Core Competencies Essay Example for Free

Core Competencies EssayA origin or product which generates a sturdy, dependable flow of cash. Dog- a product with low market office in a slow growing market and thus neither generates more consumes large amounts of cash. Star- products that atomic number 18 in risque growth markets with a relatively high share of that market. They tend to generate high amounts of income. Question Mark- growing rapidly and thus consumes large amounts of cash but because they have low markets shares they do not generate much cash 2. What are core competences? Core competences are critical capabilities to a business achieving competitive 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 position and market power. Senior management cannot concentrate on on all activities of a business and the competencies required to undertake them. So the goal is for management to focus at tention on competencies that really affect competitive advantage. 4 Potential sources of core competences * Distribution * marketing * Management * Manufacturing 4 criteria used to evaluate core competences * Valuable * Rare * Costly to imitate * Non substitutable 3.What should an audit of resources include? The resources available to a business whether it be owned or obtained through partnerships, vocalise ventures or simply suppliers arrangement with other businesses. The assessment of the strength and weakness of an organisation in pairing with an assessment of opportunities and threats. It should have 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 marginal products and models * Emphasize innovation in the set chain Strong focus on cost reduction * Increase sales to present customers * leveraging ri vals at bargain prices * Expand internationally * Build new, more flexible competitive capabilities 5. Define the note value System The Value System is the set of interdependent situations within a business which both like a shot or indirectly adds value to the customer and ultimately generates a net cash inflow. This also provides a key link between competitive strategy and shareholder value. Even though the value form bears some resemblance to Porters value chain, the latter is perhaps slight flexible and less easily tailored to the variety of the modern business.