Operationalizing & Communicating Value

OPERATIONALIZING &
COMMUNICATING VALUE

Table of Contents
Part A..........................................................................................................................................................2
Introduction.............................................................................................................................................2
Reflection................................................................................................................................................2
Conclusion...............................................................................................................................................4
References...............................................................................................................................................5
Part B...........................................................................................................................................................6
Introduction.............................................................................................................................................6
Product quality and customer review.......................................................................................................6
Improvements of product.........................................................................................................................7
Impact of the quality problem..................................................................................................................8
Challenges occur.....................................................................................................................................9
Overcome of the challenges...................................................................................................................10
Conclusion.............................................................................................................................................10
References.............................................................................................................................................11
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Part A
Introduction
The paper will reflect about the learnings concerning information about the pestle analysis of the
organization Nutricia Early Life Nutrition. Along with this I have gained knowledge regarding
the marketing analysis of the brand and the operational procedure. The readings clearly evaluates
the fact that national people congress is always elected every five years and the political decision
are taken by the communists party. The paper effectively reflects the details of the 2008 Chinese
milk scandal which encountered the death of 4 babies and more than 53000 were hospitalized. I
have gained knowledge regarding the economic facts which reveal the household income as well
as expenditure as Euromonitor 2018. Moreover, there are reflection on the part of Infant Formula
market where the market size is determined as to be 129 to 183 million. Furthermore, the porter’s
five forces critically reflects the list of the suppliers, buyers, substitutes as well as entrants that
generates great amount of impact on the execution of the business processes of he concerned
organization. The use of the market segments helps in gaining knowledge regarding the division
of the targeted audiences as well as to determine the population size. Lastly, the challenges that
faced by me during this project are also discussed in this report.
Reflection
I have gained suitable amount of knowledge on the organic baby food brand Nutricia Early Life
Nutrition. The pioneer of this brand is Dr. Jan van der Hagen and his brother Martien in 1896.
One of the theory is the market analysis and the segmentation process where the political,
economic, social, technological, legal, environment analysis is done of the selected brand. It has
been seen that in the political system National People's Congress makes the political decision by
making meetings once in years. Due to this corruption occurs at a huge rate which gives a drastic
effect on the babies. So as in 2008, 4 babies died and 53,000 babies were hospitalized and for
this new baby product name, Dumex Baby Food has been made which diminishes the baby's
death and issues. As per the view of Babich and Kouvelis, (2015) the brand has been popular in
both rural and urban areas, thus the economic growth has been increases of the product. Along
with this growth of new economic policies makes the improvement of the market growth and
uses of organic material in their product helps 75% of the Chinese mother to use this product for
their baby. The study also reflects that before 2014, less than 30% of rural women and 16% of
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the urban woman feeds their baby only by breast milk as this product has not so popular in the
market at that time and also the economic factor is one of the reasons of not using this product
(Berenguer et al., 2015). Also, the increase of birth rate makes the product to be used at a huge
rate in present days. My research work reflects that the product contains right proportion of
carbohydrates, protein, fats, mineral, and vitamins that makes a baby healthier so the product is
used in the huge amount in China. Along with this innovation of new technique for the better
growth of the product also makes the brand popular. The legal procedure also good for the
product brand and thus the growth has been increased by 7% per annum (Brown, 2016). Along
with this, I have also seen that in 2015, hundreds of workers move from agricultural land and
uses this baby product for their children. But due to the pollution rate respiratory problems in the
children occur and for this bio-friendly packaging and recyclable containers are used to decrease
the pollution rate. The supplier gives high quality of product and thus new product ideas have
generated which help the buyer to buy more product from the market and thus the growth rises to
30% in 2017 (Harvey et al., 2016). Due to this, I have also analyzed that the competition rate of
the brand has increased day-by-day of which the main competitive brand is Royal Friesland
Campina NV (Kato et al., 2015). The market analysis shows that they mainly targeted the single
parents and those families who are expecting to have a baby. The product brand increased their
market growth due to their packaging skill, organic healthy product and flavor choices that
attract the baby to eat it. Since the demand for the product in the market has been increasing and
thus the production rate also increases. To increase the market rate the operation team mainly
focuses on the flavor quality so that the best quality product has been given to the customer.
Along with the main objective of the company is to produce high-quality product with high cost
and maintaining good ingredients and thus the position of the company has increased day by day
(Ketokivi and McIntosh, 2017). Apart from this the company also maintain the needs of a
customer for their baby. For this, they maintain a good partnership with its supplier and makes
online ordering and also distribute the product into grocery shops. Hence the flexibility of
delivering the product with new flavors also increases. The main distribution of this brand is in
Beijing, China where many wholesale markets and distributors are present as since it is the most
populated country in China. Apart from this availability of the product in all local markets makes
the brand most popular in China. The use of the six sigma and the quality management theories
have evaluated the great effectiveness towards the delivering of superior quality of products. The
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implementation of six sigma critically reflects the suitability in order to integrate it with the other
management practices which will enhance the overall performance of the organization (Smith et
al., 2014). The use of the Crosby’s four absolutes is vital as they helps in defining quality, adhere
to the desired requirements, prevention is supposed as the better way, zero mistakes and the
effectiveness of measuring the appropriate quality. On the other hand, the Business Process
Mapping objectives make the performances of organizational better and improve the production
efficiency and effectiveness by providing proper equipment to the employees so that the task
should complete within that certain period of time. The main motive of the brand is digital
marketing and highlight the product in this online network so that then people get aware of this
and the market growth will thus increase (Walker et al., 2015). Along with this new market
development strategies are also made for the better growth of the firm.
Yes, there are few other theories that could have helped me in evaluating my knowledge
regarding the management procedures. One of such theory is EFQM Framework which critically
focuses of five of the crucial factors such as results, customers, consistency or visionary
leadership, processes and facts where management focuses and the training provided to the
respective employees. Moreover, this theory also focuses on continuous learnings, development
of the significant paternershps the social responsibility of the firm in enhancing the satisfaction
level of the customers. I have learned that focusing of the customer needs is crucial as this will
help in reataining the old customers as well as it will help in bringing more other customers
towards the organization which will finally increase the overall profitability and productivity of
the firm.
Challenges and difficulty faced
The use of the six sigma generates little bit of difficulty in applying and thus, there are few other
theories which can also be utilized to boost the growth of the organization. Total quality
management can be one of the best useful technique that will help in improving the overall
performance of the organization. As per Deming’s theory, TQM reflects fourteen quality points
of management which helps in evaluating the semifinal growth and performance of a concerned
firm. The challenges mainly faced by us is on finding proper data about the growth rate of the
brand in the recent years. Apart from this, the many disturbances occur in finding the proper note
about the economic factor of both the rural and urban areas. Mainly difficulties have been
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occurring on searching the future plans of this brand. The limitations of the work is that it was
executed with the help of a certain number of reliable sources, which needs to be enhanced.
Conclusion
The paper provides reflection about the marketing strategy of the organization that helps to
improve the growth of the industry in the market. Apart from this, the paper gives information
about the political, economic, social, technological and environmental factor that affects the
growth of the organization in various ways. Along with this the operation procedure, market
analysis, communicating media and the future analysis of the brand are also described in this
essay. The challenges faced by me during the research are also reflected here.
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References
Babich, V. and Kouvelis, P. eds., (2015). Call for Papers—Special Issue of Manufacturing &
Service Operations Management: Interface of Finance, Operations, and Risk
Management. Manufacturing & Service Operations Management, 17(2), pp.271-271.
Berenguer, G., Keskinocak, P., George Shanthikumar, J., Swaminathan, J.M. and Wassenhove,
L.V., (2015). Special Issue of Production and Operations Management: Not for Profit Operations
Management. Production and Operations Management, 24(1), pp.179-180.
Brown, S., (2016). Postmodern marketing: dead and buried or alive and kicking?. In The
marketing book (pp. 43-58). Routledge.
Harvey, J., Heineke, J. and Lewis, M., (2016). Editorial for Journal of Operations Management
special issue on" Professional Service Operations Management (PSOM)". Journal of Operations
Management, 42, pp.4-8.
Kato, T., Nakajima, T., Saito, T., Okitsu, J., Shiga, Y. and Miki, Y., Hitachi Ltd,
2(015). Operations management methods and devices thereof in information-processing systems.
U.S. Patent 9,128,704.
Ketokivi, M. and McIntosh, C.N., (2017). Addressing the endogeneity dilemma in operations
management research: Theoretical, empirical, and pragmatic considerations. Journal of
Operations Management, 52, pp.1-14.
Smith, L., Maull, R. and CL Ng, I., (2014). Servitization and operations management: a service
dominant-logic approach. International Journal of Operations & Production
Management, 34(2), pp.242-269.
Walker, H., Chicksand, D., Radnor, Z. and Watson, G., (2015). Theoretical perspectives in
operations management: an analysis of the literature. International Journal of Operations &
Production Management, 35(8), pp.1182-1206.
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Part B
Introduction
Quality is considered as the vital aspect which helps in evaluating the significant growth of an
organization to a large extent. The primary motive of this paper is to reflect on the strategies of
Nutricia for managing as well as improving the overall quality. The firm is executing its business
processes throughout different market segments and it becomes very important for the firm to
enhance its system processes so that the profitability can be maximized. The paper will help in
evaluating the quality of the products and the reviews provided by the customers. On the other
hand, it will also reflect upon the challenges that occur as well as will provide effective
recommendations to reduce the issues and boost the overall growth of the organization.
Product quality and customer review
The main aspects of the organization is to give the best product and service quality to the
customers. The customer are mainly aware of the product and if they does not satisfies the needs
of the customer then the market value should decreases. The company mainly deals with the
baby product for their growth and development in early life. They provide high quality product
for giving a healthy life to the children. Apart from this they also provide medical supplements
for the patients (Fortenberry and McGoldrick, 2016). They mainly invest their money to develop
technology to produce nutritional products for young children, babies and their parents across the
whole nation. The organization of this brand mainly focuses on their product quality and safety
of the product and thus they use organic supplements in their products. Since the brand deals
with baby food so they mainly takes care about quality and monitored carefully the soil in which
the food products grow (Ashley and Tuten, 2015). There are some experts those who
continuously monitored the soil quality so that no babies gets ill due to their products. For
making their brand becomes popular worldwide they conduct NutriPlanet program, where
researcher gives lectures about the diets of a mother their food habit and also interview has been
taken by the experts for understanding the pregnant women and children about their health
growth (Datta et al., 2017). This program also gives idea about the nutritional knowledge and
status by the nutrition’s experts. This function can be held on behalf of the Nutricia Company in
every nations. The data that are represented in this program are then shared through the
networking site to every community in different nations.
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The organization main motive is to give healthy products to the pregnant and lactating women,
children, and babies too. They mainly focus on the key nutrients that mainly influence the
children health. So that the customer is very fond of that brand. The organization main focus is to
compare their product with the market so they can deliver a better product for the customers.
Due to this the customer are very happy with their services as their effort of making a good
quality product is quite impressive (Katsikeas et al., 2016). The organization also supplies not
only the food products but supply medical supplements to the pregnant women. So they are rated
high by the customer of the brands and now this company has spread worldwide and their
customer rating increases day by day and hence the company growth also increases (Lamberton,
C. and Stephen, 2016). They main aim of the organization is to deliver best nutrition supply to
the mothers and the babies in whole nations. Some implications that make the customer view
difference as the newborns and their mother have different nutritional needs but the organization
supplies the same product for them and thus they give a negative view point in this case. Since
the environment is too polluted so the product quality are also advanced but the organization
does not give so much importance to this and thus it causes the negative impact on the customer
view.
Improvements of product
There needs to be engaged in the designing processes in order to deliver the best quality of the
products to the customers. The products offered to the customers' needs to be verified regarding
appropriate quality before delivering it to the customers. The products should be reformulated in
order to extend their respective tolerance with the help of Multi-Fiber mix as to reduce the
oxidative stress (Matthias et al., 2017). Moreover, it is recommended that there should effective
implementation of the innovative tools and techniques which will help in providing the desire
elevation in the execution of the business work procedures. There needs to be an implementation
of the latest systems that will help in providing medium flexibility in the development of the
respective products. One of the improvements that can be made is the enhancement of the quality
improvement techniques as well as the reduction in the respective costs associated with the
products (Spring et al., 2017). The enhancement of the techniques used in research and
development department will help in facilitating the preferred growth of the firm by enhancing
the overall performance of the firm. There exists crucial requirement to enhance the operational
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capabilities such as developing the reserve capacity as to boost the execution of the work
processes to the higher level.
There can be a utilization of the Kaizen approach which is meant for continuous improvement
concerning the small, incremental changes with the designing and the manufacturing process to
enhance the overall growth of the firm to a great extent. The development of the system
improvement process mainly consists of three crucial steps such as change resistance, proper
coupling, and model drift (McAdam et al., 2016). There exists 5S in the Kaizen process which
can be effectively utilized to boost the growth of the entire system processes. These are sort, set
in order, shine, standardize and sustain and these help in improving the overall quality of the
products concerned. The adoption of the continual improvement procedures effectively
generates great impact on the work procedures of the firm and is considered as the vital
component of the lean manufacturing (Roth et al., 2017). The primary focus of the firm should
be to implement the latest techniques with the help of which the designing and the system
manufacturing processes should be improved to a great extent.
Impact of the quality problem
The impacts of a quality problem can be measured both in terms of marketing and operations.
Operation and marketing department of a company should work together to increase the quality
of the organizational performance. The impacts of poor quality can hamper the growth of an
organization. It can result in both internal and external costs of failure for the organization.
Internal costs include rework, delays in production, failure to troubleshoot and lack flexibility
and adaptability (Devalkar et al., 2017). External costs of the organization include customer
dissatisfaction, environmental costs, loss due to a reduction of sales and ruining of the reputation
of the company. According to operations management, quality is considered to be a concept with
multiple facets and it is defined as the consistent performance of the organization to achieve
customer satisfaction (Bask et al., 2016). Profitability and productivity of the organization are
defined as the two fundamental bases of organizational performance.
Both these external and internal costs have a negative impact on the profitability of Nutricia.
Loss of customer satisfaction can result in loss of reputation of the company thus affecting both
marketing and operations department of the company (Chan et al., 2017). They must work
together to achieve total customer satisfaction as well as increase profitability of the
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organization. However, quality issues have a negative impact on both these departments of the
firm (Graham and Potter, 2015). All these functions of an organization work together to increase
the performance of the organization. However, loss of reputation can result in loss of employee
engagement within the organization further reducing the productivity of the firm. Team work
within the organization suffers a great deal due to quality problems within an organization. The
production process of the products becomes delayed which results in ruining of the goodwill of
the company. Dissatisfied customers will play a vital role in ruining the reputation of the
organization by expressing negative views about their products (Narayanan et al., 2015). They
will not be able to create a loyal base of customers in the market and thus decreasing their brand
awareness in the market. Low-quality products may force Nutricia to reject their products thus
increasing their manufacturing costs of the organization.
Challenges occur
While working together to develop better quality products for the organization, both marketing
and operations department of the organization may face some conflicts. These conflicts quality
control issues, lack of feedback and confusion regarding authority. Quality control issues consist
of problems like a gap between concept and specification, a gap between actual quality and the
perceived quality of products. Quality control issues in Nutricia can decrease the amount of
revenue and profitability of the company. They may not agree to how to tackle a specific
problem within the organization, thus reducing the productivity of the organization. Differences
in opinions between the two departments can lead to a poor quality product delivery to the
customers which can lead to customer dissatisfaction (Shepherd and Patzelt, 2017). Lack of
communication between these two departments makes the employees unable to concentrate on
their jobs, especially if one employees of one department is screaming orders at the other. These
employees may get confused if they do not know who is in charge of the whole quality control
process of the organization. Conflicts may arise regarding the strategic direction in which the
organization should be going. The marketing department may want to slow down the production
process in order to achieve better quality products, but the other department may not agree to the
slowing down of the process. This can generate unnecessary conflicts between the two
departments further slowing down their production process within the company. Team work
within these departments suffers as well as the performance of the organization.
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Overcome of the challenges
Conflicts between the two departments, marketing and operations can be solved by the
management of Nutricia in several ways. The team leaders should be able to inspire their team
members by setting an example in front of them. The team leaders should be committed towards
their work, thus encouraging their team members to be serious about their work too. The team
leaders should allow the members of this department to communicate freely so that they can be
able to provide feedback about the performance of their respective teams. The team leaders
should be able to extract the best performance from their team members (Shepherd and Patzelt,
2017). They should be able to resolve conflicts between these problems to increase the
productivity of the organization. Delegating the right task to right team members which will
increase the performance of the team.
Conclusion
This paper concludes that an organization thrives to produce best quality products and services
for their customers. Best quality products will allow the organization to develop customer loyalty
and develop the better relationship with their customers. However, conflicts between the
operation and marketing divisions of an organization may result in poor quality products
development leading to receiving negative reviews from the customer. The main purpose of
Nutricia is to develop better quality products for babies and lactating mothers. However, poor
quality products may have a negative impact on the business performance of the organization.
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References
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