Walmart’s Balanced Scorecard

            Introduction

An organization’s balanced scorecard can best be described as the organized planned method that is applied in evaluating planned projects (Mupepi & IGI Global, 2017). This report presents a detailed scorecard with respect to Walmart’s market expansion project into Vietnam electronic specialty market. The scorecard is comprised of four different sections which are connected directly to the approach of the organization. This includes financial, consumer, internal process and lastly growth and learning performance perspectives. This component serves as the primary control of the expansion strategic plan for Walmart. So that Walmart can venture into a valuable and growing business developing a well-balanced scorecard is a necessity. This strategic approach will evaluate the value of the expansion and its general impact on the company and its stakeholders. While considering the company’s mission and vision of the company which is grounded on affordability and consumer satisfaction it is apparent that a balanced strategic approach will lead directly to the success of the firm.

General Objectives

The scorecard demonstrates the various option that Walmart can utilize based on their successes and benefits. The objective is to create maximum positive impacts in all the measures while evaluating the associated threats. This strategy will be useful to Walmart to create a plan that will best contribute to the anticipated outcomes. This, therefore, implies that the firm must be willing to make adjustments in order for success to be achieved (Mupepi & IGI Global, 2017). Some of the objectives include increasing shareholder’s market share, consumer and employee’s satisfaction, increase market share and sales and create positive relationships.

Balanced Score Card for Walmart Inc.

Financial Performance Perspective

Walmart’s mission is to save individuals money so that they may live more quality lives while its vision is to be the finest retailer in the hearts and minds of the buyers and workers (Galka & Baran, 2016). The company is mainly focused on becoming the leading retailer in terms of convenience, affordability, and quality in the globe which can best be achieved through performance improvement.  It is thus, the accountability of the entire form to focus on consumers and workers satisfaction, and financial growth. The objective of the firm is to attain consistent financial findings by leveraging increased research and market expansion for the electronic specialty which the expansion in Vietnam is focused on (Mupepi & IGI Global, 2017). For this expansion, the organizational objectives are based on sales revenue, net profit, and observation of professional and ethical standards in developing financial statements and reports. In order for Walmart to increase shareholder’s value, Walmart is required to enhance its working performance via asset application in addition to increasing revenues and exploiting shareholder’s returns.

The company should be focused on employees satisfaction by offering them adequate training and salaries but also lowering the operating expenses (Galka & Baran, 2016). The company must focus on halting any operations that might not directly increase revenue generation. The obtainment of this financial breakthrough will be in alignment with the mission and vision of the firm whose performance demonstrates that financial flow is positive and all the operating expenses on the expansion are satisfactory. Solvency of this investment will be reflecting the financial stability that is objected by the company. This will also be indicating the potential of the electronic business to remain stable in meeting its requirements. High solvency ratios will be a sign of financial soundness. The company will also focus on achieving financial stability by sustaining reporting principles and standards so that litigations that can heighten its expenses can be avoided. The goal is to comply with the set laws and conduct guidelines that will improve the company’s ability to expand its electronic market and sales without disruptions that might affect its opportunities and sales (Galka & Baran, 2016).

Customer Perspective

The target consumers of Walmart firm in Vietnam are from diverse socio-economic backgrounds and perceptions and the objective is, therefore, is to ensure that there are the primary for increased success and sales. The company will seek to provide quality, affordability and convenient values for consumer’s satisfaction. The consumer-oriented goals are aimed at exploiting on an extensive consumer base that is particularly composed of low and middle-income classes’ individuals (Sathi, 2014). The concentration of the large consumer base can be controlled to act as the best example of the sector and thus enhance competitive positioning for the firm in a very lively market (Mupepi & IGI Global, 2017). One of the primary objectives is to raise the market share for the firm via attracting more consumers. The capability to control a prevailing market is likely to generate higher profits for any firm who products are utilized in the market. The objective of the firm is to increase the market share by about 6 to 8 percent every year.

In order for this objective to be achieved this will require the firm to focus on more innovation, authoritative consumer relationship and controlling the competitors (Sathi, 2014). This will be essential in motivating and enticing individuals to purchase the products. Innovation and consistent supply is the primary strategy that the company will use in increasing the general consumer base. Besides affordability which will be utilized to attract consumers who are very sensitive of prices diversification and differentiation will also be applied. When diverse technology brands are introduced in the market by the company which can never be complemented by the existing competitors due to their limited resources, most consumers with the will to own this brands will purchase them over those from the competitors (Nasir, 2015). The use of affordability, convenience, and quality values will seek to convince consumers of the commitment of the firm. Through creating strong relationships with the consumers the firm will be guarding and expanding its market share (Nasir, 2015). This is because consumers are satisfied and acquires a positive experience when they feel that their needs are addressed by the firm. A positive image will be created which will serve as a form of marketing something that the company needs to create awareness and familiarity. Ultimately consumer satisfaction and retention will be achieved by guaranteeing quality and commitment to the consumers (Nasir, 2015).

Learning and Growth Perspective

The learning goal is an essential aspect that is needed in ensuring that the set aims are achieved (Weihrich, Koontz & Cannice, 2013). The necessity for employees training is informed by the fact that there is a need to ensure that the workers are always motivated by creating a feeling of growth in regard to their career which will motivate them to remain in the organization. The objective is thus, to initiate learning initiatives that will enhance their talents in the innovation surrounding that is changing progressively. This programs will improve the skills and knowledge of the workers thus fulfilling their professional desires and augment their performances in meeting the needs of the consumers (Weihrich, Koontz & Cannice, 2013). This will incorporate evaluating the existing gaps and inspire the staffs to master their potentials for the success of the company. An additional aim is to reduce the turnover rate in the firm which can directly affect the performance of the firm especially if the best skills are lost. Reducing turnover will also support the objective of minimal operating expenses in general (Conaway & Laasch, 2014). Some other motivation strategies that will be utilized include compensation and reward. With high performance among the workers then the satisfaction of the consumers and high value for the shareholders will be guaranteed.   

Internal Process Perspective

The company is required to focus on minimizing operating expenses on the ground of both production and promotion. In that, there is a need to focus on internal efficiency in order to achieve high values (Conaway & Laasch, 2014). The objective of Walmart is to be an organization that adopts innovation internally. In that supply and operations processes will all be managed through the use of innovative technology which is aimed at ensuring operating efficiency. In order for this to be achieved the company will create a culture that promotes teamwork and innovation since the business will be dealing with technology products thus technology changes should be well understood. The other aim is to consistently diverse and improve technology products that are provided by the company to outweigh the competitors. This strategy will be providing the consumers with more selection options (Conaway & Laasch, 2014).

Conclusion

For Walmart developing a well-balanced strategic scorecard will be beneficial for the market expansion project. In that, the company is required to assess the risks and benefits of the market. Based on the above analysis addressing the four measures recommendations will be useful for the firm in increasing its performance as well as growing all other areas of the firm. A more strategic approach is essential in creating processes efficiency and organizational success thus leading to satisfied consumers and high sales.

References

Conaway, R. N., & Laasch, O. (2014). Principles of responsible management: Global sustainability, responsibility, and ethics. South Western.

Galka, R. J., & Baran, R. J. (2016). Customer Relationship Management: The Foundation of Contemporary Marketing Strategy. Taylor & Francis. 401-403

Mupepi, M., & IGI Global. (2017). Effective talent management strategies for organizational success.24-27

Nasir, S. (2015). Customer relationship management strategies in the digital era.

Sathi, A. (2014). Engaging customers using big data: How marketing analytics are transforming business.152

Weihrich, H., Koontz, H., & Cannice, M. (2013). Management: A global, innovative, and entrepreneurial perspective. McGraw Hill.

JAM construction Firm Project Business Plan

JAM Construction is a small company that has been in operation for the last 10 years, where it has undertaken small to large contracts including alteration and repair projects. The focus of the firm has largely been on residential projects though at times, it has undertaken work on other areas.  The main goal of the company is to offer satisfactory customer services through building and maintenance of strong reputation in the market.  This goal is hedged on the overall aim of building the exact vision of the customer and provided the expected value.  By providing comprehensive services, which are designed to allow for finishing of the contracted projects, the company is able to provide quality as per the customers’ requirement.

The vision long-term vision is to achieve growth in terms of market share and revenue of the company.  This will be done through expansion of its capability to offer services in a wider market so as to improve profitability by undertaking more construction contracts in residential and other areas under construction.  This can be achieved if integration of the efforts from different sections of the firm is done. Integration is necessary for growth strategy since it ensures that every elements of a project being undertaken are brought together at the most appropriate times for successful completion (Hitt, Ireland,  & Hoskisson, 2017).

Strategies

For expansion of strategies and growth, the firm will adopt various strategies so as to ensure that set goal and vision are achieved. The first strategy is to having the appropriate value proposition that will offer direction to ensure all efforts are aimed at increasing market reach, market share and profitability. The value proposition is to gain growth through providing high quality service to the customer. The next strategy is to have various measurable KPI’s (Key performance indicators) which will give an outline for firm’s objectives, which will then be prioritized so that any tactic or strategy may be identified.  The KPI’s for this plan include the increment construction contracts and clients and revenue earned in the specified period.  These KPI’s are not definitive and hence, will have to be revisited regularly to make so that they are up-to-date and are in line with a constantly changing construction industry and even the market. Since the chosen KPI’s are measurable, it will be easy to evaluate the success in attaining goals of the JAM Construction.

The third strategy involves a verification of the revenue streams currently and the creation of others so as to raise the profitability of this firm.  The revenue streams will be evaluated regularly to ensure that they can be sustained over the long run.  The other strategy is the identification of the ideal customers who are the constructing audience and then, understand the major requirements. This is important because it will assist in knowing what the customer needs and delivering at every stage of any project and hence fulfill their needs.  The strategies will be communicated to the various teams in the firm through an effective channel so as to have the same goal while working.

Financial considerations

JAM Company does not have large amount of debt, and this makes it possible for the firm to access more capital or funds for expansion. It is expected that over the next three years share market and hence, sales revenue will have improved significantly.

Reference

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic management: Competitiveness & globalization : concepts and cases. Boston, MA: Cengage Learning.

Recommendation Of An Entry Strategy, Consisting Of A Business Structure (Entry Vehicle) And Organizational Structure For Walmart To Enter Vietnam And Operate In Vietnam.

Introduction

Walmart is the current leader in retailing and wholesaling trade business globally (Chekwa, Martin & Wells, 2015). The success of the company has mainly been fueled by its financial stability, market share, resources and revenue acquired via strategic operation and marketing. The company has positioned itself as the cost leader in the globe which has been essential in growing its market and facilitating its expansion needs (Chekwa, Martin & Wells, 2015). The retailing business is developing is a rather rapid rate as most of the established competitors are in search of strategic positioning. In this, context Walmart is required to expand and capture the unexploited market to fight the competition and retain a competitive advantage (Chekwa, Martin & Wells, 2015). The move to Vietnam will seek to create a wider market for the company to affirm its position in the global context. Joint venture and Joint marketing contracts are the recommended legal entry structures along with the functional organizational structure which will all seek to strategically position the company in the market.

