Disruptive Innovation and Strategic Leadership Video Presentation
Innovation is not only about introducing new techniques and operations in the firm rather it has a lot to do with the internal structure as well. Innovation requires the firms like EFS in the scenario to enhance the organizational culture, change the recruitment process and also have a look on the R&D department with different opinion. This report has taken out the various loopholes that has been existing in EFS and with recommendations suggested innovation in the ground.
A. Internal Perspective
From the internal perspective, it has been analyzed that the company Essendeon Food Solution has been run by two gentlemen and both had a concept that it will require some changes and innovation. The management structure of the organization has been top down which implies that all the decisions are being taken by the senior management. There is a belief or can be said a culture that the senior executives should come to the position through ranks. The General Manager has tight control over the firm and its operations. Moreover, there are two units running separately that have to answer the GM individually. The decisions, appraisals and the selection are made entirely by the senior management. It is surprising to know that each unit like the Enzyme Tech and the Essendon Emulsifiers compete with each other rather than working as one unit. Since there is an organizational culture that the seniors will be through ranks, most of the employers have been in that position for an extended period of time. The promotions in this scenario have made it clear that experience have been taken as one of the critical condition. The HR manager hires top graduates from top places so that it can give more profit to the firm.
First of all, there needs to be change in the HR policies and the thinking of the management along with the organization culture. To bring innovation and creativity in the firm, it is essential that the internal working policies and the cultures are changed from the root (Abdul-Halim et al., 2018). In regard to organizational culture, the belief that the seniors will be recruited in the higher position through ranks needs to be changed. Seniors will be chosen on the basis of the talents and the experience so that they can guide the fellow members in a strategic manner. It has also being identified that the units though being part of the same organization compete with each other. Here, the strategy needs to be changed when both the units must work together so that they can origin to creativity with new dimensions in the business world (Elsbach and Stigliani, 2018). Another change is the criteria of prom only those who are having experience should be given promotions. However, it would be more contributory when the employees being eligible, having talents in different fields, having leadership qualities and also having experience will be selected for promotions. The culture of having top down managerial structure should be changed where the management should take decisions after having a discussion with the employees. This will not only make the organizational environment healthy but will also bring creativity in the production. The management team should comprise of both seniors, experienced as well as fresher with excellent talents (Glisson, 2015). Not only this, the HR should also stop hiring candidates who are top graduates because knowledge is something which cannot be confined to books rather external experience is also required.
B. External Perspective
From external perspective, it must be known that the units like the Enzyme Tech have been facing tough competition from the competitors. There are many new entries of companies giving major goals to the firm. It has been analyzed that the marketing department also has staffs those who have experience and knowledge in microbiology. EFS has employed currently for about more than 800 employees and earned revenue of about $1.6 Billion. There have been two subsidiaries working as separate unit. Dividends have been given to the shareholders even in the period of low profits. The relationship is not so developed according to the new CFO. Research and development has been poor or it can be said that the executives have been going on with the attitude that they know it all. Essendon Emulsifiers though have been operating well with the export of goods yet does not have the energy neither the proper technical team to run the business with international expansion.
In the external perspective, communication and relationship with the shareholders must be developed so that they can be communicated about the situation at the times of low profit (Zhang et al., 2018). In the times of low profit, the shareholders can be asked to compromise with the amounts of the dividends. Apart from the culture, the hiring process from the external sources will have to undergo changes. The company have been hiring candidates from top colleges and top graduates. However as it has been rightly said by one of the sales executive that knowledge is something that is beyond the books and can also be traced from the experience in the streets (Danvila-del-Valle et al., 2018). Since, it has been observed from the scenario that several offers have been made on joint venture and also of extending the business. Therefore there is a need to emphasize on this scope since it will foster creativity and also enhance the scope of innovation in the external market.
