Executive Leadership and Management Practise Assignment 2022

Running head: EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 1
EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE
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Words: 3000
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EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 2
Introduction
Nutri-nut Skin Care, founded in 2002 by Tracey Newman in New Zealand is a
range of organic skincare products based on the macadamia nut oil and other organic
elements like argan oil, green tea, rooibos extract and manuka honey. The company
witnessed unprecedented growth in the beginning; however, the issue of sustainability
was a matter of concern for the business. In addition to this, the certification process for
organic products in New Zealand is a huge problem. This problem arises due to a
variety of standards and labels of certification that are applicable in various countries
and products. The organic products in New Zealand get its certification from the New
Zealand Certified Organics (NZCO), or Organic Food Chain (OFC) or The National
Association for Sustainable Agriculture, New Zealand (NASSNZ) and each product
bearing logos from such organization exhibits its compliance with the national standard
set for the products. The standards set by such bodies are quite stringent, making it
increasingly difficult for the manufacturers to obtain certified raw materials (Home,
Bouagnimbeck, Ugas, Arbenz & Stolze, 2017). Furthermore, the certification process is
laborious, and the certifying organizations often ask for a percentage from the
company's turnover, which in turn lead to higher cost for consumers. The rooibos, one
of the chief components of Nutri-Nut products, is produced in the Cederberg region of
South Africa. However, the problems faced by South Africa in the production process or
complications related to its shipping and the weak South African currency significantly
hampers the production of the products.
With the gradual progression of the business, the distribution became a matter of
concern with buyers spread all over the country. The products being organic it had
limited shelf life of the formulation being heat-sensitive required temperature-controlled
vehicles. The distribution of such products timely at its best condition was a potential
threat to the business. The downturn in the sales is also a concerning factor for Nutri-
Nut with the gradual rise in production cost and lack of proper transportation. In addition
to this, foreign products supported by multinational companies make it even more
difficult for smaller companies like Nutri-Nut to endure the growing competition.

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Summary statement
It can be stated that the risk of sustainability for Nutri-nut products is a matter of
enormous concern for the company. Other factors like the laborious process of
certification, hindrance in obtaining raw materials, complications in the shipping process
and the increasing competition from international brands are the key issues faced by the
company. Corporate Governance is the set of principles, system and procedures which
helps the company to set the way company is governed. The company faced a high
growth in the beginning of their business, however, the growth was not sustainable.
After the implementation of the Corporate Governance the company was able to
achieve a high growth and it has also been observed that the investor of the company
has increased.

EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 4
Part A
1. Role of governance
Role of governance in direction, risk, financial and legal
The process of identification, assessment, and control of threats in an
organization is termed to be risk management. The risk in any organization ranges from
financial uncertainty, errors in strategic management, legal liabilities, natural disasters,
among others that have a severe impact on the capital and earnings of the organization
(Nollet, Filis & Mitrokostas, 2016). Financial uncertainty can be overcome by corporate
Governance because it helps in lowering the capital cost, at the same time, it also helps
to have a positive impact from the share price. As the system helps to increase the
number of investor, it reduces the finical uncertainty in the long run.
The company Nutri-nut is also exposed to certain threats and opting for the appropriate
risk management strategies is a top priority. Certain risk management standards are
designed to aid organizations to identify threats and implement ways to reduce such
threats (Bajo Davó, Martín Martínez & Rodríguez-Carrasco, 2019). The risk
management process followed by Nutri-nut involves risk identification, risk analysis, risk
assessment and evaluation, risk mitigation and risk monitoring. The completion of the
identification of risk is followed by the approaches undertaken by Nutri-Nut for the
management of such risks. They are risk avoidance, risk reduction, risk sharing and risk
retaining.
Furthermore, the codes and principles developed by corporate governance vary
from one country to another issued from corporations, investors, the association of
directors, stock exchanges receiving support from governmental or international
organizations is vital in directing and controlling organizations (Ouedraogo, 2017). They
are responsible for the enforcement of policies that facilitate the operation of the
company effectively. The role of the board of directors and legal teams are also crucial
in managing certain inefficiencies in an organization. The governance safeguards the
company from risks and constitutes business ethics and practices. The board of

EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 5
directors are entrusted with a host of responsibilities as well, which includes the legal
role, risk management, among others (Cohen, Krishnamoorthy & Wright, 2017).
1.1 Mitigation of risks of a disrupted South African supply source
Rooibos extract is one of the chief components of the Nutri-Nut products sourced
from the Cederberg region in South Africa. However, due to issues in the production
process and shipping, the production of the Nutri-Nut products gets significantly
hampered. The constant supply source is vital for the complete functionality of a
business, and effective governance is the key to achieving optimum results (Davies,
2016). The mitigation of such risks can be done by evaluating and identifying the
intensity of risk and its potential in disrupting the supply chain. The second step is
estimating the financial implication of such risks and develop contingency plans to cope
with high impact risks.
Moreover, the company then undertakes the assessment and evaluation of such
risks based on the occurrence and its overall impact. The decision of the company is to
take such risks is based on the risk appetite (Shields, Bain, Cronk, Wright & Bartram,
2015). The role of credit insurance is also an essential factor in the supply chain. Credit
insurance contributes to the working capital, and it can protect certain financial options.
Furthermore, the preparation of the company by identifying the risk scenarios and
preparing for any disruption could be the ways to mitigate and safeguard the company
from the risk of supply chain disruption (Formentini & Taticchi, 2016).
1.2 Maintenance of organic certification
With the gradual increase in understanding among the consumers regarding the
products, a lot of research is involved before its consumption. So, the consumers value
such brands that have been certified by an authorized body of certification (Arndt et al.,
2016). The certification process in New Zealand requires a considerable amount of
time, and several brands are not organically certified and therefore contain both the
certified ingredients and naturally derived ingredients. It further includes the company to
provide a certain percentage of the turnover to the certifying bodies. This increase in
cost results in the cost being carried over to the products resulting in the increased cost
for the consumers (Manzaneque, Priego & Merino, 2016). The organic certification and

EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 6
its maintenance are crucial as it makes people aware of the organic ingredients used in
the process of making the products and make the brand gain a competitive advantage.
In addition to this, consumers value the products that meet the stringent standard of
organic certification.
Additionally, the maintenance of the organic certification is crucial in
safeguarding the interest of the people and the environment as well. The organic
certification is important with a view to understanding the role of natural and organic
substances for the development of products and for sustainable growth (McKenzie, Law
Chapple, Sinnewe & Osborne, 2019). The certification of the products is also crucial as
it sets high standards for natural and organic cosmetics which are safe to use. The
certification act as a seal of approval which represents that the products passed a
series of qualification procedures and therefore is more acceptable to the customers.
1.3 Growth of business sales
The growth of sales in business is dependent on several factors. Such factors
may include the content audit, creation of packages and deals, use of social media as a
potential tool among others (Wilbanks, Hermanson & Sharma, 2017). The growth of
business sales generates profits and thereby increase the valuation of the company
(Rodriguez-Fernandez, 2016). This valuation is vital in determining the ability of the
company in making chief financial decisions. The growth in business determines the
strength of customers which is the principal determining factor of any business.
Furthermore, the increase in sales inadvertently reflects on the retention of the
employees. With the rise in media coverage of the presence of toxic chemicals in
cosmetics and skin care, organic beauty has gained popularity on a large scale among
the consumers.
Strategic vision
Research dealing with global sustainable products stated that organic products have a
2% share in the market globally. The company Nutri-Nut shows the total sales
prediction of $1071000 from $848780 with the increase in growth rate from 6.5% to
7.5%. It has also been suggested that the capital investment in the company would
boost further sales and generate profit eventually. Further, the development of

EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 7
sunscreen and anti-ageing products with the current range of products will enhance the
sales of the products. The executive team that includes the marketing designer,
production manager, research and product development head were instrumental in
strengthening the governance of the company and presenting a strategic vision for the
growth and sustainability (Müller, 2017).

EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 8
2. Strategic planning
2.1 Strategic directions for Nutri-Nut
2.1.1 SWOT analysis
Strength
In respect of swot analysis, the strength describes the activities of an organization
related with the consumer base, strong brand, unique technology and other activities. In
addition, the positive attributes of an organization are presented by the introduction of
strength. For example, Nutri-Nut gains several positive attitudes from the target market
thereby selling multiple amount of skincare production in target market. Nutri-Nut Ltd. is
rapidly growing as a leading skincare production company in New Zealand. Tracey
invested a considerable amount of capital in expanding the business, and now the
company sells its products through several departmental stores, retail stores, beauty
salons as well as spas. She also strategically invested on Newman's farm to upgrade
the production system with advanced technology. The laboratory was also improved
(Formentini & Taticchi, 2016).
Weakness
The weakness describes about several negative factors inside the business that can
create several disadvantages in competitive market. An organization should focus on
such areas in order to remove the complexities. The chosen organization focus on
mitigating several internal negative factors such as transport issue and delivery problem
issue in order to develop in target market thereby gaining the competitive advantages.
Opportunity
The external attractive factors inside a business is described by the opportunities. The
association of opportunities intend to enhance the effectiveness of the organization in
target market. Strategic direction is the process in which actions are implemented to
achieve the aims regarding the organization's strategy. The selected organization
utilizes a statement of vision in order to determine the location where the organization
intends to be in.
Threat

EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 9
Several external factors in an organization is related with the factor. The association of
threats can decrease the value of the business. In this aspect the organization focus on
developing the business thereby controlling the factors associated with threat. In
respect of Nutri-Nut the targeted external problems such as sustainability issues are
faced. In this aspect the authority focuses on resolving the issues thereby relating
growth strategies.
This is a process for the organization to set the direction in which the
organization intends to expand in the market (Peng, 2017). Strategic direction consists
of the plans as well as strategies that the organization implements for the future
development of the organization. It is a significant part of the corporate vision. As a
company grows, its strategic measures grow accordingly. The organizations need to
follow a proper strategic direction to fulfil their vision (Cuneo, Milberg, Alarcon-del-Amo
& Lopez-Belbeze, 2019). Quality objectives need better strategies for improvement in
the future.
Every company needs a proper future vision which can be met by the
implementation of these strategies (Zhu et al., 2019). This includes a set of norms and
initial ideas that provide stability in terms of strategy implementation. As a startup
business, Nutri-Nut Ltd. began with minimal resources. Tracey, the owner of the
company, implemented strategies regarding production, marketing and distribution.
However, as their business flourished, they Tracy and her husband realized the need to
execute better marketing and delivery strategies to meet the increasing demands.
Tracey thought of certain measures for further expansion of Nutri-Nut Ltd. the basic
strategic directions that Tracey thought of are discussed below.
Positive feedback: A significant part of Tracey’s business strategy was to maintain
good communication with customers while retaining the good quality of products.
Hence, the positive feedback from customers through online as well as offline modes
have added to the expansion of the company. The development of the communication
with the consumer is associated with the growth strategy.
Hiring employees: As the Chief Executive Officer of Nutri-Nut Ltd. Tracey realized the
need to hire more employees to meet the growing requirements of the company. Thus,
she recruited Wendy as the marketing manager, Troy Woods as the production

EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 10
manager and Julian Brown as the head of research and product development functions.
Tracey herself picked the members based on their experiences in the industry. She also
hired more workers and an office assistant to help in the administration. Recruiting
workforce is a strategy that hints at the progress of Nutri-Nut Ltd. as a company
(McKenzie, Law Chapple, Sinnewe & Osborne, 2019). The association of skilled
employees helps the authority to maintain the sustainability.
Governance: Tracy’s role as a member of the board of directors also helped in the
growth of the company as envisioned by Tracey.
Quality of products: Nutri-Nut Ltd. manufactures organic products only. Also, the
ingredients of the products are organic. Tracey ensures that the quality of products
remain intact so that it would help in the future development of the company.
Marketing: The marketing manager Wendy implemented effective marketing policies
for the progress of the company. Despite high competition in the global market, Nutri-
Nut Ltd. has been able to hold its place due to the strategic implementation of
promotional activities.
3. Recommendations
In spite of the rapid growth of Nutri-Nut Ltd., it is facing specific issues due to the
continuously expanding market. As a small business, Nutri-Nut Ltd. needs to hold their
position in the market. Certain strategies might help to earn more profit from the market
and expand the company according to Tracey's vision. Tracey needs to review her
marketing and promotional policy and follow specific guidelines to sustain her business.
These strategies are discussed below.
Exploring new fields: Although the board of directors think that Nutri-Nut Ltd. has the
potential to grow in the future, they believe that the company should venture into some
new directions and explore greater possibilities. This strategy has to be implemented
soon as the number of customers is decreasing recently. Here, the vision is to sell
existing products as well as services to new customers who belongs from different
locations or different niche markets (Home, Bouagnimbeck, Ugas, Arbenz & Stolze,
2017).
Transport issues: Initially, all the products were delivered by Tracey's husband, Bob.
But with the development of the business, the size of orders increased, and the

EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 11
geographic location expanded for the company. Now the distribution of products has
become an issue. To solve this problem, Tracey should invest in faster delivery service
options or join hands with e-commerce platforms.
The shelf life of the products: As the skincare range produced by Nutri-Nut Ltd. is
organic, their products have a very low shelf life, and the delivery of one expired product
can have negative consequences. This problem can be handled by using temperature-
controlled vehicles which can deliver the products in a more fast and efficient manner.
Budget management: According to the board of directors, capital investment is
required for Nutri-Nut Ltd. to expand it further. A proper budget should be allocated for
the company. This would lead the company to gain more profits in the future
(Rodriguez-Fernandez, 2016).
Product development: According to the research and development specialist Julian, a
line of sunscreen and anti-ageing products should be developed which would
correspond to their already existing range of products. This would reach to people of all
ages, which will help in the development of the company. The company should conduct
a detailed market analysis so that they can introduce a new line of products according
to customer demands (Müller, 2017).
E-commerce: Wendy proposed the implementation of online selling of products through
e-commerce channels so that they can attract a more extensive customer base. The
internet is the best possible platform to transform a small business into a large
company.
Marketing and promotion: In the age of globalization, Nutri-Nut Ltd. needs proper
exposure through marketing campaigns. For this, it can use social media and
advertising as well as a firm strategy regarding promotion of their products. This will
enhance the business in future (Müller, 2017).

EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 12
Part B
Mini summary
The case study focuses on the company Nutri-Nut and its discussion on various
aspects of executive leadership and management practice. The study find outs the key
issues that are faced by the company are its lack of sustainability in the market. The
study also focuses on exploring several new fields in order to enhance the greater
possibility in target market. In addition to this, the certification of such products involves
a lot of complications owing to its variety of standards and labels of certification. The
availability of one of the chief components which constitutes the base for the products
named rooibos is produced in South Africa, and its availability also poses a problem for
the company due to complications in the production and shipping methods. The
distribution of the finished goods all over the country owing to its heat-sensitive
formulation is a matter of concern for the company as delay in delivery may lead to the
product getting spoilt and affecting the business to a large extent. The foreign products
are uialso a potential threat to organic products as that of Nutri-Nut as big multinational
companies often support the promotion of such products.
The study goes on to discuss the role of governance in identifying, assessing,
and preventing threats. It is also important in directing and controlling the overall
functions of the organizations and safeguarding the interests of the organization and
taking care of all the legal and financial matters. The company Nutri-Nut has adopted
the methods of assessment and evaluation while dealing with the risks associated with
the disruption of the supply source and thereby mitigate it. The study has also shed light
on the process of acquiring an organic certification of the products and the relevance
associated with it in terms of influencing the customers and the implications related to
natural sustainability. The company's growth in business sales due to the effective
management of the executive team responsible for taking vital decisions. Besides, the
development of the new products like sunscreen and anti-ageing products are some of
the strategies proposed to the company to boost its business sales.
The company Nutri-Nut has adopted specific strategies to achieve the goals of
the company. The company has to focused on the investment of the substantial

EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 13
amount of capital, garnering positive feedback from the customers, hiring and retention
of employees, strong governance, ensuring products of superior quality and effective
marketing strategy to maintain a stronghold in the market. Apart from that the
organization is adviced to develop the transport facilities in order to fulfill the consumer
demand. Despite keeping a firm hold in the domestic and international market, there are
specific issues that the company has been facing, and therefore recommendations have
been suggested like budget management, use of e-commerce among others to cope
with such issues and facilitate the further growth of the company. Appling these
strategies would not only help them to sustain their business but also will help them to
attract a lot of customers in the industry.

EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 14
Conclusion
From the above study, it can be concluded that the role of governance is crucial
for the company Nutri-Nut and its role in organizational performance. It discusses the
role of governance in mitigating the risks of disrupted supply source, maintenance of
organic certification and the growth of business sales. The company mitigates the
potential risks causing factors by identifying them at an early stage and develop
contingency plans to combat such risks. The role of credit insurance is also an essential
factor in the smooth running of a supply chain. The study has emphasized the role of
the company in maintaining organic certification and the importance associated with it.
The study focused on the role of the certification and its impact on the buyers.
It has further highlighted on the standard set for the natural and organic products
and the certification which acts as a seal of approval as it is based on certain stringent
grounds. The growth of business sales, following numerous strategies to reach its
predicted target of procuring sales of $ 1071000 in 2020 from $848780 in 2018, has
been done. The company, however, has certain issues like the lengthy process of
certification, the problem in obtaining raw materials and shipping processes, the
increasing competition faced by several international brands. Several methods for its
mitigation like exploring new sectors, development of e-commerce, increased emphasis
on marketing and promotion among others have been suggested in the study.

EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE 15
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