1MANAGEMENT Hi all In this video, we will discuss about the various regulatory as well as economic conditions that possess the potential to affect theEssendon Food Solutions (EFS). We have segregated out discussion into four chief parts that includes internal perspective, external perspective, marketing perspective, technology perspective and strategic leadership. A.Internal perspective In this portion, we will analyse the key internal factors that possess the potential to impose impact on the innovative capacity of them mentioned organization. After going through the case study it can be clearly understand that lack of the urge to keep up to date with the ever changing market trends can be considered as one of chief issues that is hampering the innovative capacity of EFS. While the company possess highly qualified and experienced employees, lack of current market research and making strategies on the basis of the same is hindering their business. The first perspective of the organization that is hampering it’s innovate company includes high competition between the two subsidiariesEnzymeTech and Essendon Emulsifiers for resources. Although, high competition between the two subsidiaries is imposing positive impact on the profitability of the organization, currently, in future, it may result in conflict situation, drop of production, inefficient operation, attrition of employees and eventual consumer situation. Considering the fact that the organization follows a top down structure, crucial decisions like project appraisal as well as selections only depends on the General Manager and the senior executive team. This in turn is resulting in lack of employee empowerment in the organization
2MANAGEMENT The second internal perspective that is hampering the business is that only aged and experienced staffs posses the potential to work effectively in the R&D department. Lack of effective communication skills and promotion on the basis of seniority may result in job dissatisfaction of skilled junior employees which may result in attrition (Weberg et al. 2019). In order to deal with the above mentioned issue, some effective recommendations have been provided bellow: The company needs to recruit or promote senior executives on the basis of their skills instead of age. This will not only ensure fair job ethics but will also ensure even distribution of senior and junior employees throughout the organization (Schoemaker et al. 2018). The second step that needs to be taken by the organization includes incorporating both junior as well as senior executives while making effective decision for the organization. This will not only ensureempowermentoftheemployeesbutwillalsoenhancetheirloyaltytowardsthe organization. As a mother company, the EFS should stop making its subsidiaries fright for the resources. Instead the company should invest on the resources of its subsidiaries. Enhancing the investment cost will ensure enhancement in the quality of the products of the subsidiaries. This in turn will not only enhance the reputation of the organization but will also enhance its consumer base and revenue in the long run.The subsidiaries may opt to disruption (Yeh and Walter 2017). Disruption can be defined as a process with fewer resources. Disruption can be defined as a processthatsmallerorganizationswithfewerresourcesoptfortochallengeestablished incumbent businesses.
3MANAGEMENT Thetrainingprogramofthementionedorganizationshouldalsoincorporatetrainingon disruptive innovation technique since senior managers may not understand the promise of disruptive innovation since they were previously trained in conventional business programs. Along with this training should be given for enhancing the communication skills of the senior R&D employees so that they develop the potential to communicate with the consumers by themselves by ensuring sub-optimal organizational culture. Effective communication skills as well as positive approach towards fellow workers will lower attritionrate of the junior employees to a great level. Instead of recruiting employees on the basis of qualification, employees should be recruited on the basis of experience and potential to enhance consumer base. An additional team at corporate level is required for being responsible to collect disruptive innovation ideas as well as implement them. B. External perspective In this paragraph, we will prepare an analysis of the key external factors impacting the organization’s innovative capacity and offer recommendations. The first most crucial internal perspective that is affecting the organization includes that the company don’t has the energy or expertise to move to highly potential markets of China and Indonesia. Considering the fact that the organization is operating in a highly saturated market of Australia, lack of investment and innovation to enhance its business will eventually result in lowering the revenue. While majority of the employees who wants to develop new technologies are not provided with effective resources.
