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WR-2391 BPP GSS - Dyson

The document provides a detailed analysis of the internal and external environment of Dyson, a home appliances company. It conducts PESTEL, VRIO and other frameworks to examine factors such as macroeconomic forces, competitive advantages, strategic options and corporate strategies. The analysis aims to help the CEO comprehensively understand Dyson's environment and provide recommendations.

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0% found this document useful (0 votes)
228 views22 pages

WR-2391 BPP GSS - Dyson

The document provides a detailed analysis of the internal and external environment of Dyson, a home appliances company. It conducts PESTEL, VRIO and other frameworks to examine factors such as macroeconomic forces, competitive advantages, strategic options and corporate strategies. The analysis aims to help the CEO comprehensively understand Dyson's environment and provide recommendations.

Uploaded by

NobiaWahab
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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TABLE OF CONTENTS

Part A:............................................................................................................................................................

Introduction:...................................................................................................................................................

Task 1: External Environment Analysis:.......................................................................................................

PESTEL Analysis:.................................................................................................................................

Internal Environment Analysis:.................................................................................................................

VRIO Framework:.................................................................................................................................

Competitive Source of Advantage:............................................................................................................

Task 2: Strategy in the Global Environment..................................................................................................

Motives for Expansion...............................................................................................................................

OLI Framework:....................................................................................................................................

Strategic Options for Internationalization:.................................................................................................

The Uppsala Internationalization Model:..............................................................................................

Entry Strategies:.........................................................................................................................................

Task 3: Corporate Strategy..........................................................................................................................

Increased Profitability:.............................................................................................................................

Ansoff Matrix:.....................................................................................................................................

Task 4: Strategic Purpose-Ethics & CSR.....................................................................................................

Triple Bottom Line Framework:..........................................................................................................

Conclusion:..................................................................................................................................................

References....................................................................................................................................................
PART A:

INTRODUCTION:

As a Management Consultant, under the CEO of Dyson who has assigned me the project of assessing
and relooking the global strategies for the company, the first and foremost task is to adequately study
the internal and external environment of the company in detail. The initial mandate to dissect beyond
a SWOT recap ensures the report will provide a deep level of scrutiny, with the objective of enabling
the CEO to comprehend Dyson's environment comprehensively (Beernaert, 2022). Dyson advantages
and sources within the report be elucidated, which will be the process of multiple discerning
evaluations. The evaluation aims to demonstrate how permanent every source is and what else can be
done to make them much better. On the one hand, it formulates the reasons for Dyson's motives to
expand rigor the markets of Europe, the Middle East, Africa, and Asia with its purpose to examine the
strategic imperatives. Aiming at providing practical recommendations, the report adopts a strategic
approach which comprises the definition of potential entry strategies, elaborated on the grounds of
thorough investigations of competition-related parameters. Additionally, it conducts corporate
strategy research on corporate level, specially accessing supplies chain methods efficiency, and siding
profitability through strategic interventions. Lastly it examines Dyson’s CSR activities and the ethical
frameworks it has, putting forward options that could be put in place to improve the ethical standing
of Dyson and its social responsibility scores. The report seeks to apply a number of hybrids of the
theoretical frameworks and empirical perspectives derived to provide the CEOs with the set of
tangible recommendations to be the driving force of Dyson's strategic planning in the stages to come.

TASK 1: EXTERNAL ENVIRONMENT ANALYSIS:

PESTEL Analysis:

Under the dynamic international background, Dyson, a home appliances industry’s frontline player,
has to deal with various external factors that in turn affect its future development strategy. The
PESTEL analysis clarifies the macro-environmental factors that are influencing the company’s
decisions regarding strategy and the type of operation.

Political Forces: Such factors as stability of political environments as well as governmental policies
hold great weight among strategic decisions of Dyson. In 2020, Dyson went through the aftermath of
internal trade tensions, particularly China and the USA, which experienced the high tariffs on
importation. Furthermore, Dyson had to deal with the elevated production cost and he had to increase
the price which eventually affects it competitive position. Consequently, various governmental issues,
such as environmental policies, may cause market entry pathways of a new product to be difficult,
thus decreasing sales figures (Dyson, 2021).

