Strategic Management and Leadership in Dyson: Success Factors and Future Analysis

In this analysis we will discuss about strategic management & leadership and below are the summaries point:- Dyson Ltd., a technology company established in the UK, specializes in household appliances. The success of Dyson is measured using the balanced scorecard, which assesses strategic planning and management. Internal analysis of Dyson includes value chain analysis, core competencies, and the VRIN framework.

Running Head: Strategic Management and Leadership
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DYSON
Strategic Management and Leadership
4/12/2019

Strategic Management and Leadership 1
Contents
Introduction......................................................................................................................................2
Define Success.................................................................................................................................3
Reasons for success.........................................................................................................................4
Internal Analysis of Dyson..............................................................................................................6
Value Chain Analysis..................................................................................................................6
Explain each primary activities...................................................................................................6
Explain 3 core competencies.......................................................................................................7
VRIN Framework........................................................................................................................8
The contribution of the leadership to the company’s success.........................................................9
Review of the strategy used by the company................................................................................11
Analysis of the future of the Company..........................................................................................14
 Will the company remain a success in the future?.............................................................14
 What will affect the success of the company?....................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

Strategic Management and Leadership 2
Introduction
Dyson Ltd. is a company related to the technology established in the United Kingdom.
Sir James Dyson has established this company in the year 1991. This company works for
making household appliances like hand dryers, vacuum cleaners, air purifiers, heaters and many
more. In January 2019, the company has been shifted in Singapore. The company sells its
products around the globe as it served a large market area in his business. The several challenges
have been faced by the Dyson due to the high investment in Britain and then shifted the company
in Singapore. This process creates any problems in the company.

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Define Success
The success of the company is measuring by using the tool named balanced scorecard.
The Dyson organization used the balanced scorecard to measure the strategic planning and
management of the organization. The success of the company can easily measure by using
balanced scorecard (Hoque, 2015). The balanced scorecard of Dyson shows the better
performance of the business organization in the respective market. In the balanced scorecard,
various perspectives are using that is related to the company to measure the performance
management of an organization. In this tool, the vision of the company is determined first then
adds different perspectives of the company, then add objectives and measures connect each piece
and share and communicate the process.
The statistics of the company shows that global annual-earnings of the organization for
producing the appliances related to the household. The annual earnings of the company has
announcing in the year 2016, which is 631 million British pounds. The market share plays an
important role in the success of the company. The market share clearly shows the success of the
company as it defines how many shares of the company distributed in the respective market. The
vacuum brand of the company shows its market share as this is one of the main appliance
produced by Dyson Company. The market share of the company is gone from 1 percent in the
year 2015 to 35 percent last year. This shows the drastic changes in the market share of the
company (Habib, 2013). The profit of the organization is also very high as per the report of the
year 2016. The total revenue of the company in the year 2017 is £3.5 billion, which is better
revenue as per the market of the company. The net income in the year 2016 is £ 900 billion.
There are many awards have been getting by the company. The Dyson has been selected for the
award of the fellow of the Royal society in 2015. Like this, the company gets many awards.

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Source: ft.com, 2016.
The above figure shows the increasing of sales in the Dyson organization.
Source: vaccumsguide, 2015.
The above figure shows the customer satisfaction of Dyson as compared to other companies.

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Reasons for success
There are many reasons for which the business is succeeded in the market. The reasons
are very genuine as these are responsible for the betterment of the organization. The Dyson
Company also has many reasons so that they achieve success in the market (Christensen and
Raynor, 2013). The success of the company mainly depends on the policies of the company. The
eight main reasons for the successful business will be described below-
 Dedication
The business gets success if the leaders of the business are fully dedicated
towards their work and work hard to achieve the goals of the business (Friedman
and Gerstein, 2015) The leaders of the organization are also willing others to
work hard and increase their dedication so that the business achieves success.
 Direction
The direction plays an important role in the business to get success in the market.
The difficult times of the business can easily managing with a clear vision of the
business. The company knows the direction to go to the specific target that is
selected for the proper achievements.
 Market Speed
The speed of the market is greatly involved in the success of the business. The
market speed can manage the delivery of the products to the customers.
Therefore, the market speed increases the profits of the business.
 Quick to adapt
The nature of adopting change is also a reason for business success. The leaders
of the business need to know the proper management of change in business.
 Confidence
The leaders of the business need to have great confidence in their abilities that is
the main reason for business success. Without confidence, the company will not
succeed.

