| Vision | Nippn is a diversified food industry that was established in 1896 in Japan. The organisation’s growth is quite visible as more than 40 groups of companies have collaborated with the organisation and more than thousands of employees are connected with the organisation (NIPPN CORPORATION, 2022). Various connected businesses are food material business, processed food business, frozen food business, health care business, etc. The organisation’s vision is to achieve the trust and faith of the consumers and efficient growth. Moreover, provide a variety of products that will help make a competitive stand in the market. | |
| Quality | Evolution | Description and Justification
Implication |
| Volume | Moderate | The dimension of volume indicates the process of management. The operation of the volume helps to analyse the uniform system that helps to provide good quality that offers opportunities to increase the production speed.
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| Variety | High | Variety dimension clarifies the difference between goods and services of standardising and provides flexibility from non-standardise. This helps to maintain the creativity of profitability and low cost to increase the core of the costs of transformations. |
| Variation | Moderate | The variation dimension helps address the contrast in the business model and analyse the impact of the volume costs in the business. The low variation advantages can help a predictable and strong consideration to the lower cost. |
| Visibility | Moderate | Visibility dimension that helps in the manufacturing corporation to the visibility of the customers. The value is created by the role of the operation for resource operation for the goods and services. |
| Speed | Moderate | The evolution of speed is moderate. The company’s most of the clients basically deal with the foreign market to speed up the delivery process. The company is working on fulfilling the orders. The Nippn Company’s accuracy in the product delivery is better and takes time to deliver the process. |
| Quality | High | This company provides good quality of products as per the demands of the clients. Good quality products help to achieve high productivity and value of the company. |
| Dependability | High | This company depends on the delivery system to deliver the products. The dependability of the customers ensures that the process of the delivery is reliable (Grossnickle and MacDonald,
2018). |
| Flexibility | High | Nippn provides a wide range of special products that maintain flexibility and also maintain the different orders in the different volumes. High flexibility is very beneficial for the company to increase success. |
| Cost | Moderate | Nippn provides a low to moderate rate of food at a reasonable and efficient rate to minimise the margin level. This minimum margin level increases the productivity level, which is very beneficial for the client and the company. |
Activity 2
Activity 2a: An evaluation of opportunities and threats posed by megatrends.
| Megatrend | Impact and Implication |
| Opportunities | Opportunities and threats within an organisation are very common elements; the opportunities’ presence helps enhance the quality of the service and expand its services to various places. The expansion of the services indicates the engagement of more consumers in the organisation. Besides the opportunities, the threat is another major element that is seen within an organisation, and these threats can arise from various dimensions (Kayikci, 2020). The efficiency of the management within the organisation reduces the organisation’s threats. In the case of Nippn, various opportunities and threats have been identified that have a huge impact on the organisation’s services.
The organisation’s growth has been noticed from the very beginning; within a few years, the organisation has expanded its branches in several areas across the world and introduced a variety of products or services to the customer. The demand and the quality of the products in Nippn are very high; the consumers are the main opportunity of the company. In recent days, people’s concern with their daily food consumption is seen; the awareness of food and health can be used as an opportunity for the organisation. The consciousness of health is increasing with the aging society and the concern is helping to gain more population of consumers in the organisation. In the case of Japan’s market, the rapid growth of the health food market has been noted with approximately 8.4 billion dollars (Aschemann-Witzel et al. 2021). The busy daily lifestyle worldwide has increased the demand for processed food in a huge amount in the last few years. The demand for processed food in various world locations is another opportunity for the organisation. The manufacturers of the organisation have shown a great response to the changing demand of the consumer related to the concern of healthy food.
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| Threats | On the other hand, various changes in the microeconomic environment of the world have created a major threat for the organisation (Nie, 2019). The frictions in the trade process among the developed countries and the battle of implementing more developed technology in the organisation have created various uncertainties for Nippn. Moreover, the growing competition in the domestic market of Japan is also creating a vital threat for the organisation. The laws and legislations of the country are concerned about the environment and the use of plastic in the organisation has become a major threat for the Nippn.
