MHS Business Portfolio and Dynamic Capability Development Report

This report analyzes the business portfolio and dynamic capability development of Millennium Health Sciences (MHS). It provides recommendations based on the analysis of different business units and tools like BCG matrix, GE-McKinsey matrix, and Synergy matrix. It also discusses the dynamic capability of MHS and identifies opportunities, mobilizes resources, and transforms and reconfigures the organization.

Business Portfolio and Dynamic
Capability Development Report
Millennium Health Sciences
[Student Name] – [Student Number]

Introduction
 MHS Business Portfolio
The MHS which is commonly referred to as the Millennium Health Sciences is
involved in the business of medicines as well as vitamins and cosmetics.
The company was established back in 1968 by two scientists who aimed to
develop a line catering to the skin care needs of the individual.
The company can be stated to be a $4.3 billion revenue company and has 4500
employees working under it.
The presentation will examine the portfolios of MHS and provide recommendations
based on the same.

The Business Portfolios
 The different business units which are present under MHS can be stated to
be as follows:
 Dermatech
 Neutrino
 Looks
 Energino

About the Business units
 Dermatech: This unit deals with the products related to dermatology. This
is the oldest unit of the Portfolio.
 Energino: This unit is comparatively new and deals with the concept of the
Energy drinks.
 Neutrino: this unit deals with the vitamins and supplements. Recently, they
came up with a new product idea which will be a commercial success.
 Looks: The Looks is the cosmetic segment of MHS.

BCG Matrix
?
Relative Market Share
Market Growth Rate
Look
s
Energino
Dermatec
h
Neutrin
o

The BCG Matrix
 Star: These business units have high market share in high growth industries. The
star of MHS is Dermatech.
 Dog: The Dogs can be understood to be the business units with low market
share in slow growth industries (Ethiraj, Gambardella and Helfat 2018). The dog
of MHS is Energino
 Cow: The cash cows can be stated to be the business units with a high market
share and slow growth industries. The cow of MHS is Neutrino
 Question Mark: These industries have low market share in high growth
industries. The Question mark of MHS is LOOKS.

GE-McKinsey Matrix
Growth
Competitive strength of
business unit
High Med Low
Industry
attractivenessHigh
Med
Low
Growth
Harvest
Selective Harvest
HarvestSelective
SelectiveGrowth

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

The Synergy Matrix
 The synergy portfolio analysis matrix can be described as a tool which helps in
understanding the benefits which a business tends to receive by staying within the
portfolio versus the incoming benefits which are received out of it.
 It helps in the assessment of the overall net impact of a business.
 Fits: With high incoming benefits and high outgoing benefits.
 Misfits: With low incoming benefits and low outgoing benefits.
 Givers: With low incoming and high outgoing benefits
 Takers: High incoming benefits and low outgoing benefits (Hitt and Duane Ireland 2017).
 Altruists: With low incoming benefits and high outgoing benefits but below the threshold
of acceptance.
 Parasites: With high incoming benefits and low outgoing benefits but beyond the
threshold of acceptance.

Business categorisation
BCG
Matrix
GE-McKinsey
Matrix
Synergy
Matrix
LOOKS Question mark Harvest Parasite
Neutrino Cow Selective Givers
Dermatech Star Growth Fits
Energino Dog Harvest Misfit

LOOKS
 Analysis
From the analysis as done on Looks using the tools of BCG, Synergy
matrix and the GE matrix, it could be rightfully understood that, The
Looks segment is a low performing unit in a high performance sector.
 Recommendations
Hence, with respect to this, it is recommended to the firm, that it is
required to let go of the Looks unit as it is taking up adequate funds and
investment but is instead not giving considerable returns (Hitt and
Duane Ireland 2017).

Neutrino
 Analysis
The Neutrino can be stated to be one of the oldest units of the business
and is involved in the Supplements and Vitamins segment. The Unit can
be stated to be a Cash Cow and a giver of the unit.
 Recommendations
Hence, after the analysis, it can be rightfully stated that, the MHS needs
to be a strategic decision with respect to the Neutrino and will be
required to invest into the segment smartly in order to ensure that it
continuous being the Giver.

Dermatech
 Analysis
According to the BCG matrix, it could be understood that the Dermatech
is the star performer of the business with respect to which it has to be
understood that, in a high growing sector, the firm has been gaining
high revenues.
 Recommendations
Hence, with respect to this, it can be recommended to the business that,
it needs to ensure that the market share of Dermatech remains
considerably high and that it continues to be a high market share unit
even if the industry becomes a low performing one.

