Analysis of Dynamic Strategy and Innovation at Essendon Food Solutions

This report provides a comprehensive analysis of Essendon Food Solutions' capacity for innovation, examining its dynamic strategy and disruptive innovation across various perspectives. The report delves into the internal perspective, evaluating the impact of autocratic leadership, scalar chains, and superior-subordinator relationships on innovation, recommending a shift towards democratic leadership and decentralized power. The external perspective explores factors such as technology, competitors, suppliers, economic conditions, and customer activities. The marketing perspective assesses product, price, communication, and customer preferences, emphasizing the importance of market trends and customer interaction. The technology perspective outlines the innovation process, including problem-solving, adaptation to change, globalization, and competition. Finally, the report considers strategic leadership, analyzing the senior management's approach to strategy review and the challenges posed by competitors. The report concludes with recommendations for Essendon Food Solutions to enhance its innovation capabilities and adapt to a changing market.

MBA501: Dynamic
Strategy and Disruptive
Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
A. Internal Perspective................................................................................................................1
B. External Perspective...............................................................................................................2
C. Marketing Perspective............................................................................................................3
D. Technology Perspective.........................................................................................................4
Strategic Leadership....................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Dynamic strategy develop by companies to make a quick decision when opportunities
and challenges suddenly arise (Battleson and et.al, 2016). It is changed according to motion due
to provide a relevant and usable roadmap to everyone in the company. Disruptive innovation is
an innovation that develops a new market and value network for existing market and displacing
situated market-leading firms, products and alliances. Disruptive innovation requires to prepare a
dynamic strategy that helps to effectively apply in the company and take an appropriate decision.
This report based on the case study of Essendon Food Solution which wast established 40 years
ago by Jonathan Jacob and Henry Schultz. The report focuses on the organisation's capacity to
innovate in different perspectives such as internal, external, marketing, technology perspective
and strategic leadership.
MAIN BODY
A. Internal Perspective
In this perspective define about the internal activities of company and how organisation
fulfil the expectations of customer needs and get its financial goals. They are make sure that the
goals of internal perspective directly related to customer perspective. The internal structure of the
Essendon Food Solutions impact on the organisation innovative capacity because there are
managerial structure top down and all the important decision related to project appraisals and
selections are made by the GM and senior executive team of each business. After the analysis
identify key points that impact on innovation such as - Autocratic leadership: In this style of leadership a manager control all the decision and
little input from group members. It makes choices on the basis of their ideas and
judgements and perhaps take suggestions from followers. As a result it impacts on
innovation because all employees are not participate in task. Scalar chain:It is formal line of power which moves from highest to lowest rank in
straight line. The particular chain specifies the way where communicate about the desired
location/person. Through this chain a employee never talk with other department
employee about the task due to go straight. So it is considering as long procedure. Superior and subordinator relation: Communication is important tool which establish
good relation in between superior and subordinator. But there are not good relation
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between employees and manger because they are not talking directly about their problem
as a result it impact in negative manner.
 Delegation of power and authority: There are every decision take by the manager so
employees do not take decision own level. For every activity require to follow procedure
as a result it will take more time and loss opportunities (Lin, Su and Higgins, 2016).
Recommendations
There are providing recommendations to Essendon Food Solutions that company apply
democratic leadership style where every person take participate in innovation. As a result
employees take interest and provide their suggestions. There are not set chain for power and
provide power and authority equally due to less period of time. It helps to grab opportunity on
time and employee satisfy with the job. It is suggested that provide power to lower level
employees so they take decision own level according to priorities. It is required to set good
relation with employees regarding to work as a result they participate into every business
activities with interest.
B. External Perspective
Organisation innovation depend on different perspective and external perspective one of
them. There are including external factors that direct impact on the innovation capacity of
Essendon Food Solutions. These are important factors which is direct connected to company and
impact in positive as well as negative manner. These factors create challenges and opportunity
that manager need to focus when making strategic choices. The external factors such as
competitors and suppliers, labour market, activities of customers and economic conditions. Supply of technology – In present time new and upgrade technology come any time in
the market and impact on the organisation innovation. It is required for Essendon Food
Solutions to aware for new technology and understand that how to operate it in different
situation. This factor impact on the innovation of company in direct manner. Competitors and suppliers – When company innovate new product in the market that
time research about their competitors and suppliers. If company does not focus on their
competitors so it will create problem in innovation and face many hazards. To produce
any product required to suppliers who provide raw material on time and in good price. It
is impacted on the organisation innovation capacity in direct manner (Mikalef and Pateli,
A., 2017).
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 Economic condition – A company must focus on economic condition during to
innovation. If company does not focus on that so face challenges and fall profits so it is
required to analysis of government policies regarding to innovation. After that carry out
innovation into efficient way.
 Activities of customer – It is one of the major external factor that impacts on organisation
innovation in effective manner. Before the innovation company analysis of customer
activities and in which sector they mostly take interest. Different types of customer have
different interest so it is required to according to innovation Essendon Food Solutions
focus on target market.
Recommendation
It is recommended that management prepare effective strategies to control external
factors. Essendon Food Solutions prepare a team, who analysis of external activity then take
appropriate time as per the situation. There are preparing list of suppliers who provide raw
material then aware for new technology that helps in innovation. There is analysing of activities
of customer deeply that help to conduct business activities.
C. Marketing Perspective
Marketing plays important role in innovation where they collect all appropriate
information about the product. After that analysis of market trends that help to know about
customer taste & preference. As a result company fulfil the expectations of customers. When
company supplied good product so it helpful to create good relation with customers. To become
good seller and introduce as good brand image so it is required to establish good relation.
