Resource Integration Management At NANDOs

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Question :


1. Choose a New Zealand based organisation, in an industry you are interested in. Provide a brief introduction to the organisation from an Operations Management perspective and briefly describe their supply chain and product range.

2. Design an operational facility for a NZ based organisation of your choice. The facility and its operations need to be designed for competitive advantage, considering all of the following:

- integrated supply chains,

- effective resource management,

- human factors engineering,

- and systems safety.

Show which principles you considered and how these principles have impacted on your design process.

3. Describe the integrated supply chain for this business and identify benefits and risks they are likely to experience due to integration.

4. Choose one resource management tool for the organisation and justify its importance.

5. Evaluate key perspectives and phases of supply chain design that would impact on your design process and their implications for future production and delivery.

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Answer :


The worldwide reputation that Nando’s has been able to obtain is due to peri-peri marinades and consequently it enables the management to stimulate growth and, as a consequence of that, Nando’s has been able to establish their first store at North Shore in New Zealand in 2000. Afterwards, what Nando’s has been able to exhibit in terms of sound operational management have consolidated the mass perception about their capability to generate differentiation and uniqueness. The adage conveyed by the HR of Nando’s emphasizes on the fact that the prudent strategy to be sound in terms of resource integration is to accredit the revisit of the immediate customers since only then they expect to endow the administration with sheer significance. Thus, the management of this globally recognized food outlet is dedicated to retain mutual respect and support through individual learning and professional governance of properties and peoples. 

This study is supposed to evaluate the governing operational management and resource integration skills Nando’s in terms of the vulnerable future impacts that might supplement their aspirations regarding resource integration management. 

Operational facility for Competitive advantage

As it was prevalent in the perceptions of the likely customers and critics of Nando’s that the unit is potent enough to distinguish their deliverables from the identical established products and that is the prime reason for the respective unit to obtain the requisite competitive advantage. The supply chain of Nando’s can be conveyed as follows; 

Integrated supply chains

As it was evident from the prevalent practice of supply chain integration, typically it consists of two streams converging on the point where the unit exists in the thematic representation. The upstream is traditionally comprised of three tiers that contain the suppliers who are supposed to provide the requisite resources and raw materials to the factory of the respective unit. On the other hand, the downstream activities chiefly deals with the phases that is directed towards the delivery of the finished products to the core consumers and provides a subtle description regarding the distribution channel of the product from the warehouse towards the market (Yusuf et al. 2014). It is evident from the aforementioned description that the stream of information and subsequent products flows on the contrary of the flow of cash. As per the statistics of supply chain dynamics that Nando’s persistent performance has been able to display suggests that the fluctuations of the everyday demand of the customers is more disciplined than the everyday orders that the manufacturer enjoys from several retailers (Yu, W., Jacobs, M. A., Salisbury, W. D., & Enns, 2013). On the other side of the fluctuation of dynamics, the trend of fluctuation is abrupt but the junctions of transitions are smooth in terms of the orders that suppliers enjoy from the manufacturer’s end. 

Thus, it can be said that the supply chain of resource integration that Nando’s extensively follow resembles with the SCOR model.    

Effective Resource Management

What Nando’s has been able to portray in terms of resource management can be termed as effective since they have been able to eliminate all the idle resources from their project schedule in order to facilitate the process of efficient organization and subsequently employing officials equipped with appropriate resources. It is a cardinal criterion for any organization to avail the right of information and this increased accessibility of resources and requisite data needs to be administrated smoothly in the declared project activities. To summarize the apprehensions can look as follows;

  • The success of Nando’s cumulative apprehensions regarding the perspective of resource management is due to the reason that they have been able to procure a sincere vigilance regarding the overview of available resources and the mode of utilization of those. This method enables the management to identify the zones in the entire structure of the project, which is vulnerable to diverge over utilization of the available resources and introduce stagnation and accumulation of the resources (Yu, Jacobs, Salisbury & Enns, 2013).
  • The proper evaluation of skill sets of the resources that Nando’s has been able to maintain across their oeuvre of expertise enable the respective management with the introspection to deploy proper resources for any pertaining task of the entire project schedule. On that note, identical concerns of identical aspirations can be recommended to acquire an introspective insight regarding the skills and expertise that each of the resources pertain.     