Joint Venture and Joint Marketing Contracts Justification

Joint venture and joint marketing contracts were selected as the legal entry strategies because Walmart has no experience of the Vietnam market. It is proposed that Walmart should focus on Joint Venture since it has more long-run benefits than Joint Marketing agreement. In addition Vietnam as a mature market that is characterized both by local and foreign well-established competitors, it is not suitable for greenfield operations since the introduction of a new company will only play part in intensifying the already presence local competition level (Chekwa, Martin & Wells, 2015). Second based on the existing cultural and economic differences amid America and Vietnam Walmart is faced with the relative need for fresh learning and understanding the needs and preferences of the consumers, thus, market expansion via a calculated alliance is compulsory (Chekwa, Martin & Wells, 2015). Lastly, Walmart’s low pricing strategy and efficient supply are precisely was is required to modify and create a healthier industry.

Joint Venture and Joint Marketing Contracts Comparison and Recommendation

Joint venture refers to a business plan that involves two or more companies agreeing to combine their resources in order to accomplish specific objectives (Charles & Anderson, 2016). This activity can be a product of a fresh operation or continuity of business. In this alliance, all the parties are accountable for losses, revenues, and the operation but the formation is disparate from the rest of the business motives. Walmart, in this case, can engage in a joint venture in order to share its operating expenses and risks with its Joint venture firm such as Big-C which is well established and strategically positioned. In this case, the company will have the opportunity to learn from the firm regarding the market culture and consumer’s behaviors in that market. This will work to ensure that the company does not suffer risks for the lack of knowledge or experience. In addition, this will help in fighting the intense local retail competition thus ultimately positioning the market strategically. In addition, the company will be dealing with electronic specialty and therefore, based on the high operating expenses strategic entry is required because it will be offering products at the least prices which require low operating expenses. However, a joint venture is associated with objectives vagueness and flexibility restriction because equal involvement is not an option (Charles & Anderson, 2016).

On the other hand, joint marketing agreement is the scenario where one company produces products and are distributed by another (Charles & Anderson, 2016). In that, the alliance deals more with distribution and marketing (Charles & Anderson, 2016). Joint marketing is distinct from joint venture because it is more focused on trading and advertising rather than impartiality (Charles & Anderson, 2016). Both companies contribute to the needed resources and expenses. Walmart can, in this case, get into a Joint marketing agreement where it can provide products variety from its international supply to any given marketing company within Vietnam to play the marketing role. This strategy unlike joint venture which will be creating a favorable environment will seek to increase Walmart’s products perceptibility, lower marketing expenses, access to fresh markets and create consumer satisfaction. However, it is apparent that this approach will not be as suitable as a joint venture in creating more presence in the market. In addition, the company will not have the opportunity of relating to the consumers for the learning process. This alliance is mainly restricted to the trading and advertising operations which might limit Walmart’s opportunities (Charles & Anderson, 2016). In addition, more expenses will be incurred in strategically situating the company later on after adequate awareness and familiarity within the market have been generated (Charles & Anderson, 2016).

It is recommended that Walmart should utilize Joint venture alliance for its operations and entry into Vietnam. This is because the strategy is more effective because it will result in increased organizational capacity, shared resources, expenses and threats thus supporting the cost leading positing without losses, access to expertise workforce, new markets as well as wider channels of distribution (Campbell & Netzer, 2009). An essential thing for this expansion for Walmart is to increase its market and revenue generation without affecting its affordability, convenience and quality values which implies that the Joint venture will create the needed flexibility and operational capacity in the new but established market (Campbell & Netzer, 2009). In this case, a joint venture was found to be the most suitable because Walmart is required to learn about the market and the distinct culture from that of America which is associated with operating risks and local competition.

Functional Business Structure

Throughout the functional structure, the reporting associations within the organization are classified on the grounds of specialty (Cant, 2006). The structure was selected for this expansion because it is appropriate for small businesses or for those that are focused on a single product specialty. Since Walmart will be operating is a stable market then the functional structure will be effective. The specialty groups for Walmart will include Marketing, operations, account, IT and Purchasing and sales departments (Cant, 2006). This structure will seek to ensure that communication exists within the departments prior to being communicated beyond (Leondes, 2005). Debatably, the functional organization offers increased operational success since the workers with common skills, experience and knowledge are categorized collaboratively based on the responsibilities to be performed (Leondes, 2005). This implies that given that Walmart will be getting into a fresh project very group will focus on independent tasks with each manager serving as the communication center. This arrangement permits more specialization and high capacity particularly for a fresh venture (Cant, 2006). However, the structure is vulnerable to less innovation and creativity because employees are only exposed to the same kind of tasks for the longest period.

On the other hand, Walmart is not in search of innovation because it is not involved in manufacturing. This means that the company requires the specialization where the marketing department will be serving the promotion role for creating awareness and familiarity of the company’s presence and what it offers (Leondes, 2005). On the other hand, the sales and purchasing department will be managing supply, sales as well as products distributions to the needed location along with the operation department that will mainly be involved in the management of daily activity. The accounting department will be handling revenue and resources distribution while technology will be utilized to create operational efficiency. These specialties will be essential in creating efficiency for the company which will, in turn, result in reduced expenses thus supporting the cost leadership approach (Cant, 2006). In turn, the company will gain competitive positioning which is based on affordability, convenience as well as quality.

Functional Organizational Structure Chart

Conclusion

            Based on the analysis above it is clear that, Walmart should focus on a strategic alliance using a joint venture instead of joint marketing. This is because the company has no experience regarding the market and the behaviors of the employees. Since, the primary objective is to use differentiation and low pricing strategies the company will be required to operate under minimal expenses and less threats which can best be lowered by a joint venture. The functional structure is the most suitable because it is categorized on the grounds of specialties such as marketing, sales and accounting which will seek to create efficiency.

References

Campbell, D., Netzer, A., & Center for International Legal Studies. (2009). International joint ventures. Alphen aan den Rijn, The Netherlands: Kluwer Law International.

Cant, M. C. (2006). Marketing management. Cape Town, South Africa: Juta.

Charles, G., & Anderson, W. (2016). International marketing: Theory and practice from developing countries. Cambridge.

Chekwa, E., Martin, J., & Wells, K. (2015). Riding On the Waves of Sustained Competitive Advantage: Consumers' Perspectives on Walmart Corporation. International Journal of the Academic Business World, 9(1), 61-73.

Leondes, C. T. (2005). Intelligent knowledge-based systems: Business and technology in the new millennium. Boston, Mass: Kluwer Academic.

Trost, T. (2013). Joint ventures: The benefits and perils - why some are successful and others fail. Place of publication not identified: Grin Verlag.

Walmart’s Strategies for Overcoming Business Risks and Exploiting Business Opportunity

Executive Summary

The retailing industry has in the recently experienced rapid growth fueled by the intensifying competition among the well-situated companies. The retail industry is characterized by the highest growth rate when contrasted with other trading industries. Walmart Inc. is involved in wholesaling and retailing trade in the global market. The company is classified as the leading retailing corporations around the globe based on its financial steadiness, market share, proceeds, and resources. Its success has predominantly been acquired via the utilization of strategic operations and marketing. Walmart operates under a number of challenges particularly the growing competition for market shares which creates the need for expansion to capture the unexploited markets. Walmart’s generic positioning revolves around cost leadership. The company is concentrated on offering quality, convenience, and affordable products while decreasing its operating costs to generate revenue balance. The strategy has supported the company in acquiring an extensive market and consumer loyalty because its mission demonstrates that the firm is consumer-centric. In cost leadership approach the company’s concentration is sustaining lower-priced services and products a move that its competitors have not been able to maintain.

In order to create a firm position in Vietnam Walmart will utilize joint alliance as its legal entry structure. This will help the company in lowering its operational expenses, accessing wider markets as well creating awareness and familiarity. Walmart is prevalent for its low pricing strategy, which is its main selling central point of all its commercial operations. The low prices are maintained via the utilization of cost reduction approaches. Vietnam is potential expansion market because of its economic, legal, social and political opportunities it possesses. However, the market is characterized by competition and political instability threats which necessitates the company to utilize joint venture. Based on the favorable policies regarding trade competition in the market is gradually increasing both from local as well as foreign countries thus necessitating risks mitigation for strategic positioning. In this market, Walmart can gain a wider market through the utilization of Cost leadership strategy. In that, unlike the competitors in the market, Walmart is more attentive on generating value in regard to affordability, accessibility, quality, and variety. Offering goods and services at the least prices taking advantage of its supply chain efficiency would offer the firm a modest positioning. Based on the firm’s advantages and the existing growth and investment opportunities in Vietnam Walmart expansion will be a beneficial one. Walmart as the largest retailer globally can apply SWOT in evaluating the outcome of the market so that it can enhance its performance while focusing on consistent global expansion. While the strengths and faults of the company are established via an internal assessment. Opportunities and threats are normally established from the external and industrial assessment. The focus of this study is to offer a detailed analyzing of the existing external threats and opportunities in Vietnam and propose strategic approaches that Walmart can employ in its strategic international expansion.

Introduction

Walmart Corporation is a global retailer leader, engaged in wholesaling and retailing business (Campbell & Netzer, 2009). The company has acquired the leading position based on its long success in its global commerce, resources, financial stability, revenue generation and market share which has not only provided it with a competitive advantage but categorized it as the economic giant. As the retailing giant Walmart is guided by the philosophy of saving consumer’s money while improving their lives standards. This philosophy, therefore, shows that the firm is a consumer-centric one that is not focused on revenue maximization rather on quality and affordable items and services provision (Campbell & Netzer, 2009). The success of the company has mainly been driven by its cost leadership approach and strategic positioning. In that, the company acknowledges that consumers are becoming highly sensitive to products quality as well as cost and therefore attempts to create a balance. In order to maintain these values, the firm is mainly focused on operating under minimal expenses which words to ensure that its revenue is not affected. The retailing industry is characterized by intense competition particularly from well-established firms along with its progressive growth which creates the need for expansion to increase the company’s stability (Campbell & Netzer, 2009).

The company’s market expansion in Vietnam will particularly focus on an electronic specialty. The electronic specialty will, therefore, be useful for the organization in expanding while targeting the low and medium earning individuals in the market who make the highest populace in Vietnam countries (Latova, 2017). In order for the company to sustain its competitiveness within the industry then it is better to focus on this specialty with little competition and lesser risks in order to establish its self well prior to making additional ventures. Walmart Stores targets the low and medium earners and not particularly the wealthy individuals particularly the early technology adopters. The market size for the targeted population account for about 65 percent of the whole market. This comprises of individuals willing to purchase products of quality but is sensitive to the prices thus focusing on quality and affordability (Latova, 2017). In addition, it is expected that the market will experience a 6% growth by 2020 which creates more opportunities for long-run growth (Latova, 2017). The high-income earners are not excluded given that the company focuses of superiority of goods as well as services (Charles & Anderson, 2016). The target for the company is for the larger populace from the individuals in need of finding low-priced products at convenience as well as quality. This paper will use Walmart’s SWOT matrix to develop strategies needed to overcome business risks and exploiting commercial opportunities in Vietnam.

