TSM how company manage competitions.pptx

Core competence and capabilities of an organisation

1. Core Competencies and Organisational Capabilities SUBMITTED BY: ABHISHEK KUMAR MBA IB

2. Core Competence Core competences are a company’s resources and capabilities that enable the firm to build competitive advantage over the competitors. Core competencies enable the companies to formulate strategies and draw strategic action by converting competencies into business activities. Idea of Core Competencies were developed by CK Prahlad and G Hamel

3. Need of Core Competencies 1. Facilitate strategy development 2.. Long term competitive advantage 3. Outsourcing non-core activities 4.Encourages Innovation 5. An attribute valued by market

4. 1.Innovation Capacity: Apple Inc.:Apple’s core competency lies in its ability to design and innovate cutting edge technology products. 2. Lean Manufacturing : Toyota’s core competency is its Toyota Production System(TPS) which emphasizes efficiency, quality control and waste management.

5. Google its core competencies lies in its search algorithm which is unparallel in its ability to deliver relevant search result quickly and accurately.

6. Leveraging core competencies –Amazon leverage its core competencies in logistic and supply chain management allow the company to offer fast delivery. Building Sustainable Advantage – It requires continue investment and refinement of core competence. Ex. Tesla focus on pushing boundary

7. Organizational Capabilities ~ Organizational capabilities is the ability of an organization to utilize its resources in an effective manner. ~ It is very important to understand the capability of organization so the crucial decision making can be done .

8. Importance : ~ Competitive advantages ~ Improved customer relationship ~ Flexibility and Responsiveness ~Knowledgeable workforce

9. 4 Elements of capabilities : Shared Mindset Management Practices Capacity for Change Leadership at all levels of organization

10. Kinds of Capabilities : A)Financial Capability Profile: Source of funds Usage of funds Management of funds B)Marketing Capability Profile: Product related Price Related Promotion Related C)Operation capability factors Production System Operation and control system R&D system

11. D)Personal Capability Factors Personal system Organizational and employee characteristics E) General Management System Ex-Netflix :Dominate the streaming entertainment market and develop original content.

12. THANK YOU