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4MANAGEMENT As a recommendation, I would suggest that the CFO of the mentioned organization should invest on the innovation of the subsidiaries so that the company offer the consumers with high quality and innovative products. This is highly necessary for the organization in order to enhance its competitive advantages since majority of the competitors of EFS is opting innovative strategies for retaining and enhancing consumers (Holland and Piper 2016). The second factor that needs to be focused on is the scope of targeting potential consumers in less saturated nations like China and Asia. According to researchers, regulation and cultures possess the potential to discourage disruptive innovation. The company should invest on recruiting and training another team who possess high cultural competence and capability to visit as well as meet international consumers. C. Marketing perspective The first marketing perspective that can be pointed is lack of interest of the company to invest for high potential and long term R&D project. The perspective of the management is that investing on this will send wrong massage and impose negative impact on the share price. The second marketing perspective of the mentioned organization is that the company lacks interest in establishing their business organizations at potential markets despite the fact that export market have done well in the recent decade (Coulson-Thomas 2017). The organization consider the consumers of Australia as their chief marketing sectors and lacks the interest to invest on other potential markets across the world. The market manager has visited the export market last year in spite
5MANAGEMENT Considering the fact that the mentioned organization sees Australia to be their potential market, they should invest on potential consumer visit program. This in turn will help the organization for gaining the insights of the consumer. Understanding the needs and feedback given by the consumer will help the organization as well as its subsidiaries to develop effective strategies that possess the potential to enhance consumer satisfaction. Managers should visit the consumers individually and as a manager of cross functional team including the R&D and marketing. This will help the company for overcoming conflicts, implicit assumption as well a poor communications. D. Technology perspective Thetechnologicalperspectiveoftheorganization,theEnzymetechisknownforits commercializationas well as research on the enzyme solutions. The R&D staffs of the organization are known for the different enzyme application that has been developed by them over years. However, due to lack of investment, currently the team is unable to develop effective and innovative technology. Thus it can be clearly understood that the organization has conducted very little research when it come to how the company may approach systematically as well as indentify or create potential disruptive technologies. As per my opinion, given the highly vulnerable market competition of the company, it is highly crucial for the same to spot disruptive technology opportunity on an emergency basis. The 1st strategy that needs to be invested as per the scenario is to enhance the investment of the mother organization on its subsidiaries (Christensen et al. 2015). This will enable the researchers to
6MANAGEMENT develop innovative technologies that will not only beneficial since it will cause enhancement of the consumer base Strategic Leadership In this paragraph, I will conduct an analysis of leaders within the organization. Considering the fact that the organization follows top down structure, lack of empowerment of junior employees has been noticed. Majority of the decision are fund to be taken by the GM as well as the senior executives. As a result of this, junior executives of the organization feel lack of empowerment. Another major issue with leadership is lack of environmental analysis. Considering the fact that the competition between the organizations has got increased to an enhanced level, lack of knowledge of the market change and the demands of the consumer is resulting in attrition of consumers for both EFS as well as its subsidiaries (Coccia 2018). The third issue that has been encountered with the organization is lack of focus on the communication skills of senior employees and enhanced attrition of employees. In order to deal with this issue, it is highly crucial for the organization to incorporate effective leadership strategies. Effective training programs for development of cognitive abilities of the leaders and changes in strategies and organizational structure is highly required.
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7MANAGEMENT Reference list Christensen,C.M.,Raynor,M.E.andMcDonald,R.,2015.Whatisdisruptive innovation.Harvard Business Review,93(12), pp.44-53. Coccia, M., 2018. Disruptive firms and technological change.Quaderni IRCrES-CNR,3(1), pp.3-18. Coulson-Thomas, C., 2017. Driving performance excellence through disruptive innovation and visionary leadership. Holland, D.D. and Piper, R.T., 2016. High-Trust Leadership and Blended Learning in the Age of Disruptive Innovation: Strategic Thinking for Colleges and Schools of Education.Journal of Leadership Education,15(2). Schoemaker, P.J., Heaton, S. and Teece, D., 2018. Innovation, dynamic capabilities, and leadership.California Management Review,61(1), pp.15-42. Weberg, D., Davidson, S., Porter-O'Grady, T. and Malloch, K., 2019.Leadership for evidence- based innovation in nursing and health professions. Jones & Bartlett Publishers. Yeh, S.T. and Walter, Z., 2017. Determinants of service innovation in academic libraries through the lens of disruptive innovation.College & Research Libraries,77(6).