/strategy/vrio-framework/
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