The core competence of the corporation and apply it to BBCL Assignment

The core competence of the corporation and apply it to BBCL - Assignment Example They invent new markets and products of superior quality, diversify to stay ahead of their competitors, integrate with other best-performing firms, and form alliances in order to learn what they are not best at besides having a visionary staff, management and a valuable value chain process in their business operations. Firms that lack core competences in their value chain neither survive nor grow. Diversified firms are likened to a tree with its trunk and major branches being its core products, smaller branches being its business units while its leaves being its end products. The critical part of nourishing and stabilizing the tree is the root system which likened to core competences, which consist of a collective of skills and learning to build up over time in all the distinctive parts the company can use to stay ahead of its rivals. It is critical to articulate the strategic intents to the entire organisations .This is imperative in defining the company and its markets, identify projects that will enhance the core competence, allocating resources to help achieve these goals in addition to hiring requisite people with needed skills and knowledge to implement these strategies for achieve its goals. Thus, core competencies takes a corporate view as contrasted to a business unit which only takes in company operating multiple business units with managers always viewing themselves as competitors, for instances, the contrast between GTE and NEC’s performance which was mainly attributed to recognising, articulating and building competence by NEC that gave it a competitive market share than GTE which did not, though it had a larger capital base as compared to NEC. (Prahalad and Hamel 1990, p 1). In today’s business environment that is characterized by stiff competition, speed, low-cost high quality products and blue-sky technology, companies need excellent strategies well planned, chosen, executed and constantly revised to survive, grow and be