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【正文】 gments 3/23/2023 12 Darral G. Clarke for BM 499 How Strategy Happens ? Learning where value is created ? Waterfall charts by product and customer segments ? Evaluating strategy ? Industry average profit per unit ? Company’s profit vs industry average ? Managing value ? Current strategy ? Change product focus ? Change customer focus 3/23/2023 13 Darral G. Clarke for BM 499 Learning where value is created Product segments Customer segments Profit/loss ($ per unit) Volume (units) Volume (units) 0 3/23/2023 14 Darral G. Clarke for BM 499 Evaluating Strategy Company profit per unit Industryaverage profit per unit 3/23/2023 15 Darral G. Clarke for BM 499 Managing for value Current strategy Change product focus Change Customer focus Value 3/23/2023 16 Darral G. Clarke for BM 499 Application to our cases ? Retail industry (Wal*Mart) ? Soft drink industry (CocaCola and PepsiCo) ? Steel (Nucor) and aluminum cans (CCS) ? Hi tech (Intel, Cisco, and Dell) ? Video games (Nintendo) ? Web businesses (eBay and Yahoo!) 3/23/2023 17 Darral G. Clarke for BM 499 The Core Competence of the Corporation Prahalad, C. K. and Gary Hamel Harvard Business Review, MayJune 1990 3/23/2023 18 Darral G. Clarke for BM 499 Core Competence ? A Firm is made up of resources ? people, patents, brand names, plant equipment, processes, etc ? A petence is the ability to employ diverse skills and resources to perform tasks and activities. ? A core petence is a broadly based and/or a broadly applied fundamental capability. 3/23/2023 19 Darral G. Clarke for BM 499 Competence and Technology ? Competence is not the same as technology ? Competence requires ? technologies ? social anization ? collective learning 3/23/2023 20 Darral G. Clarke for BM 499 Core petence questions: ? What are we really good at? ? How can we build upon it? ? What do we need to be good at? 3/23/2023 21 Darral G. Clarke for BM 499 Characteristics of Effective Competencies ? Durability: Technical equipment can be short lived. Reputation or knowledge may depreciate more slowly. ? Transparency: The more plex the source of petence, the harder it is to imitate it. ? Transferability: The availability of resources to petitors. ? Replicability: A petitor’s internal ability to replicate a petence using available resources. 3/23/2023 22 Darral G. Clarke for BM 499 Choosing Competencies ? How central is this petence to our success in the market? ? How long could we preserve our petitiveness in this business without this particular petence? ? What future opportunities would be foreclosed if we were to lose this particular petence? 3/23/2023 23 Darral G. Clarke for BM 499 Core Competence and Core Products E n dP ro d u c ts /S e rv ic e s
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