Business Portfolio and Dynamic Capability Report - Desklib

This report analyzes the business portfolio of Millennium Health Sciences and provides recommendations based on the dynamic capability of the firm. It also identifies problems and opportunities, and suggests resources mobilization and transformation and reconfiguration measures.

B U S I N E SS
P O RT F O L I O A N D
DY N A M I C
C A PA B I L I T Y
R E P O RT

INTRODUCTION
Business Portfolio Analysis of Millennium Health Sciences
• The business of MHS is commonly known as Millennium Health Sciences which is involved in the
medicine, cosmetics and vitamins business (Aguinis, Edwards and Bradley 2017)
• The establishment of the organization in 1968 by two of the scientists wherein their major aim was to
properly develop a line which will be catering to the needs of individuals related to skin
• The number of employees working in the organization was inclusive of 4500 and the revenue which
have been earned by the organization is $4.3 billion (Andaleeb and Hasan 2016)
• The entire presentation will be helpful in examining the different portfolios of MHS and providing
proper recommendations which will be based on the dynamic capability of the firm

BUSINESS PORTFOLIOS OF MHS
BUSINESS
The various businesses which are included under the business of Millennium Health
Services Organization is inclusive of the following aspects:
• Looks
• Neutrino
• Energino
• Dermatech

OVERVIEW OF BUSINESS
UNITS
• Looks- The looks is segmented as the cosmetics aspect of the MHS Company
• Energino- It is defined as the unit which is new and it deals with the concept different
kinds of energy drinks as they have introduced the same
• Dermatech- It is the other segment which is new and it is the oldest unit of the company
• Neutrino- The respective unit deals with health-related supplements and vitamins which
are essential for the body. In the recent era, they try to generate idea of new products
wherein it will be considered as the commercial success.

BCG MATRIX
Looks
Energino
Dermatech
Neutrino

CONTD…
• Star- It is the business unit that have high share in market in high growing industry and
Dermatech is the star of MHS
• Dog- It is considered as the aspect which has low market share in the slow growing industry.
Energino is considered as Dog in MHS
• Cow- It is considered as the high market share business unit; however, low growth industries
and Neutrino is the cash cow in MHS
• Question Mark- It is considered as low market share in high growing industries and Looks is
considered as question mark in MHS

GE-MCKINSEY MATRIX
Growth
Business Unit Strength
High Med Low
Market
Attractiveness High
Med
Low
Growth
Harvest/Sell
Hold/Selective Harvest/Sell
HarvestSelective
SelectiveGrowth

SYNERGY MATRIXThreshold of acceptance
Misfits
Incoming:
Benefits from belonging
to portfolio
+-
Fits
+
-
Outgoing:
Benefit to portfolio
Altruists
Givers
Parasites
Takers

CONTD…..
It is described as the tool which will be helpful in analysing the different benefits that can be received by the business by
staying in the respective portfolio and the incoming benefits which will be received by the company out of the same.
• It is helpful in assessing the overall net influence of the business
• Fits- It is concerned with high incoming and high outgoing benefits
• Misfits- It is concerned with low incoming and low outgoing benefits
• Givers- It is concerned with the low incoming, however the high outgoing type of benefits
• Takers- It is concerned relating to the high incoming benefits and low outgoing benefits
• Altruists- It is concerned with low incoming benefits along with high outgoing benefits, however the it will be below the
threshold of acceptance (Hitt, Ireland and Hoskisson 2016)
• Parasites- It is concerned with the high incoming benefits and there are low outgoing benefits, however it will be above the
threshold of acceptance

CATEGORIZATION OF
BUSINESSParticulars BCG
Matrix
GE-McKinsey
Matrix
Synergy Matrix
Looks Question Mark Harvest Parasite
Neutrino Cash Cow Selective Givers
Dermatech Star Growth Fit
Energino Dog Harvest Complete Misfit

LOOKS SEGMENT
Analysis
• From the overall analysis, it can be identified that from the BCG, GE and Synergy Matrix, it can
be identified that the respective segment is relatively low unit which is performing in the high-
performance sector
Recommendations
• Therefore, it can be recommended that the respective firm needs to close down the Looks unit as
it is not providing considerable returns, however it is taking adequate funds along with
investment in the market.

NEUTRINO SEGMENT
Analysis
• It is one of the oldest units of MHS which is inclusive of the different vitamins and
supplements segment. The respective unit can be considered as the Cash Cow along with
providing different aspects to the business as well.
Recommendations
• From the above, it can be recommended that MHS needs to be undertaking the strategic
decision in consideration to Neutrino and it will be requiring to invest in the respective segment
smartly as to ensure that there is continuous giving to the organization for the well-being.