External Opportunity and Threat factors

Opportunity Factors

Walmart as the retailer leader in the global context is characterized by several economic opportunities as well as threats which therefore necessitates the inclusion of mitigating strategic threats (Charles & Anderson, 2016). Based on research it is apparent that the primary opportunity for Walmart lies on its capability to offer products daily at the least prices which the competitors have been unable to beat (Charles & Anderson, 2016). The firm provides the largest brands selections at the most affordable pricing which attracts the largest portion of consumers both from the low and middle-class classification. Based on the company’s philosophy that seeks to save money for the consumers for more quality living it is evident that the company is a consumer-centric one. In Vietnam the current opportunities for Walmart are that based on its well-recognized and accepted brand globally the firm can merge or even enter the market via the utilization of joint venture contracts. The joint venture will seek to lower its operating expenses while avoiding the associated risks such as criticism, high marketing need and intense competition (Charles & Anderson, 2016).

As a foreign firm Walmart is required to learn and familiarize with the marketing because the operating culture and economic performance in Vietnam are distinct from that of the United States. This, therefore, means that a strategic alliance is needed because additional to learning the firm has no experience regarding the market (Chekwa, Martin & Wells, 2015). The company has its stores situated in very few countries globally and with the increasing competition in the retail industry, an expansion to Vietnam will seek to expand its share. Fresh ventures create more opportunities for exploiting the less exploited but mature markets that are characterized by utmost potential. The utilization of low pricing strategies will be essential in attracting a wider range of consumers within the market particularly when focusing on cost and quality values that the target population is more sensitive in regard. In instances of economic and political go-slow, most consumers are highly interested in bargains because of the necessity to utilize less money in purchases (Chekwa, Martin & Wells, 2015). This tendency will, therefore, benefit the form to enhance its sales even more based on its favorable pricing. In addition, as most of the retail traders are in participation due to the increasing disposable income in Vietnam, Walmart will be able to fight the competition and increasing its consumer base through the provision of high bargaining potential to the consumers (Chekwa, Martin & Wells, 2015).

In Vietnam, products pricing within the retail sector is relatively high based on the high bargaining authority held by the operating organizations. In this context, despite the large market for electronics, it is apparent that the supply chain affects the pricing of most firms (Chekwa, Martin & Wells, 2015). As established the relatively high prices are fueled by high operating expenses which, therefore, implies that if the firms price their products low they are bound to experiencing losses and ultimate closure. In order to remain relevant, there is a necessity to precisely design strategies that mitigate the high costs of operations. Walmart has the strength in this threat because it holds an authoritative supply chain globally which facilitates its brand's variety and minimal pricing. Online sales have become trendy particularly for the retail goods and most Asian markets such as Vietnam have not been exploited fully by foreign and local traders. Walmart targets mainly the low and middle-class persons which comprise of more than 65% of the market (Latova, 2017). This, therefore, implies with a 6% increment anticipation the market will create further opportunities for investment and growth (Chekwa, Martin & Wells, 2015).

Vietnam’s has a high populace that creates further markets for market growth. In this case, it becomes apparent that the market has utmost potential. Vietnam as a developing sector holds a retailing sector that is developing constantly (Chekwa, Martin & Wells, 2015). This trend has created fresh opportunities that can be fully tapped by Walmart in the quest of increasing its share, global presence and increase profit generation. Most firms are focusing on extensive markets expansions within all the fresh economies in the quest of acquiring maximum benefits from the consistently growing retail sector. Internet trading is one of the major strength for Walmart which creates the opportunity for more the firm to serve a larger market. This opportunity will assist the corporation in leveraging its expansion in Vietnam (Chekwa, Martin & Wells, 2015). Via internet retailing the company will have the potential to get into the wider Vietnam market at a high rate particularly in locations where retailing stores are not present or have low expansion opportunities (Chekwa, Martin & Wells, 2015). 

Threats Factors

Walmart as the primary leader in the retailing sector implies that it is the main competition target for all the retailers both locally and internationally. This, therefore, implies that expanding into the Vietnam will not be any different because they competitors are afraid of the threats that the company presents (Frynas, 2015). Its operation in Vietnam also means that the corporation is a primarily subjected to political particularly based on its political instability. The country has favorable policies governing trade but on the other hand with political instability business can be affected. More so, the entire supply and distribution costs for products tend to lessen based on high demands and if the demands changes then the prices are affected which leads to pricing competition a major threat to the company’s capability to generate profits (Frynas, 2015). An international expansion by its own is not cheap which means that the company has the obligation of maintaining low operating expenses not to affect its revenue (Frynas, 2015).

Intense competition amongst the company’s competitors is the primary threat. In that, the competitors are currently involved in an intense competition that is strategically mitigated via cost and differentiation (Grünig & Morschett, 2017). Most of the established firms compete strategically focusing on cost reduction in order to attract more consumers in the respective market. Despite the fact that the pricing strategy is the primary positioning strategy. With the use of differentiation as well as cost leadership the company will ultimately beat the existing competition but this might result in losses if the prices are too low and the operating expenses are high. Competition is mainly intense based on the favorable policies that have been set by the government to encourage high investment (Grünig & Morschett, 2017). The expenses involved in the production of most consumer goods globally has decreased which is due to the associated low production expenses. On the other hand, production costs are lower based on increased outsourcing from those locations that have lower pricing. This has resulted in the rise of pricing competition among major firms and this leads to prices deflation to certain levels. Operating in an environment with intense competition in regard to prices rather than markets, sales and revenue possess major operating threats (Grünig & Morschett, 2017).

Pricing competition is a threat because as the company strives to provide least priced products competition tends to force the pricing even lower which leads to loses since the operating expenses are more when equated to the generated revenue (Grünig & Morschett, 2017). A company cannot run with the presence of more and more losses as the closure is the primary option. This will not only affect Walmart’s brand but its ability to venture and glow in different global markets. As the international retailing leader, Walmart will definitely face political instability in its international expansion particularly Vietnam. Vietnam has made notable changes and development in the last two or so decades but it is very popular globally for its political instability which might affect business productivity (Grünig & Morschett, 2017). This is a major threat for the company as a new venture because more time will be required to attainment establishment and well acceptance in the market. Political instability, affect the willingness of consumers to spend more on purchases thus giving them higher bargaining authority because income generation is also affected (Grünig & Morschett, 2017). The competitive positioning of the company is in this case impacted negatively since sales capacity is reduced thus creating an imbalance in its scales economies, revenue generation, and market share.

Exploiting Strategies for Opportunity, threats and Opportunity Support Factors and Mitigating Strategies for Country and Industry Threats

Walmart major strength lies in its capability to maintain its cost leadership globally. The firm strives to ensure that it effectively operates under minimal expenses in order to support its low pricing (Hacioglu, Dincer & Alayoğlu, 2017). This positioning is mainly supported by the large size of the company that provides high bargaining authority against its global supplies. In addition, the company is focused on high sales capacity because it has the obligation of sustaining the scales economies for sustainability and extensive growth. Another strength is that the company’s brand and services are well accepted in the global context due to guaranteed satisfaction and its unchanging focus on the financial and emotional needs of the consumers in general (Hacioglu, Dincer & Alayoğlu, 2017). Community responsibility and products diversity is an additional advantage for the company. Unlike its competitors, it provides more selecting option based on the needs of every consumer which is highly appreciated by the consumers in general (Hacioglu, Dincer & Alayoğlu, 2017).

Being a well-established that is popular and situated as the global retail leader, Walmart should generally take advantage of this strength in order to permit its consumers to bargain more and switch to its services over those provided by the competitors (Hitt, Ireland & Hoskisson, 2017). In Vietnam, products pricing is relatively high in the retailing industry and consumers are pressured to adhere based on the high switching expenses. However, Walmart has more resources based on its extensive market and high market presence while being compared to its competitors in Vietnam. The company can, therefore, utilize its cost leadership approach to ensure that it equips the competitors with high authority. In addition, Walmart can utilize discounting approaches because its rivals do not often utilize such approaches (Hitt, Ireland & Hoskisson, 2017). This will attract more consumers to the company while focusing on communicating its affordable, convenient and quality values associated with its services and products (Hitt, Ireland & Hoskisson, 2017). Its revenue and financial stability place the firm in a more potential position over the competitors whose operating expenses are a bit high based on the absence of effective supply and operation systems. 

In the economic slowdown period, most of the consumers will definitely opt to reduce their spending (Hitt, Ireland & Hoskisson, 2017). It is during such periods that Walmart should focus on acquiring and retaining loyalty by providing goods and services at affordable prices. The retailing sector is subjected to intense competition despite the increasing and anticipated growth which requires strategic positioning. Given that internet retailing is still progressing nationally and internationally in the recent years, Walmart can ensure that it sustains consistent updates to the target consumers in regard to its values and goods. Vietnam’s market is not fully exploited but it is mature for tapping. This implies that much resources are necessitated (Leondes, 2005). Based on the extensive revenue base for the organization, it should mainly focus on the creation of a wider market by investing in promotions. In that such activities are mainly aimed at creating more awareness and familiarity of the firm’s value and its operations (Leondes, 2005).

Walmart’s global operation is influenced by a strategic philosophy that seeks to offer affordable communities and improve the general life’s quality for the consumers (Leondes, 2005). This slogan, therefore, shows that the firm is mainly guided by the needs of its target populace who are the low and middle-class persons who desire to exist quality lives but are particularly sensitive in regard to costs based on their average disposable income (Leondes, 2005). It is suggested that the company should create a more precise mission objective since there is much potential growth within the retail business in the future and based on the lack of a precise mission statement, Walmart might not acquire success in countries guided by a company’s standards and mission like India. In addition, because the consumer purchasing patterns are equal globally, there is a necessity to consistently update the consumers regarding the company’s operation and ventures (Leondes, 2005). Most of the Europe based and Asian retail markets such as Vietnam are not fully exploited and thus the organization should utilize the opportunity to fully tap this market by proving affordable goods particularly in the periods of economic go-slow (Leondes, 2005).

The retailing competitors in Vietnam are mainly situated in the urban centers that are characterized by high population. Walmart can thus utilize its large workforce and resources to access the rural regions to get even a higher market (Roberts & Berg, 2012). The company has a wide distribution market which has the capability of providing products to all the targeted places rather than being a regional based firm. Walmart is additionally, necessitated to offer more consumption benefits to the consumers in order to motivate them and work towards the achievement of stable and sustainable growth in general (Roberts & Berg, 2012). The primary goal of the firm is to grow its market share, increase revenue, and gain a significant consumer base and stable positioning in the market.

