Dynamic Strategy and Disruptive Innovation: MHS Case Study

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Added on  2022/11/23

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This presentation analyzes the Millennium Health Sciences (MHS) case study, focusing on its approach to disruptive innovation and dynamic strategy. The company, with its $2.2 billion revenue and two business units, Neutrino and Dermatech, utilizes innovation, particularly in the use of seaweed-based products. The presentation explores internal perspectives, highlighting the top-down management style, the age of the executive team, and the importance of communication. External factors such as economic conditions and stakeholder relations are also discussed. Furthermore, it examines the marketing strategies, the focus on R&D, and the company's ability to capitalize on market opportunities. The presentation provides a comprehensive overview of MHS's operations, its innovative processes, and its capacity to adapt to the market.
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Innovation refers to the development of ideas regarding a new way of carrying a certain task or
carrying out innovation in terms of development of a product or service that might be different
than similar products that existed in the past. Disruptive innovation is a type of innovation in
technology or methodology that might affect the general nature of similar operation that are
carried out in the industry. The latter was existent in the operation of an organisation called the
Millennium Health Sciences or MHS. The company segregated its divisions in the market with
the help innovation in the form of the use of seaweed to develop products that can be used in
skin care clinics, spas and for the use of specialised beauticians. This presentation will be
focussing on various perspectives that will be used to imply the significance of the innovation in
terms of operations of the company.
Let us talk about the internal perspectives of operations of the company. The company was
subject to favourable returns till date the revenue of the company amounted to 2.2 billion dollars.
Moreover, it can be said that the operations of the company was segregated into two functional
divisions under the name of 2 companies namely. The approach of management that was used by
the company was a top down approach. All the decisions of the company were made by the top
level management of the company. There were designated general manger sin each of the
division who were responsible for carrying out the decision making on behalf of the company.
Feedback from the part of the employees were not treated favourably and in order to sustain
oneself in the company they had to keep quite. Thus, it can be said that a smooth communication
framework was absent in the company. The average age of the executive employed at the
company was 53 and it can be opined that it was keeping the potential of the company in check.
Furthermore, it was found put that all most of the members of the company were from
microbiology and pharmaceutical backgrounds. The management of the company and the owners
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believed that this was a criteria that helped the company in terms of providing a competitive
advantage for the company. Even, the marketing division of the company was mostly from the
same background. I believe that being experts in the field is okay. However, I think that having
individuals in the organisation who are actually heading a said division should have expertise in
the field that they are operating in. Furthermore, the company should be able to encourage
smooth communication in the organisational framework as it would allow the company to get
valuable feedback that is deemed to be necessary for solving issue and gaining a competitive
advantage.
The external factors that affected the nature of operations of the company is the low amount of
returns that the company was subject to during the time of recession. However, this, did not stop
the company from providing a share of profit to the stakeholders. Thus, was seen as an
opportunity to satiate the needs of the stakeholders of the company. Thus, the aim of the
company was to maintain a favourable pool of shareholder through which the company would be
able to maintain a loyal group of shareholder who would keep on investing in the company.
The marketing team of the company was segregated into two separate entities just as the other
functions of the company. The marketing team were from pharm and microbiology background
as mentioned before. It ensure that the marketing division of the company I able to identify and
effectively market the initiatives of the company so that they are able to modify their opinions in
terms of opinions of the company. It was suggested that the company should hire experts in the
field of marketing who would have an advantage over the people who belong from backgrounds
other than the present background of the company. It is advantageous for the operation of the
company. The marketing managers of the company aimed to focus on capitalising on the
operations in Australia rather than on Asia. The manager of bother the wings of the company
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believed that if they cater to the needs of the market by carrying out R&D in the market that they
are operating in, the distributors will be attracted towers they direction of the company.
Furthermore, the sales team of the company were designated to pitch the same potential investors
and customers twice as two spate entities. This posed an opportunity for the company to
capitalise on the investment that was being made at more than attempts.
The company were successful in carrying out innovation in the market that they were operating
in. By carrying out constant research and development, the company was able to develop tactics
through which they would be able to cater to the needs of the consumers with the help of
innovative products. The Poseidon range of product were made from seaweed extracts and
several active ingredients that were developed and presented in the form of a liquid ointment or a
tablet. The company specialised in terms of carrying out of innovations through research and
development. The main aim of the company was the most relevant for the creation of innovative
products constantly.
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