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Activity 2b: Proposed recommendation for the operation and evaluation of the impact of your recommendation on stakeholders.
| Megatrend | |
| Recommendation and Justification | Operations in the organisation are the major thing to take a stand in the market. The quality of the operation makes the differences among various businesses. In the case of Nippn, the operations within the organisation have been noticed to be very efficient. Though there are various advanced methods in the organisation’s operations, a variety of issues also have been identified. These defects can be removed from the industry by some fresh strategies. The issue of competition in the market can be reduced with the incorporation of advanced technology in the manufacturing process of the products. The focus on sustainability is needed in the organisation, and diminishing the use of plastic can be helpful to move forward sustainability (Santos, 2019). In making food, the quality of the core materials and other ingredients should be healthier as the attraction of the consumer toward the products is the key to the business’s success.
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| Potential implications. | The change in the interest and demand of the consumer is a dynamic thing and the changes in the lifestyle and the environment have impacted the demand for food products in huge amounts. Various similar industries are incorporated with advanced technology to balance the market’s demand (Soon, 2019). A major lack has been identified in the case of Nippn because the effort of the company towards consumers or the clients is not sufficient. Moreover, the digital connection with the clients and the consumers is also necessary nowadays. Without complete reach with the consumers or the clients, the overall profit cannot be obtained. Another issue that has been mentioned above is sustainability; the approaches of the consumers can be helpful for the organisation. If the mentioned defects are reduced from Nippn, all the organisation’s stakeholders will be benefited and the value of the company will be increased.
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Activity 3
A critical evaluation of the level of integration maintained by the organisation with consideration of viable options
Integration in a particular business management business is essential, and integration has various forms. In other words, the integration within the organisation may be seen from various dimensions. In the era of globalisation, integration in the organisation has become an essential element. A company that is efficiently integrated with several elements or networks has an effective market value globally. The organisation’s resourcing is connected with the concept of integration; the networks and various stakeholders are helpful to achieve the resources required for the organisation (Johnson, 2020). The integration enriches an organisation with various new business models and strategies. The implication of the strategies in the organisation is helping to make a remarkable stand in the competitive market. The basic integrations are the technical integration, the integration among the organisation members, and the integration among the related business organisation. In every sector, Nippn has performed a well-structured integration; however, there are various issues too.
In the case of technological integration, it can be said that the company is not doing enough as similar organisations in the market have become a threat to the company (Hendry et al. 2018). With the technological implications that other organisations have made, Nippn has not been able to make all improvements within their organisation. The changing pattern in the lifestyle of people demands more quality in the purchasing of food products (Johnson, 2018). Technological development has introduced the organisation to various opportunities in the last few years. Without the support of strong technology, the expansion of the business was not possible. In the case of Nippn, it is seen that the organisation has collaborated with more than forty businesses and serves the consumer across the world. The cooperation with the stakeholders is visible in the organisation. So, it can be stated that the integration of the people is quite efficient in Nippn. The lack of communication with the stakeholders is becoming a major defect for the organisation. Promoting the services implies more engagement of the stakeholders within the organisation, which can be done in Nippn. Integration of team members is also important for the organisation. The changing pattern in the entire business process has been noticed, so each team member’s cooperation in various places has become essential for the organisation (Alonsoī et al. 2018). Only with the help of collaboration the organisation can reach the demands of the consumers as well as the goals of the organisation. The organisation has various opportunities by which it has expanded its service in a wide range of areas across the world, but the defects of the insufficiencies in some sectors are creating various obstacles in the changing phase of the business pattern.
