The most popular way to calibrate your core compet

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Calibrate your core competence

there are many enterprises or enterprise groups in China, which are large, but their ability to survive and develop is very weak. There are three reasons. First, they generally have no core competence, and their assets and businesses are a hodgepodge; Second, their internal sub elements are scattered, and there is a lack of synergy between them (between assets, between businesses); Third, their management penetration cannot be extended, and there are many mountains within the group, which cannot form a unified management. Such enterprises provide safety, environmental protection, energy-saving building materials products or enterprise groups for the society. No matter how large the scale is, no matter how brilliant the history is, they will face the problem of how to continue in the new competitive era after China's entry into WTO

since c. K. Prahalad and g. Hamel published the article "thecore competitiveness of the corporation" in the Harvard Business Review in 1990, an upsurge of research and application of enterprise core competence has been raised in Europe and the United States

each enterprise has a variety of capabilities (such as manufacturing capacity, distribution capacity, technical capacity), and also has its own certain expertise. However, different capabilities and expertise are of different importance to enterprises. Those capabilities and expertise that can bring long-term competitive advantage and excess profits to enterprises are the core capabilities of enterprises

many Chinese enterprises have become the first country in the world to realize the industrialization of trans isoprene rubber due to their lack of core capabilities or even basic strategies. Their resource allocation and business structure are often not "backbone". The decision-making of the company is greatly affected by the transformation of investment hotspots. Before the specialization was completed, they blindly diversified and always claimed to develop several pillar industries. In fact, the scale of resources of Chinese enterprises is generally small, and even if they devote all their resources, it is not enough to compete in an industrial field, let alone develop several pillar industries? Ready made management conclusions have told us that unrelated diversified enterprises rarely succeed. However, a large number of Chinese enterprises are actually in the irrelevant diversified business structure, or are moving towards the irrelevant diversified business structure

due to the unreasonable business structure and asset structure, there is no natural connection between the various businesses and assets of the enterprise in terms of technology and economy, and there is no synergy in terms of strategy and management. It is inevitable that each business unit will "fight its own way and show its magic power". 2 Waste plastic treatment methods. This is a major incentive for enterprises to have various "chronic difficulties" in management and hidden dangers in operation

during the consultation process, one of the phenomena we often observe is that business units try to compete for resources from the company headquarters regardless of the needs of other businesses (because other businesses have nothing to do with it), which on the one hand leads management decision makers (who have the power to allocate resources) to bureaucracy and corruption; On the other hand, it is difficult for the headquarters of the company to coordinate and balance the requirements and interests of all parties, resulting in the intensification of internal friction and conflicts, which often forces decision makers to give up efficiency in order to balance conflicts. The second phenomenon is that businesses and asset units in good condition often stand on their own, and people and property will rust and corrode. Internal circulation, the headquarters cannot penetrate, and become a management blind spot and black hole. Businesses and assets that are difficult to operate will join the human and financial cycle of the headquarters, leaving the burden behind

whether it is for the rationalization of the structure itself, or for the root cause of chronic management problems and operational hidden dangers, it is urgent for many enterprises in China to rebuild their business structure and asset structure. In this process, enterprises should complete several steps:

1. Comprehensively sort out the capabilities and resources they have or may have

2. Identify the core competence and expertise, or identify the growth factors of core competence and expertise

3. Comprehensively rebuild the company's strategy around the development, construction and application of core competencies

4. Reallocate resources according to the requirements of core competence and company strategy. Strengthen, increase, activate, improve, purchase businesses and assets related to the formation and utilization of core competence, and sell, divest, and shrink businesses and assets unrelated to core competence

5. Finally, a virtuous circle is formed: a good business structure and asset structure are derived from the core competence of the enterprise, which in turn cultivates and consolidates the core competence of the enterprise

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