MBA501: Business Portfolio & Dynamic Capability Development at MHS

This presentation provides a comprehensive analysis of Millennium Health Sciences (MHS), a company involved in the medicines, vitamins, and cosmetics business. It begins with a business portfolio analysis, examining MHS's four business units: Dermatech, Neutrino, Looks, and Energino, using tools like the BCG matrix, GE-McKinsey matrix, and Synergy matrix to categorize and assess their performance. Recommendations are provided for each unit, including divesting Looks, strategically investing in Neutrino, maintaining Dermatech's market share, and harvesting Energino. The presentation then transitions to an analysis of MHS's dynamic capabilities, focusing on their ability to identify opportunities, mobilize resources, and transform/reconfigure strategic assets. The case study highlights issues such as communication gaps, leadership limitations, and inefficient resource utilization. Recommendations are made to improve opportunity assessment, resource management, and overall dynamic capability to ensure long-term success for MHS.

Business Portfolio and Dynamic
Capability Development Report
Millennium Health Sciences
[Student Name] – [Student Number]

Introduction
 MHS Business Portfolio
The MHS which is commonly referred to as the Millennium Health Sciences is
involved in the business of medicines as well as vitamins and cosmetics.
The company was established back in 1968 by two scientists who aimed to
develop a line catering to the skin care needs of the individual.
The company can be stated to be a $4.3 billion revenue company and has 4500
employees working under it.
The presentation will examine the portfolios of MHS and provide recommendations
based on the same.

The Business Portfolios
 The different business units which are present under MHS can be stated to
be as follows:
 Dermatech
 Neutrino
 Looks
 Energino

About the Business units
 Dermatech: This unit deals with the products related to dermatology. This
is the oldest unit of the Portfolio.
 Energino: This unit is comparatively new and deals with the concept of the
Energy drinks.
 Neutrino: this unit deals with the vitamins and supplements. Recently, they
came up with a new product idea which will be a commercial success.
 Looks: The Looks is the cosmetic segment of MHS.

BCG Matrix
?
Relative Market Share
Market Growth Rate
Look
s
Energino
Dermatec
h
Neutrin
o

The BCG Matrix
 Star: These business units have high market share in high growth industries. The
star of MHS is Dermatech.
 Dog: The Dogs can be understood to be the business units with low market
share in slow growth industries (Ethiraj, Gambardella and Helfat 2018). The dog
of MHS is Energino
 Cow: The cash cows can be stated to be the business units with a high market
share and slow growth industries. The cow of MHS is Neutrino
 Question Mark: These industries have low market share in high growth
industries. The Question mark of MHS is LOOKS.

GE-McKinsey Matrix
Growth
Competitive strength of
business unit
High Med Low
Industry
attractivenessHigh
Med
Low
Growth
Harvest
Selective Harvest
HarvestSelective
SelectiveGrowth

Synergy MatrixThreshold of
acceptance
Misfits
Incoming:
Benefits from belonging
to portfolio
+-
Fits
+
-
Outgoing:
Benefit to portfolio
Altruists
Givers
Parasites
Takers

The Synergy Matrix
 The synergy portfolio analysis matrix can be described as a tool which helps in
understanding the benefits which a business tends to receive by staying within the
portfolio versus the incoming benefits which are received out of it.
 It helps in the assessment of the overall net impact of a business.
 Fits: With high incoming benefits and high outgoing benefits.
 Misfits: With low incoming benefits and low outgoing benefits.
 Givers: With low incoming and high outgoing benefits
 Takers: High incoming benefits and low outgoing benefits (Hitt and Duane Ireland 2017).
 Altruists: With low incoming benefits and high outgoing benefits but below the threshold
of acceptance.
 Parasites: With high incoming benefits and low outgoing benefits but beyond the
threshold of acceptance.

Business categorisation
BCG
Matrix
GE-McKinsey
Matrix
Synergy
Matrix
LOOKS Question mark Harvest Parasite
Neutrino Cow Selective Givers
Dermatech Star Growth Fits
Energino Dog Harvest Misfit

LOOKS
 Analysis
From the analysis as done on Looks using the tools of BCG, Synergy
matrix and the GE matrix, it could be rightfully understood that, The
Looks segment is a low performing unit in a high performance sector.
 Recommendations
Hence, with respect to this, it is recommended to the firm, that it is
required to let go of the Looks unit as it is taking up adequate funds and
investment but is instead not giving considerable returns (Hitt and
Duane Ireland 2017).

Neutrino
 Analysis
The Neutrino can be stated to be one of the oldest units of the business
and is involved in the Supplements and Vitamins segment. The Unit can
be stated to be a Cash Cow and a giver of the unit.
 Recommendations
Hence, after the analysis, it can be rightfully stated that, the MHS needs
to be a strategic decision with respect to the Neutrino and will be
required to invest into the segment smartly in order to ensure that it
continuous being the Giver.