International Busines Strategy - Chapter 2

5 flashcards · Other · by Daniel F.

1. core competencies

   company’s most important FSAs: its vital routines and recombination abilities Prahalad & Hamel: the company’s main strategy should be to build or acquire core competencies e.g.: honda's compact engine

2. These higher-order FSAs include

   company’s shared knowledge (routines) ability to integrate multiple technologies (recombination) routines/recombination abilities carried by key employees (competence carriers)

3. What do these core competencies do

   core competencies, meaning the firm’s routines and recombination capabilities, produce components called core products, which are put together to create end products.

4. A core competence should

   be difficult for competitors to imitate in terms of achieving the required internal coordination and learning Provide potential access to a wide variety of markets make a significant contribution to the perceived customer benefits of the end product

5. primary role of senior management

   develop the strategic architecture to guide the corporation in building and acquiring core competencies In the long term, a strategic architecture will also help foster company-wide innovation, competitiveness and success.