MBA501 Dynamic Strategy: Disruptive Innovation at Millennium Health

This presentation provides an analysis of Millennium Health Sciences (MHS), a company established in 1968, focusing on its capacity for disruptive innovation. It identifies the company's two business units, Neutrino (vitamins and supplements) and Dermatech (dermatological products), and highlights Poseidon, a key product. The presentation examines the organizational culture, noting hindrances to communication and feedback. It assesses internal and external perspectives, the marketing approach, and the technological perspective, ultimately offering recommendations for improvement. Key issues include a top-down management structure, ineffective research techniques, and missed opportunities in leveraging technology. The presentation suggests enhancing communication, encouraging feedback, staying updated with external market dynamics, utilizing marketing expertise effectively, and leveraging technology to engage consumers. This analysis is crucial for understanding how MHS can enhance its innovative capacity and maintain a competitive edge.

Presentation transcript below:
1. Aim of the paper is to identify the business units of the Millennium Health Sciences.
Furthermore, the presentation will talk about the background of the company, identify the
main products that are offered by the company. The Organisational culture of the
company will be adjudged. Furthermore, there are various eligibility criteria that the
employees of the organisation must possess in order to be a part of the organisation.
Which will be adjudged in the presentation. Internal and external perspective along with
the marketing and the technological perspective will be adjudged in the presentation.
Finally recommendations will be made.
2. Millennium Health Sciences was established in the year 1968 and have been catering to
the needs of the consumer community by providing skin care based products and
services. Innovation is one of the biggest motives of the company as a result of which
they carry out research and development on a regular basis. The annual revenue that is
generated by the company is around 2.2 billion dollars. The company employs nearly 800
staff and it the research and development wing of the company is located in Adelaide,
Australia.
3. There are mainly two units of the organisation. One is called Neutrino and the other is
known as Dermatech. The latter is the oldest business unit of the organisation and is
responsible for the generation of 20% of the revenue that is generated by the company.
Furthermore, nearly 30% of the profit that is generated by the company comes from the
Dermatech unit of the company. While Dermatech mainly offers dermatological
products, the main products that are offered by Neutrino are vitamins and Supplements.

4. The main product that is offered by the company is Poseidon. It is known that sea weed
extract is one of the main ingredients that is used by the company in creation of mist of
their products. Apart from that the other ingredients that are used by the company are
kept secret. The R & D department of Neutrino helped with the research purpose of the
Poseidon. The latter is a skin cream and is expected to generate around 350 million
dollars of revenue in the year 2023. The initial spending on research and development
amounted to nearly 8 million dollars.
5. It has been found out from that the case study that the culture of the organisation possess
hindrances to the operations within the company. There is existence of considerable
hierarchy in the company and communication is absent in the organisation. It is deemed
to be tough for new employees and feedback is not appreciated in the company.
6. There are certain qualifications that a candidate must have in order to be a part of the
company. They must have a degree in pharmacology or microbiology in order to be part
of the company. Promotion and appraisal takes place only if one has considerable
experience. 60-70% of the employees of the company have degree in the aforementioned
topics. The same expertise are required even in marketing and sales professionals and is
deemed to be way through which the company gains a competitive edge.
7. The company assumes that they have an edge in operations as a result of the innovation
that they have been able to carry out while operating in the market. The latter has been
possible due to the intensive R & D that has been carried out by the company constantly.
Furthermore, expertise in pharmacology or microbiology imply that all employees have
detailed knowledge about the operations and the products. Furthermore, it is assumed that
the marketing department benefit from the same.

8. The structure of management that is resent within the organisation is known as a top
down approach of management. The average age of the senior management teams of the
company is around 53. The management team is regarded as the senior citizens club by
the much younger executive committee. The company employs around 800 staff and each
of the business units of the organisation is headed by a designated general manger. The
general managers of each of the business units of the organisation report directly to the
board of directors.
9. The company was subject to low generation of revenue during the recession period as a
result of which the amount of returns were low. Even if the amount of the profit reduced,
the company kept on providing considerable amount of revenue to the shareholders of the
company. It was deemed to be a way to satisfy the needs of the shareholders of the
company. From the perspective of a prospective employee the company was deemed to
be an unfavourable employer as a result of the unfavourable culture of the organisation.
Furthermore, it was witnessed that the number of skin care products offered by
companies were rising along with the number of skin care clinic and spas.
10. The segregation of the business units of the organisation was deemed to be marketing
stint. The expertise implied that the marketing and sales officials have detailed
knowledge about the products that they cater to. The R & D was also delegated to the
individuals of the marketing division who latter presented the same in marketing
meetings.
11. The company highly invested in R & D as a result of which the costs skyrocketed. The
research techniques were deemed to be ineffective. Furthermore, this resulted in

opportunity loss on capitalisation of opportunity to capitalise of consumers with
technology.
12. Thus it can be recommended that the company should incorporate a smooth
communication network to enhance the culture within the organisation. Moreover,
feedback should be encouraged in the organisation would further help in renovating the
culture. The company should stay up to date with external operations that is the moves of
the competitors and others. The company can utilise the expertise of marketing
executives and sales personnel who have been particularly trained in the same.
Furthermore, technology should be used effectively to attract and engage the consumers
of the company.