Core Competencies in an Organization

Question: Discuss about the Core Competencies in an Organization. Answer: Introduction: For the purpose of anticipating the changes in the business, it is expected that management should try to build the relevant strategic plan. Emphasizing over the core competencies of the company, it should set up a different integrated system that cannot be replicated by the competitors. Through the explanation given by Segal-Horn (2009), core competencies are defined as the collective knowledge related to how to combine the diverse resources of the company, along with technology and know-how (Segal-Horn 2009). As the base of competitive benefits for the company is gaining stability for the long term, core competencies of the enterprise are getting both strengthen and weaken (Segal-Horn 2009). Methodology and means of analysis Conserving the core competencies is referred as a methodology that could be categorized in three areas. Through shielding including protecting the resources of the company for minimizing the risk to the less, while simultaneously enhancing the risk for the competitors, and co-option that is collaboration, which usually results in increasing the market share for having the active party in relation (Grant 2008). The final methodology is referred as recycling, in which core competencies prove track record is importantly contributed towards increasing profits is used from time to time (Grant 2008). Another method that could be used for leveraging the core competencies is recovery. The faster the recovery speed, the time is taken in turning the product through development in the saturation of the market and back towards new product development, the higher is the chance of recovering the investment is quicker (Grant 2008). This leverage method is mainly noticeable in the technology industry, in which product garners are quite popular, and its successor is already launched. Argument advanced in the article Concentrating over the core competencies is considered as the method including two facts; one is convergence that reflects over complete vision and is close to all the resources converges within the time, and the next is the focus (Segal-Horn and Boojihawan 2006). Through emphasizing over the most relevant core competencies over the most important aspects permits the company in fulfilling the necessary short-term goals is quite useful (Segal-Horn and Boojihawan 2006). The accumulating process of core competencies implies to both the company specific core competencies and various other companies. Holding the information that is not developed by the corporation, but its quite easier to access could be highly advantageous as it could reduce the time spend over carrying out the menial job along with permitting the company to continue their learning and development through adopting the resources by acquisition, merger and joint ventures (Segal-Horn and Boojihawan 2006). Knowledge by the experience and through companys continual process towards learning for the purpose of applying the lesson is referred as extraction (Segal-Horn and Boojihawan 2006). Some core competencies are actually standalone resources; one instance is returned as an open culture, which is exhibited through Apple Inc., in which creative individuals are provided with relevant space for the purpose of developing the ideas (Gleadle and Bakhru 2007). More often it is seen that companies explore the cumulative impact of core competencies that is high than the exploiting individually, and this method is known as blending (Gleadle and Bakhru 2007). Conclusions/findings Relying on the arguments given above, it is not possible to mention the concept of the core competencies is considered as the advanced tool, which could support in making the unique strategy for business and for exploring the strength and opportunities (Crisis 2014). However, this type of approach cannot be worn by the company against the changes in market turbulent. Rather, then despite many limitations due to generalizability, the outcomes of the study highly indicate that the practitioners need to evaluate the strength and weakness and try to incorporate the blend of various approaches for attaining high (Crisis 2014). Companies need to adopt effective strategic management for the purpose of cultivating the own core competencies. Companies need to make use of their own internal and external benefits and opportunities for overcoming the internal and risk shortcoming; convert the weakness in benefits and risk in opportunities, eventually become a core competency of the company (Cris is 2014). Implications for managers/management during organizational change processes There is an expected requirement radically to change the business management concept in the area. Subsequently, it might lead towards the recommendations that corporations should try to function towards a group of core competencies (Prahalad and Hamel 1990). This concept tries to set out the managers framework to set up and acknowledge the competencies. Core competencies could be explained as the intentions and skills that could enable the corporation to resource leveraging (Prahalad and Hamel 1990). Managers should focus on integrating the skills in all aspects of the company. Through understanding the core competencies, which lead towards the successful growth, managers can formulate the ways towards reaching and stretching the resources that move towards new goals with the change in environment (Prahalad and Hamel 1990). It is needed that managers should acknowledge the competencies and align with the company. Competencies don't rely on the individual skills; rather its the collec tion of skills in the company (Prahalad and Hamel 1990). Strengths As per Robbins, Bradley and Spicer (2001), core competencies is supportive for the organizations to select the pattern of strategic management to make it flexible and module towards outstanding culture and value; furthermore, core competencies support the company in strengthening the management of company, as the company possesses different resources (Robbins, Bradley and Spicer 2001). Firstly, core competencies consider the requirement and value that is required by customers. It could importantly enhance the product and service efficiency improvement along with a reduction in cost with increasing firms competitive benefits (Robbins, Bradley and Spicer 2001). Secondly, the companys innovation ability to invent the new items determine the core competency as the strength (Robbins, Bradley and Spicer 2001). The core competency also offers an opportunity to respond quickly towards emerging innovation and technology and also increase the rival capability. This can be considered as the con cept strength (Thomas and Cheese 2005). Weaknesses As one could see, few enterprises had vanished after they came in, from which some had gone downhill, where else few were strong after facing the ups and down. The reason exists that it is profoundly hard to maintain the core competency (Katz 1955). Below is the weakness of the core competency, how one could make use of core competency and how could it be sustain (Robbins, Bradley and Spicer 2001). The core competencies emphasize over the internal factors or in another context, it tries to ignore the external factors. As per Kirkpatrick (1959), the increase in firms is dependent on the companies accumulating experiences as well as knowledge, instead of foreign power (Robbins, Bradley and Spicer 2001). Since all the actors are depreciated, it is important to emphasize over the internal development and try to neglect all the outside massive changes in the environment that could lead towards the failure and surplus of the competitive benefits (Popper and Lipshitz 1993). The excessive an d blind of the diversification could lead towards the core competency loss. For instance, the Giant Group that started their business in IT industry determine o become IBM in China, but later on the company switch towards producing nutrition food then move towards real-estate and invest their money towards constructing the huge building (Popper and Lipshitz 1993). 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