Strategy Operations And Partnerships
1.0. Activity 1
|Vision||The company Nippn is actively working towards the enhancement and growth of business performance through its organizational visions. That includes, “striving as a corporation, to gain the trust from the customers and to continue to grow in strength. Make an effort on a daily basis to keep every customer satisfied, by offering, in every area of business”.|
|Quality (4Vs & SQFD&C)||Evaluation||Description and Justification||Implication|
|Volume||High||It firmly is analyzed as the way through which productions need to be developed to meet the changing demands of the customers. It is also dependent upon the number of products that need to be produced. The number of products that the company is producing. Nippn company is also, therefore, working towards meeting the changing demands of the customers (Akdil, Ustundag, and Cevikcan, 2018).||The company is able to ensure a higher degree of business performance|
|Variety||High||It is also dependent upon the flexibility of the overall business processes. Variety is also dependent upon the increase of costs of raw materials to meet the changing demands of the customers. Nippn is in this respect also working towards developing flexibility within the workplaces.||Through an extensive set of products and performance strategies, the company actively able to develop its market shares in the Japanese market|
|Variation||High||Through proper sets of products and service variations, the company is able to attract a higher number of customers and business market shares in a much appropriate and efficient manner. The company is also working towards understanding the business patterns of the variations that help in ensuring the amount of forecasting and planning to meet the business performance and the strategic involvement of the business operations more firmly and appropriately (Andrenelliet al., 2019).||Through variations, the company is also ensuring higher standards of quality products being supplied to the customers for meeting their changing demands|
|Visibility||High||It also refers to the extent to which customers are ensuring proper stages of the process of delivery. Nippn is therefore delivering a higher standard of business operations. It is also working towards meeting the changing demands of business operations through its production and service variations. Due to the increased customer demands the company is involving higher standards of business equipment and the strategic involvement of the services to increase the performance of internet retailers in recent years.||It is also involved in advertisement procedures that help in higher standards of business visibility.|
|SQFD||High||Through the proper involvement of front-end requirements solicitation techniques, the company is ensuring proper sets of software deployment are there to meet the changing demands of the customers and the increasing market players in a much detailed and accurate manner (Artuso and Guijt, 2020).||It is helping the company to ensure higher critical customer requirement strategies more appropriately and efficiently.|
|C||Higher||The changing demands of the customers are also becoming a major component for the overall business achievement and gaining higher standards of business achievements more appropriately.||To meet the changing demands of the customers, Nippn is delivering strategically higher standards of business equipment that helps in providing better scopes of quality products and services.|
Table 1: Activity 1
|Megatrends||Key issues affecting the organizations||Impacts and Implications|
|Digital transformation||The company Nippn is also working towards enhancing the hanging demands of the customers and fulfilling the changing business structures more firmly. It is also focusing on the identification and the analysis of the way through which it is involved with the contemporary environment. The company is also facing the strategic approach of increased digitalization and its pressures on business development (Babacan, Dale, and McHugh, 2020). The key issue of increased digitalization is also hampering the company to rapidly transforming its entire operations into the digitalized format to maintain the market shares||Digital Information is also making strategic business development opportunities to the companies. These digitized nature of businesses strategies in contemporary times are hampering traditional business strategies. Moreover, the factors of business digitalization are also becoming a high priority in contemporary times. The growth opportunities will strategically be hindered due to the changing demands of the business operations|
|Inclusion of Information technology||The involvement of Information technology is also providing some of the most challenging demands for the companies to ensure positive sets of business engagement and service delivery to the customers. IoT involves allowing the devices used across the agricultural sectors and a firm for measuring all kinds of data remotely and also helps in providing a better and accurate set of information to the customers in real-time to meet the growing demands of the customers.||The Nippn company is also facing extreme pressure in changing its existing business infrastructure into a modern and digitized business environment. It is also a higher priority for the businesses and is an opportunity in the business environment as well|
