Internal Perspective of Millennium Health Sciences (MHS)

This document discusses the internal perspective of Millennium Health Sciences (MHS), focusing on the traditional organizational structure, recruitment policy, and lack of professional marketing experts. It highlights the impact of these factors on communication, innovation, and business relationships. The document provides recommendations to revamp the organizational structure, encourage external sourcing, and develop a productive relationship with shareholders. Additionally, it explores the external perspective of MHS in terms of opportunities in the healthcare market in Asian countries, particularly China. It suggests conducting marketing research and expanding R&D capabilities in favorable business conditions like Singapore. Lastly, the document discusses the marketing perspective of MHS, emphasizing the importance of expertise in pharmacology and microbiology in the marketing division. It recommends collaboration between departments and the use of innovative technology for customer engagement.

Transcript
A. Internal Perspective
The case study is on the Millennium Health Sciences (MHS) group. Internal perspective
can have the influence of several factors. One of these factors is the organisational structure. The
organisational structure followed in the case study organisation is very much traditional. MHS
follows a top-down structure. This means General Managers (GMs) will report directly to the
CEO and the Board of Directors. This mode of communication will be used in every
organisational process like Performance Appraisal, Internal Job Posting (IJP) and others. MHS,
as indicated in the case study, had moved from just a start-up company to a widely recognised
brand. However, there are areas where it still needs to work to ensure sustained performance and
attain a progressive growth path.
One of the areas of improvement is the organisational structure. The structure is more
traditional and hence, lack the competency. The structure of this kind does significantly affect
the flow of information from one to another member. Hence, there is an inadequate flow of
knowledge in organisation wide area. Inadequate flow of knowledge between peers can affect the
innovating capability of an organisation. Considering this being the fact MHS will struggle to
introduce a new and innovative concept, which is necessary to retain the value generated from
the business. Due to the lack of a robust network for communication, MHS could struggle with
its problem handling capability.
MHS is very traditional also with its recruitment policy. It prefers only the senior most
people for all the higher managerial positions. There is no issue in continuing with the process
unless their skill-based competency gets affected with it. Alternatively, it is more productive to

look for external resources as well. They could access a wider pool of talent both from within
and outside the organisation.
MHS lacks professional marketing experts despite having a marketing team. It is worth
noting that marketing essentially helps in promoting and popularising a disruptive innovation.
Professional marketing experts do not just assist in promoting an innovative concept but also
collect information on areas, which are not being tapped yet. Such information can be used in
developing new and innovative concepts.
MHS also lacks a healthy business relationship with its shareholders. They have been
good in terms of giving dividends to their shareholders. However, as per the new CFO of the
company, there is no effective relationship between MHS and its shareholders. An effective
relationship as according to the new CFO could have allowed for relaxation in dividends paid to
shareholders. The relaxation thus achieved could have been utilised in research & development
(R&D) projects. Notably, MHS has not been good in R&D despite investing so much in the
R&D operations.
A.1 Recommendation
Below is the list of recommendations that can help to reduce the adverse impact of internal
factors:
 MHS should drive effective communication at the organizational level: However, this is
least feasible with the current top-down management structure followed in MHS. To
promote effective communication, the organizational structure should be revamped into a
flat structure. A flat structure facilitates communication both horizontally and vertically.

It helps to avoid going into a time-consuming process of communication between
personnel placed vertically.
 Encourage external sourcing of people: Going for talents from external resources could
be extremely benefitting provided that the recruitment panel has adequate capability. The
capability could be measured in terms of recruitment policy, strategy making, appropriate
mixing of technology and access to adequate resources.
 Should have professional marketing experts: MHS should not delay any more in
developing a panel of expert marketing personnel. Marketing experts with huge industry-
based experience should be preferred. Recruitment alone won't just be helpful. Indeed,
experts should be provided with appropriate tools and technology to be used in various
marketing activities.
 Develop a productive relationship with shareholders: This could help in holding back a
portion of the dividends paid to shareholders. This strategy will boost savings. The
savings can be utilized in research and development (R&D) activities.
B. External Perspective
Healthcare products manufactured in Australia receives high appreciation from across the
globe. Australian products are hugely popular in Asian countries, especially in China. The
number of products reaching to China is not just limited to the healthcare products. Indeed,
Australia made dairy products such as infant formula for kids are hugely popular and are highly
consumed in China. Chinese people trust the products made in Australia for its quality and
pricing as well. It means that there are growing opportunities for Australian organisations.
However, MHS is yet to explore these opportunities.

