Case Study Analysis: Dynamic Strategy and Disruptive Innovation at EFS

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This case study analyzes Essendon Food Solutions (EFS), a multinational food ingredient company, exploring its internal, external, marketing, and technology perspectives. The analysis highlights issues within the organization, including HR management, resource allocation, and organizational culture. The case study also examines the company's marketing strategies, emphasizing the need for a dedicated marketing team and the importance of understanding customer needs. Furthermore, it addresses technological aspects, particularly the R&D department's shortcomings and the lack of technical expertise. Recommendations are provided to improve HR practices, strengthen stakeholder relationships, foster innovation, and enhance marketing and technology strategies. The study underscores the importance of aligning internal processes with external factors to achieve long-term sustainability and growth for EFS.
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Dynamic Strategy and Disruptive Innovation
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Introduction:
Essendon Food Solutions is a multinational food ingredient company, established in
1979.
Jonathan Jacob and Henry Shultz are the founders of the company, which is having
more than 800 employees support.
$1.6 billion revenue have been generated and helped the company to achieve various
milestones.
Enzyme Teach and Essendon Emulsifiers are the two subsidiaries of the organizations
Speaker Note:
The R&D department is considered to be a crucial department, among others. Since an
integral part of the organization depends in terms of achieving success. Thus, the
organization needs to develop the R&D department. The patent analysis can be included for
recognizing the latest technologies from the other corner of the world and to implement those
in the respective sectors in the organization. All of these developments are only possible
when the R&D department of the EFS organization must be improved.
Internal perspective
Slide 2:
The higher designated managers are not having enough particle knowledge that are
required to run a business.
The managers are having microbiology degree from the universities, which is not
related to the company’s industry.
Resource management is very important to deliver the best solution for the
organizational development.
Increasing the relationship is necessary to achieve the financial long-term goals of the
firm.
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Speaker Notes:
Human resources:
One of the significant issues that have been faced by the managers of the organization is with
human resources. Recruiting the appropriate people for the work have not been done in the
right manner. As a result, the company is facing the difficulties to manage the work among
the employees (Cascio, 2019). At the same time, the employees who are having different
background experiences have been recruited by the organization's human resource
department. On other words, it can be considered as a failure of the HR department of
Essendon Food Solutions (EFS). So, they are facing problems to incorporate their
educational learnings in the working culture. As a result, the company’s performance is
decreasing due to these issues (Brewster and Hegewisch, 2018).
Organisational culture:
In each company, challenges must be faced by the organizations to be successful and archive
the company’s goal. In this organization, the responsibilities have been allocated to the
people whose age is more than 53 years and having an educational degree on the
microbiology background.
Internal Perspective (Contd.)
Slide 3:
Human resources managers are not as capable as they should be, to deliver the best
performance for the betterment of the company.
HR executives are not well aware about the role and company’s goal.
HR managers have not recruited the legitimate people as employees, which is creating
hurdles for the development growth of the organization.
The Human Resource managers must increase the skills, regarding the regarding the
recruitment process of the company.
Speaker Notes:
Resource allocation:
Resource allocation is one of the critical areas that are related with the overall profit of the
organization (Ryan and Jones, 2016). The resource allocation consists of financial returns,
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which can set hurdles in the development way of the company. The organization has got a
decent relationship with the shareholders as it had reached an excellent financial structure. A
better relationship with the shareholders may help the company to achieve long-term
financial goals. As a result, the company will have the extra advantage to increase the overall
profit of the company.
Recommendation:
Based on the reports and the analysis, which has been discussed, several recommendations
can be suggested. The HR department of organization has to be re-recruited or make them
understand about their role in the company. The HR department of the company provides the
best solutions that are available in a tough situation.
External Perspective:
Slide 4:
Commitments are one of the crucial factors, which determines the long-term
sustainability of the company.
Shareholders, investors and suppliers are the key elements for an organization.