|Climate Change||This is also becoming a major factor for the overall growth and the enhancement of the agricultural sector. It is also helping the companies to operate in a much- detailed manner. Climate change is hampering the natural agribusiness and the use of increased chemicals in the food products and the cultivating lands are also making extensive pressure on the agribusinesses (Davies, Moore, and Yarrall, 2018).||Climate change is also making extensive pressure on the accessing of business equipment and strategy of the business competitiveness. It is also helping in developing the business strategies to widen the scope for overall business development.|
Table 2: Megatrends
|Recommendations||Nippn needs to work towards ensuring a higher degree of business profitability through the involvement of a higher degree of operational management. The company must also need to develop its work through the involvement of Digital transformation|
|Justification||It will certainly help the company to ensure a higher degree of business equipment and ensuring of overall business competitiveness|
|Potential Implications||It will certainly help the company to meet the changing demands of the customers and help in fulfilling the business profitability.|
Table 3: Recommendation 1
|Megatrend||Inclusion of Information technology|
|Recommendations||Companies must also need to be involved with a number of digitized business strategies that will help in positive business and customer engagement.|
|Justification||The company can be able to attract a higher number of customers through digitized and integrated advertising frameworks. Moreover, the factors associated with the business enhancement, the company can utilize the IoT to ensure safe and flexible workplaces for its employees as well (De Vass, Shee, and Miah, 2018).|
|Potential Implications||It will hamper the operational costs of the company. As it requires higher financial costs to Nippn for transformation.|
Table 4: Recommendation 2
|Recommendations||The company must develop a set of strategic plans that help in incorporating higher standards of business operations and business achievement (Gereles and Szőllősi, 2020).|
|Justification||This will certainly help the company to manage the changes and operational management frameworks to meet the changing demands of the customers and the marketing strategies.|
|Potential Implications||It is also becoming a major business implication towards overall business competitiveness. This despite having significant challenges the company to meet the business requirements is providing a significantly higher number of opportunities and scopes for ensuring higher standards of business tools and ensuring technologically enhanced business strategies to meet the changing demands of the customers (Gundolf, Jaouen, and Gast, 2018).|
Table 5: Recommendation 3
The integration process that Nippn has developed towards meeting changing demands of the business operations and the development of business competitiveness. Moreover, the company is also developing a number of strategic levels of integration. This not only is helping the company to ensure higher standards of business development but also is ensuring a wider range of business competitiveness. As the company is also working actively working towards ensuing sophisticated sets of business information and ensuring a positive set of integration frameworks (Hranovska, Yarmolenko, and Synenko, 2018). Organizational integration supports a company’s resilience to external factors, including mission or business models, input as well as output, economic activities, technology, political factors as well as social factors. Each of these factors is also widening the scope to ensure positive sets of business and organizational alignment promotes collaboration and teamwork across all the areas in which the company is operating.
There are also a number of factors and approaches through which organizational integration meets the changing business. The factors associated with the business requirements and the frameworks through which the company is developing its business operations and ensuring proper sets of client and customer requirements are there. In such respect, Nippn is also working towards ensuring a higher degree of customer engagements and the development of inter-organizational subsystems to ensure organizational operational coordination, innovations, and strategic effectiveness (Ismail, Khater, and Zaki, 2017). It also works towards the enhancement of the business contributions and the firm’s information systems to both the competitive and cooperative organizational capabilities that strongly mediates the relationships to develop the business competitiveness and the effectiveness of the strategic business alignment
The company Nippn is also working towards developing a strategic business alignment towards meeting the changing business demands and customer requirements. It is also focusing on the development and the enhancement of the business equipment. In this respect, the company is actively working towards a responsive business model. This will also ensure a higher degree of the business environment (Jarosławska-Sobór, 2019). This also ensures the company develops a set of training, and knowledge-sharing strategies to make the project more appropriate. Moreover, the factors associated with the responsive business model that is also working towards enhancement of this sharing changing external factors with its employees and stakeholders through the ongoing training or knowledge-sharing is one solution. Such factors are also focused on meeting the changing demands of the organizations and also help in ensuring the fulfillment of the production in ways that support the ecological sustainability is the integration of its organization with external factors.
