Essay Sample on NH Foods Company

Paper Type:  Essay
Pages:  7
Wordcount:  1876 Words
Date:  2022-12-21


NH Foods Company is a food processing company that sells food products. The headquarter of the company is located in Hommachi, Japan. It was established in 1949 as a small food processing company known as Nippon Ham. However, in 1945, the company was destroyed by fire after war evokes, but in 1948, it was rebuilt. At first, the main activities in the company were meat parking and value addition of foods. Due to high-quality services, the company managed to move to other countries around the world such as China and the United States. The company started overseas operations in 1977 in Los Angeles, USA. In 1981, the company started the marine food production. Marine food production helped the company to sell seafood in various parts of the world. As a way of enhancing its services, the company established a research and development center which could help the company to improve the production process. In 1968, the company established a farm which increased the supply of raw materials for processing. In the farm, broilers and pigs were first produced in large number. This establishment enhanced the growth of the company because of enough supply of raw materials. Currently, NH Food Company operates under four business segments. Processing segment is the largest of all. The segment entails the production and sells of hams, sausages, and other materials. The meat segment involves people who engage in the breeding of pigs, cattle, and other meat products. Additionally, the segment engages the processing and selling of these meat products. The Associated Company segment is the third section which engages in the production and sales of dairy and aquatic materials (Amoako-Gyampah, 2019). Finally, the Overseas segment which deals with the management of all activities such as movement of products which are taking place overseas.

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Strategic Posture

The organization is inspired to produce the best 'Joy of eating' food materials in the world. In various parts of the world, people are inspired to consume products which best meet their needs. Therefore, making food so delicious is a key concept that the organization uses to attract more customers. The mission of the organization is to ensure high-quality products which serve all customers' needs. Quality is a key factor that helps to maintain and attract customers. If a product is of high quality, there is a high tendency that customers will continue using it. In food production maintaining health products is another essential factor that helps to maintain customers. Due to an increase in problems associated with food production, people are looking for products which will maintain a healthy life. The objectives of the organization are grounded on 'joy eating' and society needs. This helps the organization to create an environment where employees are happy with their working conditions. The culture of the organization is developed on the need of both society and employees. The culture has helped the organization to make safe, secure and high-quality food materials. The management believes that customers are influenced by how a party creates secure and stable food materials. This mission has helped the organization to create a competitive advantage from other competitors. As such, it has become the leading food producers and distributor in the world.

Satisfying customers' needs is an essential mission of organizations. As such, the current porter's generic strategy is the cost focus. NH Food Company believes that cost is a key factor that influences the demand and supply rate. Application of business level strategies helps to understand the value of customers during production and distribution. As such, an organization gains a competitive advantage so as to explore the market fully. Business-level strategies are essential as it illustrates the level that an organization is operating in the market. NH Food Company is a world-leading food processor organization. The company is ranked due to the effective application of business-level strategies. This is done by adopting a number of goods which are associated with unique food products. Price is a key factor that influences how the success of the business-level strategy. Due to the average price of products the organization has maintained tight control of the market. Furthermore, some of the products are produced unique so as to give customers an alternative choice. Continuous use of the same products create customers' monotony, and thus, a large number of them may shift to other product. It is the mission of the organization to produce products which serve customers' need. This could be done by creating competitive advantage from other companies that are offering the same products.


For several years, the organization has been conducting environment audit. This has been a key way that the organization uses to improve its working conditions. In an internal environment, the management always learns about new ways which can be used to improve the relationship with workers. This is an important way that the organization uses to improve the quality of products. External environment plays a vital role in the success and growth of the organization. NH Food Company maintains socio-cultural and tasks environment as a way of improving the external environment.


