Dynamic Strategy & Disruptive Innovation Assignment 2022

Dynamic Strategy & Disruptive Innovation 0
Title: Dynamic Strategy & Disruptive Innovation
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Dynamic Strategy & Disruptive Innovation 1
Contents
Introduction......................................................................................................................................2
Disruptive Innovation Capabilities..................................................................................................2
Internal Perspective.....................................................................................................................2
External Perspective....................................................................................................................3
Marketing Perspective.................................................................................................................5
Technological Perspective...........................................................................................................6
Strategic Leadership........................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Dynamic Strategy & Disruptive Innovation 2
Introduction
The organization Essendon Food Solutions has been functioning for ages. The
organizational structure is extremely tight, which is mainly made of employees who have a
background in microbiology and hold humongous experience, as they have been working with
Essendon Food Solutions for decades. But due to the current changes in the market with
increasing competition, the organization needs to change its organizational structure, as it is the
main cause of the low level of innovation in the organization. In addition to this, the organization
needs to improve its research and development approaches, along with improving and building
better relationships with the stakeholders. Both the subsidiaries of the organization EnzymeTech
and Essendon Emulsifiers require massive changes, as the organization tight structure and
working processes have already started impacting its profits and position in the market.
Disruptive Innovation Capabilities
Disruptive Innovation can be explained as a new development that helps in changing the
organization’s structure and also, the organization’s process and activities (Kumaraswamy,
Garud and Ansari, 2018). Disruptive innovation involves the use of technology, which can
disrupt or upset an organizational structure (Christensen et al., 2018). Essendon Foods Solutions
in the current circumstances require transformation, which can only be achieved through
disruptive innovation.
Internal Perspective
Some of the key internal structure factors that are affecting the innovation of the organization
are –

Dynamic Strategy & Disruptive Innovation 3
 The organization has a top-down managerial structure. This type of organization structure
curbs the innovation of the employees by demoralizing them to follow specific
instructions. Along with this, due to this approach the top management of the
organization never identifies or appreciates the talent of the employees at the lower level.
 The lack of young minds and young talent in the senior management team. The average
age of the employees in the senior management team is 53. In addition to this, all these
people do not hold any experience from another firm or industry. In addition to this, they
have been following the same processes and activities, along with an attitude that does
not encourage changes. It is due to this that the organisation’s innovation level is
extremely low.
For managing, these different internal structure factors, it is recommended that the
organization –
 Needs to change its top-down working strategy with a bottom-up strategy. The
organization needs to utilize new minds, which have innovative ideas for managing
the current environment of the market appropriately. With this approach, the
organization will be able to identify the talent at the lower level and will also be able
to encourage the entire workforce to improve the level of their productivity.
 The organization needs to employ new employees, who hold experience in different
industries and also, different organizations. The organization should attract some of
the most prominent and important employees of a competitor’s organization, with
attracting offers. This will help in managing the growing competition in the market,
which has resulted in loss of profits for Essendon Foods Solutions.