Walmart is associated with one of the strongest and most recognized brand reputation across then. However, this is a major threat for the firm because it is bound to face foreign and local competition in Vietnam because it is considered to be a strong threat. This threat of rivalry by the existing competitors can be mitigated through the provision of diverse and affordable commodities (Roberts & Berg, 2012). In that, unlike the competing firms, it is apparent that Walmart has acquired more stability due to its exposure to income and loyal consumers (Roberts & Berg, 2012). The competitors in Vietnam are not focused on diversification and cost leadership because they enjoy an utmost bargaining authority over the competitors. In this context, it is apparent that when Walmart is focused on the provision of high quality, diverse and low-cost products the competitors will be subjected to more bargaining authority from the consumers. It is through such values that the company can attract the most consumer’s population (Roberts & Berg, 2012). Its cost leadership approach is one that cannot be fought by companies that are mainly focused on lowering their operating expenses (Roberts & Berg, 2012).

Walmart has fully been able to create substantial brand value and this can, therefore, sustain the firm even in the period of economic or political decrease in Vietnam via the introduction of diverse and satisfaction guarantee to the consumers (Roberts & Berg, 2012). In order to mitigate the existing high competition, Walmart should mainly concentrate on the presence of the current products for the company to retain its competitive investment particularly by focusing on marketing to create awareness (Latova, 2017). The company should, therefore, focus mainly on the general investigation of the market. In other words, it should be that it should in particular focus on diverse brands that seek to meet the concerns and demands of the larger consumers ranging from prices, packaging, brand, and images globally. Since the purchasing trend is equal in the global context, Walmart should, in particular, seek to provide details updates in regard to its products. In addition, it should focus on venturing in more countries to grow its brand further. Use Joint venture with an established retailer in Vietnam such as Big-C to leverage competition better. In avoiding intense competition in Vietnam, Walmart should mainly focus on specialized product lines in order to beat competitors and invest more on marketing to ensure that the consumers are fully controlled (Chekwa, Martin & Wells, 2015). In addition, the company should use of affordable pricing to gain consumer loyalty for the long run (Chekwa, Martin & Wells, 2015).

Conclusion

Based on the analysis above it is evident that Walmart should mainly venture into Vietnam with the knowledge of the existing threats and opportunities from the external surrounding. The market is associated with intense competition from both the local and foreign competitors, in this context, the company is supposed to focus on offering diversity and low priced products in general. This is because the competitors in the market are only focused on differentiating and pricing. As the global leader, the firm has the capability of providing products at the least prices since it has the needed resources and a recognized brand. The company has mainly strived to sustain its competitive positing via the provision of affordable, convenient and quality. These values should be upheld in the new market along with brands variety to provide the consumers with more choices which will, in turn, result in competitive positioning. In avoiding intense competition in Vietnam, Walmart should mainly focus on specialized product lines in order to beat competitors and invest more on marketing to ensure that the consumers are fully controlled. The company can also fight the increasing price based competition by focusing on products diversity to distribute the associated threats and opportunities evenly. Walmart owns an authoritative brand image and can, therefore, be subjected to intense competition from its foreign and local rivals. This can thus be avoided via the utilization of differentiated products at minimal prices. Political threats can be avoided via the use of strategic alliance with well-situated firms such as Big-C to overcome and balance the existing issues.

References

Campbell, D., Netzer, A., & Center for International Legal Studies. (2009). International joint ventures. Alphen aan den Rijn, The Netherlands: Kluwer Law International.

Charles, G., & Anderson, W. (2016). International marketing: Theory and practice from developing countries. Cambridge.

Chekwa, E., Martin, J., & Wells, K. (2015). Riding On the Waves of Sustained Competitive Advantage: Consumers' Perspectives on Walmart Corporation. International Journal of the Academic Business World, 9(1), 61-73.

Frynas, J. G. (2015). Global strategic management. Oxford University Press.

Grünig, R., Morschett, D., & Springer-Verlag (Berlin). (2017). Developing international strategies. Berlin: Springer-Verlag.

Hacioglu, U., Dincer, H., Alayoğlu, N., & Springer International Publishing AG. (2017). Global business strategies in crisis: Strategic thinking and development. Cham: Springer.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic management: Competitiveness et globalization: concepts and cases. Cengage Learning.

Leondes, C. T. (2005). Intelligent knowledge-based systems: Business and technology in the new millennium. Boston, Mass: Kluwer Academic.

Roberts, B. R., & Berg, N. (2012). Walmart: Key insights and practical lessons from the world's largest retailer. London: Kogan Page.

Trost, T. (2013). Joint ventures: The benefits and perils - why some are successful and others fail. Place of publication not identified: Grin Verlag.

Latova, E. (2017). Electronics Production in Vietnam: A Guide to Emerging Opportunities. Retrieved from http://www.vietnam-briefing.com/news/electronics-production-vietnam-guide-emerging-opportunties.html/

Appendix 1: TWOS Matrix

Effective Governance and Accountability

Evaluation of the corporate governance arrangements for Pollywell Limited

 The corporate governance structure for Pollywell shows an arrangement that we hedged on the power of Paul Lennon as the major shareholder. As the major shareholder, Paul Lennon has the corporative governance under his control since he has the right to choose the board of director's members, make the major decision in investment operations. This gives him the ultimate power over the major corporate decisions that would be made in Pollywell Limited, and especially which would favor his investment preference.  While the concentration of power of voting on the board of directors can negate corporate governance discipline, reduced power for the board in making decisions can result in poor performance of the firm.  The structure of Pollywell Limited corporate governance lacks clear boundaries in the duties and roles of board members which mean that their decision making is weak, while they have to dance to the tune of Paul Lennon as the major shareholder. The corporate structure of this company is a shareholder model whose main aim is the maximization of profits for the shareholder.

In this case, all the directors are implicitly obligated to ensure that a company is run in the majority shareholder's interest.  The directors of the company are not independent since the major shareholder makes the major investment decisions. The independence of directors is determined by the major shareholder and this means that there is an incentive for the directors to tow the line of Paul Lennon controlling wishes.  This can also explain the retention of the long stay of the directors in their respective positions in the company.  Lack of an independent board of directors means that members will serve the interest of the controlling major shareholder; and this makes them an ineffective tool to be used in vetting conflict that may arise in decision making (Bebchuk & Hamdani, 2016).  In case a firm that has a major shareholder in control, a major corporate governance concern will be the possible conflict of interest between public investors and the aforementioned controller (Bebchuk & Hamdani, 2016).  The current arrangement of the Pollywell corporate governance weakens the role of the board of directors as an oversight body.  

To a large extent, this corporate governance arrangement contravenes the established UK code that stipulates the good practice standards for a firm that wants to be listed for public purchase of shares. This relates to the development and composition of the board, shareholder relation, and remuneration. The code touches on the various functions of a company whose shares are traded on a public platform and these should be looked into before the IPO process kicks off. A strategy should be adopted by the board that involves imparting corporate governance of high standards in the entire areas of the company's operations and this will help in building the value of potential shareholder once the IPO is issued (Bebchuk & Hamdani, 2016). There should be a lot of improvement on the board to increase its independence and this will ensure that case of conflict of interest brought about by the presence of a controlling major shareholder does not recur. In this regard, it is necessary to have an independent director and especially a chairman who is elected in a manner that he will be made accountable to investors after the issuance of IPO. The directors under the guidance of an independent chairperson will ensure that the corporate code of conduct is observed while important decisions on any transactions are being boarded (Bebchuk & Hamdani, 2016). This underscores the need for an oversight board that will not be forced to implement the decisions of a major shareholder at the expense of public investors. The improvement of insight efforts by an independent board is a central aspect of corporate governance that is geared towards the general good of all the shareholders and stakeholders of a company (Yermack, 2010).

Pollywell's board should be arranged in such a way that conflict of interest does not arise in the decision-making process. The current board consists of members close to the major shareholder and it is possible that they may make decisions based on their implied loyalty to Lennon as the major shareholder. To avoid such a scenario, the provisions of the Corporate Governance Code should be given much attention, and hence, serve as a guideline in the composition of the board and in the establishment of the roles and duties of the board members. More specifically, the company should ensure that compliance with the latest version of this code is assured from now moving forward. At the same time, the selected board should be obligated to have a report about its compliance in the next annual report to be released before the issuance of the IPO.  The governance code describes the role played by the board as providing entrepreneurship leadership but within effective and prudent controls which allows for risk assessment and management (Becker Professional Education, 2017). This involves setting the strategic goals of the company, putting the human and financial resources in place so as the set objects can be met and management performance is reviewed.  To perform these tasks the code provides for the board to hold meetings regularly where high decisions to be delegated to the company's management (Becker Professional Education, 2017).  The newly composed board in Pollywell should hold formal meetings at least five times and other informal meetings in the year where they will consider strategy and risk for the investments to be undertaken in the future.  Such meetings will also ensure that any conflict of interest arising is dealt with before it adversely affect the performance of the company.

To adhere to the Corporate Governance Code, the composition of the board should involve diversity, where appointments are made on merit, while the formation of board committees that will oversee the audit, and remuneration of directors. For effectiveness, a board should involve people with the right experience, skills, knowledge, and independence of the firm a balance that will enhance the performance of their respective responsibilities and duties.  The code provides that the board should consist of executive directors and independent directors who are not members of executive so that it is not dominated by a small clique of people especially during decision-making process (Yermack, 2010). The current boards of Pollywell Limited consist of individuals who are cronies of Paul Lennon. The lack of independent non-executive members in the current board provides for the emergence of conflict of interest which is not good for a company that is aiming to issue an IPO. There is a need to ensure that committee members are selected from the board, especially to oversee the remuneration of directors, and undertaking the auditing process. An effective committee membership ensures that there is no unnecessary reliance on a clique of individuals during decision making, evaluating performance through auditing and this will reduce the chance of a conflict of interest arising (OECD, 2011). Another improvement should involve a transparent and formal arrangement of how risk management and reporting will be done, and this relates to the role of financial auditing and other auditing deem necessary to ensure accountability of the board and other individuals in the management level of the company. 

The role of reviewing internal control of financial resources and audit function in a company is placed on the audit committee (Becker Professional Education, 2017). This highlights the importance of having a well-established committee that is independent in Pollywell Limited and which the control and risk management of the firm. This implementation of these aspects especially in the board of directors will prepare the right avenue for issuing an IPO, whose performance will depend on the integrity and accountability that directors and other senior management exude to win over the confidence of the public.  The remuneration of the executive directors for the newly composed board should be aligned to the overall goal of the company that involves success in the long-run.  The corporate governance code on directors' remuneration requires that a remuneration committee consider the position of a company when compared to others, and the committee should consider an increase in the remuneration if it corresponds to an upward shift of individuals and company's performance (Becker Professional Education, 2017). In the case of, the determination of directors' profits share above their normal financial rewards should be done by an independent committee that will ensure any more allocation of rewards is proportional to their performance and the general performance of the company at large. The adherence to the corporate governance code is an indication of the expected changes if the company will insist on floating its shares to the public. 