Human factors Engineering

As per the simulations of the pertinent literature that prospectively backs this entire pursuit suggest that the term human factors typically suggests to the ergonomic principles that every food retail must be endowed with in order to acquire the requisite relative competitive advantage in terms of operational facility (Ralston, Blackhurst, Cantor & Crum, 2015).

  • In terms of ergonomic principles, the respective food unit appears sound since it has designed their pertaining jobs regarding the each phase of assigned task as per the competence and insight of the employed subordinates. Furthermore, they have arrived to such conclusions and further executions after evaluating the acumen of decision making of their core consumers and the segmented target market.
  • Most of the human factors engineered by Nando’s enable the workers to make better decisions through evaluating the propensity of high-risks and possible circumstances under the consideration of which they have polished their excellence to avail the remaining paradigm of consumers.
  • The rudimentary problem that every food retail is bound to face is due to the low switching cost that enable the customers with the ability to acquire their cuisine requisite from the identical concerns. Profit margins and low tolerance is also some of the factors that potentially hinder the respective concern to avail desired relative completive edge.

Systems Safety

The notion of system safety is associated with the risk management strategies that every unit possesses in terms of discerning and analyzing the vulnerable hazards and subsequent employment of system-based approach. This differs from the conventional risk analysis since in devices the requisites in terms of epidemiological aspirations and simultaneously processes the simulations in a system.

  • The underlying management of Nando has been able to earn the requisite prudence in order to dispense the principles of synergy that emphasizes on the system-based approach regarding hazard analysis, managerial and technical skills and supposed to assist them in terms of hazard identification. This granted the management with the capability to grasp the requisite command that encourages elimination of the potential sources of hazard throughout the span of the project (Ramanathan, 2014)
  • Nando has recently installed Hazop, which is one of the several techniques that has been used in the organizational premises to conduct the underlying system hazard analysis.
  • In terms of the quality that they are dedicated to serve is expected to abide by the food legislations which is prevalent throughout the oeuvre of their expertise. 

Chosen principles & Impact

  • Since operational risk is an inherent and inevitable entity that pertains integrated within the practices of any organization, it happens to be the rudimentary ingredient in the risk management program of Nando. On that note, Nando has been able to retain a sound internal advocacy, which is likely to term as the foundation of an circumspect risk management framework.
  • As the management of Nando has discovered the fact that risk management challenges might considerably differ from the challenges likely to evolve in terms of operational risk management, they have only entertained the issues, which enjoys direct association with operational management and resource integration.
  • Furthermore, the committee of directors of Nando has recently decided to observe sound operational risk management measures in order to cope with the rivalry of the identical concerns. These practices usually consist of business line management, independent corporate operational risk management function and an independent review.
  •  The sound operational risk management and the associated governance refer to the alignment of the first business line management with the absolute objectives of the respective organization (Oyewunmi, Osibanjo, Falola & Olujobi, 2017). This is liable to mitigate the inherent risks regarding the products, activities and the other accounting systems.
  •  A functionally independent corporate operational risk factor (CORF) is extensively known as the second line of business defense. Since the proportion of independence is vulnerable to differ, Nando has decided to endow the independence in terms of distinguishing responsibilities and independent reviews of methods and functioning. Since CORF maintains an exquisite reporting structure that evidently defies the business lines that are prone to generate risks.
  • The third line of defense usually consists of the review and challenges simulated from individual simulations. Nando’s have maintained the fact with sheer sincerity that the competence of the peer reviewers must match the standard of competence and vigilance that they usually expect. Moreover, they ensure the engagement and implementation of the reviewers while operating the prescribed framework. This independent reviews are prone to be done by the audit or several other employees of Nando’s prior to operational management and resource integration though, as per the industrial ethics it might be done by some external agencies who are supposed to monitor the expertise of non-core competency of Nando.    