Economic Forces: One of the main variables that influence Dyson's future performance is the
dominant economic climate characterized by monitored data points like, GDP growth rate and
exchange rates. The reverberations from COVID-19 into Dyson’s 2021 financial report attested to a
demand slump in regions across the world. British pound and US dollar exchange rate movements
together added more to woes of the company's foreign earnings (Boyle, 2022).

Social Forces: Social transformations, as accompanied by changing consumer tastes, exercise quite
an influence on the dynamics of Dyson’s product demand. Dyson, especially, benefits from the
growing trend of health awareness because of people's increased interest in its vacuum cleaners and
air purifiers with the most sophisticated filtration functions (Kato, 2021). In addition to that, the
demographic change in developed markets with ageing populations paves the way for Dyson to start
creating customized product lines specifically targeted to older age-groups.

Technological Forces: The most dramatic factor in Dyson's successful performance is his strong
ability in innovative technology. Dyson places emphasis on further research with the constant
development of R&D programs to reach the top of his product line. Amongst other things, Dyson's
cordless vacuum cleaners have computerized engines that are the prime example of Dyson's never-
ending commitment to more advanced technologies (Yang, 2020).

Environmental Forces: Dyson's envisioned environmental sustainability remains the flagship of the
company's ethical principles, which manifests itself in the development of energy efficient machines.
Energy Star certification is important to note in Dyson's air purifiers because of low power usage and
consequently diminished carbon by-products (JABRIDIN, 2020). Dyson has established goals of
achieving net-zero carbon emissions in its supply chain by 2025 with a reduction of carbon emissions
in customers’ homes through its sustainability programs contributing to a competitive advantage.

Legal Forces: Abidance by the laws and regulations of the various countries in which Dyson operates
forms a generous bedrock of its global operations. From safety of products, patents, copyright and
ecological regulation to others, this is what Dyson needs to face up to. History has proven that patent
litigation has resulted in the compensatory ruling and the associated liabilities that must be taken into
consideration under stringent regulatory framework (Simmons, 2022). Therefore, prudent business
practices must be observed to avoid legal entanglements and decrease the risk of revenue losses.
Internal Environment Analysis:

The in-depth study of Dyson's internal environment embraces the competitors of the appliances home
market, the category declared by sustainable competitive advantages as the pillars of enduring
success.

VRIO Framework:

Use of VRIO framework does it by doing a thorough analysis of the internal resources and
capabilities that might produce competitive edge for a firm in a sustainable manner.

Valuable: Dyson possesses a wide range of tools and facilities that are seen as the most sought after
in the home products industry. Therefore, the most important aspect of its positioning is the
recognized competence in innovation and top quality (Lappalainen, 2022). Market research backs the
Dyson brand which is much resonated among consumers, implying not only better awareness and
loyalty but also the rival brands’ disadvantage. Further, having a vast intellectual property right
portfolio and patents shield the company from the risk of losing clients to other firms since they will
be unable to imitate the proprietary technologies.

Rare: Dyson boasts several scarce resources and capabilities, which are not so common for the home
appliances industry, granting the company a competitive advantage. What makes Dyson so hard to
imitate are the sophisticated features of its key technologies, like digital motor and cyclone vacuum
system (Foster, 2021). Not only that, patent analysis also reveals patented technologies to be an
identifying aspect of Dyson which differentiates this company from rivals. Apart from that, the fact
that Dyson has a great pool of exceptionally skilled engineering personnel is an obviously essential
asset for its competitiveness as well.

Imitable: Another fact that Dyson's resources and capabilities are incredibly hard to imitate is that of
their complexity as well as vast amounts of money required to be invested in their development. In
this respect, Dyson's firm conviction about innovation process with overcapitalization endowment
makes any attempt to follow after all but impossible (Conway, 2022). The amount of R&D
investment paid by the company (£382 million) which was high in 2021, evidences its strong
commitment to innovation. Also, a significant hurdle in imitating Dyson is that its familiar brand
identity, created over time through the production of following quality products, is well established.