Sociocultural factors entail the application of social and cultural factors in the production, distribution, and sales of products. Every community has a specific believes which influence them on the kind of products their buys. Therefore, customers may have different attitudes toward certain products, and thus, affecting how their sale. Technology development has changed how people operate and their eating habit. Changing of eating habit has helped people to adopt and accept products which are sold by the organization. Most of these products are integrated with other essential component making a product so important for people health. Additionally, political factors have played a great role in shaping the external environment. The political system introduces new rules which shape the kind of service an organization is supposed to engage. Furthermore, political factor helps to enact rules which regulate the kind of products which are introduced in the country. For instance, most country ensures that products attain a certain standard before being introduced in the country. This has been a key way the government is regulating the kind of food products which are introduced in a country. As such, some fake products have been restricted from being introduced. Food production is a field that must ensure products are made of high quality to ensure that the health of people is maintained. Technologically, mode of production has changed, and thus, companies produce products which can stay for a long time when still safe for human consumption. This technique has helped NH Food Company to supply food in various parts of the world throughout the year.

There are a number of opportunities and threat associated with the production process. High demand rate of ready processed food has increased because it is hard to prepare a certain type of products. This has become an essential opportunity that the company takes to sell its products (Rohrbeck, and Kum, 2018). On the other hand, a large number of people have shifted to organic food. People believed that organic foods are more secure as compared to synthetic. Due to an increase in diseases associated with eating habit, a large number of people have shifted on organic products. This action has been a major threat that is affecting the growth and success of the organization. Therefore, the company is losing customers because they are shifting in products which are organically produced. Additionally, an increase in a large number of competitors has given customers a chance to shift and buy alternative products which can fulfill their need in a better way.

Task Environment

The potential of new entrants into the market is the major porter's force that is affecting the industry. Entrant is affected by the amount of time and money that cost competitors. For a company to be an effective competitor, it must engage a lot of time and money so as to create a strong base for the entrance of the market. The food industry is associated with a lot of barriers which affect the entrance of companies in the market. In order to overcome these barriers, companies are required to incur a lot of cost such as promotion cost. Due to the loss, the company may tend to hick the price of products to compensate for the lost resources. Additionally, low leader cost creates more challenges which hinder the free entrance of the market. Effective leadership system integrates cost leaders to concentrate on efficiency entrance so as to minimize the cost incurred.

The threat of substitute could be the greatest threat that NH Food Company could face. In the food processing industries, new companies are joining in the market. These companies are producing products of high quality due to their advanced technology system. Therefore, more customers will move to these products as they try to change after using the same product for many years (Ritala et al, 2018). However, the establishment of products which differ in quality and quantity from substitute creates more power, and this increases the demand and sales because of no effective substitute. These products may increase the profit rate due to their high price. Most of the food products that NH Food Company is producing do not differ so much from its competitors, and thus, the customers may intend to move to other products. This force imposes challenges on the development and growth of the company.

Internal Environment

Management is a key component in an organization which influences how an organization runs. Management drafts and leads in the achievement of organizational goals. This action is done by effective integrating of resources at all levels of management. Management must ensure optimum utilization of resources by linking physical and human resources. Effective utilization of resources helps an organization to reduce unnecessary cost and hence, the profit increase.

Board of Directors

In an organization, the board of directors is an essential factor that influences how a company is managed. An effective board of directors helps to develop effective ways which help to compete in the market. In NH Food Company, the board of director is made of twelves members. This board ensure effective decision making and reduce the opportunity of the obligation of the company. Additionally, they are responsible for monitoring how activities in the organization are exercised. The board of director is dissolved yearly. Throughout the year, the board meets several times so as to discuss how the organization is operating. This regular meeting helps the board to develop ways on how to overcome the weakness that an organization is facing during the production and sells.

Members of the board of director require high skills and knowledge level to be able to conduct their activities effective. In NH Food Company, the board of directors is associated with technical and creative skills. These skills help members to develop logical approaches when solving issues. After developing a decision, these members are supposed to communicate the idea to other members of the organization. Therefore, they have effective communication skills. Communication skills are key skills which influence how other members of the organization access information from seniors. Education and training are other essential skills that members of the board must fulfill before being awarded the position. Education skills influence how members interact and question an idea (Ansof...

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