Verse of the day: Marcos 2:17

Marcos 2:17 Narinig ito ni Jesus kaya't siya ang sumagot,

“Hindi nangangailangan ng manggagamot ang walang sakit
kundi ang maysakit. Naparito ako upang tawagin ang mga
makasalanan, hindi ang mga matuwid.

17
When Jesus heard this, he told them, “Healthy people
don’t need a doctor—sick people do. I have come to call
not those who think they are righteous, but those who
know they are sinners.”
Short Quiz:
1 – 5 True or false ( Write Yes if the statement is true then write Not
if the statement is false)
1. Anentrepreneur is a person of very low aptitude who pioneers
change.
2. Theword entrepreneur originates from the French word,
“entreprendre”, which means "to undertake.“
3. Schumpeter’sView of Entrepreneurship is emphasis on shifts
economic resources.
4. Perseverance - . Entrepreneurs do not give in to failure.
5. Reasons for Self-Employment is ability to secure a desirable job
Short Quiz:
6-7 What is the difference between Entrepreneurship and Small
Business?

8-10 Define Entrepreneurship?

Core Competencies in
Entrepreneurship
OBJECTIVES:
1. Define Core Competency.
2. Understand the importance of Core
Competency.
3. Identify the Core Competencies in
Entrepreneurship.
 Dr.C.K Prahalad and Prof. Gray Hamel
 Competence based strategy is the part of an overall
strategy that is concerned with integrating
technology, know-how (including patents), value
and culture in order to create a set of competencies
that unfolds superior value for customers and
thereby support the product market strategy of the
firm.
 Importance of Core Competencies
 Corecompetencies are the collective learning of the
organization, especially how to co-ordinate the diverse
production skill and integrate multiple stream of
technologies.
A company, if it has identified its core competencies, will be
capable of creating more value.
 Unlikephysical assets, which do deteriorate over time,
competences are enhanced as applied and share across the
organization. The competences act as the glue that bind
businesses together as well as pave the way for new
business development.
 Strategic Intent
 Theprocess of developing core competencies starts with
the strategic intent of being a leader in the market by
leveraging the resources. This thought of being a leader in
the market is called strategic intent.
 Strategic
intent provides a basis for stretching the goals of
the organization with barrier breaking initiatives.
Framework for Advantage (Strategic Architecture)

 Strategic
architecture is a roadmap which predicts what core
competencies to build and which related technologies are
needed. This step requires the distillation of past and
present data to answer the following questions:
 Change in customer interference
 New technological possibilities
 Competitor’s positioning
 Current and future set up of the industry
Leveraging resources and thereafter the development
of core competencies requires investment in three
different things:
a) Technology
b) Governance process
c) Collective learning.
 Identifying Core Competencies
Core competencies play an important role in the process of
advantage. We can identify them using three simple tests:
1. Does the trait provide a major competitive differentiation? Does it
provide a unique value proposition to the organization?
2. Does the trait cover a lot of business or is useful only for a single
business unit?
3. Is it useful only for current business or for new ones too? Is it hard
for competitors to imitate?
 Importance of Core Competencies
 The most important advantage of having core competencies is
having a long-term competitive advantage. These competencies
help in bridging the gap between performance and opportunity,
thus helping a company in being a potential leader in the industry.
 Core competencies are also an indicator that resources are being
used in the right places in the right amount.
 Core competencies also help in the development of core products.
 Core competencies are meaningful if they are related to an
attribute valued by the market.
 Finallyyet importantly, core competencies make a company focus
on extensive Research and Development (R&D).
 Losing Core Competencies
 Companies, especially big ones, have to be careful when
outsourcing a product or service to a different organization
while looking to cut cost.
 Itis super important to recognize the importance of core
competencies in entering an emerging market.
 Case Studies
1. NEC asserts that they use 18% of their earnings for R&D. NEC of Japan
investigates its core competencies every 5 years. With a spending of
18% in R&D they have a boastful array of 36 core techniques in total.
2. Apple as an organization developed products that are rich in design
and user experience. This gave them a distinguished brand image in
the market, which stands even now in the face of multiple
competitors. Apple products are sold with high margins.
3. A hospital in Singapore, Mount Elizabeth Hospital, is well known for
organ transplantations. That is the core competency of this hospital.
This hospital may as well have doctors and nurses from various
countries to create a multi-ethnic workforce for better
communication with a better patient management. That would be
their core competency
Arguments and Examples Against Core Competency?

 The market now is much more dynamic in the presence of

rapidly changing markets and user needs.
 China’s low cost manufacturing and research capabilities can
wreak on any manufacturing organizations worldwide.
 Changing consumer needs are making companies take help of
smaller and design companies even for their core products.
 Netflix, though their core competency is said to be content
delivery, but they are now venturing into original content
creation too.
 Corecompetency is a hard concept to grasp. The resources and
patience required for the development of even a single
competency is huge. A strategic mindset and focus on achieving
a long-term global leadership is important to develop a strategic
intent.