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c) Strong Supply Chain Operations- Nestle group beliefs in uplifting new developments
at local level, includes technology and is rising the demand of raw materials for its
products. This makes group to attain continuous increase in efficiency of operations.
d) Fast Innovation- Increase in technology across all platforms and new innovations are
helping nestle to innovate faster and grow quickly and collaborations with local
companies helps nestle to understand local demands and innovate according to them.
Weaknesses:
a) Problem in product marketing- Nestle has faced problem for not correctly strategizing
and marketing the product. They have faced criticism for such products all over the
country. Example is breastfeeding baby formula, Nestle’s improper advertisement has led
uneducated people feed baby milk using dirty water which result to severe sickness
among many children.
b) Sustainability- It will help to decrease cost and gain efficiency and make proper utilize
of labor. Local incorporation will help to ease operation and reduce cost.
c) Diversifying its product portfolios- Nestle can introduce the products other than food
and beverages in market. Integration through strategic alliances can assist in diversifying
the business.
Threats
a) Climate Impact- Change in climate can affect raw materials i.e., crops for coffee,
wheat etc. which may affect nestle.
c) Product quality and safety- It may affect consumer trust. The example in Maggi,
that failed the laboratory test and lost the heavy share in market.
Nestle is a vast group and know its core strengths and focuses on opportunities to increase
market whereas it also keeps an eye on weaknesses and threats to rule the market.
2. JIT (Just in Time) and lean production are most often used methods to systemize profitability
and regulate production. They differ but are share same concepts in terms of their
implementation for automobile industries. JIT is for the production regulation and lean
production for regulating production to increase worth for consumer. MG motors can use
both the system to decrease waste and gain worth production for consumers.
The JIT method is a process flow aims for decreasing flow running time and price within
manufacturing and materials distribution. The main purpose of JIT is zero inventory for the
industry and its chain. The MG motors can apply it as they can order parts when a new car is
demanded, and engagement of staff can streamline the process.
Implementation of JIT
Make a sustainable work plan.
Create durable consumer-supplier relationship.
Make a purchasing ideology in support of continuous small purchase.
Employee discipline is must.
Recognize value and non-value-added goods in shop floor business.
Advantages of JIT
JIT can be used in wide different business regions such as HR, supply chain, accounting,
relationship, and operations management.
JIT can attain best quality of products by discarding waste products.
JIT can decrease price of inventory.
Disadvantages of JIT
JIT does not function good enough with immediate changes of supply and demand.
Implementation of JIT can be difficult and time-taking.
Lean Production
Lean production is the method that mainly keep an eye on discarding waste, where waste is
something which doesn’t have value for consumer. Lean focuses on the root cause of waste
not on workarounds. Using the methodology MG motors can eliminate waste product from
manufacture which may result in cast deduction. Lean majorly describes waste as of seven
types.
i. Overproduction: When production is more than demand it is stated as overproduction.
Tools that can be used to determine are Kanban, SMED and Takt.
ii. Defects: The price of production which have defect and expenditure to monitor or
maintain that defect is termed as waste for defects. Tools we can use are Poka Yoke,
Jidoka and Kaizen.
iii. Waiting: Production interference or waiting time before jumping to next step of the
process is termed as waiting. Tools used are Heijunka and work standards.
iv. Motion: When individual movement is important for their contribution in manufacturing
process. E.g., Movement of pieces from remote bin to machine.
v. Inventory: Stock of work in progress goods and finished goods are not being processes.
Logic of Just in time can be implemented
vi. Transport: Extravagant travel of finished or work in progress goods and materials. Tools
are value stream mapping.
vii. Over Processing: Refining to reimburse for poor product processing and poor design.
Benefits of lean Production
Better delivery to meet commitments.
Better quality
Better consumer service and satisfaction.
Easy process for production and easy product management.
Decreased defects.
Decreased resource consumption
Improved efficiency
3) A) Lemon tree Hotels are the India’s largest mid- priced chain of hotels and have different
brands and different types of hotels according to price. They have suffered a huge loss due to
Covid-19 pandemic.
Political Forces- Political forces that effect Lemon tree chains are lockdown nationwide as
people were not travelling, and government restrictions such as hotels should not be
overcrowded so hotels have permission for only few numbers of guest and need to maintain
social distancing and restaurants services were not allowed. Proper sanitization and
ventilation services should be provided to customers.
Economic Forces- Economic forced that effect Lemon tree chains are due to pandemic the
customers decreased, and due to few/low guest the profit and benefits of business have fall
exceptionally high and due to this they must lay off some workers as business was getting in
loss and it was not possible for them to afford all employment cost and due to lay off the
workers were reducing which result in slow services. As restaurants were closed it leads to
more loss and sanitization and Covid-19 precautions has increased the cost and the worker’s
load.
Social Forces- Social forces that effect as due to lockdown travelling was not happening
which reduce the outstation guests and the fear of many individuals of contracting the virus.
Individuals do not prefer to visit hotels because multiple people visit to hotels from different
places which may increase the risk of infection and some individuals consider hotels as
hotspot for viruses and to cover loss hotels also have increased the prices which is also a
reason for people for less bookings.
They should implement a business continuity plan, taking care of legal and law and
issues that are set below.
Monitors development and take advice with legal oversight or senior manager,
Lemon tree hotel will need to manage the health and safety duties and care or good faith
hold to employees. Monitor local government and WHO advice and suggest staff to not
to travel in contagious area to prevent spread of infection
Bring policies to limit business travel, especially in high-risk areas and found digital
mode for communication
Self-isolation of staff should be included, and the policies should be establishing if any
employee felt unwell or symptoms should inform.
Provide staff equipment’s to sanitize hands. Protective masks, shield and if possible, PPE
kit for the safety.
The Hotel management should have to consider potential implications for supply chain and
customers. Covid-19 will affect ability to show their contractual obligations.
Event of Default, Force major and frustration, change in law, Suspension of performance,
Mitigations, payments, undertakings are some of the hurdles which may have to be solved for
smooth functioning in Covid-19.