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    CoreCompetenceStrategy(PPT11)英文.ppt

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    CoreCompetenceStrategy(PPT11)英文.ppt

    Core Competence StrategyKey summary reading:Prahald,C.K.&Hamel,G.(1990).The core competence of the corporation.Harvard Business Review,68(3),79-91.Key Premisesn nBuild worldwide leadership in a class of product functionality(e.g,microprocessor controls)that can apply to multiple productsn nBuild a maximum of five or six of these“core competencies”n nProtect core competencies when making key strategic decisions:uuresource allocationresource allocationuualliancesalliancesuuoutsourcing outsourcing Core competencies are collective learning in the organization 1.How to coordinate diverse production skills and multiple streams of technologyuue.g.,e.g.,CascioCascio:harmonizing know-how in:harmonizing know-how in miniaturization,microprocessor design,miniaturization,microprocessor design,material science,and material science,and ultrathin ultrathin precision casing precision casing to produce an array of products such as to produce an array of products such as miniature card calculators,pocket TVs and miniature card calculators,pocket TVs and digital watchesdigital watches 2.How to organize work and deliver valueuue.g.3Ms competencies in substrates,coatings,e.g.3Ms competencies in substrates,coatings,and adhesives has allowed them to bring forth and adhesives has allowed them to bring forth such diverse products as Post-It notes,magnetic such diverse products as Post-It notes,magnetic tape,diskettes,photographic film,and tape,diskettes,photographic film,and adhesives adhesives 3.How to develop and sustain communication,involvement,and deep commitment to working across organizational boundariesuuinvolves many levels of people and all functions,involves many levels of people and all functions,such as in World-class researchsuch as in World-class researchCore competencies.n ndevelop with time and experiencen nare tacit and hard to imitate or transfern ninvolve people-embodied skillsIdentifying core competencies1.CCs provide potential access to a wide variety of marketsuue.g.,e.g.,CasciosCascios display systems:calculators,TV display systems:calculators,TV sets,computers sets,computers LCDsLCDs,auto dashboards,auto dashboards2.CCs make a significant contribution to perceived customer benefits of end productuue.g.,Hondas engine expertise had benefits in e.g.,Hondas engine expertise had benefits in autos,motorcycles,lawn mowers and generatorsautos,motorcycles,lawn mowers and generators 3.CCs are difficult for competitors to imitate because they involve comprehensive patterns of internal coordination and learninguue.g.,Philips competence in optical media that e.g.,Philips competence in optical media that fed into a wide variety of other productsfed into a wide variety of other productsuuOutsourcing can be a shortcut to a short-term Outsourcing can be a shortcut to a short-term competitive product,but doesnt allow competitive product,but doesnt allow development of tacit knowledge and skills that development of tacit knowledge and skills that underlie long-term sustainable product underlie long-term sustainable product leadershipleadershipWhich competencies are core?n nHow long could we preserve our competitiveness in this business if we did not control this particular competence?n nHow central is this competence to perceived customer benefits?n nWhat future opportunities would be foreclosed if we were to lose this particular competence?Top management role Develop and communicate the corporatewide strategic architecture that guides the competence acquisition processuucommunicationcommunicationFFinternal:employees understand goals and prioritiesinternal:employees understand goals and prioritiesFFexternal:customers understand broad direction but external:customers understand broad direction but not proprietary detailsnot proprietary detailsuuresource allocation prioritiesresource allocation prioritiesuureward systemsreward systemsuuorganization design:avoid the tyranny of the organization design:avoid the tyranny of the autonomous product divisionautonomous product division

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