Increasing the relationship level with the investors, shareholders and suppliers have
many benefits for the company.
Breaching commitments should not be encouraged by the organization.
Speaker Notes:
Commitments
Commitments are one of the external matters which is related to the overall development of
the organization. As the commitments have to be fulfilled to develop the business skills and
performance of the company. In terms of a business organization, it is necessary to make
various commitments with the investors, shareholders and suppliers (Saebi and Foss, 2015).
Regulations
The innovations and development can be obstructed by the laws, policies that have been
followed in the organization. It can be observed that in most of the organizations, most of the
fundamental ideas and the decisions have been taken by higher designated managers. So,
other employees do not get the opportunity to share their ideas for the betterment of the
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organization. In the case of the Essendon Food Solutions (EFS), the company has
established a policy which is not friendly with the sharing idea concept, like the other
organizational policies. As a result, the company is not utilizing the ideas of the employees,
which can be used to develop the business.
External Perspective:
Slide 5:
The policies and regulations must support the sharing idea prospective, so that each
employee can share their prospective for a better organizational growth.
A friendly regulation also allows the employees to execute their skills to ensure better
performance of the company.
Stake holders and the investors must play a major role to bring new ideas to enhance
the regulations quality of the company.
Improving the law and policies of the organization will help to gain stable growth in
the long-term prospective.
Speaker Notes:
Recommendation:
Based on the discussions, several recommendations can be provided to develop the
innovation level of the company. The company should focus on making good commitments
with their stakeholders, investors and suppliers to maintain strong business sustainability in
long term perspective. At the same time, the leaders must create policies and regulations
which will allow the employees to share their ideas for the betterment of the organization.
Marketing perspective
Slide 6:
It is a necessary requirement for a business organization to reach to the customers as
many as possible.
Companies who are able to fill the gap of needs or requirements of the customers
achieves success.
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Marketing prospective is as important as other prospective which must be possessed
by a firm in order to gain success.
The EFS organization suffers a significant loss due to the absence of proper marketing
team.
Speaker Notes:
In order to understand the requirements of the customer's insights, customer visit programs
can be organized, which can be considered to be an important aspect to achieve success.
Thus, this marketing perspective is as important as other prospective which must be
possessed by a firm to gain success. However, one of the astonishing issues of our company,
Essendon Food Solutions (EFS) in accordance with the marketing perspective is that the
company suffers a significant loss.
Marketing perspective (Contd.)
Slide 7:
There are some specific products that do not have that much of importance in the
Australian market but has a significant amount of potential in the market of Asia.
Standard classifiers must be supplied by the organization.
A technical sales executive team must be established.
Marketing objectives can be achieved by the collaboration of marketing and R&D
department.
Speaker Notes:
The marketing activities can be accessed by the research and development team of Essendon
food solutions. Since the department has profound knowledge on how sufficient development
and invention can be done on the products of the organization. The organization has many
senior staffs who belongs from a microbiology background consisting of a degree and a
profound knowledge in it (Mora Cortez and Johnston, 2017). The staffs, who have in-depth
knowledge in microbiology, belonging from that domain in their academic life, are also hired
by the department of human resources in the organization (Mytelka, 2016).
Technology perspective
Slide 8:
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The technological strategies plays an important role in achieving success of the
organization.
The company has identified several issues regarding the R&D department which the
firm inspects as a backdated team in terms of innovative development in research and
technology of the firm.
The department have a profound knowledge and experience of the various
implications in Enzymetech.
The organization has taken an initiative to develop its R&D department.
Speaker Notes:
However, the department has profound knowledge and experience of the various implications
in Enzymetech, but, that is not only a sufficient quality that the department should have. The
R&d department has a lack of expertise in the company by which a better interaction with the
customers can be held to create better products according to their requirements. On the other
hand, Essendon Emulsifiers, which is be considered to be one of the essential subsidiaries
that the company have, is also facing a lack of performance. Since the technical sales
executives are absent in the organization.