Organized: Dyson conveys an impressive ability to conduct and control the circumstances that
intensify its resource leverage and effectuate the competitive advantages. A vertically integrated
business model is used by Dyson who monitors all stages of development. This starts with research
and design until the final product is on the market, both manufacturing and distribution processes are
included. This all-round approach as result leads to a higher level of effectiveness and quality control,
being provided at the same time with agile responses to market needs (Sheshadri, 2022). Dyson’
economic diversification and its distribution channels ranging from various retailers to online
platforms actually cause its organizational structure to become more adaptable.

Competitive Source of Advantage:

Dyson, as a home appliances sector frontrunner possessing differentiation advantage, which has been
the major factor of the company’s market success and sustained growth in the past. Personalized,
advanced, and profitable are the four bases of the company which are the strong pillars to position it
rightly in the industry (Rosenfeld, 2022). It becomes crucial for the company to develop a
strategically robust set of competencies and know-how that will help it stay relevant in the home
appliance industry.

The firm deduces substantial resources In the backdrop of a formidable Dyson Another critical feature is the realistic
rship

of its into the advanced research brand reputation stands one of the international growth of Dyson across
routines which ultimately introduce company's strongest competitive the globe which makes the other
innovative products with unmatched advantages. Research proves that cornerstone of the competitive
&
n

performance and unique people call Dyson a global leader in advantage. Overlooking all key
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TASK 2: STRATEGY IN THE GLOBAL ENVIRONMENT

Motives for Expansion

In depth analysis of Dyson's international expansion into Europe, Africa, the Middle East and Asia,
manifest the company's strategic to utilize the market potential of various markets across the regions.

OLI Framework:

By the means of the OLI (Ownership, Location, Internalization) framework, the analysis goes into the
motivations of Dyson for international business expansions and the subsequent consequences on the
firm strategy (Brunton, 2020).
Ownership Advantage: Dyson's plan to go global rests
upon the advantages it uses, which for the most part are
represented in the company's robust brand equity and its
own patented technologies. And the unique brand strength
helps consumers both locally and globally to trust and to
be loyal to the company, whereby the brand presence
serves as the cornerstone of the brand strategy of the
firm(Enderle, 2022). Furthermore, Dyson's ownership of
key technologies like the digital motor and cyclone
vacuum cleaner, which are his own patents, helps it in
gaining a significant position and makes it evident that the
company is standing for technological supremacy.

Location Advantage: Dyson determination as to the


regions for the expansion became the outer manifestation
of the company position on location advantages, which is
a rational explanation of the existing diversified customer
characteristics and local market conditions. Dyson
expanded their operations to different makets regions in
Europe, Africa, the Middle East and Asia as an approach
to look for unexploited opportunities and reduce the risks
of market volatility. Widening that stems from such move
facilitates more robust and stable regional market and
cushions any negative fluctuations within one region's
economy.

Internalization Advantage: Dyson has a dyadic


approach to international market expansion that displays
an apt adaptation of sweeping-in approach with which the
company is at ease using the advantages of ownership and
location in direct fashion to foreign markets(Rosato,
2022). The company which is Dyson creates auxiliaries,
additional partnerships or joint ventures with the aim of
ensuring the direct influence over distribution of its
products on the retail chains that in the turn cuts the
operational costs and increases the customers’ reach.

Impact on Overall Company Strategy: Dyson’s expansion strategy has a multi-layered capability
across the total business intelligence, including market diversification, revenue growth, and
globalization of its brand, as well as operational efficiency boosts. By opening new markets to
customers, market diversification facilitates growth of the company and gives it more space to show
itself to the environment. As a result, it offers a shield to the company against market instability
(Kim, 2021). Meanwhile, revenue growth continues as market access increases and the volume of
sales rises, with a long-term view on maintaining sustainability as a core focus for Dyson. In addition,
developing more outlets will definitely lead to bigger expansion of the company's reputation and
scope which will eventually result to Dyson's status as a well-respected global brand (Cosenz, 2020).
In the last place operational efficiency benefits accrue to international spread that sharpens resource
utilization of conducted projects, hence, organizations growth and resiliency is encouraged.
Ultimately, the international expansion initiatives of Dyson fit the criteria of one of the main strategic
moves given that the company is attempting to reinforce its position on the market and capitalize on
growth opportunities in diverse international markets (Liedong, 2020).

