Core Competencies

1. Define the following Cash Cow- a business or harvest-festival which breaks a sturdy, dependable flow of cash. Dog- a product with low market share in a slow development market and thus neither generates more consumes large amounts of cash. Star- products that are in advanced 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 pose low markets shares they do not generate much cash 2. What are core competences? Core competences are critical capabilities to a business achieving private-enterprise(a) 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 focus on entirely activities of a business and the competencies required to undertake them. So the goal is for managemen t to focus attention 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 implicate? The resources available to a business whether it be owned or obtained through partnerships, joint ventures or plainly suppliers arrangement with other businesses. The assessment of the strength and weakness of an organisation in conjunction 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 value chain arduous focus on cost reduction * Increase sales to present custo mers * Purchase rivals at engagement prices * Expand internationally * Build new, more flexible competitive capabilities 5. Define the judge System The Value System is the set of interdependent situations within a business which both directly or indirectly adds value to the customer and ultimately generates a net cash inflow. This also provides a key necktie between competitive strategy and shareholder value. Even though the value system bears some comparison to Porters value chain, the latter is perhaps less flexible and less easily adapt to the variety of the modern business.