The company Nippn is also working towards the enhancement of internal integration. This internal integration is also focusing on enhancing the company strategy, culture, staff skills, technology structures, culture, staff skills, technology, structure, and management styles to meet the changing demands of the business operations. Moreover, the factors of internal integration that Nippn has incorporated are also helping the company ensure the entire organization, from the CEO to the newly joined employees, and working towards the same goal (Kaur et al., 2019). This integration will also help the company in the future towards achieving a higher standard of business operations and widens the transparency as well as the business insights towards proper sets of decision-making and customer engagement in a much appropriate and efficient manner.
|Identification of the Industry in question||Agribusiness industry|
|Environmental Factors||Issues pertinent to the Industry||Implications for the Industry|
|Political||Japan is a constitutional monarchy, with the emperor being the head of state.Monarchy is also a symbol of the State and of the unity of people (data.worldbank, 2021)Developing a close diplomatic relationship with the global superpowers, the country is able to ensure a higher degree of business competitiveness.||Political factor is helping the industry to meet the changing demands of the customers and widens the business competitiveness|
|Economic||Japan, being 3rd largest economy in the globe is able to maintain its competitiveness The country has a US$4.9 trillion GDP in 2021.It is also the 2nd largest economy of Asia, only next to China.||With the increased growth of the National GDP, the industry is able to strengthen its scopes for future competitiveness.|
|Social||Being the 10th most populated country on the globe, Japan is working actively towards enhancing its social frameworksJapan also has a total population of 126.2 millionWith Shintoism and Buddhism being the major religion of the countryMoreover, 99 percent population are Japanese speaking in the country (tradingeconomics, 2021)||With enhanced and developed social factors, the industry is able to develop a proper and developed set of business competitiveness in the global business environment|
|Technological||It is the most technologically advanced country in the worldIt is widely incorporating the factors of technology in airports, hospitals, restaurants for developing the factors of business performance. It is also incorporating technology-driven payment systems to meet the changing demands of the customers||Being one of the highly competitive nature of the Japanese business environment. The industry is able to ensure a proper set of business performance.|
|Environmental||Japan is a relatively clean and environmentally responsible country to a large extent (tradingeconomics, 2021)It is despite facing extreme environmental challenges, developing a strategic framework to enhance the environmental factors||Due to increased environmental pressure, the industry in which Nippn is working is being hampered. The flow of business operations has also been compromised that ultimately impacting the quality of the business operations.|
|Legal||The company is also ensuring a higher degree of business equipment and regulations to protect the employees and laborers throughout the countryThe labor laws including labor and corporate loss are based on the European systems.The country is also providing a range of operational activities for the company’s health insurance pension insurance, unemployment insurance, and worker’s accident compensation insurance.||The employment laws are also focusing on ensuring proper sets of business competitiveness.|
Table 6: PESTLE Analysis
|Porter’s Five Forces||Strength||Justification|
|Industry competition||High||Lower barriers of market entryThe lower amount of financial revenue for market entryLess number of regulatory bodies available for market entry|
|The threat of new entry||Increased number of market entry strategies to meet the changing demands of the customersAfter Covid, a higher number of customers are involved with the market entry approaches in agribusiness|
|Power of Suppliers||With fewer raw materials suppliers available in the market, companies are facing extreme competition Higher numbers of customer demands are also providing better scopes for ensuring proper sets of business competitiveness.|
|Power of Customers||Customer bargaining power is very high in the industry. This is because the rise of a higher number of market players and their engagement in the market is also helping in ensuring a higher degree of business competitivenessIt is also focusing on the increased pressure on the industry because of the lower number of switching costs available in the market.|
|Threat of Substitution||This is also a major issue of concern for the agribusiness industry (Maggio et al., 2019)With the lower number of market developmental frameworks, the company is also focusing on increased prices and locking in favorable terms.|
Table 7: PORTER’s Five Forces
|Stages in the industry life cycle||Growth|
|Implications||The agribusiness industry of Japan is currently in the stage of growth, in which it is actively working towards meeting the changing demands of the business operations and works towards meeting the customer demands to maintain the growth frameworks in a much appropriate and efficient manner (McCracken, Peters, and Wolf, 2019).|
Table 8: Industry Life Cycle
|Issues||Survival Factors||Success Factors|
|Increased customer engagement and business digitized issues||It is hampering the overall growth and developmental frameworks to meet the changing business requirements and strategic business developmental opportunities||It is helping the industry to develop a number of business strategies and technologies to meet the changing business demands.|
|Rise of population and customer demands||The industry is facing pressure in widening the scopes for business performance due to the increased population and the customer demands||This is also helping the company to ensure business profitability and customer service delivery opportunities.|
Table 9: Industry Life Cycle
Nippn is one of the popular Japanese flour mill that is currently focusing towards diversifying the products to acquire more customers. It mainly operates in five categories of business that includes food products, processed foods, ready made meals, frozen food and their identity flour based products. Currently the company is doing well that has encouraged it to implement innovations for gaining greater market recognition. This report, therefore, is going to analyze the way Nippn an use its resources and capabilities for overcoming the existing challenges.
