c.k.prahalad book review for MBA students

C k prahalad book review for practical

1. C.K. Prahalad – Module 2 1

2. Born in 1941 in to a Kannada speaking family in Coimbatore, Tamil Nadu. His father was a well-known Tamil scholar and Judge in Chennai At 19, he joined  Union Carbide, he was recruited by the manager of the local Union Carbide battery plant after completing his B.Sc degree in Physics from Loyola College, Chennai, part of the University of Madras. 2

3. Cont.. He worked there for four years. Prahalad called his Union Carbide experience a major inflection point in his life. Four years later, he did his post graduate work in management at the Indian Institute of Management Ahmedabad. At Harvard Business School, Prahalad wrote a doctoral thesis on multinational management in just two and a half years, graduating with a D.B.A. degree in 1975 3

4. Professorship and Teaching After graduating from Harvard, Prahalad returned to the Indian Institute of Management Ahmadabad to serve as professor before returning to US again in 1977. But soon, He returned to the United States in 1977, with an appointment to the University of Michigan's Ross School of Business Administration. He eventually became a tenured full professor, earning the university's highest distinction, Distinguished University Professor, in 2005. 4

5. Read the following utes - centers -initiatives/india-initiatives/ck-prahalad-initiative/bio https://michiganross.umich.edu/faculty-research/instit https://www.bloombergquint.com/opinion/ck-prahalads-ideas-for-india-are-even-more-relevant-today https://futureofsourcing.com/prahalad-and-hamel-corporations-and-the-core-competency-concept 5

6. Strategic Management Concepts Core Competence Exploring the bottom of the Pyramid ( BoP ) Co-creation 6

7.   Core competency A core competency is a concept in management theory introduced by, C. K. Prahalad, Julian Kriviak  and Gary Hamel.  It can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace". 7

8. Core Competencies fulfill three criteria: Provides potential access to a wide variety of markets. Should make a significant contribution to the perceived customer benefits of the end product. Difficult to imitate by competitors. 8

9.  "The Core Competence of the Corporation" Core competencies are developed through the process of continuous improvements over the period of time rather than a single large change. To succeed in an emerging global market, it is more important and required to build core competencies rather than vertical integration.  9

10. Cont.. In  Competing for the Future , the authors Prahalad and Hamel show how executives can develop the industry foresight necessary to adapt to industry changes and discover ways of controlling resources that will enable the company to attain goals despite any constraints. Executives should develop a point of view on which core competencies can be built for the future to revitalize the process of new business creation. Developing an independent point of view for tomorrow's opportunities and building capabilities that exploit them is the key to future industry leadership. 10

11. For an organization to be competitive, it needs not only tangible resources but intangible resources like core competences that are difficult and challenging to achieve. It is critical to manage and enhance the competences in response to industry changes in the future. For example, Microsoft has expertise in many IT based innovations where, for a variety of reasons, it is difficult for competitors to replicate or compete with Microsoft's core competences. 11

12. Bottom of the Pyramid In January 2002, C.K. Prahalad and Stuart Hart, professors at the University of Michigan and North Carolina, respectively, urged leaders to imagine the world’s 4 billion poorest people as potential consumers — and described precisely how they could engage them profitably. Prahalad proposes that businesses, governments, and donor agencies stop thinking of the poor as victims and instead start seeing them as resilient and creative entrepreneurs as well as value-demanding consumers .  He proposes that there are tremendous benefits to multi-national companies who choose to serve these markets in ways responsive to their needs. After all the poor of today are the middle-class of tomorrow. There are also poverty reducing benefits if multi-nationals work with civil society organizations and local governments to create new local business models. 12

13. Co-creation Co-creation  is a form of Economic strategy that emphasizes the generation and ongoing realization of mutual Company-Customer value. It views markets as platforms for firms and active customers to share, combine and renew each other's resources and capabilities to create value through new forms of interaction, service and learning mechanisms. It differs from the traditional passive consumer market of the past. 13