Brief of the Integrated Supply Chain

In accordance with the current context and in an empirical note, the integrated supply chain of Nando’s typically consists of the journey with some major milestones. On that trajectory, demand planning is one of the imperative cornerstones since it is supposed to assist the underlying management with the awareness regarding the global demand of the products they are supposed to serve. Furthermore, it enables the respective management of Nando’s with the insight regarding the percolation system that is prescribed channel through which the deliverables are supposed to be distributed globally. Moreover, the integration of the prospective components of the supply chains endow the respective management of Nando’s with enhanced effectiveness that might assist them to facilitate to stimulate growth and propagate across the domestic market of South Africa as well as the overseas market. Nando’s has been able to pursue that combating with the vulnerable challenges across the country with the sustainability to retain the prevalent relative competitive edge. Furthermore, the initiative of leveraging the prevalent brand image of Nando’s in the global arena can only be acquired through the active participations in the global supply chain community. The partnership is supposed to endow the respective organization with the functioning process of identical concerns which might encourage the respective management of Nando’s to execute requisite changes in their global demeanor that might assist them to accomplish their absolute objectives regarding the brand image and expansion in global market (Nyberg, Moliterno, Hale & Lepak, 2014).

For instance, as it is an worldwide known fact that Nando’s has  been able to obtain their current market status and competitive edge by introducing differentiation in their overall global strategy while focusing on the delivery of peri per marinades. One of the core ingredients of this item is African birds eye chilli which happens to purchased from the ancient times from a supplier who are supposed to provide the basting blends and sauces and it is still going on. This culinary route of ancient trade facilitates Nando’s entry in the global market of integrated supply chain. In order to precede more, Nando’s has decided to invest in the production of that cardinal ingredient mainly due to the massive contribution of that specific ingredient in the estimated brand value of Nando’s across the global arena. Moreover, due to the cardinality of the respective product it has almost became an integral component in the global identity of Nando. Furthermore, it simultaneously owns the potential to ensure the provenance of the immediate market status, which is imperative to authenticate the brand image globally. Moreover, in terms of pursuing moral purposes, it is almost a paramount opportunity for Nando to serve the pastoral and rustic communities of Africa through conforming to this supply chain of integrating with the global community (Leuschner, Rogers & Charvet, 2013). While implementing the aforementioned global strategy, Nando’s has been able to encourage the local farmers to initiate harvesting the core ingredient in order to facilitate the establishment of alternative resources that might serve during the periods of global supply chain blockage.                 

Vulnerable benefits & risks during integration

The likely benefits regarding the integration of Nando’s with the global community of integrated supply chain can be categorized as;

  • The decision undertook by Nando’s to invest on the production of African Birds Eye chilli directly is one of the amenities that Nando’s are going to avail the benefit of.
  • Since the deliberate decision of global integration has been marked by the direct investment on the key ingredients is supposed to contribute on the vitalization of global brand image of Nando’s which is one of the core components of their absolute business objectives
  • As Nando’s is the only liable to maintain the requisite quality and quantity of one of their chief deliverables which is supposed to differentiate them from the identical concerns of the underlying market and simultaneously grant the respective farm with the relative competitive edge is supposed to be the integral and indispensable component of their global identity.
  • Moreover, it supplements a considerable amount of mileage in the overall oeuvre of Nando’s which appears to be the imperative component while retaining the authenticity of the rewspective brand of Nando’s.
  • The process of integrating with global community of suppliers have endowed the respective unit of Nando’s  with the ability to serve the poor pastoral communities all across South Africa which is also a meaningful trajectory to avail the requisite brand status that Nando’s is expecting as a paramount business objectives.
  • The investment associated with the provincial encouragement of production of the core ingredient might endow the rustic farmers with a potent alternative of their actual occupation dispensing overall market liberty of Nando’s which might assist them in the times of paucity or global blockage.

