1.
MBA 501 - Dynamic
Strategy and Disruptive
Innovation
Business Portfolio and Dynamic Capability Slide Presentation

2.
Contents
 Introduction – Company Profile
 Business Portfolio Analysis
 Business Portfolio Recommendations
 Dynamic Capability Analysis
 Dynamic Capability Recommendations

3.
Introduction
 Company Profile of MHS (Millennium Health Services)
 Incorporated in 1968 by 2 scientist focusing to develop skin care products
 Current revenue exceeding $4.3 billion and employs more than 4500 across
Australia
 4 major business
 Neutrino – Vitamins and Nutritional supplements
 Dermatech – Skin care products
 LOOKS – Cosmetic products
 Energino – Energy drinks

4.
 Top-down management style
 Managerial decisions taken by General manager and executive management
team
 Approach of the board
 Competitive, Secretive and enhance the growth

5.
Business Portfolio Analysis
 BCG matrix of Neutrion – Stars
STARS
(Neutrion) QUESTION MARKS
CASH COWS DOGS

6.
BCG matrix of Dermatech – Cash Cows
STARS
QUESTION MARKS
CASH COWS
(Dermatech)
DOGS

7.
BCG matrix of LOOKS – Dogs
STARS
QUESTION MARKS
CASH COWS
DOGS
(LOOKS)

8.
BCG matrix of Energino – Question marks
STARS QUESTION MARKS
(Energino)
CASH COWS
DOGS

9.
GE – McKinsey Matrix

10.
GE – McKinsey Matrix of NHS
 Based on the case analysis, the business unit strength of Dermatech is high
and the market attractiveness is also high.
 From the information provided in the case study the business unit strength of
Neutrino is medium and the market attractiveness is high, hence the business
will grow in the future mainly in other markets
 Also, the business unit strength of LOOKS is medium and the market
attractiveness is also medium, therefore the management need to revamp the
strategy of the business
 Whereas, the business strength is low and the market attractiveness is also
low for Energino, hence the business can be sold or harvested

11.
Synergy matrix
 Neutrino has low incoming and high outgoing hence it is termed as givers for
the business
 Energino has very less incoming and outgoing hence it is the misfit in the
product portfolio

12.
Synergy Matrix
 Dermatech possess major incoming and outgoing hence they are categorised
as fit
 LOOKS take high incoming benefits to the business and provide very less
hence they are stated as takers

13.
Business Portfolio Recommendations
 The following is the detailed findings of the report

14.
 The company need to expand the business of Dermatech as it possess high
potential to increase the income and profitability
 The management can consider to sell of the non profitable unit Energino as
the market is highly competitive and it is considered as misfit for the
company product portfolio
 Furthermore, the company can look to merge the two divisions Dermatech
and LOOKS which will enable in reducing the operating cost and utilise the
resources in a more competitive manner

15.
 The growth and attractiveness of cosmetics is very high and this is providing a
huge potential of nearly 4 billion, hence the company can focus on this area
to enhance its product offerings
 Though the energy drinks market provides attractive market share, the
growth and attractiveness is very low, hence the company can looks to sell off
the division

16.
Dynamic Capability Analysis
 Dynamic capability is considered as the ability of the business enterprise to
integrate, build and reconfigure various competencies so as to address the
dynamic environment .
 The dynamic assessment is made on three major areas
 Mobilising the resources
 Identify and assess resources
 Transforming and reconfiguring the strategic assets

17.
Identify and assess resources
 R&D of the company is highly effective
 There were overlaps in the research with unnecessary duplication
 The management has spent nearly $8 million on the project of developing skin
cream from seaweed

18.
Mobilising the resources
 The management need to integrate the cash reserves and R&D resources
 Each division is being run on its own and there is no transparency on the
activities
 The executive committee members need to integrate the R&D, employees
and other resources for sustainable growth and development

19.
Transforming and reconfiguring the strategic
assets
 Integrating the human resources
 Combining the capital for R&D investment
 Having an integrated and open environment to discuss on new projects and
initiatives
 Exports and identification of new markets can be managed from a single
department

20.
Dynamic Capability Recommendations
 Application lean production model will enable the organisation to utilise the
resources in an effective manner
 The management can implement quality tools like six sigma, kaizen etc.
which will enable in enhancing the productivity and reduce the operational
cost

21.
Integration of assets
 In the fast changing dynamic environment the assets and resources needs to
be integrated
 The company can implement strategic alliances and provide autonomy to the
business to implement the desired projects