The company, namely Nippon, actively worked towards the delivery of the business operations and the enhancement of flour milling strategy within the agribusiness environment. This not only is ensuring strategic practices to gain the trust of the customers and use strategic perspectives to grow the business operations. It is also focusing on making efforts on a daily basis for keeping every customer satisfied. It is also focusing on strategic business approaches to make it more competitive and the enhancement of services of superior quality, which ultimately guides the contribution to society. Having mutually satisfactory interactions with the customers the company is also ensuring proper sets of products and service qualities towards meeting the business performances and the competitive advantages (Milewska, 2018). Moreover, the company is also ensuring proper sets of approaches that are continuously striving for betterment and improvement, that is through the proper set of business challenge creation and to ensure new aged technologies are also being incorporated within the workplaces. This helps the company towards enhancing its sales performance in a rapid and strategic manner.
Figure 1: Sales rates
It is ¥344.8 billion in the financial year ending on 31st March 2020 (Nippn, 2021). This rate of business growth to meet the business competitiveness to widen the sales performance than that of the previous year. This is also focusing on developing the scopes of business competitiveness and widens the strategic business environment through competitiveness and development of strategic business performance frameworks in a much appropriate and efficient manner. In FY2019 the company is able to secure ¥330,000 million which is much less than that of the sales rate in FY2020, that is ¥340,000 million (Nippn, 2021).
Figure 2: Net Sales of Nippn
While assessing the operating income of Nippn it can be said that the company needs to focus on changing its marketing strategies as the income ratio has been reduced in the Fiscal Year 2021 (¥10,5000) than that of the Fiscal Year 2020 (¥11.100). This can be due to the covid 19 impact. Furthermore, it is also not so active in the digital marketing business (Nippn, 2021). However, the competition in this industry is gradually increasing. Thus if the company is thinking to reach its expected business income then it must focus on its strategic decision to contact the customers to increase the sales.
Figure 3: Operating Income of Nippn
However, the ratio of net income of Nippn in Fiscal Year 2021 is also not much different from its operating income. It seems the net income of Nippn in FY2020 was ¥8800 million that has been slightly reduced to ¥8500 million.
Nippn has conducted a 1 for 2 share consolidation on 1st October 2016 on the basis of net assets per share, fully diluted profits, and profit per share (Nippn, 2021). The company needs to analyze the business processes and assessments in an appropriate manner to identify the areas of improvement. With the growing technological development, the company can implement advanced technologies to reduce labor costs and work time. It will simultaneously enhance the production with variation, which will help the company to gain a maximum competitive advantage (Nippn, 2021).
|Tangible||Production Capacity||Yes||No||Yes||Yes||Sustainable competitive Advantage|
|Financial Profitability||Yes||Yes||Yes||Yes||Sustainable competitive Advantage|
|Technology||Yes||No||Yes||Yes||Expensive Competitive Advantage|
|Intangible||Brand Loyalty||Yes||Yes||Yes||Yes||Sustainable competitive Advantage|
|Product Development||Yes||Yes||No||Yes||Expensive Sustainable Development|
|Supplier loyalty||Yes||Yes||Yes||Yes||Sustainable competitive Advantage|
|Human resource||Technological Knowledge||Yes||Yes||Yes||Yes||Sustainable competitive Advantage|
|Efficiency||Yes||No||Yes||Yes||Sustainable competitive Advantage|
|Market Promotion||Digital Marketing||Yes||No||Yes||No||Sustainable competitive Advantage|
|Customer survey||Yes||Yes||Yes||Yes||Temporary Competitive Advantage|
|Procurement||Demand assessment||Yes||Yes||No||Yes||Temporary Competitive Advantage|
|Customer and supplier relationship||Yes||Yes||Yes||Yes||Sustainable competitive Advantage|
Table 1: VRIO Analysis
Developing a corporate strategy is essential for ensuring the market stability of every business group. In this competitive market, every business organization is trying to establish itself as the most appropriate one. In doing so they require implementing various strategies to grab customer attraction and spread their popularity. Nippn, eventually, implements three types of corporate tragedies that help this organization to sustain itself in the market successfully. Corporate strategy, therefore, stands for the unique plan and framework that can be implemented to gain long-term benefits from the market (Neves, Gray, and Valerio, 2020). The organizations design this in a way that enables them to gain a competitive advantage over their market participants while delivering the stakeholders and customers their interests. There are mainly four corporate strategies that include stability strategy, retrenchment strategy, expansion strategy, and a combination strategy. Among these, Nippn has adopted an expansion corporate strategy (Nippn, 2021).