Benefits to Pollywell of full compliance with the Code

The benefits of complete compliance with corporate governance code have their basis on the independence brought about by non-executive directors on the board. As members who are not employed in the company nor have no affiliations, the non-executive team of management can make decisions that are independent and which cannot be influenced by the people for the sake of their vested interests (Azeez, 2015).  The directors are normally included in the board with an aim of bringing independence, impartiality, broad range of experience and special knowledge to the company. The NEDs plays an important role in improving the effectiveness of the performance of the board and this sends the appropriate message to existing shareholders and future potential shareholder and this increase the attractiveness of the company to investors in the future.  They ensure that there is increased compliance with the principles on which the corporate governance code is based and this brings benefits not only to the firm but also to managers and their transparency, especially during disclosures.  The knowledge, skills, and experiences brought in by the NEDs enhance the process of strategy development in a company and in directing it in the right path for future success. The improved strategies are integral part of finding solutions to various challenges that a firm may be facing internally or in the market. One of the challenges is increased competitiveness in the market in which a company operates.

The market environment for Pollywell is becoming more challenging while conducting business operations and selling the products. The media and communication industry is becoming increasingly competitive as new firms are emerging while changing their strategies so as to be at par with changes in technology. The online-advertising has increased competition in the market as sales of hard copy publics continue decreasing over the years. Pollywell Limited needs a change in strategy and can rely on the experience and knowledge of independent non-executive directors in the formulation of a strategic plan that will place the company on the online platform.  An important role of NED is ensuring that every audit requirement in a company is complied with and satisfied, ensuring accountability in the process and hence improving the confidence of investors and other stakeholders in the direction of the company (Azeez, 2015). Eventually, there will be an improvement in accessing financial markets and capital markets by the firm (OECD, 2011). The required strategic plan for Pollywell to remain competitive requires capital input for such it to succeed. Paul Lennon is considering raising capital by issuing IPO at the London Stock Exchange and this is where the company will benefit for adhering to the corporate governance code. 

The post –flotation performance of the business will depend on whether the firm has raised enough financial resources for the capital required to fund the implementation of the online adverting strategy. This highlights the relationship between the compliance with Corporate Governance Code, the access to the needed capital for strategic change in Pollywell and the future competitiveness if the company in a market that is consistently changing. The experience and knowledge of the NEDs will also be important for the company in managing various risks that may come with floatation and even the adoption of a different strategy in the company. The business expertise of the non-executives will also be important to the firm especially in preventing the possibility if over-trading which may be detrimental to the performance and growth of the firm (OECD, 2011). In addition, compliance with good practices of corporate governance help to improve the confidence of many investors both domestic and local and this will lead to a reduction in capital cost or even more focus towards sources of financing that are reliable and stable (OECD, 2011). 

While the firm is developing and popularizing its marketing strategy, it will require an independent advice on business which will offer new perspectives on the market and operations.  The non-executive directors in Pollywell will be well placed to offer such kind of advice that may help the firm from making mistakes that will cost its image and intended transformation in the market. After floatation, the company will be developing and hence, become more relevant to the interest of the public and at this time the non-executive directors can be counted upon to provide the needed guardianship. NED are also important in checking the conduct of executive directors in a company by ensuring that they observe the established ethical standards , accountability in reporting and integrity while carrying out their responsibilities and duties (Azeez, 2015). This kind of scrutiny will prevent the executive directors from making decisions that are likely to plunge the Pollywell in scandals that may affect the performance of the company, especially after floatation. The benefits of complying with the Corporate Governance Code will justify the decision for this compliance in the firm.

References

Becker Professional Education, (2017).ACCA Approved - P1 Governance, Risk, and Ethics. 1021-1026

Bebchuk, L. A., & Hamdani, A. (2016). Independent Directors and Controlling Shareholders. U. Pa. L. Rev., 165, 1271.

Azeez, A. A. (2015). Corporate governance and firm performance: evidence from Sri Lanka. Journal of Finance, 3(1), 180-189.

OECD, (2011). Corporate governance. Retrieved from: http://www.oecd.org/investment/toolkit/policyareas/corporategovernance/44931152.pdf

Yermack, D. (2010). Shareholder voting and corporate governance. Annu. Rev. Financ. Econ., 2(1), 103-125.

 Vietnamese Restaurant Market

            Vietnamese food is not strange to Americans these days, Vietnamese food is well known for using heady aroma and fresh ingredient to create rich nutrient dishes and great taste. Nowadays, when people are care more about their daily meals, healthy and rich nutrient such as – Vietnamese food is an optimal choice. Most well-known Vietnamese dishes is “Pho”. Currently, there are 2 million Vietnamese people live in United States and around 2000 Vietnamese restaurants in United States and Canada. Vietnamese restaurants will growing more popular in United States, in future chain of Vietnamese restaurants will become a part of mainstream culture of United States.

            Since 1999 till now, Asian food restaurants grown more than 135 percent in United States (Ferdman, 2015). It proves that, Asian cuisine is become a food trend for Americans. Asian food is includes: Chinese, Thai, Malaysian and Vietnamese. In United States, the famous Chinese fast food chain is Panda Express and its reach to $2 billion sales in 2013 (Ferdman, 2015). This a proof that Americans are prefer to eat Asian food and Vietnamese restaurant future market will grow stronger and striking in future.

Vietnamese cuisine first appear in United States around later 1970s when Vietnamese people come to United States to run away from Communist rule in Vietnam. Many Vietnamese people choose to settle in United States due to the relationship of Southern Vietnamese and Americans before 1975. Before 1975, many Americans soldiers who stationed in Vietnam have chance to eat Pho – a Vietnamese traditional food. Therefore, first Vietnamese restaurant was born like that to serves Vietnamese refugees and American soldiers after war. Few first Vietnamese restaurant in United Stated opened in Southern California and then become a small Vietnamese communities Little Saigon. At first, it is hard to find full and right ingredients to cook right bowl of Pho. Vietnamese in United States have to use ingredients from Chinese market and America market to cook Pho. Later, Viet entrepreneurial, more authentic ingredients were imports to serves Vietnamese communities in United States. Afterwards, Vietnamese communities bigger as the development of Vietnamese cuisine spread out all over United States. Vietnamese introducing Pho to their Americans friends and now it is normal for Vietnamese restaurants visits by Americans. The number of Vietnamese people in United States, grow more than 2 million people. Thus, there are around 2000 Vietnamese restaurants in United States and Canada (Phofever.com). This is prove that the development of this Vietnamese market in United States grow rapidly.

Why Americans love Vietnamese food – Asian cuisine? First, Vietnamese food is rich nutrient and healthy more than Americans food by using fresh ingredients and balancing in protein, fiber, carbohydrates. It is low fat, gluten-free and heart healthy. Second, Vietnamese food have unique flavor. “Pho” – traditional Vietnamese dishes is offer flavor with fresh and unique tastes. “Pho” broth is made from beef bone with onions, shallots and Vietnamese herb cook for 12 hour (Spector, 2003). When it serves, customers can add chili, lime and herbs to boost the flavor. Third, Americans loves Vietnamese food because it is about: customizing. Everyone can choose from variety of options to create their own dishes. Lastly, Vietnamese food is easy to take out, delivery and catering. Another Vietnamese traditional food become popular and get in Americans mainstream culture is Vietnamese sandwich called “Banh Mi.” “Banh Mi” is the creation combined everything in one sandwich: carbs, protein and fiber. The baguette is filled with choice of chicken, pork, Vietnamese sausages and vegetables like pickled carrots and daikon with sauce from the meat and a hint of mayonnaise and pates. “Banh Mi” tastes good but still rich nutrient and able to “grab and go” so it is easy to understand “Banh Mi” arrives on mainstream menus of Americans (Kruse, 2015). Based on these following internal factor, Vietnamese Restaurant market will develop more in around next 5 years.

            The major internal factors which may affect the Vietnamese restaurants include slow economic growth, and strict laws (Kruse, 2015). Slow economic growth leads to inflation, a factor which contributes to the reduction in the number of customers. Strict laws regarding hotel industry in the U.S may also affect the industry, due to the high demand of Vietnamese cuisine in the next 1-5 years. On the other hand, the main external factors which may affect the business include: strict immigration laws, and strict business ties between the U.S and Vietnam (Ferdman, 2015).

What are the major external and internal factors that will impact this industry over the next 1-5 years?

The U.S under the rule of president Trump has come up with strict laws against immigrants, a factor which has made it hard for Vietnamese immigrants to freely move to the U.S. Most of the employees in Vietnamese restaurants are immigrants from Vietnam, due to the skills and the knowledge which they have concerning Vietnamese cuisine (Kruse, 2015). Barring them from moving to the U.S through strict laws may affect the general performance of Vietnamese restaurants in the country. Secondly, strict business policies between the U.S and other countries may also affect Vietnam restaurants, since they are mostly owned by Vietnam based companies. Due to the slow rate of economic growth in the U.S, it will be necessary for the country to change its relation ties in order to manage its economic growth.

What is the future for this industry – is it growing and why?

The future of this industry is bright, however, the rate at which the industry is growing may not be the same in future. This is basically because of the changes in economic growth which will be witnessed in the near future. In addition, marketing patterns and new laws will also greatly affect the business, making it to perform poorly than now (Ferdman, 2015). Nonetheless, the industry will really grow in the U.S, but the number of sales and revenue will drop drastically over the years. The future of the business is therefore brighter, since more people are more likely to be attracted to the Vietnamese cuisine, a factor which will increase the sales and the revenue realized from the industry (Kruse, 2015).

On the other hand, the future of the industry is also likely to be bright all over the world, and not only in the U.S. The industry likely to dominate other countries all over the world such as the Middle East countries and in African countries too. This is basically because of the dominance of the industry in the U.S. More people particularly tourists would always want to taste the Chinese cuisines in different parts of the world, making most restaurants all the world to start preparing Vietnamese cuisine. Moreover, good relationship ties between Vietnam and other countries will also lead to the growth of the industry all over the world, a factor which will lead to the dominance of Vietnamese restaurants all over the world. The demand of Vietnamese cuisine is also very high, due to the nutritional contents of the food. Unlike the pizza, Vietnamese cuisine is not rich in fats, hence making it more organic food than the pizza. Due to the increase in fat related diseases, most people are more likely to opt for Vietnamese cuisine all over the world, thus replacing it with pizza. This will therefore see the Vietnamese restaurants being opened in different parts of the world.   