C. Marketing Perspective
From the marketing perspective, it has been analyzed that the R&D departments has issues like it has not focused on researching on the needs of the customers. Even in the marketing departments, there are staffs who have been having or coming from the microbiology background. In the firm, there are little scope of asking questions and there is a concept that few questions asked will lead to long tenure in the firm. Many competitors have threatened the firms which need to meet on an urgent basis. In the Enzyme Tech, it has been analyzed that the R&D department staffs are less compatible in going out and meeting the customers. The entire working policy is strange in the department that has been obstructing the growth of the business. Just like Kodak and Nokia, Enzyme Tech has also being living in a bubble like situation.
First of all, the units being subsidiaries of EFS should not compete with each other for resources rather should work each other as one unit and meet the competitors with strength and business tactics. In regards to the hiring process, talents should be hired not only among the top graduates but should also have talents in other fields and can contribute in the profit of the organization (Gupta et al., 2016). The marketing department should have employees having experience and knowledge of marketing and not from the micro biology background only. The R&D should meet the customers and record their needs and requirements that will help to fulfil the requirements of the firm and bring innovation. Export market though has been good yet there is a requirement for expertise and technical skills so that EFS can run on a global basis. The senior members in the firm should be taken for sharing experience but along with it new talents should also be introduced and appreciated in the firm.
D. Technology Perspective
Technical skills have been lacking in the firm and the R&D department has not utilized any of the innovation criteria. The employees feel too low to visit the customers and take their feedbacks. Technically, there is a requirement of new and innovative skills and technological advancement so that it can foster productivity and meet the threats of the competitors in an advantageous manner. Expansion is not possible since there are no technical experts in this ground.
From the analysis, it is recommended that there is a requirement of technical staffs to have external expansion and at the same time to meet the threats of the competitors. Technologically, new systems can be upgraded so that employees can be trained in an advance manner. It s also recommended that the technical team through the use of surveys and other methods can assess the feedbacks from the customers and know the requirements (Herrera, 2016). Information through Information Management can communicate with the shareholders and keep them informed of the internal financial statements accordingly. It is to be known that hiring process should be technologically advanced so that it can hire the candidates based on the talents and also experience.
From the study, it has been analyzed that there are loopholes but with correct strategy and recommendations, changes can be implemented. Changes that have been suggested for EFS have been innovative and also profitable for the business to a great extent. The report has uplifted the loopholes right from the culture to the sales department and their defaults which needs to be changed accordingly. EFS thus with the various changes need to accommodate the suggested recommendations and also include new recruitment policies and culture in the firm so that the internal environment can be fostered.
Abdul-Halim, H., Ahmad, N.H., Geare, A. and Thurasamy, R., 2018. Innovation culture in SMEs: The importance of organizational culture, organizational learning and market orientation. Entrepreneurship Research Journal, 9(3).
Danvila-del-Valle, I., Lara, F.J., Marroquín-Tovar, E. and Zegarra Saldaña, P.E., 2018. How innovation climate drives management styles in each stage of the organization lifecycle: The human dimension at recruitment process. Management Decision, 56(6), pp.1198-1216.
Elsbach, K.D. and Stigliani, I., 2018. Design thinking and organizational culture: A review and framework for future research. Journal of Management, 44(6), pp.2274-2306.
Glisson, C., 2015. The role of organizational culture and climate in innovation and effectiveness. Human service organizations: management, leadership & governance, 39(4), pp.245-250.
Gupta, S., Malhotra, N.K., Czinkota, M. and Foroudi, P., 2016. Marketing innovation: A consequence of competitiveness. Journal of Business Research, 69(12), pp.5671-5681.
Herrera, M.E.B., 2016. Innovation for impact: Business innovation for inclusive growth. Journal of Business Research, 69(5), pp.1725-1730.
Herstad, S.J., Sandven, T. and Ebersberger, B., 2015. Recruitment, knowledge integration and modes of innovation. Research Policy, 44(1), pp.138-153.
Zhang, F., Wei, L., Yang, J. and Zhu, L., 2018. Roles of relationships between large shareholders and managers in radical innovation: A stewardship theory perspective. Journal of Product Innovation Management, 35(1), pp.88-105.
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