Core Competencies

1. Define the fol piteousing Cash Cow- a business or product which spawns a sturdy, dependable flow of funds. Dog- a product with low food market share in a slow growing market and thus neither generates more consumes large amounts of cash. Star- products that are in high up growth markets with a relatively high share of that market. They tend to generate high amounts of income. Question Mark- growing rapidly and thus consumes large amounts of cash but because they have low markets shares they do not generate such(prenominal) cash 2. What are core competences? Core competences are critical capabilities to a business achieving emulous advantage.The starting point for analysing core competences is recognising that competition surrounded by businesses is as much a race for competence mastery as it is for market position and market power. Senior management cannot focus on all activities of a business and the competencies required to undertake them. So the polish is for management to focus attention on competencies that really affect competitive advantage. 4 Potential sources of core competences * Distribution * Marketing * Management * Manufacturing 4 criteria used to evaluate core competences * Valuable * Rare * Costly to chase * Non substitutable 3.What should an audit of resources include? The resources available to a business whether it be owned or obtained through partnerships, joint ventures or simply suppliers constitution with other businesses. The assessment of the strength and weakness of an organisation in conjugation with an assessment of opportunities and threats. It should have the key success factors for the markets and industries in question and the alike(p) strengths and weaknesses of competitors for the same customers. 4. What are the strategic options for competing in a Mature attention? * Prune marginal products and models * Emphasize innovation in the value grasp Strong focus on cost reduction * Increase sales to present customers * Purchase rivals at bargain prices * Expand internationally * reach new, more flexible competitive capabilities 5. Define the nurse System The Value System is the set of interdependent situations within a business which two directly or indirectly adds value to the customer and ultimately generates a net cash inflow. This also provides a key link among competitive strategy and shareholder value. Even though the value arranging bears some resemblance to Porters value chain, the latter is by chance less flexible and less easily tailored to the variety of the innovative business.