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 Effective time management
The time management is the main aspect for the better business management and
better profit of the business (Buh, et. al., 2015) If the leaders did not put proper
time then success is not achieved.
 Proper execution
The proper plan execution is also important for achieving success in the
organization. The leaders of the Dyson have a million-dollar idea so they need to
execute their ideas in the business.
 Proper financial management
The budget is the main thing that is responsible for the success of the company.
Financial management gives a great chance of success for the company.
The employee satisfaction is a great reason of success of the Dyson Company whose
figure is described below-
Source: employee.edu, 2015.
The Dyson Company achieves great achievements in the business market so that the
business will improve in the business market. The figure of the achievements and
investments is described below-

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Source: ft.com, 2016.

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Internal Analysis of Dyson
Value Chain Analysis
The value chain is one of the important parts of the organization by which a different
analysis of the company has been done. In the value- chain analysis, the company divided into
different parts and recognizes the sources of the value activities as per the competitive advantage
(Zikmund, et. al., 2013). The company gets a competitive advantage only after the integration of
the value-activities. All the value-generating activities are included in the value chain process.
The value chain analysis plays an important role in the proper strategic management and
planning of the business organization. The value-chain analysis includes as an important activity
of the business, which decides the value of the products and services of the particular
organization. The value-chain analysis of the Dyson Company shows its better strategic
management, which is the reason for the success of the company. The Dyson Company uses the
value-chain analysis for their organization and it increases the value of the products of an
organization as the value chain generates the value of the organization and improves the overall
activities of an organization. All the activities of Dyson can be managed by the proper analysis
of value-chain.
The value-chain is divided into two value-generating activities which are primary
activities and secondary activities (Lindgreen ,et. al., 2012). The primary activities include
inbound logistics, outbound logistics, sales and marketing, operations and service and support.
The secondary activities include firm infrastructure, human resource management, procurement
and development of technology. The inbound logistics include receipt, storage and proper
distribution of raw materials. The outbound logistics include product distribution and storage of
products. The Dyson Company achieves a competitive advantage by doing proper value chain
analysis (Soosay, et. al., 2012).
Explain each primary activities
a. Inbound logistics
Inbound logistics is the primary activity of the value-chain analysis. The raw materials
are included in this process, warehousing, and receiving of raw materials included in

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inbound logistics (Lai and Cheng, 2016). The method of distribution is also required in
the manufacturing process. Dyson plan manufacturing is situated in a rural village were
350 engineers work for manufacturing. The storage of raw material is also required in the
activity of inbound-logistics. The values created for inbound logistics is inventory
control.
b. Outbound logistics
The outbound logistics include the system of storing, transporting and distributing goods
to the consumers of the company (Fearne, et. al., 2012). The customer matters a lot in
outbound logistics. It initializes with a customer sales order then goes on a warehouse
packing and the delivery of product services.
c. Sales and Marketing
The sales and marketing include activities of disclosing the product. The selling of
products and services are most important in the process of value-chain and it includes
delivering the products and exchanging offers of the products (Dorri, et. al., 2012).
d. Operations
The operations are including in the operations carried out in the organization for
producing the various products of the company. The operations include the activities that
make the final product with the use of raw materials.
e. Service and Support
The service includes after the selling of products and group activities to preserve the
product and increases the value of the product.
Explain 3 core competencies
The core competencies are very useful in the internal analysis of the particular
organization. The core competencies are included a combination of multiple resources that
different the firm in a marketplace. This can create competitiveness in the organization. The
main core-competencies of this organization is described below-
 Technology

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The technology is one of the main competencies in the organization, which helps in
analyzing the internal analysis of the business environment. This can create technological
aspects in the business, which makes the work easier and improves productivity.
 Innovation
The innovation is a great extent related to the organization, which create innovative
products in the business that increases customer satisfaction in the business. The
innovative products can attract more customers and improve the overall profit of the
business.
 HRM
HRM is one of the main parts related to the organization. This process can manage the
employment activities of the organization, which manages the overall activities of the
business. Human resource management works to manage the employee’s problems and
their activities in the professional environment.
VRIN Framework
The VRIN framework is relating to the resources used in the organization for strategic
management. The organization has many resources that are used to implement several business
activities. So the VRIN framework is use to manage the several activities of the organization.
This framework is very useful for the Dyson and the company achieves many achievements by
using the VRIN framework in the business activities. Dyson can manage their resources by using
the VRIN framework and increase the value of the company. The resources of Dyson can be
reviewed in this particular framework. The VRIN framework included a review based on the
resources included in the organization. THE VRIN framework includes four processes that are
described below-
 Value

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The resources that bring value in the organization are included in this valued part.
These resources create much competitive advantage in the business organization.
It is important to know that all resources are easy to obtain.
 Rareness
The rareness describes that the resources available to all competitors rarely
defines the competitive advantage.
 Imitability
The ideal resource has been included in this point. This resource cannot be
acquired by the business competition.
 Non-substitutable
The other resource cannot substitute an ideal resource.

