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General Technology Group core competitiveness to create and nurture

Author: HouXueJun
Tutor: ZhangXinMin
School: University of Foreign Trade and Economic
Course: Business Administration
Keywords: General technical Core competitiveness Group's core Core competencies Foreign trade enterprises Sustainable competitive advantage Group Strategy Competence Theory Enterprise competitive strategy ISP
CLC: F279.26
Type: Master's thesis
Year: 2000
Downloads: 220
Quote: 1
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Abstract

Many Chinese firms’growing practice and developing experience show that Chinese firms have already entered a strategic competence period. Looking forward to the future ten years, about 85% senior administrators in world firms think that "core competence" is the priority to promote a firm to acquire competence advantage. Therefore, construction and cultivation of core competence has become a main line for a firm in making its developing strategy.Ⅰ Position and Effect of Core Competence TheoryThe purpose in researching competence strategy is to make firm acquire and maintain competence advantage. In the early 90s’, with the publication of"The Competence of Corporation"by Prahaiad and Hamerl on Harvard Business Review as a symbol, Core Competence Theory of the Firms based on its ten years’ research and practice. It emphasized on the special competence of a firm in production and management process and takes it as a starting point to make and implement the firm’s competence strategy. This school of thought is becoming increasingly the main stream in the field of firm’s development strategy.Ⅱ Aim and Method of Thesis ResearchingIn the process of modern firm system construction and interior structural reforms deepening, Chinese state-owned firms face both the competence of domestic private business and the challenge from transnational corporations abroad. Therefore, it is necessary for Chinese state-owned firms, especially the large enterprises groups to stand at the height of global competence to make their developing strategy, and further more, acquire competence advantage through constructing and cultivating the firm’s core competence. Taking the School of Core Competence’s frame as its theoretical base and combining the management practice of the General Technology Group (Genertec) in the last three years, this thesis does its research on core competence of foreign trade and economy corporations, analyzing their essential elements of existing and basic frame of core competence formation, and further more, create an environment to construct and cultivate the core competence adapting to new economic characteristics. Finally make the firms acquire competence advantage of development maintenance. Ⅲ Core Contents of Core Competence TheoryCore Competence Theory emphasized that a firm is essentially an aggregate, an association of one or several core capabilities; capability is the basic unit in <WP=6>firm analysis; the core capability is the source to keep competence advantage; and accumulating, maintaining and applying of core capability is a firm’s long essential strategy. Therefore, a firm can form its own unique "core competence" by more efficient administrative system and planned development and organic integration of core capability.Ⅳ Framework of the General Technology Group’s Core CompetenceGenertec takes foreign trade and economy as its core business, it acts as commerce and distribution agent and it aims at creating value for the customers. In a few words, the main role the Genertec is playing in the market is commercial agent , sales centre(service provider), a transaction during the process of product----merchandise----consumption which would seek for clients value(increased value).The Core Competence of the Genertec could be generalized as "under the competition, the Genertec, holding core marketing process as its core and cultivation of talented personnel as carrier, and is provided with the support and interaction of strategic management, core technology, core production and organization/interface those processes."Ⅴ Construction and Cultivation of Core Competence of the General Technology Groupa. drawing up the firm’s strategic development plan; The function and status of the mother company should be fostered in the project so as to create more value through the operation of various business in the system where set up of the Parenting advantage requires realization. b. realizing the most effective core competence through integration of t

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