Technology perspective (Contd.)
Slide 9:
The R&D department have a lack of expertise in the company
Essendon Emulsifiers, the important subsidiaries that the company, faced a lack of
performance, due to the absence of the technical sales executives.
It is reported that more than 80 percent of the R&D staffs are not be able to deliver
their quality of work since they have a lack of practical experience due to
unavailability of proper lab instruments in the department.
The patent analysis can be included for recognizing latest technologies from the other
corner of the world and to implement those in the respective sectors in the
organization
Speaker Notes:
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The R&D department is considered to be a crucial department, among others. Since an
integral part of the organization depends in terms of achieving success. Thus, the
organization needs to develop the R&D department. The patent analysis can be included for
recognizing the latest technologies from the other corner of the world and to implement those
in the respective sectors in the organization.
Conclusion:
Slide 10:
The above-discussed case study is based on the various perspectives of the
organization, Essendon Food Solutions (EFS) regarding its internal, external,
marketing and technology
The interior view is included with human resources, resource allocation, cultures of
the organization and structure of the organization
Along with that, the paper also emphasizes on several external factors such as
commitments and regulations of the organization
Speaker Notes:
On the other hand, the study also concludes various marketing perspectives of the
organization apart from the internal and external perspective. The way by using which total
sale can be significantly increased with the help of the mentioned marketing perspective is
also shown in the paper. Apart from all of these prospective, the need of separate marketing
team catches the attention of the organization since it plays an essential integral part of the
organization to achieve success.
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References:
Dodgson, M. (2018). Technological collaboration in industry. 1st ed. London: Routledge, p.100.
Kotler, P. (2015). Marketing Management. 6th ed. Singapore: P. Ed Australia, p.150.
Kumar, V., Rahman, Z. and Kazmi, A. (2017). Sustainability Marketing Strategy: An Analysis of
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Luftman, J., Lyytinen, K. and Zvi, T. (2017). Enhancing the measurement of information technology
(IT) business alignment and its influence on company performance. Journal of Information
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https://journals.sagepub.com/doi/10.1057/jit.2015.23 [Accessed 25 Sep. 2019].
Matt, C., Hess, T. and Benlian, A. (2015). Digital Transformation Strategies. Business & Information
Systems Engineering, [online] 57(5), pp.339-343. Available at:
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Mora Cortez, R. and Johnston, W. (2017). The future of B2B marketing theory: A historical and
prospective analysis. Industrial Marketing Management, [online] 66, pp.90-102. Available at:
https://www.sciencedirect.com/science/article/abs/pii/S0019850117300263?via%3Dihub
[Accessed 25 Sep. 2019].
Mytelka, L. (2016). Locational Tournaments, Strategic Partnerships and the State. Innovation and
Social Learning, [online] pp.89-110. Available at:
https://link.springer.com/chapter/10.1057%2F9781403907301_5 [Accessed 25 Sep. 2019].
Pappas, N. (2016). Marketing strategies, perceived risks, and consumer trust in online buying
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https://www.sciencedirect.com/science/article/pii/S0969698915301296?via%3Dihub [Accessed
25 Sep. 2019].
Ryan, D. and Jones, C. (2016). Understanding digital marketing. 2nd ed. London: Kogan Page.
Saebi, T. and Foss, N. (2015). Business models for open innovation: Matching heterogeneous open
innovation strategies with business model dimensions. European Management Journal, [online]
33(3), pp.201-213. Available at:
https://www.sciencedirect.com/science/article/abs/pii/S0263237314001248?via%3Dihub
[Accessed 25 Sep. 2019].
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Brewster, C. and Hegewisch, A. (2018). POLICY AND PRACTICE IN EUROPEAN HUMAN
RESOURCE MANAGEMENT. 1st ed. [Place of publication not identified]: ROUTLEDGE,
p.410.
Cascio, W. (2019). Managing human resources. 11th ed. McGraw-Hill.
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