Dynamic Strategy and Disruptive Innovation Case Study: EFS Analysis

This case study analyzes Essendon Food Solutions (EFS), a company with over 800 employees, focusing on its dynamic strategies and disruptive innovation. The study examines internal perspectives, including human resources, organizational culture, resource allocation, and organizational structure, revealing challenges in recruitment, leadership, and resource distribution. External perspectives, such as commitments and regulations, are also explored, highlighting the impact of stakeholder relationships and policy on innovation. Furthermore, the marketing and technology perspectives are assessed, pointing out issues in marketing strategy, R&D capabilities, and technology utilization. The conclusion recommends improvements in employee skill levels and training to enhance the implementation of dynamic strategies and disruptive innovations, essential for EFS's future success.

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DYNAMIC STRATEGY AND DISRUPTIVE INNOVATION
Table of Contents
1. Introduction............................................................................................................................2
2. Internal Perspective...............................................................................................................3
2.1 Human Resource..............................................................................................................3
2.2 Organisational culture......................................................................................................3
2.3 Resource allocation..........................................................................................................3
2.4 Organisational structures..................................................................................................3
3. External perspective...............................................................................................................4
3.1 Commitments...................................................................................................................4
3.2 Regulations.......................................................................................................................4
4. Marketing perspective............................................................................................................5
5. Technology perspective.........................................................................................................6
6. Conclusion..............................................................................................................................7
7. References..............................................................................................................................8
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1. Introduction
Innovations are one of the key areas necessary for a business organisation to enhance its
dynamic business strategies and performance. Most of the business organisations also follow
the same methods to improve their business strategies to increase their revenues by
implementing a different innovative strategy to organisational architecture. Essendon Food
Solutions (EFS) is a company which was founded by Jonathan Jacob & henry Shultz.
Currently, the company is having more than 800 employees support around the globe because
the company operates internationally.
The context will elaborate on different perspectives such as Internal and External
perspectives, to understand the various functions and the innovations that have been
implemented in the organisational business architecture. The study will also enhance the
marketing perspective of Essendon Food Solutions (EFS), to identify the innovated dynamic
strategies in the marketing campaigns. The technological innovations are one of the key
aspects of the organisation. The paper will highlight the important areas of the technology
perspective of the company.
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DYNAMIC STRATEGY AND DISRUPTIVE INNOVATION
2. Internal Perspective
2.1 Human Resource
Human resource (HR) management is one of the critical areas that are related to the success
of an organisation. Essendon Food Solutions (EFS) are also having an HR department to deal
with many situations on behalf of the company. Several issues are being identified regarding
the recruitment process of the company. The HR executives of the firm are doing good to
enhance the performance level of the company. At the same time, there are some of the issues
that have been identified. The managers have not recruited the suitable people. As a result of
the company is facing issues with the employee's performances and the overall productivity
of the company (Mazzarol and Reboud, 2017).
2.2 Organisational culture
Essendon Food Solutions (EFS) has made a culture where the hugely experienced
employees have been designated as the leaders of the company. Who has the power to make
significant decisions on behalf of the company. The culture helps the company to make some
of the critical decisions when required. On the other hand, the leaders are not fully capable of
dealing with practical issues as they are experienced in educational theories rather than
having practical knowledge.
2.3 Resource allocation
Resource allocation is one of the critical criteria that must be achieved in order to increase the
sustainability and the overall development of disruptive innovation in the organisation. The
company is maintaining a decent relationship with the shareholders. As it is helping the firm
to invest in new disruptive innovation, which will help the organisation to achieve the higher-
level milestones in the near future (Christensen et al., 2018).
2.4 Organisational structures
The organisational structure is one of the critical areas of a company, and a more substantial
structure creates more hurdles to apply disruptive innovation. As it can be observed that
Essendon Food Solutions (EFS) is a medium level of organisation with the employee
support of more than 800. So, it easy for them to have a smaller structure than a larger
company is having. The company has a decent organisational structure which can be
developed to enhance the support of applying the disruptive innovation in the firm (King and
Baatartogtokh, 2019).
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3. External perspective
There are several external perspectives available in every company which helps to understand
various functions and the dynamic strategies that can affect the business. Several major
external factors will be disused below.
3.1 Commitments
Commitments are one of the major factors by which the company can manage the entire
business and earn revenues from the market. Essendon Food Solutions (EFS) is committed
to their relationships with the shareholders, investors and suppliers. Without their support, the
company cannot work or produce products to sell in the market. As the company is
maintaining a good relationship with them, it is allowing the organisation to focus on
installing disruptive innovation. The research and development team of the company are
required to improve their knowledge about the market competition and the latest trends. It
will help the company to fulfil its commitments to its shareholders by earning more revenues
from the market (Leih, Linden and Teece, 2015).
3.2 Regulations
The flow of the disruptive innovation can be affected if the regulations of the organisations
are not appropriate with the business structure. In any business organisation, it is essential to
have ideal regulations or policies to enhance business performance. Essendon Food
Solutions (EFS) is also following a strict policy, but it is not the best for the company. In the
organisation, the major decisions have taken by the directors or the higher designated
officers. In this way, no strategies and the new innovative ideas have been shared by the other
employees, as they the regulation of the policy is not supporting. So, if they improve the
polices, which will allow all the other employees to share their ideas. It can be used to
improve the disruptive innovation level of the firm (Schoemaker, Heaton and Teece, 2018).
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4. Marketing perspective
Marketing department in an organisation is one of key function, which helps to the company
to show showcase and promote their product to the customers. A marketing department helps
the company to increase their sells. Gaining the customers base is one of the major concerns
for any firm, as there are lots of competition is going on, in the market. It is the prime
responsibility to the marketing department to enhance the business, while innovative
marketing strategies (Hult and Ketchen, 2017).
