Dynamic Strategy and Disruptive Innovation

This article discusses the importance of dynamic strategy and disruptive innovation in organizations. It provides recommendations for improving internal, external, marketing, and technology perspectives.

Running head: DISRUPTIVE INNOVATION
Dynamic Strategy and Disruptive Innovation
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Table of Contents
A. Internal perspective.....................................................................................................................2
A.1 Recommendation..................................................................................................................3
B. External perspective....................................................................................................................3
B.2 Recommendation..................................................................................................................4
C. Marketing perspective.................................................................................................................4
C.2 Recommendation..................................................................................................................4
D. Technology perspective..............................................................................................................5
D.2...............................................................................................................................................5
References........................................................................................................................................7

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A. Internal perspective
Millennium Health Sciences (MHS) group, the case study organisation does follow a
traditional organisational structure. They follow a top-down management structure, which means
General Managers (GMs) will report to the CEO and Board of Directors. Performance appraisal
and other organisational practices are followed this way. Despite a fact that the case study
organisation has moved just from a startup to a well-established company, it appears to have
missed on a few areas.
First and foremost, the organisational structure is less competitive and not very
supportive of practicing and bringing a disruptive innovation. For disruptive innovation, it is
important that organisations’ stakeholders are in a network of effective communication. This
helps to brainstorm ideas and share over the authorised network in real-time. Hence, without any
waste of time, one of the chosen ideas could be discussed, planned, designed and introduced to
the target market (Jones and Pimdee 2017). On the contrary, the case study organisation due to
its top-down structure lacks the ability needed to develop and sustain such a robust network of
communication.
Secondly, senior members are only preferred for the top managerial positions in the MHS
Group. Instead, they should have also gone for skilled talents from within and outside the
country to add diverse experience in the existing workforce. Collings, Mellahi and Cascio (2019)
opine that having diverse talent in the workforce is necessary to develop the innovating
capability.
Thirdly, there are no professional marketing experts in the case study organisation.
O’Keeffe, Ozuem and Lancaster (2016) say that disruptive innovation is heavily backed up by

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marketing professionals. Marketing professionals hold expertise in the techniques and strategies
required for an extensive product and service promotion.
Finally, the case study organisation does not have any healthy relationship with its
shareholders despite the fact that the company regularly gives dividends to its shareholders.
Indeed, a healthy relationship could have allowed for relaxation in dividends paid to the
shareholders. The relaxation could have resulted in long-term spending on R&D projects (Shaner
2019).
A.1 Recommendation
Below is the list of recommendations:
1. Effective Communication: effective communication between the organisations'
stakeholders is needed to promote rapid and frequent brainstorming sessions.
2. Diverse Talent: MHS Group should go for fresh recruitment from outside the company
to broaden its innovating capability.
3. Marketing Experts: Professional marketing experts should be hired to bring into positive
changes to the marketing capability of the MHS Group.
4. Healthy Relationship with Shareholders: It should be given ways to secure significant
amount for R&D activity.
B. External perspective
Australia made products received mostly positive reviews from across the globe
especially the Asian countries. MHS Group despite this does not have expert professionals who
can roam around the Asian countries and do promotion for the products. Additionally, the
company is yet to make decision on expanding its R&D capability. They have offered to come

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from Asian countries; however, there is no positive move yet being taken. Singapore, in
particular, is a highly favourable country for expanding the R&D capability as the country is
liberalised and the national government policy for foreign direct investment (FDI) offer fewer
barriers to international companies (TheGlobalEconomy.com 2019). Lack of effective
integration between the two business units of MHS Group is also a problem. Customers do not
even know that the two business entities are the part of one MHS Group.
B.2 Recommendation
1. Needed Expert Professionals: To communicate with clients in different countries and
promote the exporting of products on a larger platform.
2. Expansion of R&D Capability is needed: This could be done by establishing joint
ventures with strategic R&D partners in the Asian countries. Singapore is one of the
preferred locations.
3. Effective Integration between separate Business Units is needed: This will help to
combine the diverse expertise of these business units and would result in increased
business.
C. Marketing perspective
Some of the products that could not perform in Australia received wide reception in the
Asian markets. For example, CLEO product has performed well in Malaysia, Indonesia and
China. The product is indeed suitable to Asian skin patterns and consumers are willing to buy it
at even premium price range. This means MHS Group is not actively engaged in doing
marketing audits (Wu, Chen and Huang 2015).
C.2 Recommendation

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1. Relying more on Professional Marketing Experts: The case study organisation does not
have expert marketing professionals. Hence, they should recruit a few of the industry's
most capable marketing professionals to expand their marketing capability.
2. Improved Marketing Audit: Due to the lack of effective marketing audit MHS group has
struggled in a few cases in appropriately identifying the target market. This has affected
sales for one or a few products in Australia. An improved audit will communicate the
potential marketplace for a given product or service. Moreover, this would prevent losses
that have happened in the past due to targeting sales in areas having low demand for a
product.
D. Technology perspective
One of the biggest challenges currently faced by the case study organisation is an
ineffective R&D capability (Wu, Chen and Huang 2015). Their R&D capability is being affected
by limited spending over the research and reduced access to external R&D resources.
D.2
1. Relationship with Shareholders: The case study organisation does not enjoy a very
healthy and productive relationship with its shareholders. As a result, they are left with a
limited fund to spend over R&D activities. Indeed, the company should have an effective
relationship with its shareholders. They should also be able to convince their shareholders
on the needs to invest in R&D capability.
2. R&D Collaboration: MHS group has options pouring from various parts of the world for
R&D joint ventures. Asian countries, in particular, want to collaborate with the MHS
group to share their R&D expertise with the case study organisation. However, they have

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not yet made any decision over expanding the R&D capability. MHS group should
consider joint ventures of R&D capabilities in MHS group. A collaborated strength
should result in increased innovation. Therefore, this will help to generate disruptive
innovation. Moreover, this can be helpful to the case study organisation in identifying
and developing disruptive innovation.

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References
Collings, D.G., Mellahi, K. and Cascio, W.F., 2019. Global talent management and performance
in multinational enterprises: A multilevel perspective. Journal of Management, 45(2), pp.540-
566.
Jones, C. and Pimdee, P., 2017. Innovative ideas: Thailand 4.0 and the fourth industrial
revolution. Asian International Journal of Social Sciences, 17(1), pp.4-35.
O’Keeffe, A., Ozuem, W. and Lancaster, G., 2016. Leadership marketing: an exploratory
study. Journal of Strategic Marketing, 24(5), pp.418-443.
Shaner, W.W., 2019. Farming systems research and development: guidelines for developing
countries. Routledge.
TheGlobalEconomy.com 2019. Singapore Political stability - data, chart |
TheGlobalEconomy.com. [online] TheGlobalEconomy.com. Available at:
https://www.theglobaleconomy.com/Singapore/wb_political_stability/ [Accessed 27 May 2019].
Wu, W.K., Chen, H.C. and Huang, Y.X., 2015. Antecedents and consequences of marketing
audits: Empirical evidence from Taiwanese firms. Asia Pacific Management Review, 20(3),
pp.156-164.