Strategic Options for Internationalization:

Such considerations around options strategies will be guided by complicated ties in the Dynamic
Market spheres like Asia, Africa, Europe and Middle East where the most strategic options can be
identified.

The Uppsala Internationalization Model:

The implementation of the Uppsala Internationalization Model in the strategy of Dyson contains all
directions to move the organization into the international arena condition. The central objectives
involve the following key strategic approaches: creeping globalization, cautious market entry choices,
the forming of key strategic alliances, and adjusting to the market promptly due to the changing
tendencies of the environment (Fraisl, 2020). These tactical moves which are the basic navigation
system through contentious markets where Dyson operates, help the firm to take a faster stepping-
stone route towards its goals of growth and success across the frontiers

 Incremental Internationalization: Dyson can commence with a strategy of gradual entry to


international business. Such organization could be hypothetically moved to the place of a
settlement and the scope of their participation and investment could become brimful over
time. The EU countries that can be compared to Dyson's own operating environment, with
lower entrance barriers, can serve the company as testing grounds and premium referee of the
industry's running dynamics (Derval, 2022). This is when the company can widen its
horizons into trade and business entry into Africa, Middle East and some other places by
embracing the fact that it has incisive understanding of emerging customer demands and
pertinent policies.
 Market Entry Modes: Dyson has multiple modes available for market entries which
different firms require the degree of control and minimize the risk. In Europe, we have our
direct choice between the exporting or joining forces with other retailers leaving the gates
open to rapid market penetration (Lüdeke‐Freund, 2020). Though, such joint undertakings or
partnership through local entities can offset the national risks and capital locks and provide
gateway to local expertise and distribution channels.
 Strategic Alliances: A good way of accomplishing the mission is by a market information
access, channel distribution and regulatory guidance. Benefiting in Europe from teaming up
with principal traders would imply boost increase in the products’ volume size and also the
pace at which the brand gets recognized (Asif, 2021). The Dyson local establishment in
Asian and Arab markets shoulders the burden of the bureaucratic responsibilities and the
taxation processes; it entails reduced operational flexibility and market fluidity for this
company.

Entry Strategies:

The multinational corporation Dyson cannot make many countries in the Europe, the Middle East,
Asia, and Africa markets its mainstay without strategizing its approach in each of the market
separately while keeping in mind the differences of these regions (Safardoust, 2022). In order to
achieve successful entry into the new markets, the company may adopt three main strategies that
include account planning, promotional campaigns reformatting and expanding of the product line.
Direct Exporting
The direct export meaning is the process of selling Dyson' product directly to
consumers of another country without intermediaries. Through the Dyson's
operations in Europe, this is an opportunity to use its production and delivery
networks to export the home use device machine units directly to dealers and
consumers to keep a tight rein on quality standards and prices(Conway, 2022) The
startup can lower the risks of investment by selecting such an approach, for the
reason that the process of developing and running the physical companies around
the world will be quite a complicated task. Similarly, in Africa and the Middle
East Dyson can allow for partnerships agreements which are completed by sharing
the vacuums to entrepreneurs who have already established market opportunities

Strategic Alliances and Joint Ventures


Number of resources like joint ventures, strategic alliances, are the alternatives of
Dyson for the conquest of market access and competitiveness in Europe, Asia, the
Middle East, and the Africa. In Europe, contracts with major European wholesale
corporations and home appliance distributors can be utilized, which can make
connection to the retail network accessible and will enhance brand recognition.
Locating a few partners for manufacturing and sales in the African and Middle
East countries serves as a great platform for test-marketing our products which in
turn will deepen our distribution channels(Cosenz, 2020). .

Franchising & Licensing


Dyson may set up franchises for entrepreneurs who their stores will be in the
leading selling products of the company. Reminding the customer that the shops
are owned by entrepreneurs. For instance, the violations found within the terms of
the agreement might be a basis for performance-oriented triggers or could be
prolonged in case there are significant circumstances that come to disrupt the
operation. Europe per se really friendly easy market, especially if competitive
market is massive.
TASK 3: CORPORATE STRATEGY

Dyson has the chance to transform the ability to optimize the global supply chain as well as by
implementing the corporate strategies of horizontal integration, vertical integration, and outsourcing
and its strategic alliances. This analysis provides essential highlights to the areas that require Dyson to
revise their supply chain performance (Engert, 2022).

