Organisational integration can be described as the extent to which different and interdependent company components rapidly or appropriately respond to each other while pursuing common goals. It can be achieved through aligning the internal or external influencing factors (Wigley et. al. 2017). For example, in an economic recession where a company struggles to survive, they can adopt cost cutting measures by reducing their employee salary and provide them with other benefits. Hence, they can balance internal or external factors and maintain their integration level while achieving their goals. Many companies face huge losses due to ineffective integration within their firm. In order to achieve their goals while maintaining integration, many companies develop strategies like Nippon Flour Ltd. It is one of the leading Japanese flour milling companies. It was founded in 1896, and till now they are leading in the market due to their effective integration practices (Kaehne, 2019). The company is now focusing on expanding their business in the global market. They believe in diversifying all-around food companies. In order to achieve their diversification goal and expand their business they changed their company name from Nippon Corporation to Nippon Flour Mills Co.
There are several external factors that affect a company’s goals like political equation, economy performance, technological or social changes, competitors, customer demand, and more. In order to expand their business in the international market the company gradually establishes their production or sales activity for example they invest in production or sales activity in China, Thailand, Indonesia, USA, and some Asian countries (Matsumoto and Jackson, 2017). They create new food cultures in Japan and overseas markets like frozen noodles, Napoli Pizza, and dipping noodles. It enables the company to maintain its leading position in the market. They also develop strategies to ensure progress in international trade negotiation, population decline, dietary diversification, increasing international competition, and other elements that drive changes in the business culture. Further, Nippon Flour Mills is the only company who imports 90% of wheat in the USA, Canada, and Australia. Thus, it can say that the company successfully maintains their external factors.
On the other hand, the company also manages their internal factors which includes production materials, employees, suppliers, partners, and more. The organisation establishes low-cost manufacturing operations by maintaining production systems or integrating advanced technology to reduce their production cost at a level where they can achieve competitive advantages (Zhongming et. al. 2018). Further, the company continues to work with their partner companies to expand their overseas presence by using new technologies developed in Japan. Moreover, the company is popular for its effective HR policies which includes employee’s satisfaction, motivation, engagement, and retention policies along with providing growth opportunities. Through these HR policies the company gets benefits of high productivity.
Nippon gets immense benefits or competitive advantages through their effective balanced strategies of external or internal factors. However, the company is not fully established in the global market or extent only in Japan (Henderson and Scott, 2018). Further, they mainly involve wheat products but the market requirement is different as people demand for all purpose wheat and other products. Moreover, the company internal factors still need to align in order to get better organisational integration.
Books and Journals
Henderson, J. and Scott, A.J., (2018). The growth and internationalisation of the American semiconductor industry: Labour processes and the changing spatial organisation of production (pp. 37-79). Routledge.
Kaehne, A., (2019). How organisation theory may help us understand integrated care. Journal of Integrated Care.
Matsumoto, S. and Jackson, K., (2017). Integration and Synergy Generation in Cross Border Acquisitions: A Case Study of Business Failure and Success ‘Made in Japan’. International Business Research, 10(9), pp.122-140.
Wigley, R., Zarayskaya, Y., Bazhenova, E., Falconer, R. and Zwolak, K., (2017), June. Nippon foundation/GEBCO ocean mapping training program at the university of New Hampshire: 13 years of success and alumni activities. In OCEANS 2017-Aberdeen (pp. 1-5). IEEE.
Zhongming, Z., Linong, L., Wangqiang, Z. and Wei, L., (2018). Global project to map ocean floor by 2030 gets underway.