Activity 3
Evaluation of integration maintained by the company
Business integration increases the chances to show creative ideas in product designing and new approaches over the world as Nippn conducts business internationally. As per the opinion of Kondratyev et al. (2020), merging of the business activities creates opportunities of knowing their brand worldwide with effective services to facilitate consumers. Being an international company, Nippn starts its product execution in America, China, Indonesia, Thailand and other places to give the trusted consumers the product using the facility.
The proper workflow to cover up the stock worldwide provides employees with a chance to show their skills in improving or having faster outcomes. As stated by Ul-Hameed et al. (2019), it has stores and retail shops where the company has to focus on dealing with new product ideas. The overall business expansion by merging ideas on a same platform as the main body of Nippn gets huge benefit from the overall performance in each functional body. A bulk amount of revenue would be generated from all of the operational management to the different working sectors of Nippn. The company mainly focuses on the flour milling where it produces goods like noodles.
In the flour milling, they also do business on producing wheat flour, bran, and their warehousing management as well as the logistics for proper transportation to delivery. Nippn also focuses on the foods where it does its business on premixes, corn products, rice flour, pasta, olive oil and others to provide consumers with a chance to use them. Nippn also has expanded its business in health care, pet care, biotechnology, and others. These overall functionalities in different business ideas help them to experiment the market demand with proper supply as a result it provides the company an experience and confidence for further global expansion of the business (Nigri and Del, 2018). In China, the company has production houses in terms of providing trusted customers with premix products.
Figure 1: Financial highlights
(Source: nippn.co.jp, 2022)
In Thailand and Indonesia Nippn provides their customers with premixes and frozen dough products. In America, the company has faced huge sales in pasta that makes them think of more improvements on business expansion by providing qualitative, quantitative, and cost-effective service. In the overall business of Nippn in the FY2022, net sales were 320 billion yen. As per the opinion of Juntunen et al. (2019), the business integration aids them to improve the customer’s service as well as trust in the company’s brand. This expansion assists them to puff up the sales volume internationally. Business extension provides a better work environment as a result the main motive of generating huge amounts of revenue would be possible with proper operational management.
Activity 4
Analysis of industry environment
| Identification of industry | Food industry | |
| Environmental factor | Issues | Implication |
| Political | Political factors like environmental law, political stability, hygiene and health regulations, and restrictions on trade effects the work practices effectively. | Environmental laws, safety measures in food production, regulations and restrictions all need to be implemented properly into the internal and external infrastructure of the main functional body of Nippn. |
| Economic | Economic factors matter in the food industry where the increasing population in every class like lower, middle and upper have a certain individual income to manage the expenses for providing food. | Disposable income provides labor with daily wages to be increased as hiring of workers prioritizes the food industry to get effective output.
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| Social | The relationship between food and the human body compels the industry to provide food quality while maintaining safety norms for sustaining a healthy situation. The dietary restrictions are the ones that stand a matter of concern for the food industry to look at. | The healthy and safe rules can help the industry to make development with the consumer’s expectations. |
| Technology | Technological factors like automation in food processing provide profitability and less human error. Less technical approaches into the industry can suffer from the trust issue of the consumers in food processing. | Automation, involvement of robots in cooking can increase the health and safety concern of the customers for growing trust in the industry. |
| Legal | Environmental factors like food packaging and processing, food safety and disposable systems, pollution control and others hinder the development of the food industry. | The environmental factors are needed to be managed properly in terms of meeting customers’ expectations on the food industry to abide by the government rules and regulations (Nigri and Del, 2018). |
| Environmental | Healthy and safe, equal rights and opportunities, consumer rights and laws, advertising laws, product safety laws bring fewer problems to the industry with customer retention. | Each law and regulation related to the safety and workplace as well as consumers can call the improvements into the industry’s overall outputs by balancing the demand and supply. |
Table 4: Environmental factors
(Source: Nigri and Del, 2018)
| Porter’s force | Strength | Justification |
| Bargaining power of suppliers | High | The risk of bargaining power of suppliers is potentially high for the services of Nippn. The availability of suppliers needs to be maintained by the organization in terms of maintaining its business practices (Teixeira, and Junior, 2019). |
| Bargaining power of buyers | Moderate | Nippn provides the services of food, healthcare, and pet care to its customers with effective quality. The bargaining power of customers is potentially low for the services of Nippn as it maintains effective quality in its products. |
| Threat of new entrants | High | The risk of new entrants in the market is potentially high as many firms open business of foods in the pandemic situation. The analysis of risks can assist in developing the planning of Nippn. |
| Threat of substitutes | Moderate | Threat of substitution for the services of Nippn is potentially moderate. There is a requirement for efficient analysis of cost of change and substitute performance. |
| Rivalry among competitors | Moderate | The risk of competitors is significantly moderate as it provides effective quality of health products at a reasonable price. There are multiple competitors of Nippn such as Ajinomoto Co Inc, Showa Sangyo Co Ltd, and Nisshin Seifun Group Inc (globaldata.com, 2022). |
Table 5: Porter’s force
(Source: globaldata.com, 2022)
| Stages in industry life cycle | Startup, maturity, growth, succession, and transition. |
| Implication | The company was established in 1896 and has developed a number of products to develop the number of customers. Succession planning is essential in a business in terms of developing its business practices effectively. Efficient analysis of a company’s life cycle stages can assist in developing long term objectives of business and its succession plan (Acikgoz, 2019). |
Table 6: Industry life cycle
(Source: Self, 2021)
| Issues | Survival factor | Success factor |
| Equality of opportunities | The management of Nippn company needs to focus on equality for every employee in the workplace. Effective monitoring of work performance of employees can support the management in analyzing the strengths and drawbacks of workers. Opportunities and rewards need to be provided on the basis of employees’ performance. | Equality of opportunities can support the management in developing employee retention and improving the quality of services. Employees can enhance their productivity level due to equal opportunities and reward on the basis of their performance (Teixeira, and Junior, 2019).
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| Sustainable issue | Implementation of technology and efficient planning can assist Nippn in reducing sustainable challenges. Sustainable strategy and its analysis are required in terms of overcoming the issues of sustainability.
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Nippn can develop effective brand value and trust with sustainable business activities. Reducing the impact of sustainable challenges can assist the organization in achieving its business objectives (Acikgoz, 2019). |
Table 7: Issues
(Source: Teixeira, and Junior, 2019)