MHS being a growing company should have people roaming around the globe and
creating a new business relationship. Despite this MHS has failed to put attention to this aspect
of the business. The company should have a research team especially dedicated to doing
marketing research. Marketing research has become a very powerful weapon these days. It helps
to collect a huge lot of diverse information on a topic of concern. Such information can be
compared together to understand and identify a few useful facts. These facts can be utilised in
devising new strategies such as opening a new R&D centre. Perhaps, the reason why R&D
capability is less competitive is a fact that MHS is less into the marketing research. Marketing
research is necessary to know what is trending at the moment. Moreover, it helps to know what
competitor firms are doing. MHS should facilitate adequate marketing research to be able to
identify the level of innovation required of them to attain a sustained business practice.
In addition to marketing research, MHS also has been pretty slow in expanding its R&D
capability. They could have worked towards establishing new research and development centres
in countries that mostly have favourable business conditions for a foreign company. Asian
countries, in particular, are very promising for foreign direct investment (FDI). For example,
Singapore creates fewer barriers to foreign companies. The country is liberalised. Hence, makes
it a politically stable country. Moreover, the foreign direct investment (FDI) policy of the
Singapore government is highly favourable. Despite all these being the fact MHS has been very
slow towards FDI. Indeed, there is a lack of innovation, which is probably keeping MHS away
from such opportunities.
B.1 Recommendation
 More marketing research: MHS on an urgent note should encourage more marketing
research. To bring a change they should also know how to make a difference. MHS can

select a few of their tenured professionals for conducting market-based research. In
another way, MHS can also go for recruiting expert marketing personnel to take care of
researching the global market for healthcare products. It is advisable to conduct thorough
marketing research of Asian countries, particularly of Singapore. As stated earlier,
Singapore offers favorable business conditions to foreign companies.
 Open new research and development (R&D) centers in Singapore: As stated before,
Singapore offers very favorable business conditions. The country is liberalized due to
which it is politically pretty stable. Moreover, government policy with regards to various
business terms like trade tariffs and all is also quite favorable. Government policy is quite
good with regards to foreign direct investment (FDI). The country provides adequate
access to resources needed to develop and expand the technological capability. Singapore
is an open economy and hence, can be exploited to gain on the market opportunities. It is
one of the developing nations. The disposable income is pretty good. A pretty high
disposable income in addition to the growing concern for the quality healthcare products
should be benefitting for MHS.
C. Marketing Perspective
The marketing team of the organisation was strategically two business units. For both Neutrino
and Dermatech there were separate marketing divisions. The qualification requirement of both
the companies were similar and the aim of the company was to capitalise on the aspect of
expertise that each of the individuals of the company had. It is believed by the official of the
company that having expertise pharmacology and microbiology will help the employees of the
organisation gaining increased understanding about the motives of the company and the products
that are offered by the company. Furthermore, it can help the companies in gaining

understanding in terms of the processes within the organisation. Thus, the expertise that is
required in the individuals of the company is a ground on which the company can derive an edge.
It is believe that most of the companies employ individual who are an expert in the field that they
are designated for. Hence, the aim of the company is to gain a competitive advantage on the
operations by employing people in the marketing division who have exclusive knowledge about
the operations of the company and the mechanism which the products of the company follow and
operate by.
Furthermore, the marketing department of the organisation are designated with the role of
contributing to the research and development that is carried out by the organisation. Both the
business units of the organisation are required to have expertise in terms of operations in the
marketing divisions. The marketing division of the company are closest to the prospective
customers and the real customers. Hence, the latter can have the idea regarding the aim of the
consumers and can effectively adjudge the behaviour of the consumers. Furthermore, the latter
are the individuals who are designated with the role of carrying out the role of persuading and
convincing the customers to make the ultimate purchase decisions along with the fat that that are
designated with the role of communicating the main motive of the company to the consumer
community. Thus, it comes back to the topic of expertise in the field of pharmacology and
microbiology that is deemed to be an effective way to understanding the behaviour of the
consumer as well as the mechanism of the products. Moreover, it has been found from the case
that the marketing executives of the company have the role of compiling the information that
they received while researching in marketing meetings that are carried out in the organisation on
a monthly basis.

It can be recommended that that the marketing division should have individual who are specially
trained in marketing and business operations. Having executive with the aforementioned
backgrounds is important, however, it is necessary for the individuals of the company.
Furthermore, collaboration of both the department would help in catering to the needs of the
organisation as with additional expertise in marketing, the company will have the opportunity to
compile market research data more effectively and will present the same much more effectively.
Technology perspective
The main nature if operations of the company is centred on intensive research and development.
The aim of the company is to carry out intensive research and development as a result of which
they company can gain competitive advantage in innovation that the company carry out while
operating in the market. The company has accrued out considerable amount of innovation by
carrying out research and development in the market. The products that err offered by the
company are based on sea weed and the nature of innovation that is carried out by the company
is deemed to be disruptive in nature. Thus, by carrying out innovation the company ash been
able to develop they products that offers special advantage to the people who consumer the
products. Furthermore, the products that have been developed by the company help in catering to
the needs of the consumers. However, the company has failed to capitalise one technology
through which they can capitalise one engagement of the customers. Thus, it can be
recommended that the company should employ techniques through which they can attract and
engage the customer to the company. Use of social media and other forms of innovative
technology can help they companying engaging the consumers community. Furthermore, the
company can gain further upper hand while they are operating in the market that is deemed tone
dynamic.