Expansion corporate Strategy: Nippn has adopted the expansion strategy as it is still continuing its existing business and doing well in its flour business. In this regard, it has selected three factors that are going to help the company to develop proper marketing strategic planning to reach its business aims. These factors are as follows:
- Stability: As there are other companies that are also emerging in the flour industry, the company is trying to focus on incremental improvement of its functional performance to ensure market stability in the flour business. The company needs to remember that a stability strategy does not mean to stand still in its previous position but to follow regular innovative ideas to reach maximum new customers (OECD, 2017). Being a less risky strategy the company can gain maximum market advantages from this one, as there is hardly any chance of failing for a year-old company like Nippn.
- Expansion: In this contemporary world, expansion of business has become so necessary to satisfy the reversed customer requirements. The firms like Nippn after adopting this strategy focus on the way they can serve the public with additional products with the help of strategic decisions within suit business definition. This strategy uses the redefined business process by adding activity scopes that help in substantial increment in efforts of the current business. The company is also focusing on ensuring that businesses in other Asian countries grab the market (Serraj, Krishnan,and Pingali, 2019).
Diversification: Currently, Nippn is focusing on diversifying its product ranges. In this respect, the company is increasing its product range from flour-based products to various readymade packaged foods. As the company has already got an extensive market share in japan it will help it in expanding their business in the border countries too.
RACES framework is mainly used for developing the strategic public relations plan that helps an organization to take significant steps in performing any type of marketing campaign. RACES stands for Reach, Act, Convert and Engage. While talking about RACES, it analyzes the other four factors in a strategic manner. Through this framework, the business organizations integrate all key channels as well as tactics into a single plan to streamline their marketing strategy. However, for implementing RACES it is important to develop a strategic plan that includes both micro and macro environments for ensuring had better influence. It can be seen that Nippn has adopted three strategies that include expansion, stability, and diversification (Sophal, Chansovy, and Metta, 2020). The RACES matrix is going to analyze whether the company can strategically implement these strategies to gain better market scopes in its operating areas.
|Resources||For expanding the business into other countries, the company needs to focus on different touchpoint communications. It will help the company to understand the feedback of the consumers through different social media platforms. In addition, it needs to work on different promoting campaigns regarding its new product ranges is a creative manner. For this purpose, if the company uses different pictures and creative content to reach the customers it will be more beneficial for Nippn. The resources that the company needs to incorporate for making it capable for ensuring higher standards of business equipment’s and distributors can be engaged to with the suppliers and the distributors.|
|Acceptable||Managing a business is also highly dependent on the way an organization is interacting with its consumers. Even for being stable in their operating industry the company requires communication with the consumers. Otherwise, it will lose the market to its competitors. However, there are different ways through which Nippn can interact with its consumers, that includes, infographics, written guides, games and quizzes, and videos.|
|Consistent||After gathering ideas from the market survey, it is time to think about conversion. After coming to a valid conclusion regarding product diversification or policy implementation, it is important to test it on selective consumers of the environment. If Nippn is thinking to bring various new products to the market, then it must do a practical survey based on that.|
|Effective||The engagement is necessary for first-degree media investments, encouraging and promoting customer advocacy, and connection sharing. In this regard, Nippn can convert the business strategy to a customer-centric approach to expand the business.|
|Sustainable||After implementing the strategies Nippn needs to evaluate the way it can reach its aimed success. In this respect, the company needs to integrate its strategic campaigns and channel tactics that will cover its customer journey. It will help the company to analyze the way the customers are behaving towards the products and the improvements they require for more success.|
Table 2: RACES Framework
|Resources||Mostly, the company requires to focus on digital marketing strategy more than anything. This is the era of digitalization and especially after Covid 19, the companies are aggressively focusing on digitalization to capture maximum customers within the competitive market. It has been seen that Nippn is comparatively weak in digital marketing and campaigning (Stachová et al., 2019). If the company wants to expand the business in other countries, then it has to be more digitalized to understand the customer requirement of their selected countries also.|
