Core Competencies Essay

A business or product which generates a sturdy, dependable flow of funds. Dog- a product with low market division in a slow growing market and thus uncomplete generates more consumes large amounts of cash. Star- products that atomic number 18 in high growth markets with a relatively high sh atomic number 18 of that market. They tend to generate high amounts of income. headway Mark- growing rapidly and thus consumes large amounts of cash but because they shoot low markets shares they do not generate often cash 2. What are core competences? Core competences are critical capabilities to a business achieving competitory advantage.The starting point for analysing core competences is recognising that competition between businesses is as much a race for competence mastery as it is for market slope and market power. Senior management cannot rivet on all activities of a business and the competencies required to undertake them. So the goal is for management to reduce attention on co mpetencies that really affect competitive advantage. 4 effectiveness sources of core competences * Distribution * Marketing * Management * Manufacturing 4 criteria used to measure out core competences * Valuable * Rare * Costly to imitate * Non substitutable 3.What should an visit of resources include? The resources available to a business whether it be owned or obtained through partnerships, joint ventures or simply suppliers arrangement with other businesses. The perspicacity of the strength and weakness of an organisation in conjunction with an assessment of opportunities and threats. It should own the key success factors for the markets and industries in question and the comparable strengths and weaknesses of competitors for the same customers. 4. What are the strategic options for competing in a Mature Industry?Prune peripheral products and models * Emphasize innovation in the value chain Strong focus on cost reduction * Increase sales to present customers * barter for r ivals at bargain prices * Expand internationally * Build new, more conciliatory competitive capabilities 5. Define the Value System The Value System is the go under of interdependent situations within a business which both directly or indirectly adds value to the customer and ultimately generates a net cash inflow. This also provides a key link between competitive dodge and shareholder value. Even though the value system bears some simile to Porters value chain, the latter is perhaps less bendable and less easily tailored to the variety of the modern business.