            Citation:

The Origins of Pho. (n.d.). Retrieved October 10, 2017, from http://www.phofever.com/facts.php

Ferdman, R. A. (2015, February 03). Asian food: The fastest growing food in the world. Retrieved October 10, 2017, from https://www.washingtonpost.com/news/wonk/wp/2015/02/03/the-fastest-growing-food-in-the-world/?utm_term=.0ad71bf05ce8

Spector, A. (2003). Souping up Asian cuisine. Nation's Restaurant News, 37(26), 166.

 Kruse, N. (2015). Bánh mì arrives on mainstream menus. Nation's Restaurant News, 49(14), 29-31.

• What are the major external and internal factors that will impact this industry over the next 1-5 years?
• What is the future for this industry – is it growing and why?

Table of Contents

Country Analysis: Comparative of India and Vietnam, With Respect To Market Expansion for Walmart Stores Inc. 2

Executive Summary. 2

Introduction. 4

India Market Analysis. 25

Opportunity and Threat Factors/Trends. 26

India Threats and Trends. 27

Threats. 28

Recommendations. 29

Conclusion. 30

Table of Contents

Walmart Competitor Analysis and Competitive Strategy in Vietnam.. 2

Executive Summary. 2

Introduction. 3

Competition. 5

Retail Competitors in Vietnam.. 6

Big-C.. 6

Citi-mart 8

Fivi-mart 9

Summary of Retail Competition in Vietnam.. 10

Walmart’s Competitive Advantage. 11

Internal Threats. 12

Brand Recognition. 12

Vietnam Retail Market Access. 13

Acceptance. 14

Consumer Support 14

Walmart Competitive Advantage Relative to Competitors. 14

Recommendation of a Competitive Strategy. 16

Conclusion. 16

References. 18

Principles of Marketing

1. Environment Assessment

Ford Motor Company Analysis

Social Factors

Ford motor company interacts with its customers, where it advocates for feedbacks through the social media, regarding the types of services the customers receive, the efficiency of its vehicles, and the challenges or issues affecting the vehicles (Saaty & Luis, 30).

In case the company produces low quality vehicles, then social factors will help in affecting the company’s performance. Most people will not buy Ford cars, because of bad reviews.

Demographic and Economic Issues

Ford has maintained its demographics, through employing people from different races equally. The company has also embraced gender equally, where all sexes are respected and employed in the company. When it comes to economic factors, the company has put measures in place to cushion it from any forms of economic issues (Saaty & Luis, 35).

A change in market mix and a slow economic growth of a country may affect the sales of Ford motor vehicles, hence impacting the performance of the company. 

 Legal and Competitive Factors

Legal factors put in place have enabled Ford to maintain the quality of its products, hence producing high quality vehicles, which makes it an advantage, over other companies. When it comes to competitive factors, Ford has been on the market for a long period of time, a factor which makes the company dominant over its competitors. 

Strict laws may affect the quality of products which the company manufactures, a factor which may lead to the manufacture of low quality products (Saaty & Luis, 52). On the other hand, market mix may also affect the company’s competitive factors, since the company will not be viewed according to the number of years it has been operating, but on the quality of products it produces.

2. Advertising and Segment

Time Magazine and Hoop Magazine

Time magazine is general magazine, which contains different parts, which target different individuals. It as kids section, politics section, economic section, and international new section. This consequently makes the magazine a general magazine (Time Magazine, n.p).

Hoop magazine is a basketball magazine, since it specializes on National Basketball Association (NBA). The magazine targets basketball fans, the youth in particular.

List of Advertisements 

Adidas

Samsung Galaxy S8

KFC

T-Mobile

Always

Extra Gum

The type of segment strategy used in this magazines is consumer strategy, which is used to attract the attention of consumers through the ads on magazines (Time Magazine, n.p). Always advertisement looks inappropriate, because most magazine readers, particularly Time magazine’s, may not be concerned with pads. A company such as McDonalds’ should have been well fitted for the advertisement, due to the huge number of magazine readers who might be attracted to McDonalds’.

Work Cited

Saaty, Thomas L, and Luis G. Vargas. Decision Making with the Analytic Network Process [recurso Electrónico]: Economic, Political, Social and Technological Applications with Benefits, Opportunities, Costs and Risks. , n.d.. Internet resource.

Time Magazine: Retrieved from: http://time.com/

Hoop Magazine: Retrieved from: http://hoop.nba.com/magazine/nba-finals-2017/

Alignment of HRM and Business Strategies

1. Propose how you would ensure the HR strategy is in alignment with the business strategy.

An organization runs on the vision and mission of its authors. Habitually, the central centre of most organizations is to provide a decent and increase benefit. Even though HR is essential, I would like to argue that business methodology is responsible for starting things out. Due to that reason, this section will explain the way HR needs to understand and focus fast on the organization’s business technique, particularly when settling on the part of its choices. The business procedure should be allowed to create a highway for achievement. HR should therefore remember and be prepared for the business methodologies of the organization, when leading the main parts of its choices. I have therefore decided to audit Ford Motor Company (Ford Motor Company, 2017). In the audit of Ford’s site, the company provides the idea that the preparation of business and HR is on the main agenda of their reasoning. The site consequently explains that the HR department, intentionally groups together with procedures thus analysing the needs of salaried agents and convey preparations which adjusts to the objectives of the business. The company also encourages the use of Ford’s kin cycle plan. This announcement is therefore an instantaneous reaction to guaranteeing that both the procedures and objectives are equal.

2. Describe the HR job positions and the responsibilities listed for that HR department. 

Ford Motor Company has dissimilar responsibilities which are listed under their description. The main responsibilities include the following: corporate travel, clinical operations, global security and fire, compensation and benefits, occupational health and safety, learning and development, HR business operations, and finally, HR labour operations and affairs. These functions are all registered in the HR department’s ‘what we do’ section (Ulrich, 2012). On the other hand, there are also two other positions which are listed under the HR, namely: Occupational Health Nurse and Pension Analyst. In addition, they fall under the HR department as far the functions are concerned. The responsibilities of the health nurse include the following.

Processing clinical records

Processing short term medical absences

Conducting medical examinations

Conducting fitness-for-duty

Processing RTW from medical absence

Conducting medical surveillance

Audiometric testing

Completing examinations

Scheduling appointments for examinations

Testing the respirator fit

On the other hand, the Pension Analyst has the following responsibilities:

Performing benefit calculations

Leading complex projects

Working closely with retirement associates in order to reach timely resolutions of participant issues.

3. Determine which HR job positions you would prefer and explain why.    

The job position which I would prefer at Ford Motor Company would be Labour relations. This is an enterprise between the management of the company and the employees’ legal support (Ulrich, 2012). The main reason as to why I prefer this job position is consequently because of its job duties, which are flexible, hence making it easier for me to work at ease, and conveniently. The duties include the following: supporting the general management in development sectors, improving and maintaining employee relationships, through bettering the communication systems in the company, processing the complaints or disputes and also construing and conveying the guidelines of the company, This job position is basically concerned with the prevention and resolution of problems which involve employees, hence affecting their work output.

In sum, I enjoy this job position, because it allows one to bring the company into order, through dealing with the issues which affect the performance of the employees (Ulrich, 2012). In addition, it makes it easier for the employees to feel free and work at ease, because their issues at work will be dealt with. Labour relations therefore allows the management of the company to not only operate well, but it also provides the management of the company with new ways of avoiding instances of affecting the work output of the employees. In so doing, the company operates smoothly, and the employees feel free while at work, without any form of fear.

4. Analyze how the selected company can establish HRM strategies to improve competitive advantages.    

Human resource strategies are supposed to impact the value of the employees in an organization, since employees are the most valuable resource which a company can have (Ulrich, 2012). Ford can therefore develop several recruiting programs, which may include workshops and job fairs, and this can only be aided by strategic planning. Similarly, the company may also set up seminars and information conference at learning institutions, aimed at recruiting students and alumni. Business can also find success through presenting small encouragements to existing working staff for referring colleges, family and friends.

5. Propose three (3) ways that the company can increase diversity.    

The company can increase diversity, through the following ways:

1. Ensuring managers throughout the company value and embrace diversity, through the decisions or the actions which they make.
2. Encouraging diversity in the company, through seminars, and also providing ways of coping with the challenges which come with diversity (Ulrich, 2012).
3. Creating an organizational culture which supports diversity and inclusivity.

These three proposals will not only allow the company to increase diversity, but they will also enable the company to deal with issues arising from diversity, hence enabling the management of the company to work at ease. In addition, they will also enable the company to focus on other factors, due to inclusivity.

Reference

Ford Motor Company. (2017). Ford Go Further. Retrieved from: http://corporate.ford.com/careers/departments.html?&ccode=US

Ulrich, D. (2012). HR from the outside in: The next era of human resources transformation. New York: McGraw-Hill.

Hotel Management in South Korea

            Background

South Korea is a nation situated in the East Asia position that occupies the Southern Region of Peninsula (Goldstone, Kauffman & Toft, 2012).  The country has a dense population which creates a wider market for the business with a populace of about 50 million persons (Goldstone, Kauffman & Toft, 2012). South Korea got into short-lived economic crisis in the late 20 the century which was contributed by its feeble banking sector organizing (BBC, 2017). However, the country rapidly experienced economic as well as monetary reforms that placed the state at better growing positions economically. This is accounted to be a financial miracle given that it is among few countries that have shifted from being receivers to givers in the last two or so decades. South Korea has become a political and economic example for the global market whose developments has played part in improving the living values among its citizens. The willingness of the country to focus on developments similarly to its surrounding counties such as Japan and China makes it suitable for hospitality and business investments (Goldstone, Kauffman & Toft, 2012).

Political

South Korean political governance is categorized under a democratic system which is comprised of three major divisions the executive, legislature, and judiciary (Goldstone, Kauffman & Toft, 2012). The president being the head of the country means that there is centralization of authority which creates political readiness for economic growth as well as strong relationships with foreign countries. South Korea has acquired political stability since it adopted democratic governance. However, some political challenges are presented by its undesirable association with North Korea. The country got into economic crisis back in 1997 but it was only for the short run which was mainly facilitated by its economic as well as monetary reforms that brought about stability the next year (BBC, 2017). With the opening of fresh markets, the state has become one of the strongest economic and technological markets globally. The democratic system makes it easier for the coordination of economic ventures. In addition, the country has authoritative political and financial support from the United States. However, despite the fact that the country has been operating under democracy for more than two decades its military still possesses huge authority (BBC, 2017).

As far as the country political influence is concerned, the country is characterized by minimal populace development which is currently leading to having a high aging populace (Goldstone, Kauffman & Toft, 2012). In addition, the country is associated with a large and skilled workforce which creates easiness in the creation and growth of its economic background. South Korea holds a raging political past that is associated with rapid government modifications, reduced political liberty and military revolutions. However, the democratic procedure was rationalized in 1986 and the president was offered utmost authority (Goldstone, Kauffman & Toft, 2012). The ability to create policies became a direct one. However, the country is characterized by utmost political violence which creates instability which is costly for the country both politically and financially. Emissions standards are currently being breached in an alarming rate which is growing into unreasonable rate despite it being a smaller part of a lesser populace when equated to other nations (Goldstone, Kauffman & Toft, 2012).