|Acceptable||The company needs to identify the appropriate way that will help them to interact with maximum consumers. In this case, Nippn can use Games and Quizzes to interact with both national and international consumers through online platforms. Even though this they will be able to get, a detailed idea regarding their most liked and disliked products in the operating industry (Stokes et al., 2019).|
|Consistent||Based on the survey report it can change the product quality, which will help them or guide them, to bring the new and verified products to reach more customers. In addition, the company can implement different business strategies depending on demography. However, the company needs to monitor the changes regularly to understand whether the changes are effective or it requires further changes.|
|Effective||Furthermore, the company needs to be engaged towards increasing its customer and brand value through business promotion and campaign sharing.|
|Sustainable||It must not forget that Nippn requires effective management for customer retention with the help of digital channels. If the company cannot shift its business towards a digital one then it will be difficult for Nippn to win the market race.|
Table 3: RACES Framework
The RACES framework in this report has identified the way Nippn can gain maximum strategic advantage from its operating market. This section, therefore, is going to assess the applicability of the RACES proposal on a critical note.
Firstly, it has been suggested to develop strong digital marketing to reach maximum customers. Undoubtedly, digital marketing in contemporary times is one of the key players to reach customers. It not only helps an organization to reach more consumers, eventually, it also helps the company to understand the market scenario in a detailed way (von Wendel, and Nyström, 2021). It is also possible to identify the key issues faced by the organization and the position of the competitors that can influence the business growth of Nippn. In contrast, if Nippn completely shifts towards digital marketing, then it will fail to align both the offline and online business due to its lack of experience in digital platforms.
Furthermore, it needs to focus on promoting business campaigns through social media platforms. Social media is one of the main ways to communicate with consumers. It seems in contemporary times people are more attracted to different social media platforms and spend a significant amount of time over there. Hence, if the company focuses on promoting the business through social media platforms it will be able to contact more consumers and understand the customer requirements (Wilson, Stover, and Tomaszewski, 2020).
It has planned to bring different products into the market. It is undoubtedly important to enhance the market. However, if the company fails in understanding the customer requirement properly it will not be possible for the company to gain success through its product expansion. Following this, it can also face loss in the operating market. This the company needs to conduct extensive surveys to get customer requirements regarding their products, and also after producing new products it needs to give the samples to the consumers for experimental usage. It will help the company to understand the effectiveness of the products and the way they can improve the flaws.
Furthermore, it has been proposed to engage the employees in strategic marketing to ensure customer retention. However, it is expected that it will help the company to integrate different tactics for covering customer journeys. Customer journey plays a very significant role in ensuring business stability and winning customer preferences. However, it is not that easy to map the customer journey of its international customers. Thus, it can divide the team based on its demography to understand the different customer choices in different areas.
Strategic management plays a significant role in directing the development of plans and policies to achieve organizational objectives and allocate resources for plan implementation. Nevertheless, it is also important to gain a competitive advantage over the competitors. It also helps the organization to understand its future existence and develop plans accordingly. While discussing the proposed planning for Nippn it can be said that if the company focuses on customer-centric business it will be more beneficial for the company. In this way, it will be able to contact the consumers directly and the product price can also be kept reasonable. If the consumers get a wide range of products in a decent price range, then it will enhance the chance to impose a strong grip on the market and preferred customers. In addition, Nippn will also be able to bring their management into a disciplined order in both external and internal activities, which will increase the chance to expand the business in several other countries (Zubović and Jovanović, 2019). Thus, it can be said before implementing a new plan the company needs to do two main thighs that include risk identification and assessment and analyzing the customer requirements and feedbacks. This will help the company to understand its strategic market position and its business strength in both domestic and international markets.
In conclusion, it can be said that the enhancement and development of business performance, companies like Nippn are actively working towards the enhancement and growth of strategic marketing. Nippn in this respect is delivering some of the most crucial elements through proper research and innovations to meet significant sustainable competitive advantages. Hence, the proposal for Nippn should be to undertake is to ensure sustainability and profitability in the future.
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