The likely risks can be categorized as, 

  • Excessive dependence on the principles provided by the global community of supply chain might own the potential to restrict their executive acumen from transmitting innovative measures in the individual domain of expertise (Huo, Han, Chen & Zhao, 2015).
  • Involvement with the global communities of integrated suppliers might eclipse their skill and expertise in the domain, which is supposed to endow them with the relative competitive advantage which they crave for as an paramount requisite of their business objectives. 

Evaluation of Key Perspectives

 The key perspectives in this regard can be summarized with the dialectical domination of the key ingredients of their business strategies that might endow them with the possibilities of growth stimulation and subsequent expansion in the domestic as well as overseas market. The key perspectives typically consist of the discourse, which intends to indicate the availability and accessibility of the raw materials, prime requisites and several other resources of tangible and intangible measures. In the current context of Nando’s , the tiers of the downstream typically consists of three tiers which mainly composed of the potential global suppliers of the requisite raw materials. On the other hand, the upstream with the convergence of cash flow typically composed of the retailers and the distributers. As per the recent statistics of financial performance that Nando’s has been able exhibit, it is evident that the demand from the suppliers end from the manufacturer have experienced a significant rupture in terms of demand whereas the graph of suppliers to the retailers has been able to dispense a disciplined and less abrupt fluctuation trend (Dong, 2015).. Thus, it is evident from the above discussion that the one of the major drivers of the key perspectives is the fluctuation of demand in the ends of the leading players across manufacturing towards distribution.             

Phases of influential Supply Chain design

Every successful supply chain must contain some indispensable steps, which needs to be incorporated in order to accomplish the desired goals and absolute objectives. Moreover, constant monitoring of these steps against the assigned tasks need to conducted in a regular interval in order to accomplish desired objectives seamlessly. The pertaining stages can be classified as,

  • Plan: The incipient phases of planning require setting the operational strategy of the entire project. That is supposed to transmit the major decision that the underlying unit needs to acquire in order to secure the desired domain in the market. Contextually, in terms of the operational strategy that Nando’s has taken vividly portray their dependence in the global community of supplies from where they are supposed to avail the core ingredients of their deliverables. However, Nando’s has been discovered to encourage the local farmers to harvest the prime requisites in order to seek advantage of the domestic market (Danese, Romano & Formentini, 2013).
  • Source: The essence of this enquiry is supposed to ensure the procurement of appropriate materials along with the intangible resources in time in order to ensure the timely completion of the underlying project. In the current context, Nando’s are supposed to obtain their prime requisites from the global communities of supply chain.
  • Make: In this particular segment, Nando’s are supposed to exhibit prudence in terms of scheduling the targets of production, monitoring the products up to the desired proportion and packing.
  • Deliver: This stage typically composed of the phases from responding to the customer enquiries and availing the options of transportation while managing the warehouse and opting the distribution strategies.
  •  Returns: This phase is supposed to endow the domestic and foreign stakeholders with the substantial shares of the generated revenue. In some cases, as the contexts suggest, the end-of-life products are supposed to be considered in terms of return since it poses a considerable constraint for the vendors to make a life out of those (Barile & Saviano, 2014).      

Implication for further production & delivery

In order to ensure proper percolation of the deliverables, Nando’s need to identify the proper channels of percolation in terms of delivery in order to retain the dynamism of their supply chain. It is evident from their recent reforms of global marketing demeanor that they have been able to obtain the requisite insight regarding the overdependence on the global community of suppliers as Nando’s have started encouraging provincial farmers to harvest the core ingredients as the alternate resource of the cardinal culinary ingredients.


As per some recent information from reliable resources that Nando’s has been able to acquire the pivotal culinary ingredients from the provincial resources that they have endowed more than 800 farmers with an potent alternative of their traditional occupation. Apart from catering a moral cause, it has provided a living wage that ensures seamless material input while having a direct access towards the desired competitive edge.