Economic

The South Korean economic state is well guarded by governing policies given that it holds authoritative economic reforms which have continuously contributed to its stable growth. The country’s dominant export industry is the major influence for its continuous growth (HaeRan & Quentin, 2012). However, despite the fact that the country is characterized by economic growth in every sector and also offers a suitable economic surrounding for investments it is currently challenged by its severe policies that govern import businesses. Such policies affect the domestic industries thus making the country uncompetitive in the global context. It is expected that South Korea will experience a noticeable growth by the end of the next year by about 2 percent (HaeRan & Quentin, 2012). The country’s major drivers of the economy are the servicing and hospitality industries. It is expected that the hospitality sector will experience a 4 percent development for the coming year (HaeRan & Quentin, 2012).

Based on the latest surveys South Korea is popular for its well established and described investment laws and adequate assistance from the government and industrial agencies in regarding starting and growing businesses (HaeRan & Quentin, 2012). This study, therefore shows that there are enormous expansion economic opportunities for running a business in South Korea based on the dense population of the country it is clear that the hostel services have expansive chances for growth. The consistent pressures in North Korea are however creating economic uncertainties for the country. This is because the nuclear ventures are classified as the utmost hazards to the country’s economy that will ultimately result in irreversible issues. Despite the fact that the latest conferences have led to improved associations amid the two countries the uncertainties with regard to the interactions are more evident than certainties. This is now characterized as a major disadvantage for the country’s economic possibilities.

South Korea’s GDP is stable given that it has experienced a 9.5 percent growth after the crisis had occurred (HaeRan & Quentin, 2012). This is mainly influenced by its monetary and economic modifications by the administration. During the modifications, most banks became state-owned which in turn created economic liberty. This form of liberalization is essential given that it is gradually assisting the country to decrease its dependence on export trade. The country has lower import levels when equated to other nations in the same region. This is mainly driven by duties, taxation as well as trading restrictions which are rather severe on imports which have led to reduced import rate. Imports are low both for the locally and globally situated firms which impacts its economic stability (HaeRan & Quentin, 2012).

Cultural

South Korea is associated with Cultural stability because it accommodates diversity and supports religious freedom. The country is associated with the utmost literacy rate globally based on its phonetic state of its written language that offered a sole language to all Koreans (HaeRan & Quentin, 2012). Koreans utilize a single language with over 70 million individuals speaking Korean in the global context (HaeRan & Quentin, 2012). Its language, grammar, and well as the wording is close that that of Japanese and the major dialect are mainly linked to the individual’s social status. The differences are mainly characterized by modernization and the growth of the industrial economy. According to Goldstone, Kauffman & Toft, (2012), 60 percent of the entire populace is said to be comprised of middle-class persons which therefore demonstrate its financial stability and extensive business opportunities. Their domestic and foreign cuisines are highly valued particularly by families and during events.

With the presence of high literacy, skills and expertise the wages rate in South Korea are higher than when equated with those from the associated nations (Kwon, 2006). However, despite its stability, the nation’s low rate of births presents challenges given that it is faced with difficulties of an aging populace. Despite the rapid growth of modernization and urbanization the government spends minimal in social benefits. The fact that individuals are paid high implies that most individuals are willing to play part in the industries and the consistent flow of labor into the economic industries works to ensure that consistent production and increased yields are generated (Kwon, 2006). This aspect is categorized as the major support for the improved living standards for the citizens as compared to other countries (HaeRan & Quentin, 2012).

Legal    

South Korean Judiciary is grounded on the American and German justice system. The system is particularly an expertise based and equally independent but it is not completely free from government control (Goldstone, Kauffman & Toft, 2012). In that, the legal systems lack jury within all the proceeding trials and cases are heard by one up to three judges. This pressure has created controversies on how the government can increase the participation of the public into the system in order to create uniformity and promote development. Being a stable country in regard to its economic status it is rather saddening that it is ranked 40th in regard to transparency which demonstrates the need for modification (Goldstone, Kauffman & Toft, 2012). The system is, however, supportive of economic growth both for the international and foreign firms. Most of its policies are supportive of business growth which is the main source of the stability that has been experienced in the recent (Goldstone, Kauffman & Toft, 2012).

Demographic

South Korea is popular for its dense population which is above ten times the international typical. Based on the increased migration level this has resulted in an economic growth positioning the country as the fifteenth globally (Sang & Boon, 2016). 70 percent of the country’s land is however not exactable based on its hilly nature and thus the populace is located in common locations leading to its dense populace location (HaeRan & Quentin, 2012). In this context, most individuals relocate to the urban regions in search of economic opportunities as well as businesses. The increased urban development has led to various issues for the county. In that there are high-rise buildings are created in the quest of alleviating the housing shortage. This has resulted in serious hardships on most individuals who are pressured to move their neighborhoods given that the rent rates are a bit higher in the created buildings (Sang & Boon, 2016). The location of industries in the urban locations has resulted in increased pollution some issues that the country is still trying to deal with today. Based on the low fertility rate, the country is associated with the highest aging population which means that the target for the young populace is minimal. This implies that for the hospitality industry the target should mainly target on the aged populace (Sang & Boon, 2016).

In summing up, in regard to international tourism development, South Korea presents fertile expansion opportunities. The government being a democratic one makes it easier to control and enhance economic development. The government offers increased support for financial growth but its political tension and poor association with North Korea continues to present challenges. The country is characterized by the highest literacy level which implies that the workforce is skilled (Sang & Boon, 2016). The political willingness for South Korea demonstrates the economic opportunities for the hospitality business. The hospitality business can acquire success because of an intense population which creates a wider market for such businesses. The supportive policies make it more suitable for businesses given that the government is willing to increase economic stability.

References

BBC. (2017). South Korea Country Profile. Retrieved from http://www.bbc.com/news/world-asia-pacific-15289563

Goldstone, J. A., Kauffman, E., & Toft, M. D. (2012). Political demography: How population changes are reshaping international security and national politics. New York: Oxford University Press.

HaeRan, S., & Quentin, S. (2012). How Culture and Economy Meet in South Korea: The Politics of Cultural Economy in Culture-led Urban Regeneration. International Journal of Urban and regional Research. DOI: 10.1111/j.1468-2427.2012.01161.x

Kwon, O. Yul. (2006). A Cultural Analysis of South Korea's Economic Prospects. Pp. 213-231. Global Economic Review. http://dx.doi.org/10.1080/12265080500117541

Sang, O.S & Boon, T.T. (2016). South Korea’s Demographic Dilemma. Retrieved from http://www.eastasiaforum.org/2016/03/25/south-koreas-demographic-dilemma/

Lean production concepts and principles

Executive summary

Implementation of lean a food production firm ensures that food products are produced with the customer in mind. The principle behind lean involves reduction or elimination of waste while at the same time maintaining value in products to meet the end customer needs. The concept applies to the entire production and supply chain process. Reductions of waste and value creation are based on quality, cost, delivery, safety, people, and environment as major Key Performance Indicators. There should be a common definition of value in the entire organization to prevent any conflict which may lead to products that do not meet the customer needs in the market. There are benefits resulting from lean adoption which will be achieved by addressing the various challenges related to resulting transformation.

Implementing lean in manufacturing industries and food processing industry

Background

 The development of lean principles and concepts of production can be traced to the comparative study in various manufacturing, especially in the automobile industry. The emergence of the thinking can specifically be traced to the Japanese manufacturers and more so the Toyota operations and initial definition focused on having a system that allows for the creation of outputs while reducing input while at the same providing more choice for consumers.  The definition had its bases on waste, which include activities that add no value for the final customer by not making the product better in terms of value. The major pillars for lean production include process management and logistics flow integration; managing employees, suppliers and teams relations; managing change from the conventional mass production (Kennedy, Plunkett, & Haider, 2013). The idea is to shift the focus from the shop floor and focusing on value and hence, extending the concept of value from manufacturing to customer needs and sources of raw materials.  Lean Enterprise concept is defined as a group of functions, people and firms that are separate in relation to legal matters but operationally synchronized (Womack & Jones, 2010). In this sense, Absolute Foods would have to move from a mere focus on shop-floor in terms of minimizing waste and cost and focus on enhancing customer value through the addition of features and doing away with wasteful activities.  Due to the benefits arising from lean as a powerful tool, whereby it has brought value creation in the manufacturing industries, its adoption has also been adopted in processing industries and even the service sector. However, the adoption of this tool in the food processing sector has not been given the right level of attention like in other conventional manufacturing industries (Kennedy, Plunkett, & Haider, 2013).

Review

Since innovation is among the major critical factors in productivity success, efforts in process innovation are being adopted by firms as a way of remaining competitive and producing value to the customers (Internationals FAIM Conference, & Azevedo, 2013).  If Absolute Foods does not institute constant improvement in the production process, it’s likely to be stuck in the old practices. Lean tools represent the various process innovations in forms that allow continuous improvement as a major cornerstone of success.  Lean processing aims at reduction of any waste in human effort and inventory, manufacturing space so as to be highly responsive to the demands of the customer and at the same time delivering products that are of high quality in an efficient manner (Panwar, Nepal, Jain, & Rathore, 2015).  The implementation of lead in food manufacturing industry has been shown to increase efficiency and hence, increased quality in the manufacturing processes and the end result is increased value for the customers (Panwar et.al 2015).  Making process innovation to be an important part of Absolute Foods and in paying more attention to research and development in these innovations will be a core strength of the company. Moreover, the firm will be able to serve its health and environmental concerns in waste reduction by ensuring that food products being launched are healthy for the environment. For success to be achieved in the adoption of the new process there has been the integration of the various critical factors in the manufacturing industry including lean team, waste management, and reduced consumption of various resources such as energy and water (Borges Lopes, Freitas, & Sousa, 2015).

The implementation of the lean tools in the food processing industry has been informed by various factors that relate to the internal and external necessities. The food business involves large logistics operations where huge there is shipping of large quantities of foods on a daily basis and this creates the needs for very reliable supply chains, while at the same time, products quality, price competitiveness is important for the purpose of success. Consumers are consistently inclined to high-quality foods products and the need for new healthy products which makes firms to launch new products on a regular basis (Womack & Jones, 2015). The need for increased sensitivity to environmental issues has shifted the focus of the whole process so that food processing firms are not only concerned with the raw materials but also the circumstances around which such raw materials are produced and introduced into the market. These factors make the whole production process to be a complex one and hence, necessitating innovations (Lehtinen & Torkko, 2005). The Absolute Foods Co. has to adopt lead tools in order to manage such a complex process that can also ensure it serves customers with high-value products and at the same time remaining true to its principles of healthy environment. The adoption of the lean tools will ensure that Absolute Foods remain on par with the entire industry as other food processing firms are moving away from the traditional concept of mass production. The implementation of these tools will have measurable benefits to firms and which are tangible any case. The elimination of excessive waste in raw materials at the mixing areas can be achieved even though such achievements may not be estimated in relation to cost saving. An improvement in the process yields can easily be achieved given that various activities that do not add value to customer products are done away with (Womack & Jones, 2010). For Absolute Foods, waste elimination will help the firm financially while at the same time bring about significant environmental benefits through reduction of carbon footprint. This kind of achievements aligns to the standards of the firm in regard to Animal Welfare Standards and environmental standards. 