Figure: Integration in business
(Source: Johnson, 2018)
Activity 4
A critical analysis of the industry environment
| Identification of the
industry in question |
||
| Environmental Factor | Issue(s) pertinent to the
industry. |
Implications for the industry |
| Political | The political factors in a food industry include wide regulation. Wide regulation includes the wide expanses of the governmental aspect of the food industry. In this wide regulation, there is the hygiene, wages, and the quality of the food. The poor quality of nutrition can decrease the value of this industry and take away from the margins of the company (Oraman et al. 2018). This food industry down influences public figures and
Politicians. |
The government must ensure all of the products; ingredients are safe and hygienic and no chemicals are added. Food is the prime need of the people. So the importance of hygiene
is very much noticeable by the government to increase the value of this industry. |
| Economical | The economic factors of the food industry include the income of growing disposable and increasing the cost of labour. These are the main two issues faced by the food industry. Every lower, middle and upper-class person are trying to spend their money in the restaurant to feel the high-quality food. This positively impacts the revenue of this industry and its positive effects on the individuals’ workers who play an important role in establishing the food industry (Tumaku and Ren, 2020). On the other hand, the labour cost of the food industry day by day. The cost of employees of the food industry increased and high expectations of the government for the minimum wages also increased. Increasing the labour cost indicates fewer margins and less profit in the food industry. | The middle-class people preferring to invest less amount of money in the high-class restaurant can maintain the balance b between the wages in the level of profits.
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| Social | The social factors of the food industry include health consciousness dietary restrictions. Scientists are very much aware of the relationship between food and the body and its consequential reactions. Good food always increases stamina, immunity and energy in the cells. But sometimes, the negative reaction can affect the entire industry and decrease people’s trust. Diet restriction is very much healthy and knowledgeable for the customers to make a healthy body of the people (Zhao, and Dou, 2019). | The main motive of the food industry is to maintain the health of the customers and make the client happy. The food industry implements
a comprehensive range of customers to understand their needs.
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| Technological | The technological factor of the food industry is automation. The various types of automation are seen in the food industry. This helps to make the industry more flexible and innovative. | This automation process helps to maintain the market position and better analytics to understand the customer’s point of view.
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| Legal | The legal factors of the food industry include safety standards to decrease the rate of using lead and other dangerous pesticides that negatively impact health. | Government publishes some regulations for the food industry to maintain the value as well as the quality of the food for the people’s long and healthy life (Nandonde, 2019). |
| Environmental | The environmental factors of the food industry include the impact of meat. Production and use of meat in the products uses a huge amount of carbon footprint, which negatively impacts the environment and people’s health (Mihailova, 2020). | The better way to maintain sustainability is to shift to a plant-based diet.
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| Porter’s Force | Strength
Justification |
| Consumers’
bargaining power
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The consumers or buyers bargaining power can help to bargain the increased price by the forceful reduction. In the case of the food industry, the low price of food has a negative impression on the customers before buying it (Mhlanga, 2018). So in this industry, the food price is always maintained according to its quality and customers or buyers are satisfied by that price rate. |
| Threats of new entrants | The threat of new entrants in the food industry market is high. There are so many barriers that are faced before the entrance and after the entrance. Also, the importance of the quality of food and customers satisfaction is needed (Berry et al. 2019). So the competition also decreased. |
| Stage in the industry
life cycle |
The stages of the industry life cycle are four. These are the introduction, growth, maturity, and decline stages. |
| Implications | In the stage of introduction, the industry began. Strangely, the promotion and marketing are very high. In the growth stage, the population and customers are increasing and the value and market position of the company is also stable. In the maturity stage, the tendencies of the sale become saturated for a long time (Chen and Yang, 2021). In the decline stage, the services of the industry will drop and run in the loss. The behaviour of the customers also changes. |
| Issue | Survival factor | Success factor | |
| Fraud in food and
Increasing the demands for the alternative of the meats. |
The survival factors of this food industry’s issues are strategic implementation to manage and analyse the risks and improved food inspectors who have better knowledge about the foods and their alternatives (Ashfaq et al.
2019).
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The success factor is to understand and analyse the point of view of the nutritionist in the
food company who understands the reaction of the foods and banned all the affecting food that causes problems in human life. |
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