SG7001 Activity 4 Assignment Sample
Here’s the best sample of SG7001 Activity 4 Assignment, written by the expert.
Activity 4:
A critical analysis of the industry environment
| Environmental Factor | Issues relevant to the industry | Inferences for the industry |
| Political | The corporate tax rate in Japan during the year 2019 was 30.62%, making it increasingly tough for the food industry to operate its business (Tradingeconomics, 2020). Growing taxation will be making it difficult for the food industry in procuring its resources from foreign suppliers. Whereas, Japan is also suffering from the highest debt in the world that is $ 12.04 trillion. | Japan’s growing tax rate will be making it challenging for the food industry in operating its business in the country. Furthermore, Japan is also suffering from high debt making it difficult for the nation to manage its daily operations as a result of which the cost of the commodity rises within the country. |
| Economic | The GDP growth rate of Japan in the year 2018 was 0.3% annually, which is considered to be less in comparison to other South-East Pacific countries (Tradingeconomics, 2020). The slow growth of GDP limits the business opportunities for the food industry to operate their business in the country. | Considering the slow growth of Japan’s economy Food industry will be facing problems in setting up its business. Lack of infrastructure development and poor support from the local government makes it difficult for the Food industry to operate their business in Japan and grow their operations. |
| Social | Japan’s society is considered to be highly conservative as they deeply respect their traditions and norms and also holds high beliefs. The average annual income of Japanese people in the year 2018 was Yen 4.14 million (Statista, 2018). The growing purchasing ability of the Japanese people opens up the door of opportunities for the organisations. | Considering the growing society of Japan it becomes easier for the Food industry in introducing products that match the taste and preferences of the customers. Purchasing ability of the Japanese people also motivates the food industry in growing their operations in the country. |
| Technological | Japan holds 3rd position in the global technology index due to their investment in R&D and innovation (Japan, 2020). The government has made billions of investments in its technology sector to grow business operations and efficiency. | Considering the growing technology sector of Japan, it becomes easier for the Food industry to set up their manufacturing plant in the country and start operating as it will generate high productivity and growth. |
| Porter’s fives forces | Strength | Justifications |
| The threat of new business entrant | Innovation, the economy of scale and product variety is the strength of the food industry. | High capital, time, experience and unskilled manpower (Bruijl, 2018). |
| Bargaining power of suppliers | Food industry has their own logistics system and CNF agents to make the ready products available in the Japanese market. | Moderate power due to partnership with SMEs, local suppliers and the Food Industry also has their vertical integration process. |
| Bargaining power of buyers | The large product portfolio, innovation and customer services. | High due to change in taste and preferences and availability of substitute product (Rockwell, 2019). |
| Threat of substitute | Brand status, competitive advantage and innovative business process is their strength. | High threat level because of availability of different food processing organisations offering similar products at in Japanese market (Pádraig, 2017). |
| Competitive rivalry | Economy of scale and strong supply chain unit is the strength of the food industry. | High due to availability of the large number of competitors decreasing business opportunities. |
| Stages in the industry life cycle | Maturity |
| Implications | The food industry operating in Japan falls in the maturity stage of PLC as it holds a large number of product portfolios and keeps innovating new products and services to satisfy the growing needs of customers (He, et al., 2019). The food industry while operating their business in Japan follows creative change where the industry constantly redevelops their products to offer standard quality to them. Being in the maturity stage of Plc also benefits them in reducing competition and maintaining effectiveness and productivity. Therefore, the stage of maturity for the food industry contributes towards their overall growth and productivity. |
| Issues | Survival factor | Success factor |
| Environmental challenges | Corporate governance practices and using alternative sources of energy. The food industry needs to undertake corporate governance practices to make the employees perform activities in a responsible manner that contribute towards fostering sustainable business practices (Sivaprasad & Mathew, 2021). Whereas, using an alternative source of energy help in conserving natural form of resources. | Using alternative sources of energy will provide sustainability for the food industry. Resources and capability analysis will be used to develop sustainable business practices that will be helping the organisation in contributing towards the growth of success as it helps in utilising the resources properly and reducing its wastages (McKenzie & Woodruff, 2017). |
| Buyer’s power | Standardising their business process to offer a better quality of products to the customers (Morimura & Sakagawa, 2018). The attention of the customers towards the organisation can be built by offering the standard quality of product to the customers that match their expectations. | Building a positive relationship with the customers and gaining their attention towards the organisation. Better quality of services and facilities to them will help the organisation in building trust among them and reduce their buying power. |
References
Bruijl, G., 2018. Available at SSRN. The relevance of Porter’s five forces in today’s innovative and changing business environment, 9(3), p. 3192207.
He, B., Luo, T. & Huang, S., 2019. Product sustainability assessment for product life cycle. Journal of cleaner production, 206(2), pp. 238-250.
Japan, 2020. Evolving_innovation. [Online]
Available at: https://www.japan.go.jp/investment/evolving_innovation.html
[Accessed 3 December 2021].
McKenzie, D. & Woodruff, C., 2017. Management Science. Business practices in small firms in developing countries, 63(9), pp. 2967-2981.
Morimura, F. & Sakagawa, Y., 2018. Information technology use in retail chains: Impact on the standardisation of pricing and promotion strategies and performance. Journal of Retailing and Consumer Services, 45(2), pp. 81-91.
Pádraig, B., 2017. An Analysis of Michael E. Porter’s Competitive Strategy: Techniques for Analyzing Industries and Competitors. London: . Macat Library.
Rockwell, S., 2019. A resource-based framework for strategically managing identity. Journal of Organizational Change Management, 2(1), p. 7.
Sivaprasad, S. & Mathew, S., 2021. Corporate governance practices and the pandemic crisis: UK evidence. Corporate Governance: The International Journal of Business in Society, 5(2), p. 9.
Statista, 2018. Japan-average-annual-income-household. [Online]
Available at: https://www.statista.com/statistics/856609/japan-average-annual-income-household/
[Accessed 3 December 2021].
Tradingeconomics, 2020. Gdp-growth. [Online]
Available at: https://tradingeconomics.com/japan/gdp-growth
[Accessed 3 December 2021].
Tradingeconomics, 2020. Japan Corporate Tax Rate. [Online]
Available at: https://tradingeconomics.com/japan/corporate-tax-rate#:~:text=Corporate%20Tax%20Rate%20in%20Japan%20is%20expected%20to%20reach%2030.62,according%20to%20our%20econometric%20models.
[Accessed 3 December 2021].
________________________________________________________________________________
Know more about UniqueSubmission’s other writing services:
