Nutri-Nut Case Study: Executive Leadership and Management Report

This report presents a comprehensive analysis of executive leadership and management practices, focusing on the strategic positioning of a hypothetical company, Nutri-Nut, based on a given case study. The report begins with an introduction to strategic positioning and its significance, followed by an examination of the role of governance, both generically and specifically within the context of Nutri-Nut. The core of the report involves applying several strategic frameworks to assess the company's situation, including SWOT, Porter's Five Forces, PEST, VRIO, and the Balanced Scorecard. The SWOT analysis identifies internal strengths and weaknesses, as well as external opportunities and threats. Porter's Five Forces assesses the competitive landscape, while PEST analyzes the macro-economic environment. The VRIO framework evaluates the company's core competencies, and the Balanced Scorecard provides a performance management perspective. The report concludes with recommendations for strategic changes and improvements, addressing areas such as diversification, risk management, and financial sustainability, to ensure the company's future growth and development. References are included to support the analysis and findings.

EXECUTIVE LEADERSHIP AND MANAGEMENT PRACTICE

Table of Contents
1.0 Introduction.............................................................................................................3
2.0 Question 1..............................................................................................................3
2.1 Role of Governance: Generic..............................................................................3
2.1 Role of Governance: Specific..............................................................................4
3.0 Question 2..............................................................................................................6
3.1 SWOT..................................................................................................................6
3.2 Porter’s 5 Forces.................................................................................................8
3.3 PEST...................................................................................................................9
3.4 VRIO..................................................................................................................10
3.5 Balanced Score Card (BSC).............................................................................12
4.0 Recommendations................................................................................................14
4.1 Solutions or Changes 1.....................................................................................14
4.2 Solutions or Changes 2.....................................................................................14
4.3 Solutions or Changes 3.....................................................................................15
4.4 Solutions or Changes 4.....................................................................................15
5.0 Conclusion............................................................................................................15
References.................................................................................................................16
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1.0 Introduction
The assessment of strategic positioning of a business may be considered to be one
of the most significant aspects of the business studies as the process of evaluation
of such strategic positioning and planning may involve consideration of several
factors affecting the operations of the business (Pfeffer & Khan, 2018). In the present
report, a hypothetical company, based on a given case study, has been identified for
which corresponding strategic planning approach has been identified and discussed
in details in the subsequent sections of the paper.
2.0 Question 1
2.1 Role of Governance: Generic
Importance of sound corporate governance cannot be undermined in a business
context especially from the viewpoint of its long-term sustainability
Direction
The direction or the board of director is one of the most Critical Success Factors
(CSF) in successfully managing the operation of a business. An efficient board
supported by efficient leadership significantly contributes towards the success of the
business for the long term (Rothaermel, 2016). As per the concept of agency theory,
Board is generally appointed by the owner groups and therefore they act in their
fiduciary capacity and as an agent of the stockholders. Therefore, their vested
interest of should not creep up in executing strategic planning of a business and that
should be e a focal point for creating an ethical framework for a business for its long-
term sustainability by the management (Bosse & Phillips, 2016).
Risk
Risk management is extremely dependent on strong governance and the policy
manual of a business should incorporate a sound risk management approach. Within
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the policy manual, risk management strategies may need to be specified and it may
be observed that the separate risk advisory committee is required to be formed
under the regulated guidelines and directives so that the contingencies may be
avoided to smoothly run the show as well (Rothaermel, 2016).
Financial
It is known that the audit committee looks after the finalization of books of accounts
and thereby the shareholder communication and stakeholder management as well.
The financial health of a business largely depends upon strong governance as any
less informed or inefficient strategic decision may adversely affect the profitability,
liquidity and solvency of the business which, in turn, may contribute towards
subsequent risk for the business (Nor, Naimi & Ishak, 2017).
Legal
Compliance is another critical issue which needs to be addressed by the
management with utmost care and precaution. Any contravention with the
established regulatory guidelines may attract several consequences in terms of
penalties, prohibition, cancellation, withdrawal etc. On the contrary, a complaint
business enables the management to garner reputation and establish brand value in
the competitive market for the long-run (Ojo, 2016).
2.1 Role of Governance: Specific
In the case of a given company, Nutri-Nut, it may be stated that the role of
governance is extremely crucial for its future growth and sustainable development for
the long-run. The given case study shows that the company has been gradually
building up its strong foothold in the given industry and gradually the growth path of
the business has been uprising for the last few years. It is needless to mention that
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the same primary attributes to strong corporate governance prevailing within the
business.
Strategic Vision
The company is facing a competition issue in its existing market of organic skincare
product and there has been a growing demand for natural alternatives as well in the
market. In addition, large players are competing with each other to attract more
market share through aggressive marketing or differentiated products. In such a
situation, it will be wise for the management to finalize strategic vision for the firm by
way of diversification or divestment or market disruptive offering through the
introduction of some innovative technologies or services of products in the market.
Risk Management
The market is observed to be competitive and diversification will entail a subsequent
and considerable investment with corresponding regulatory bindings. Also, the
issues related to multi-channel distribution remains a cause of concern for the
company. Hence, it will be wise for the management to have a risk management
strategy especially in the backdrop of changing horizon of demand and preference of
the customers so that financial, market, regulation, operational, technological and
other risks may be avoided efficiently (El-Masry, Elbahar & AbdelFattah, 2016).
Financial Sustainability
In terms of financial sustainability, it may be observed that the management of the
company has been experiencing a growing revenue since its inception through the
growth rate has been fluctuating. Considering the present saturated situation of the
skincare market in New Zealand presently, it will be wise for the management to
have strong financial planning in place which will add value not only to the business
but also for the society as a whole. A financially sound business may provide value
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to the society including the stakeholders associated with the business in the form of
a dividend, employment and compensation, tax and compliance, asset creation etc
(Fraser & Simkins, 2016).
3.0 Question 2
3.1 SWOT
The model provides internal as well as external influencers that may affect the
company’s strategic positioning in a given market scenario (Gürel & Tat, 2017).
Strengths Weaknesses
 The company has strong top-line
and bottom-line for the last
several years as may be shown in
the given case study. The
consistent growth in the order
booking, as well as bottom-line,
establishes the fact that the cost
structure of the company has
been efficient. In addition, the
marketing strategy of the
company has also proved to be
successful in the competitive
market.
 The product offering is another
strength of the business as the
growth in organic skincare product
in the cosmetics market in the
 The use of age-old technology is
one of the weaknesses of the
company. It has been observed that
the sales growth has been declining
due to the use of old machinery and
equipment resulting in less
production and more operational
overhead.
 The financial support from banks
and financial institutions may be
found to be a bit difficult for the in
case of small-sized companies like
Nutri-Nut. This is because of the
fact that small-sized company
suffers from its inherent weakness
of being small-sized while
competing with large players in the
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country has been phenomenal
and the same may hold for the
company as well. Since the
production is being carried out
internally the risk of external
sourcing has been eliminated.
 The efficient leadership is one of
the strengths of the company
which may be corroborated from
the fact that the board of directors
has been constituted with
experienced industry
professionals with market
disruptive ideas and the
successful background for last
several years.
 Regulatory compliance and
certification including licensing
have been up to date and in line
with the pronouncements made by
the regulatory bodies. Hence, the
products and the service line do
not run any risk of non-
compliance.
market holding lion’s share of the
customer base as well as market
capitalisation (Phadermrod,
Crowder & Wills, 2019).
Opportunities Threats
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 Since the company is cash-rich as
may be observed from the given
case study, the immediate and
instant expansion may be
effectuated with the help of such
financing source internally.
 In addition, the scope of online
retailing may be well utilised in the
future by the company especially
in the backdrop of the growing e-
commerce market in the skincare
sector in the country.
 The firm’s standard market share
and considerable customer base
may enable the management to
take over few small companies in
the market for vertical as well as
horizontal integration in order to
design and develop new product
lines in the skincare products and
sunscreen products segments.
 An extremely competitive market is
one of the main threats that the
small-sized company may face in
operating in the market. Since the
majority of the market share is
being held by a few top players like
L’Oréal etc, there remains a
significant risk of cut-throat
competition and the consequent
impact on the company's sales as
well.
 Since the market doesn't have any
entry barrier as such from the
regulators, there remain a
significant threat of new entrants
with modern disruptive technology
and value of offering with add-on
services.
3.2 Porter’s 5 Forces
The model provides an overview of the competitive landscape of the company by
analysing five key forces affecting the competitive market dynamics.
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Bargaining
Power of
Suppliers
Bargaining power of suppliers is low as the company sources all
materials from its internal sources. In other words, there is no
switching cost for the company and therefore the company enjoys
the benefit of internal sourcing. However, in terms of transportation,
the company is dependent on several other vendors where the
company’s switching cost is extremely low as the country’s
transportation industry has a number of players with extreme
competition.
Bargaining
Power of
Customers
Bargaining power of the customer is high as the market is extremely
competitive with a number of competitors with their differentiated
offerings.
The threat of
New
Entrants
As stated earlier, the market does not have any entry barrier and
therefore, anyone and everyone can enter into the market. However,
there is regulatory imposition with respect to licensing of skincare
products which the small-sized companies may not be able to abide
by and hence, the threat of new entry is moderately low here.
Threat of
Substitution
The threat of substitution is also high as the number of competitors
is offering the same products through different packaging and by
way of differentiating through changing ingredients and materials
and additional services.
Completive
Rivalry
Based on aforesaid points, it may be constructed that the market is
considered to be highly competitive and therefore competitive rivalry
is on the higher side for the company in the given market.
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3.3 PEST
The macro-economic environment of the business may be analysed with reference
to the given model that identifies four major environmental determinants creating the
external landscape for business.
Political
The political environment of New Zealand has always been stable and regulators
have not been discouraging the businesses. The country is primarily based on the
tourism industry and the government is keen to provide several incentives and
relaxation schemes for hospitality, transportation and healthcare including cosmetics
and hotel and hospitality services etc.
Economical
The growth rate of the economy is considerable and stability in the economy in terms
of infrastructure, development, information technology and the international
relationship of New Zealand with other countries have made the domestic market
competitive as well as business-friendly for different corporate houses.
Social
The people in the country have sizeable disposable income at their hand which
primarily is being spent on daily care, routine expenses and towards future savings.
Most of the people of the country use cosmetics product and organic skincare
product are one of the most growing business segments within the industry. This is
because of its wide presence of market and changing landscape of demand and
preference of customers.
Technological
The country is technologically advanced and cost of new market disruptive
technology is considerably low as compared to other countries. As a result, the
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corporate houses apply the latest technology to be trending and updated with the
growth pattern of the industry in terms of telecommunication, transportation,
infrastructure, operation and related facilities (Huang, 2019, December).
3.4 VRIO
The core competence of a business with respect to the strategic planning proposition
may be critically evaluated through the given framework as below:
Value Rarity Imitability Organised
The newly
introduced product
should be valuable
in the market and
the management
should consider
such value as the
Unique Selling
Proposition (USP)
of the product
since the market is
competitive with a
lot of differentiated
product (Donovan,
Castka & Hanna,
2017). Introduction
of new product line
in skincare product
The product may
not be considered
to be rare as large
players have
already been in
the production and
distribution of such
products at a
competitive price.
However, the
growth trajectory
of the company
along with the low
loan burden and
huge cash position
of the firm will help
the management
to penetrate the
Imitability of the
product is existent
as the new product
may be imitable.
However, the
company will
promote its
product to be
certified and
licensed and 100%
organic which
cannot be imitable
quickly in the
market even by
the large players.
The product will be
more organised
and the company
will be having an
efficient Board with
the satisfied
customer base
and considerable
liquidity and
bottom-line
position
comprising or
situations it may
be stated that the
new product lines
and offerings may
have considerable
scope to disrupt
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may not be
considered to be
challenging;
however, the
licensing and
certification will
add more value to
their offering as
compared to other
small-sized
players in the
market.
competitive market
and get stabilized
through consistent
persuasion among
online and offline
channels and
various other
distribution
platforms.
the market with
their features and
value offering
supported by
consistent and
monitored publicity
and marketing
program through
multi-channel
distribution.
3.5 Balanced Score Card (BSC)
The balanced scorecard is another useful measure to help the management for the
strategic planning process. As per the given model, no single or specific approach is
sufficient to provide a long-term strategic direction to the management and therefore,
balanced scorecard (BSC) so developed encompasses four diverse business
operational aspects which are discussed below:
Financial Customer Internal Process Learning & Growth
First of all, the
company should
focus on the
financial aspect
of the operation
and it has been
Customer
satisfaction is a
crucial factor for
business and
history shows
that the company
The internal
process should be
streamlined for the
production of the
existing product as
well as a new
Learning and growth
is another critical
aspect for the
business where
employees will need
to be motivated for
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observed that the
profitability
position of the
company has
been fairly
strong. Post
investment in the
year 2017 the
company has
been consistently
experiencing
growth in its
customer base
and consequently
bottom line of the
business as well.
Maintaining such
a growth rate in
subsequent years
should be a key
target for the
management.
Also,
benchmarking
with competitors
has a sizable
base of satisfied
customers.
However, there
remains a risk of
customer
complain due to
improper delivery
of perished
product on
account of
delayed
transportation
and hence the
corresponding
risk should be
mitigated through
buying the
transportation
facility internally
(Channon &
Jalland, 2016).
Effort should also
be made towards
identifying and
product line. In the
case of existing
products, the
business should
consider loading
and unloading
within the factory
site as the owned
transportation
facility will
subsequently be
used to deliver the
product from
factory to
customer’s
doorstep. Effort
should be made to
identify any lead
time associated
with the production
of a new product
line so that online
delivery may be
made possible
once the
their work and
contribution to the
business. In
addition, leadership
will be fully utilised
to the extent in line
with the broader
corporate goals and
value system of the
company. The
management should
also focus on
employee attrition to
identify the
performance issue
or the compensation
issue or any other
matters that may
trigger consequent
dissatisfaction and
De-motivation
among the
employees including
the board as well.
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should be
prepared for
future capital-
intensive
investment
projects
(Albrecht, 2017).
In such a case, a
minimum growth
rate of 6% should
be ensured.
tracking customer
complaint through
an online portal.
The new product
line will be
created and only
channelized
through an E-
Commerce
platform. For the
purpose, low-cost
machine learning
technology may
be used to
provide
recommendation
service to the
customers to
enhance
shopping
experience online
and provide
value-adding
service to the
customers.
requisition comes
in through online
order booking.
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4.0 Recommendations
Based on the aforesaid discussion and critical evaluation four different changes have
been identified for the company which the management should implement to attain
long term sustainability in the industry these points are mentioned as below:
4.1 Solutions or Changes 1
The company should introduce a new product line through the production of
sunscreen and anti-ageing products.
4.2 Solutions or Changes 2
The company should diversify the distribution channel by entering into e-commerce
segment and market their products through an online platform.
4.3 Solutions or Changes 3
The company should adopt low-cost machine learning-enabled with artificial
intelligence technology for providing recommendation service to the customers
shopping online.
4.4 Solutions or Changes 4
The company should invest in buying own fleet and transportation facility internally
so that the dependence on external or hired transporters reduce and risk of improper
delivery also gets minimised.
5.0 Conclusion
Based on the aforesaid analysis and critical appraisal of the given scenario, it may
be observed that the company has been performing extremely well in the given
industry segment for the last several years. A recent change in the market dynamics
has paved the way to innovate new product on the part of the company to be able to
stay within the competitive market and hence, several strategic approaches have
been identified for the firm. These options or the changes have been identified and
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analysed against the theoretical backdrop of relevant framework or model. Finally, it
may be concluded that well-designed strategic planning supported by the efficient
leadership and corporate governance will considerably enable the company to
achieve its long-term goal of sustainability in the most time and cost-efficient manner
(Bhandari, Thapa & France, 2018).
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