Marketing activities and customer relation directly impact on the organisation innovation
capacity. Product: To innovate any product in the Essendon Food Solutions, it is required to
research about the product. In which type of raw material require to reach next procedure
of production. It will impact on the innovation capacity in direct manner (Dodgson,
2017). Price: To sell out the product effective manner in the market it is required to set price
after the research of similar products in the market. Many time company set high price so
it will impact as negative manner.
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 Communication: For marketing new product in the market and develop relation with
customer require communicate with customers. Essendon Food Solutions apply different
methods of communications that helps to reach target customer and increase sales. Many
time company does not focus on target customer as a result it impact in negative manner. Taste & preference: To establish good relation with customer and sell out product in the
market in broad manner. It is required to to analysis about customer taste & preference
that helps in production activities and produce according to customer interest. Otherwise
it shows negative impact on the company (Inigo, Albareda and Ritala, 2017).
 Fulfil the requirement: For good marketing focus on the expectations of customer and
take interest on their activities. According to market trends people changes their interest
so it is important to follow market trend effectively. The company does not focus on the
requirement that perform negative impact on the production procedure.
Recommendations
It is Recommended that Essendon Food Solutions before innovation interact with
customers then produce goods as per the requirement. It is most important for Essendon Food
Solutions follow market trends and identify customer activities regarding to different products.
Company handled exports market through distributor and only a few staff member familiar with
the export operations. The marketing manager only visited two important export markets such as
China and Indonesia.
D. Technology Perspective
Innovation is defined as introduce new product in the market with high quality, source of
supply and an organization in industry. It states that modification into old product and use
different idea to develop commercially executable product. In general terms, it is a procedure of
improving a product service from its current state. The innovation procedure is a structure
strategy which assure about the innovation team idealizes an innovation and survive with until it
is successfully applied. To conduct innovation procedure follow these steps:
 Solving problems: Mainly ideas arise in the company when they find out any problem in
existing products. As such, when motivate for innovation and find out solution of
problems that time innovate new products (Leavy, 2016) .
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 Adapting to change: It is important because there is required to apply change in existing
product and apply new technology on product. Change is necessary and innovation is the
method to keep business afloat.
 Maximizing on globalization: Through markets all over the world become more
interlinked, great opportunities are emerging in these new markets and face new
challenges.
 Facing up the competition: The corporate world always very competitive and give
competition to their rival equally. To stay long time in the market it is required to follow
the procedure of innovation (Dobni and Sand, 2018).
Recommendations
It is recommended that during the procedure of innovation Essendon Food Solutions face
many problems such as technological failure of innovation, financial strain, market failure,
redundancy and lack of capacity for implementation. Company take it as challenge and sort out
effectively and prepare effective strategies that help in the innovation procedure.
Strategic Leadership
Each year, the senior management team (executive committee plus 20 senior staff)
conduct meeting for three day to review on annual strategy. The numbers of presents by the EFS
strategic planning team did not look that well this year. Mainly, strategy review focused on the
one big party but this year mood was depressing. The key competitors of Enzyme Tech are
creating newer products earlier and faster. At this rate, Enzyme Tech will suffer many challenges
in 4-5 years. The condition of Essendon is far worse due to current trends continue and company
may have to reduce employees. The Leader analysis of strategies and says that
 The leaders Jonathan says that from the different perspectives it is recognised that
company face many problems that influence to organisations innovation ability but
company found out good solutions.
 CFO think that outsider of the company do good job and agree with strategy to bring an
experienced outsider (Gholampour Rad, 2017).
CONCLUSION
As per the above discussion it is concluded that innovation is systematic procedure where
company carry out new product in the market after conduct research regarding to product. It
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helps to generate profit and create good brand image in the market. The ability of the innovation
in the company influence by different factors in different perspectives such as market, customer,
technology, internal etc. After all the analysis prepare effective strategy that help to innovate
products in good manner. There is strategy analysis by the leaders and provide final comments
for modification.
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REFERENCES
Books and Journal
Battleson, D. A. and et.al, 2016. Achieving dynamic capabilities with cloud computing: an
empirical investigation. European Journal of Information Systems. 25(3). pp.209-230.
Lin, H. F., Su, J. Q. and Higgins, A., 2016. How dynamic capabilities affect adoption of
management innovations. Journal of Business Research. 69(2). pp.862-876.
Mikalef, P. and Pateli, A., 2017. Information technology-enabled dynamic capabilities and their
indirect effect on competitive performance: Findings from PLS-SEM and
fsQCA. Journal of Business Research. 70. pp.1-16.
Inigo, E. A., Albareda, L. and Ritala, P., 2017. Business model innovation for sustainability:
Exploring evolutionary and radical approaches through dynamic capabilities. Industry
and Innovation. 24(5). pp.515-542.
Leavy, B., 2016. The next wave of global disruption and the role of China’s
entrepreneurs. Strategy & Leadership. 44(3). pp.27-37.
Dobni, C. B. and Sand, C., 2018. Strategy shift: Integrating strategy and the firm’s capability to
innovate. Business Horizons. 61(5). pp.797-808.
Gholampour Rad, M., 2017. Disruptive innovation in media industry ecosystem and need for
improving managerial cognitive capabilities in polymediation era. Cogent Business &
Management. 4(1). p.1352183.
Dodgson, M., 2017. Innovation in firms. Oxford Review of Economic Policy. 33(1). pp.85-100.
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