DERMATECH SEGMENT
Analysis
• As per the BCG matrix, it can be identified and analyzed that Dermatech is treated as the Star
parameter of the business with respect to which it has been analyzed that in the high growing
aspect, the firm is performing well and gaining huge revenues in the market as well.
Recommendations
• Therefore, it can be recommended that the respective business needs to ensure that the share in
the market of Dermatech is high and it has high market share even when the industry becomes
low performing in the previous years.

ENERGINO SEGMENT
Analysis
• From the analysis, it is defined as the Dog of the organization as the energy drinks in the
Australian market is performing in a negative manner and it can be understood that the
respective company has been performing in a negative manner.
Recommendation
• Therefore, it can be recommended that MHS organization needs to harvest the particular
investment as it is totally misfit for the organization and business portfolio of the company as
well.

CONCLUSION
Business Portfolio of MHS
• Therefore, from the above it can be concluded that the analysis of portfolio plays an integral
role in the organization and with respect to the same, it can be identified that the organization
which is functioning in the respective business environment are required to access the unit in a
regular manner.
• Furthermore, from the overall analysis, it can be identified that Neutrino and Dermatech units
are performing in an effective manner, however the performance of Looks and Energino is
poor in nature.

INTRODUCTION
Dynamic Capability of MHS
• The business environment is rapid and unpredictable and it requires to the various companies
which will be making competitive advantage as to gain proper positioning in the overall
business environment.
• The dynamic capability of the overall business can be stated as the capability of the
organization as to build, integrate along with re-configure the external as well as internal
capabilities of the firm which will be able to meet the different requirements of the changing
business environment.

DYNAMIC CAPABILITIES

POSEIDON
• After investing huge by the company, the Neutrino unit has been able to come up with the new type of medicine which was named
as Poseidon and it became successful after testing and it was ready to be launched in the market
• The respective product was available in both syrup and tablet form
• Furthermore, Dermatech came up with the product which will be made of similar technological advancement and it was in the form
of the skin cream
• It can be identified that department of research and development had tried in making considerable overlaps and it had also engaged
themselves in duplication of the products and services
• There were different opinions of the various individuals wherein some blamed that it has ineffective usage of R&D and the other
included the blaming the leadership aspect

IDENTIFICATION OF
PROBLEMS
• There is inclusion of communication gap between the various units
• The aspects of leadership in the organization could be improved to a large extent
• The resources of the company are not being utilized in an effective manner

ACCESSING AND IDENTIFYING
OPPORTUNITIES
Analysis
• From the overall incident, it can be analyzed and identified that the various units such as
Neutrino and Dermatech had tried to invest a huge amount on research and development
activities and they tried to come up with a new kind of product, however there was
considerable gap between the same and it affected the overall process (Welford 2016)
• While undertaking the different R&D processes, the organizations needs to undertake the
different kinds of considerable measures for taking the right decision effectively

CONTD….
Recommendations
• From the above, it can be identified and analyzed that MHS needs to ensure that in order to
gain huge profitability in the business, the company needs to perform proper research along
with accessing the various opportunities that will play a beneficial role in generating success
• The organizations need to invest properly in the adequate resources that will be helpful in
guiding the different units and avoid repetition

RESOURCES
MOBILIZATION
Analysis
• The resources which are considered should be unique and rare
• It is the major duty of the organization to ensure that they make proper usage of the resources
effectively
• In case of MHS, it can be identified that resources of the business were not properly used and it
created overlap in resources

CONTD…
Recommendations
• The management team needs to keep proper check on the utilization of the different resources
• The communication and leadership aspects are required to be improved appropriately

TRANSFORMATION AND
RECONFIGURATION
Analysis
• Proper transformation and reconfiguration forms will be helpful in the management of the
different companies. Due to the same, it can be identified that with the help of transformation,
it will be helpful in reconfiguration of the different activities of the firm (Welford 2016)
• Neutrino was successful in making different changes along with bring transformation, however
the idea of transformation of Neutrino was being copied and it failed to configure effectively

CONTD….
Recommendations
• Therefore, it can be recommended that MHS is required to be undertake few measures which
will be helpful in analysing that the company attains success and they will be adopting to the
overall proper positioning of the products and services
• It is essential for the company to keep a proper check on the different employees working in
the organization which will be helpful in reducing repetition and it will be improving their
situation

CONCLUSION
Dynamic Capability of MHS
• Therefore, from the above it can be concluded that there is huge dynamic capability of the firm
MHS, however it has been noticed that due to the irregular leadership aspects and lack of
proper communication, the company has not been able to perform in an adequate manner.
• Furthermore, in order to become more competitive in nature, the company needs to make
considerable initiatives which will be beneficial for the firm

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