Horizontal Integration: Dyson aims to do this via strategic business development, which can be done by entering
into complimentary or slightly unrelated segments. One possible strategy is to purchase or hire all the makers of
the most essential components and materials that are used in Dyson’s products. An example of such involves the
acquisition of printed circuit board assembly (PCBA) manufacturer which may indeed push the company's supply
chain resilience and efficiency a step further as long as the company's risk management strategy is
involved(Musteen, 2022).

Vertical Integration: Dyson is able to run a vertical integration project by either owning or controlling different
parts of its flow of goods, from crude material acquiring to commodity distribution. This could be realized
through brand acquisitions or through obtaining suppliers so as to gain more control over production and
distribution processes(Ghosh, 2022). Dyson can adopt backward or forward integration strategy since it can
acquire raw material suppliers or retail outlets respectively so as to strengthen its supply chain responsiveness and
agility.

Outsourcing: Dyson can acquire that special expertise and a resource base through paying specialized third-party
vendors to manage some of the non-core supply chain functions. The externalization of duties like logistics,
warehouse and delivery can be moved to external providers that Dyson can then focus on its core activities of
product engineering and innovation. This is for the fact that by outsourcing strategically, Dyson is able to simplify
its supply chain and increase the effectiveness of the processes. Benefits from the specialized knowledge and
capabilities of the partners(Baumgartner, 2017).

Strategic Alliances: The partnership or the joint venture with either other companies, or the organizations could
be very beneficial in terms of attaining the common goals of enhancing the performance of Dyson’s supply chain.
An alliance with suppliers, distributors, or technology partners for R&D and segmenting the market is a choice.
Dyson would be able to work alongside suppliers to produce tailor-made materials or components customized for
its needs. Lastly, distributors and retailers would act as a channel to market and facilitate the availability of Dyson
products and enhance the quality of services consumers would receive, hence making it competitive.

Increased Profitability:

Ansoff Matrix:

For responsibly increasing profits through the production of home appliances, Dyson can use strategic
plan drawing upon the Ansoff model. This formal framework, therefore, offers a way for businesses
to identify new growth avenues, strategies to diversify their revenue streams, which in turn, leads to a
growth in their profit realization (Conway, 2022). In line with this approach, Dyson can explore a
combination of the following strategies:
Market Penetration: Dyson then expand into markets where they have not established themselves by
boosting marketing contents and attracting consumers through stimulated mix sales and loyalty
programs. Consequently, Dyson can build on its renowned name and comprehensive product line to
facilitate the demand for its goods and inspire its customers. Besides, developing partnerships with
traders and e-commerce websites is another strategy capable of contributing to higher sales figures and
market entry(Sanchez, 2022)..

Product Development: Dyson firmly believe that financial input in R&D will give us the ability to
reinforce the production line with the help of the introduction of new products and improvement of the
already existing ones. By launching smart home appliances that are improved and produce
technologically advanced solutions to the widening market preferences, the company can diversify its
product line and reach new segments, thus generate sales and obtain profits in a higher magnitude.

Market Development: Dyson may also look at options to expand operation into new geographical
fields or enter markets that have been ignored or not exploited in the past. Since it is possible to
pinpoint the countries with increasing consumer needs, the company will specifically tailor its product
offerings to contribute the specific local preferences which means that it will attract more customers
and help buy new growth areas(Hiriyappa, 2022). Such example could be the developing countries with
growing but swiftly modifying domestic consumption for modern home appliances which could be the
right path for business expansion and revenue growth.