There are different dynamic strategies related to marketing activities, are entirely depended
on the Research and development department. So, the knowledge and the experience level of
the marketing department is highly required in order to form a capable marketing team for the
company. Essendon Food Solutions (EFS) is having a research and development department
in their organisational architecture. The R&D department executives do not have many
experiences to deal with any critical situation. As a result, the marketing department of the
organisation is not having the best support, which can enhance their innovation on their
marking strategies. It can be observed, within the organisation, most of the senior officers are
from microbiology educational background. So, it difficult for them to manage the R&D
department efficiently. At the same time, the managers also have fewer experiences in the
practical market. As a result of the managers are unable to judge the best potential market for
their product in Australia (Sattari and Mehrabi, 2016).
The marketing team is concentrating on improving their skills by applying several dynamic
strategies and concepts, which will help the organisation to enhance their business. The sales
techniques, visiting international customers are the format that has been followed to improve
the develop the skills of the marketing executives. The HR team of the company is also
arranging some training classes to sharpen the sales managers skills. As soon as the company
develops and recruit the experienced persons in the organisational departments, the business
quality will be upgraded in a short period of time. The company has understood that
improving the skills level of the employees in the organisation is the key to develop proper
business culture (Osiyevskyy and Dewald, 2015).
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5. Technology perspective
Technology is one of the critical areas which can determine the success rate of the company.
An organisation which is technologically well innovated can make good growth in the
industry. Technology helps the company to enhance its productivity and powered up the
entire business performance, which creates many profits for the organisation. Disruptive
innovation requires the best technological architecture in order to deliver the best quality
work. Essendon Food Solutions (EFS) has invested a lot, to make an excellent technical
support for their work.
It can be observed that having the technical instruments in the organisation, does not provide
any profit until and unless the capable person is using that technology for the betterment of
the business. The research and development department of the company has the responsibility
to make use of the technology which can be used to enhance the business performances of the
company. The R&D department team is doing decent work, with some of the technical
instruments. Due to their fewer experiences in the technology, most of the technical
instruments are not being used properly. As a result, the organisation is not fully utilising the
technologies that are available in the company. It is resisting the disruptive innovations,
which is necessary for the advancement of Essendon Food Solutions (EFS).
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6. Conclusion
Based on the above discussion, it can be concluded that Essendon Food Solutions (EFS) is
an organisation which is having more than 800 employees support. There are various
perspectives of the company has been discussed in this study. That is resisting the
implementation the disruptive innovations in the company. The study has elaborated the
different internal perspectives, which are affecting the business for lacking the supplies of
experienced employees related to a business profile. Some external perspectives have been
discussed in order to understand the influences of external factors. All of those factors are
creating hurdles for disruptive innovations.
The context has also measured the benefits of the marketing strategies and the executives in
an organisation. At the same time, the current status of the marketing executives has also
been elaborated. The company has invested in making the technology better, but as there is a
shortage of experienced employees, the techniques cannot be utilised. Hence, it is
recommended for the company to focus on hiring skilled people and arrange training for the
existing employees. With the help of the various dynamic strategies, the company can
successfully implement numerous disruptive innovations which are required for the business.
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7. References
Christensen, C., McDonald, R., Altman, E. and Palmer, J. (2018). Disruptive Innovation: An
Intellectual History and Directions for Future Research. Journal of Management Studies,
[online] 55(7), pp.1043-1078. Available at:
https://onlinelibrary.wiley.com/doi/full/10.1111/joms.12349 [Accessed 26 Sep. 2019].
Hult, G. and Ketchen, D. (2017). Disruptive marketing strategy. AMS Review, [online] 7(1-2),
pp.20-25. Available at: https://link.springer.com/content/pdf/10.1007%2Fs13162-017-0097-
4.pdf [Accessed 26 Sep. 2019].
Leih, S., Linden, G. and Teece, D. (2015). Business Model Innovation and Organizational
Design. Business Model Innovation, [online] pp.24-42. Available at:
https://www.oxfordscholarship.com/view/10.1093/acprof:oso/9780198701873.001.0001/
acprof-9780198701873-chapter-2 [Accessed 26 Sep. 2019].
Mazzarol, T. and Reboud, S. (2017). Small Business Management. 3rd ed. Prahran, Vic.:
Tilde Publishing, p.426.
King, A., A. and Baatartogtokh, B. (2019). How Useful Is the Theory of Disruptive
Innovation?. [online] MIT Sloan Management Review. Available at:
https://sloanreview.mit.edu/article/how-useful-is-the-theory-of-disruptive-innovation/
[Accessed 26 Sep. 2019].
Osiyevskyy, O. and Dewald, J. (2015). Explorative Versus Exploitative Business Model
Change: The Cognitive Antecedents of Firm-Level Responses to Disruptive
Innovation. Strategic Entrepreneurship Journal, [online] 9(1), pp.58-78. Available at:
https://onlinelibrary.wiley.com/doi/abs/10.1002/sej.1192 [Accessed 26 Sep. 2019].
Sattari, B. and Mehrabi, J. (2016). Model of Marketing Innovative Strategies in International
Entrepreneurship: A Global Business Environment. Asian Social Science, [online] 12(10),
p.76. Available at:
https://www.researchgate.net/publication/309077776_Model_of_Marketing_Innovative_Strat
egies_in_International_Entrepreneurship_A_Global_Business_Environment [Accessed 26
Sep. 2019].
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Schoemaker, P., Heaton, S. and Teece, D. (2018). Innovation, Dynamic Capabilities, and
Leadership. California Management Review, [online] 61(1), pp.15-42. Available at:
https://journals.sagepub.com/doi/full/10.1177/0008125618790246 [Accessed 26 Sep. 2019].
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