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The contribution of the leadership to the company’s success
The CEO of the Dyson Company is Jim Rowan. He is the only leader of the organization
who leads the people by using various leadership methods and takes the company towards great
success in the market. The CEO will adopt the famous leadership methods to lead the people
and make the proper advantage for the company. Several leadership methods make the company
successful in the market. The CEO of Dyson uses various leadership methods that help the
company in achieving success. Mainly, the CEO used the democratic method of leadership,
which build consensus through participation. This method helps in getting proper input so that
the company attains proper growth (Rotharmel, 2015). The leader needs to be proper
commanding on the employees of the company so that the CEO of the organization to acquire
more profits also uses the commanding method.
The CEO acquires various management theories to take the company towards proper
success. The management theories make the proper management in the business organization
that is responsible for the better achievements of the company. Jim Rowan uses the scientific
management theory to make the management proper. This is one of the earliest theories of
management (Aghazadeh, 2015). This theory includes the force provided to the people of the
organization to work hard and getting positive results (Miner, 2015). This theory also maintains
collaboration among employees and employers so that better teamwork is achieved and this
process helps the company in achieving success in the market. The CEO also uses the system
management theory that is responsible to manage the overall system of the organization. This
can maintain proper planning and management in the business. According to the system
management theory, the success of the business depends on different key elements like
interdependence and interrelations. The management is one of the key aspects of the business so
it is important to make proper management in the business to achieve success in the organization.
The organization culture also matters in the success of the organization. The CEO needs
to maintain proper organizational culture so that the company achieving great success in the
business. It all depends on the leader of the company that is CEO of an organization. The culture
can transform the environment of the organization and this can influence the overall growth of

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the business. The culture transforms the company into a team so that the process of work
becomes better and it implements good quality products (Draft, 2015). The CEO of the Dyson
keeps better organization culture to make the people aligned in the business so that the company
achieves proper growth and success. The customers can also attract by the proper culture of the
organization so that the company achieves success in the market. So, the CEO of Dyson
company needs to maintain the culture of the organization.
The decision-making process is also important in getting the success of the company. It is
the responsibility of the leader to get better decisions regarding the betterment of the
organization. The decision-making process plays an important role in the growth of the
organization so the CEO needs to take better decisions as a leader of the Dyson organization.
The decision-making is one of the important parts of any business and it is a key element to the
success of the organization (Popovic , et. al., 2012). The decision-making process also influences
the customers regarding the business of the organization. The customers and suppliers also notice
the decisions taken by the leader of the company and it directly affects the success of the
business. The media analysis is great perception of the organization so it is important to analyze
the media perspectives and the figure of media analysis in Dyson has been described below-
Source: holdthefrontpage.co, 2015.

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Review of the strategy used by the company
The Dyson Company uses various strategies for the betterment of the business. These
strategies are very helpful for the organization to get better results in the market. The Dyson
Company uses the growth strategy and competitive strategy (Hines, 2012). The growth strategy
is used to increase the growth of the company and the competitive strategy is used to deal with
the competition in the market. The growth is an important key element of the business
organization so it is very important to consider the growth strategy in the business. The growth
strategy is used for diversification, product development, market penetration, and market
development. Dyson uses the growth strategy for all of the four key points. The Dyson for more
growth has followed the diversification in the business. This process also manages the
competition of the market. The growth strategy used to increase the profits and decrease the loss
of the company so that the organization achieves a required success in the organization. By using
the growth strategies, the organization may also expand its business in other areas also.
Market development is the recent growth strategy used by the Dyson organization. The
particular strategy of the Dyson helps them to analyze the new markets at an international level.
The market development is a process in which an organization giving offers to the old products
to the new market area. Dyson adopts this growth strategy when they expand their business in
America and other countries. The organization increases its market share by using this growth
strategy and increase many options for the business (Eweje, et. al., 2012). The proper growth can
attain by the Dyson while using this strategy of market development, which is a part of growth
strategy. The market development is very important in the business to develop the market also
develop the consumer that is an important part of the growth of the business. The Dyson
organization is going through this strategy only for the proper development of the market. The
growth strategy of the Dyson used to improve the growth of the particular organization and it
increases the profit for the particular business.
Market penetration is another form of a growth strategy that includes the proper growth
of the organization. The penetration of the market means the proper selling of product or service
in a particular market related to the organization. The Dyson uses market penetration for the
betterment of the sales and growth of the company. The process of Ansoff matrix has been used