Energino
 Analysis
From the three different strategic diagnostic tools which were applied, it
could be understood that, the Energino can be stated to be the Dog of
the company. The energy drink industry in Australia has been
performing quite poorly and with respect to this, it can be understood
that even the company, has been performing poorly.
 Recommendations
Therefore, it is recommended to MHS that it needs to Harvest the
particular unit. This is because, the unit can be stated to be a complete
misfit in the portfolio of MHS.

Conclusion
 MHS Business Portfolio
Hence, portfolio analysis forms an integral part of the organization and
with respect to this, it can be largely understood that, any organization
as functioning in the business environment, will be required to assess its
unit regularly.
From the analysis as conducted, the Dermatech and the Neutrino units
have been performing quite well. Whereas the performance of Looks
and Energino have been very poor.

Introduction
 MHS Dynamic Capability
The business environment is very rapid and unpredictable and requires
to the different organizations to make use of their competitive
advantage in order to gain a good positioning in the business
environment (Bryce 2017).
The Dynamic capability of the business can be stated as the
organization`s capability to integrate, build as well as re-configure the
internal as well as the external capabilities of the firm in order to meet
the needs of the changing business environment.

Poseidon
 After a huge investment, the Neutrino unit of the Portfolio came up with
a new medicine named Poseidon which as successful after testing and
was ready to be launched commercially.
 The product was available in tablet as well as the liquid form.
 In the same manner, even Dermatech came up with a product made of
similar technology but in the form of a skin cream.
 It was understood that the Research and Development department had
made considerable overlaps and had engaged in duplication.
 Some blamed the ineffective use of the R&D department whereas the
others blamed the leadership.

Problems as identified
 Hence, from the given scenario, the following problems could be
analysed at large:
 There exists a considerable extent of communication gap between the
different units as present.
 In addition to this, the leadership at MHS needs to be improved to a
great extent.
 The resources of the company are not being utilised effectively and
efficiently.

Identify and assess
opportunities
 Analysis
From the given incident, it can be reflected upon that although, the
different units of Neutrino and Dermatech, had invested adequately into
the domain of research and development and thereby, came up with a
new product idea but there was a considerable overlap of the
opportunity assessment.
When a company generally identifies and assesses the opportunities
they must undertake considerable measures to ensure that they are
able to take the right decision

Identify and assess
opportunities
 Recommendations
Hence, with respect to this, it can be recommended that, MHS needs to
insure that in order to gain success in the long run, it will be required to
invest adequate funds in identifying and assessing the opportunities
which will result in a unique benefit (Hill 2017).
With respect to this, it can be understood that, the organization needs
to invest into adequate resources in order to ensure and guide the units
properly so as to avoid repetition.

Mobilise resources
 Analysis
The different resources which a business possesses can be considered to
be quite unique and rare in nature.
Hence, it is the duty of the business organization to ensure that, they
make use of the different resources adequately.
In the case of MHS, it can be rightfully witnessed that the resources of
the business were not utilised in the right manner and that there took
place and overlap of the different resources.
Moreover, the Neutrino let out its trade secret, which was
unprofessional.

Mobilise resources
 Recommendations
 With respect to this, it is required to be recommended that:
 The management needs to keep a check on the usage of the different
resources.
 The communication amongst the different departments of the firm need
to be improved upon (Hanson et al. 2016).

Transform and reconfigure
 Analysis
 The transform and re-configuration forms a crucial part of the
organization and with respect to this, it can be understood that, any
transformation must result in the reconfiguration of the firm.
 However, although Neutrino was able to make the adequate changes
and bring about a transformation , the idea was copied by
Dermatech which failed to bring about any reconfigure for MHS.

Transform and reconfigure
 Recommendations
Hence, after analysing the particular scenario, it can be understood
that, MHS will be required to take adequate measures and steps so as to
ensure that it is successfully able to attain success and ensure and
overall good positioning.
It is important for the company to keep a check on all its members
because this can be understood to be the only way which will enable the
avoidance of a repetition.

Conclusion
 MHS Dynamic Capability
 Therefore it can be understood that although MHS has the dynamic
capability to perform in a better manner, but due to certain
leadership limitations and the lack of communications, it has not
been able to perform adequately.
 Hence, if it makes considerable initiatives, the organization will be
able to ensure long term success.

References
 Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2018. Theory in strategic management. Strategic
Management Journal, 39(6), pp.1529-1529.
 Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
 Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
 Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic management
research. The Blackwell handbook of entrepreneurship, pp.45-63.
 Bryce, H.J., 2017. Financial and strategic management for nonprofit organizations. Walter de Gruyter
GmbH & Co KG.
 Hanson, D., Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management:
Competitiveness and globalisation. Cengage AU.
 Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
 Jurevicius, O., 2014. GE McKinsey Matrix.

Thank you