Dynamic Capabilities in Millennium Health Sciences

This presentation evaluates the dynamic capability of Millennium Health Sciences (MHS) and recommends activities for smooth functioning of the business units. It includes an analysis of the BCG, GE-McKinsey, and Synergy matrix, as well as recommendations for each business unit (Dermatech, Neutrino, LOOKS, and Energino). The presentation also discusses the overall dynamic capability of MHS and provides recommendations for market research, international promotional strategies, and resource evaluation and allocation. The goal is to enhance the organization's growth and expansion.

Dynamic capabilities
Millennium Health Sciences

Introduction
The innovative capabilities of MHS (Millennium Health
Sciences) has helped the organization in bringing
forth developments in the line of dermatologically
tested skin care products since 1968
The assessment will be evaluating the dynamic
capability of the business units through the utilization
of BCG, GE-McKinsey and Synergy matrix in order to
facilitate the smooth functioning of the units
The presentation will also present different
recommended activities that might be undertaken in
order to implement the smooth functioning of the
systems as per the objectives

BCG matrix of the business
units of MHS
LOOK
S
Dermatec
h Neutrin
o
Energin
o

Cash Cows (LOOKS)
The revenue of the organization is $ 350
million, which has been static since the last
two years.
The medium attractiveness of the product
lines and the lower competitive strength
has affected the organizational capabilities
of keeping up to the intense competition
that is encountered by the same

Stars (Dermatech)
The competitive strength of the
organization is higher and the products that
are offered by the organization is attractive
to the customers assisting in the export
trade growth process (Schilke 2014)
30% of the profits and 20% of the revenues
are collected through the export sales
undertaken by the business

Stars (Dermatech)
The competitive strength and innovative
mentality of the unit will be helping the
same in maintaining the efficacy of the
operations
The concerned business unit will be
supporting the growth of MHS in the
international markets through higher
competitive strength and the attractive
nature of the cosmetic products offered by
the business units

Question Marks (Neutrino)
The new range of products Poseidon will be
helping the organization in maintaining the
efficacy of the operations as per the
objectives of sustainable growth (Wilden et
al. 2013)
Neutrino invested $12.02million in their new
product range Poseidon that will be helping
the organization in facilitating a high return
The lower growth dynamics of the
organization might affect the overall
functioning of the systems

Question Marks
(Neutrino)
The lower growth rates contradicted to the
matured Australian markets for vitamins,
which will be helping the organization in
enhancing the sales
Lack of support from the Asian distributors
while representing Neutrino has affected
the capability of the same

Dogs (Energino)
The concerned business unit is being
classified as Dog for MHS as shutting down
the venture will not be affecting the
organizational revenues

Statistics

GE-McKinsey matrix
High Growth
DERMATECH
Growth Selective
Neutrino
Medium Growth Selective
LOOKS
Harvest
Low Selective Harvest Harvest
Energino
High Medium Low
Competitive strength of business units
Industry attractiveness

Synergy matrix
Givers
Fits
Altruists
Takers
Parasite
s
Misfits

Business categorization

Recommendations for Neutrino
Facilitating suitable resource allocation
Facilitating suitable resource allocation will
be helping the business unit in upholding
the efficacy of the operations. On the other
hand, the development of the unit will be
dependent on the better management of
inventories

Recommendations for Neutrino
Developing the R&D initiatives
The R&D initiatives will be helping the
organization in identifying the requirements
of the customers and thereby bring forth
modifications in the line of products related
to Poseidon.
The development in the R&D operations in
the unit will be helping the organization in
facilitating the in- line operations
(Woldesenbet, Ram and Jones 2012)

Recommendations for
Dermatech
Organizing marketing campaigns in the
international markets
The business unit must take steps to facilitate
smooth functioning of the marketing campaigns
beyond the borders of Australia. Focusing on the
export activities will be helping the organization in
maximizing the sales volume. (Teece, Peteraf and
Leih 2016)
Developing the line of products
Bringing forth developments in the line of products
will be helping the organization in enhancing the
profitability as per the needs of the business.

Recommendations for
LOOKS
Undertaking market research in
Australia
Market research in Australia will be helping
the concerned organization in maintaining
the efficacy of the product and process
design for achieving a competitive
advantage
Undertaking promotional campaigns
Promotional campaigns will be helping the
organization in undertaking wide expansion
in the different market sections

Recommendations for Energino
Diversifying the range of products
The business unit might take steps to diversify the range
of products in order to attract the attention of majority of
the customers. Diverse range of energy drinks might
appeal to the tastes and preferences of the customers
which will help the business unit in maximizing the sales
(Teece 2014)
Undertaking aggressive promotion
Undertaking aggressive omni channeled promotions will
be helping the organization in making the customers
aware of the benefits and the competitive edge of the
products over the other beverages in the market. It will
helps the organization in increasing the customer base
(Blome, Schoenherr and Rexhausen 2013)

Dynamic capability analysis

Dynamic Capability
Analysis
1. Identify and assess opportunities
The dynamic capabilities of the organization, MHS, is dependent on maintaining a
diverse range of products as per the needs of the customers (Teece 2012).
The organization face diverse opportunities for undertaking expansion in the
international markets
Health oriented product has helped the organization in adhering to the needs of the
customers
Better R&D operations 0f the business provides the same with an opportunity of
maximizing the expansion

2. Mobilise resources
The coordination between the different units has helped the organization in mobilizing
resources and technologies within the organizational boundaries
3. Transform and reconfigure strategic assets
The strategic assets of the organization are dependent on the smooth functioning of
the systems as per the objectives of growth and expansion.
Transformations in the process design helped the organization in maintaining the
efficacy of the operation as per the objectives of the business (Vanpoucke, Vereecke
and Wetzels 2014).

Recommendations to the
organization on overall
dynamic capability
The organization might take steps to undertake
market research for understanding the needs of
the customers (Chae and Olson 2013)
The organization might implement international
promotional strategies in order to undertake
expansion in the different economies
The organization might undertake resource
evaluation and allocation for facilitating the
smooth operations of the business (Denford
2013)

Conclusion
Therefore, from the above analysis it might
be stated that the organization MHS face
different contingencies which might be
avoided through the recommended
activities.
The presentation clearly exhibited the
position of the organization and the
business units through utilization of
different matrices.

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