Strategic Management and Leadership 16
in managing the market penetration for the required growth of an organization. It is the key for a
business growth strategy (Jhonson, et. al., 2011). The process of market penetration used to
increase the market share and it increases the overall profit of the organization (Proctor, 2014).
Market penetration refers to the way of different strategies that are responsible for the proper
growth of the organization. The different factors of market penetration hold different costs used
in inventory management practices and technology.
The other strategy used by the Dyson Company is the competitive strategy that provides
the competitive advantage to the organization that takes the organization towards the way of
success and increases the market share as per the other competitors. The competitive advantage
has been achieved by the organization by using the demand for innovation and technological
advantage (Dimitrieska, 2016). The innovative strategies give various benefits to the company.
The competitive advantage of the Dyson increases the position of the company in a market. The
innovative products of Dyson used to attract the consumers of the organization and it all
improves the overall business of the growth. The innovation of the products promotes the design
of the materials like house appliances and increases the customers of an organization (Dobni, et.
al., 2015). The proper vision of the organization is to make products more environments friendly.
The innovative products can increase the overall opportunities of the new ideas that implement in
the common practice. Dyson shows that the process of innovation can increase the value of the
products that create certain changes in the industry. (Mathew, et. al., 2016) The innovation can
make the organization as a market leader and maintain the manufacturing of the products
reliable. It is analyzing that by offering great value to the customer’s increases the competitive
advantage of the organization. The competitive strategy is one of the best strategies that are used
by the organization because it provides more benefits to the company and increases the value of
the organization. The performance of the organization also increases by using this process.
The Dyson can achieve the position of the market leader while using the innovative spirit
in his organization. The Dyson has strong brand recognition due to the quality of the products
made by the company. The innovative products of the company are also responsible for the
proper brand recognition wick increases the product values (Mc Donald and Wilson, 2016). The
competitive strategy is very useful for the organization as it increases the competitive advantage
in the organization. It all increases the expectations of the consumers and it increases the

Strategic Management and Leadership 17
particular design and performance of the products in the market and improves the profits of the
organization (Aithal, et. al., 2015).
Dyson Company also uses the blue ocean strategy in their process of the company. The Blue
ocean strategy defines the creation of an organization by making the market competitors
irrelevant and makes a new, uncontested market space. This strategy is responsible to make new
consumer value by reducing the costs. This strategy is related with the theory of marketing and
focus on making the irrelevant competition. The strategic moves of this strategy make a leap in
the particular values of the company. The Dyson choses this strategy to decrease the competition
n the market and increases the value of consumers. This strategy is responsible to explore the
new market areas. This blue ocean strategy consists four principles, which are:
 Process to make uncontested market space
 Focus on large pictures
 Work in market space beyond the process of demand and supply
 Make the sequence of strategy in right direction.
Source: blueoceanstrategy, 2019.

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Analysis of the future of the Company
 Will the company remain a success in the future?
The company can replace is headquarters from Britain to Singapore due to increasing
many features in the company. Singapore has many opportunities to increase the growth and
success of the company. Due to this factor, the company remains a success in the future (MC
Donald, 2016).The success in the future matters a lot in the growth of the company as it chooses
the innovation in the products the success will increase in the future. The company remains a
success in the future as it uses the various technologies in their productivity so that customers get
attracted to innovative products. As per the information get by the above questions, it has been
analyzed that the company will remain a success in the future as it uses the best strategies in their
work. The company future success is maintaining by using today’s strategies and methods used
by the organization in productivity (Grant, 2016).
 What will affect the success of the company?
The success of the company has affected by many factors used in the business. Many
factors affect the success of the business and it increases the overall growth of the business. The
company uses the PEST factors to increase the business at various levels and to achieve a
required success in future (Antoo, et.. al., 2015). Mainly PEST factors like social factors and
technological factors are also affecting success. The organization needs to use the technological
factors in their productivity and their process of using technology in the various activities of the
business organization.
The social factors affect the success of the company, as the products need to have a
proper reputation among the society so that the customers attract towards the company products
and increase the sales of the organization. Therefore, social factors can increase the growth and
success of the organization. Dyson uses the innovation in creating awareness among the society
so that customers attract towards the products and their innovation. The societal aspects of
majorly depend on the growth of the organization. The technological factors needed to involve in

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the process of the company like in manufacturing products, production of the appliances and
many more so that it increases the innovation in the organization. The Dyson is all about the
innovative technology and the company uses the latest trends of technology to make the products
attractive towards consumers. The innovative products are responsible to increase the attraction
of the products so that these factors maintain the success of the company.

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Conclusion
This report includes information regarding the Dyson organization, which are responsible
to make the home appliances like a vacuum cleaner, hair dryers, and other products. The success
factor of the company has been discussed in this assignment. This report includes several
business reasons for achieving success in the market like proper direction, dedication towards
work and proper financial analysis. This can help the business in achieving success in the
market. The value chain analysis has been described in this report which is the main process used
in the business operations. The primary activities of the value chain analysis have been analyzed
in this report. The other main strategies used by Dyson have been discussed in this report.

Strategic Management and Leadership 21
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