PRESENTED BY – Group 5

Sujata Sharma, Oindrila Dasgupta, Suvam Dey,

Raj Shree, Abanty Majumdar
A company's
competitiveness
derives from its core
competencies and core
products.

 First companies must

identify core
competencies.
 Next companies must
reorganize to learn from
alliances and focus on
internal development.
 RETHINKING THE CORPORATION
 Create an
organization capable
of infusing products
with irresistible
functionality.
 Requires radical
change in the
management of
major companies.
 Identify the
technology and
market evolution.
 Introducing new technology.
 Diversified corporation. THE ROOTS OF
 Consolidating corporate-wide technologies
and production skills.
 Harmonizing the streams of technology.
 In Short Run companies, its
competitiveness derives from
price/performance attributes of current
products.
 In Long Run companies, its
competitiveness derives from an ability to
build at lower cost and more speedily than
competitors.
IDENTIFYING THE CORE
COMPETENCIES AND LOSING THEM
How to identify?
• Capability
• Value-creation.
• Innovation.
• Adaptability.
• Uniqueness.

How to lose?
• Forgoing opportunity.
• Through
outsourcing/OEM-supply
relationships.
• Cost cutting moves.
TWO CONCEPTS OF THE
CORPORATION: SBU OR CORE
COMPETENCE
DEVELOPING STRATEGIC
ARCHITECTURE

1. A road map of the future that identifies which core competencies to build
and related technologies.
2. Transparency of resource allocation priorities.
3. Consistency of resource allocation, administrative infrastructure.
4. Creates managerial culture, team work, and capacity to change.
 REDEPLOYING TO EXPLOIT

 SBUs should bid for core competencies in the same way they did
for capital.
 How to exploit?
 SBUs must defend why they need certain talents.
 SBUs must sacrifice short term in return for long term benefits.
 Rotation.