Diversification: Indeed, Dyson company could shift into other industries where this brand can be
established and their scope of operations enlarged. The company can bring about this by proactively
investing in new R&D capabilities and the diversity in the human resources. The company can be in a
position to expand into new product lines or areas of industry(Conway, 2022). This approach to
diversification will let Dyson lessen risks connected with economy downtrends in the home appliances
and seize as many opportunities as possible to a new revenues, which are needed to prolong its
profitability and strengthen its sustainability.
TASK 4: STRATEGIC PURPOSE-ETHICS & CSR

Dyson, with its presence among the pioneering companies manufacturing home appliances, has never
missed the opportunity to incorporate social involvement programs (CSR), which are designed to help
with the social, ethical and environmental problems.

Triple Bottom Line Framework:

Evaluating the similar aspects can be done through noticing the Dyson's CSR policies by using the
Triple Bottom line (TBL) framework.

 Environmental Sustainability: Given Dyson as an example, the company is involved in the


environment by manufacturing green related product that are energy saving and recycling.
The proven factor lies from the research and development (R&D) initiatives which produce
more energy-efficient products and consumption efficient programs from an initial generation
to the end-of-life of the product (Dacin, 2022)..
 Social Welfare: Dyson, besides environmental activities, is having positive impact on society
by doing philanthropy, offering services to communities and caring for their employees with
this programmes all over the world. The involvement with foundations and public learning
institutions helps the community grow and look ahead to the future using STEM education
while the good working conditions of our staff demonstrate our social responsibility goal
(Beernaert, 2022).
 Economic Impact: Dyson is taking corruption and bribery prevention as the pillar of his
CSR, where in addition to that he incorporates ethical supply chains, and training for his
employees. The company does this by way of fair procurements as well as incorporating work
standards with an aim of ensuring sustainability of economic growth (Brunton, 2020).
Additionally, the injections these have in workers' training and simulative operations are the
source of human capital that is the property of the company and the neighbors.

While Dyson has done a great job launching a policlinic campaign in defense of the environment,
people, and economy, there is an area that is yet to be this far which can be used to fine-tune a more
effective CSR strategy. Enhancing effective stakeholder engagement, including impact assessment
efforts as well as reporting systems into Dyson operations, and creation of organizational culture that
is characterized by continuous improvement, innovation and transparency are some vital prerequisites
that will be required for meaningful contribution of CSR and Dyson’s stakeholder satisfaction (Dacin,
2022). Yet, Dyson is tried to justify itself as having high morals and ethics approving its ethical and
sustainable standards; even though there is still a big concern over environmental impact, supply
chain ethics and product reliability and quality. The ways to tackle this high number is setting
sustainability, safety measures for the manufacturing processes which do not harm the environment,
and performing visible and clear checkups to remain responsible in the market and avoid
environmental risks.

CONCLUSION:

To sum up, the well-rounded analysis of Dyson's global strategies and corporate conduct showed a
company pursuing innovation and sustainability, and ruled by an ethical brand position. By applying
strategic initiatives and following the CSR (Corporate Social Responsibility) principles, Dyson is
known as a guru of home appliances industry and it has contributed to the financial success, increase
of the profit, and creation of the positive social influence. Evaluation of Dyson's external and internal
factors revealed the sources of the company's competitive strength enlisting the company's innovative
ability, brand reputation and global presence (Derval, 2022). The geographical spread of Dyson into
Europe, Africa, the Middle East, and Asia is one of the crucial factors playing in the strategic motives
of the brand that include market diversification, revenue boost, and brand globalization. Also, the
international expansion, supply chain management, and profitability development strategies that
Dyson employed are in line with the VRIO model, Ansoft's matrix, and TBL framework, which are
the best industry practices. Through utilization of the meaningful alternatives in the marketing/ entry/
corporate strategies, Dyson is consistently maintaining its niche position and ensures sustainable
growth (Beernaert, 2022). The tasks also consist of problems like solving ethics concerning to
environmental impacts, supply chains and the product safety. In order to better address these
challenges and improve the company's overall socially responsible commitment, Dyson must place a
special emphasis on stakeholder engagement, impact measurement and continual improvement
through the entire life cycle of the company (Asif, 2021). In a nutshell, Dyson's attitude towards
innovation, sustainability and ethics characterize the company's aim to transform the appliances
industry by introducing changes for the better. The company is thus well-positioned to remain a leader
and continue to be an agent of sustainability and equity by adhering to these principles and
consistently enhancing its policies and principles as they need.
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