 The supply chain is another critical factor in the success of firms in food processing industry and the use of lean tools to enhance the distribution process enables them to achieve the set operational standards and goals. Management of supply chain in the food processing industry has to combine efficiency and effectiveness to ensure that access to raw materials and distribution of final products for firms is not interrupted at any moment. Firms in the manufacturing sector have to balance the need for efficiency and pressures to reduce costs and at the same time manage market-driven demand for value (Christopher & Peck, 2004).  Lean tools can assist in the effective management and internal processes control by ensuring that information flow is more open within the organizations and with other organizations.  In the modern world where supply chains are lengthening in order to serve global markets and operations that spanning worldwide, lean tools assist in enhancing achievement of their set goals and objectives.

 Absolute Foods has to ensure that production and delivery of food products are done in the right quantities, places and within the right time and in a manner that is cost-effective.  Integration of the tools with their latest technology and a system that is comprehensively traceable will ensure that Absolute Foods remains true to its objective, in terms of products reaching the consumer with the highest food integrity and safety standards.  An efficient supply chain process will have to combine various elements including management of related operations, logistics aspects and even marketing with inters internal process across its various functions to achieve the desired goals (Christopher & Peck, 2004).   The purpose of such an idea is to have an improved product flow right from the raw materials production and finally to the market where processed goods where the consumer can access the product. Information communication technology is an important aspect of success in supply chain and which would enable the lean tools to be easily incorporated in the distribution of both raw materials and final products (Womack & Jones, 2010). Absolute Foods’ aim to assist the producers of raw materials and care for their welfare may need such innovations in speeding up the distribution process and ensuring that there is a reduction of time and resource wastage in the production and distribution of the raw materials.

Implications

 The lean tools adopted by firms in the food production industry have to integrate all the factors involved including a reduction in waste of time and resources, increasing product value for customers and at the same time being alive to the environmental concerns in the surrounding in which these firms operates. The major achievement of implementing lean principles is that various benefits will be achieved with minimal investments whose payback periods are shortened into a year in most cases. In this regard, an introduction of such changes can enable Absolute Foods to minimize investments in production materials such as energy while reducing wastage such as food crumb in the machines’ conveyer belt.  In addition, issues such as system congestion and which lead to time wastage can be addressed more so during peak hours and do so enhances the entire food production and processing processes.  Moreover, the implementation of the lean has implications that extend beyond the processing of food products to the sourcing of raw materials and distribution of finished products to the final consumers (Womack & Jones, 2010). Given that there is an inherent interdependence between firms and various supply chains, food processing firms face various risks including food wastage to due to expiration and other damages and these can significantly be reduced to manageable levels. The predicament of having food products not reaching the intended markets at the right time and in the right form is taken care of if lean tools are implemented throughout the entire process.

On the other hand, lean can be challenging to implement in the various organizational setting with the major issue being which tool that should be applied and when they should be applied. The implementation of lean amounts to transformational or change process and change comes with various risks that can derail the achievement of the intended results. It becomes a challenge in identifying risks while trying to match the strategy of lean systems with the operations of organizations.  Lean implementation involves reduction or even near eradication of storage time for both incoming materials and the finished products. The need to have a just- in –time system of ordering comes with the need for more coordination and corporation for various managers and this presents a challenge. It also may require more investment in employee development who will be involved in the implementation of such changes (Womack & Jones, 2010). Moreover, adoption of lean can require a large upfront technological investment and choose the right systems to match the changes may be an uphill task. The interruptions brought about by these changes may lead to increased pressure from management and customers and this may affect the implementation process (Womack & Jones, 2010). Such problems may be related a large amount of time required for the introduction and implementation of these changes and in gain the desired results.

Recommendations

Lean implementation can play a vital role in transforming Absolutes Foods achievements in terms of improved product value for consumers, financial benefits and attaining the set environmental standards. As in the case of UK industry, management of Absolute Foods should adopt strategies that will ensure reduction of waste, resource consumption and time. This involves designing mechanisms for reduction of wastages such as dripping of oil, preventing falling food crumb through the reduction of belt transfer during the processing of food products.  The management should also ensure that new machines and their parts such as belt are installed throughout the production line to reduce wastage of food products. The management should also address high cost related to utilities by ensuring that monitoring systems are installed for reviewing and measuring usage of these utilities.  The reduction of carbon waste and water loss should include placing filters and lids on cooking pans respectively.  Moreover, the staff training programs implemented while alternating employees to ensure there is no interruption of the process. Such programs should also sensitize the need to embrace change and hence, reduce time wastage. The training also aligns with new technology that requires skills, especially where new, machines are automated. The assistance of experts should be sought in choosing and implementing new technology in the production process and logistics issues.

Lean principles in MacDonald’s

Value definition involves having an end user perspective in relation to a specific product that has certain capabilities that are provided at a given price and time. In an organization various departments involved in the production line may aim at varying goals and lack of coordination between such departments may lead to products that do not serve the interest of the customer leading to waste (Womack & Jones, 1996). All the thinking in the organization should start with customer value differentiation in terms of such waste. If there is conflict in value definition by different levels of production, the value may not be specified correctly leading an end product that does not sever the interest of the customer even if it is produced in an efficient way.  To avoid such cases, MacDonald’s has placed great importance on teamwork to allow the involvement of all employees and even the suppliers in the food processing so as to enhance a lean culture. By integrating the input of all the involved parties in the process, every person is informed about the stages of operations. That way, a common definition of customer value is held at all levels so that there is no conflict of the desired product and this minimizes the chances of having products that do not serve the customer value needs.

Identification of the whole value systems for every product or family of the product in order to eliminate waste involves various critical activities upon which a value stream is made (Womack & Jones, 1996). The definition of the product, management of information for ordering and delivery taking and transformation of raw materials into final products involves these critical activities.  When these activities are identified, other processes involved in the line of production and distribution which add not value are identified and done away with.  In MacDonald’s,  there was overproduction in the preparation of food products such as sandwiches which were done in batches so as to store them in warm temperatures in warming containers. This lead to a lot of wastage which also earned the firm a bad reputation and the problem had to be solved. As such, various ingredients were kept ready and their combination was only done once a customer placed an order. This ensured that there was no wastage of such foods and even time used in the preparation process. When the various ingredients are prepared, the time taken in the process is much reduced into few minutes and this has enabled a good response to the customer demands.

Coming up with a lean strategy is an important aspect in eliminating waste especially in the value chain, where a stoppage in the forward movement will lead to the occurrence of waste.  This involves the creation of a certain value-stream that ensures that a product never stops in the line of production (Womack & Jones, 1996). In this case, every aspect of production and even delivery is totally harmonized with other aspects. The adoption of modern technology has ensured the creation of such stream in MacDonald, where a computer system relays information about an order that has been placed by a customer to individuals in the production line.  The synchronization of the system ensures that there is no wastage of time making the entire process efficient.  This also aligns with the fourth principle of making a product for a customer only when they want it. 

Pursuing perfection involves setting targets for quality and continuously removing any causes of low quality while producing a certain product (Womack & Jones, 1996). While lean techniques starting to be implemented in the value stream, it becomes clear to the people involved that the process of waste reduction does not come to an end. This means that time, cost, effort, and space reduction does not cease to be an integral part of the production process since the aim is to always offer a product that will try to meet what is needed by the customer (Womack & Jones, 1996).  In the case of MacDonald, the previously mentioned principles apply in the firm’s description of value stream that aims at waste identification and faster flow of value.  The achievement of high quality with not possible waste is the major principle of lean and it’s realistic to say that MacDonald’s has not attained that goal. Hence, the firm is always trying to improve on value and each day getting closer to offering products that will meet the customer need and desired value.

Lean is an important philosophy that focuses on the improvement of the business process especially in processing and manufacturing industry and the basis of this improvement is waste elimination and value creation (In Chiarini, In Found & In Rich, 2016). The principle of lean moves the focus away from the internal process improvement as an end and places attention to value for the end consumer. In the regard, waste reduction and elimination mean that products are produced with minimum cost possible, at the right time, quantity and quality to serve the needs of the customer. For MacDonald’s, attention is placed on the end consumer of its products and this ensure that products that serve the specific interest of its customers are produced. This means that there is an improved level of customer services which eventually leads high satisfaction and hence better performance of the firm in the market and profitability.  Organizations that have harmonized process are able to have the same definition of value along the whole line of production which helps to reduce any conflict in product specification (In Chiarini, In Found & In Rich, 2016). Hence, all efforts are directed towards a similar goal in terms of value and this means that customer needs are addressed before a product is launched into the market. Reduction or elimination of waste ensures that cost reduction in the production process is achieved and this has a direct impact on the profitability of a firm.  When value creation is the goal of a firm, attracting and maintaining customers becomes easy.

References

Kennedy, I., Plunkett, A., & Haider, J. (2013). Implementation of lean principles in a food manufacturing company. In Advances in Sustainable and Competitive Manufacturing Systems (pp. 1579-1590). Springer, Heidelberg.

Christopher, M., & Peck, H. (2004). Building the resilient supply chain. The international journal of logistics management, 15(2), 1-14.

Lehtinen, U., & Torkko, M. (2005). The Lean concept in the food industry: a case study of a contract manufacturer. Journal of Food Distribution Research, 36(3), 57.

Womack, J. P., & Jones, D. T. (2010). Lean thinking: banish waste and create wealth in your corporation. Simon and Schuster.

Internationals FAIM Conference, & Azevedo, A. (2013). Advances in sustainable and competitive manufacturing systems: 23rd International Conference on Flexible Automation and Intelligent Manufacturing. Cham: Springer. 1578- 1598

Womack, J. P., & Jones, D. T. (2015). Lean solutions: how companies and customers can create value and wealth together. Simon and Schuster. 10

Panwar, A., Nepal, B. P., Jain, R., & Rathore, A. P. S. (2015). On the adoption of lean manufacturing principles in process industries. Production Planning & Control, 26(7), 564-587.

Borges Lopes, R., Freitas, F., & Sousa, I. (2015). Application of lean manufacturing tools in the food and beverage industries. Journal of technology management & innovation, 10(3), 120-130.

Womack, J. P., & Jones, D. T. (1996). Beyond Toyota: how to root out waste and pursue perfection. Harvard business review, 74(5), 140.

In Chiarini, A., In Found, P., & In Rich, N. (2016). Understanding the lean enterprise: Strategies, methodologies, and principles for a more responsive organization. 2-3