Marketing Management for Prahalad and Hamel - myassignmenthelp

Question: Discuss about theMarketing Management for Prahalad and Hame. Answer: Concept of core competencies The essay discusses the concept of core competencies using the example of Cadbury. Thereby the notion of corporate strategies given by CK Prahalad and Gary Hamel is studied thoroughly. In order to expand the business, there is a need for both core competencies and corporate strategy. Core competencies figure out the skills, knowledge, and ability of the individual or particular section of the organization. Corporate strategies help in constructing the blueprint of the business and targeting the market where the business could excel. Relating both the terms core competencies and corporate strategies the higher position could be attained in the market area. The organization will build up strategies keeping in mind the power point and USP of the business and set up the level of competition for competitors. Competencies are the knowledge, skills, and abilities that a person holds on. It emphasizes on deep knowledge and quality of work rendered. Competencies assist in the expansion of mind and sharpening the interpersonal skills. It is the qualities that differentiates an individual or in a broader sense an organization from the competitor and other related organizations. It is that unique point which every business requires to reflect a distinct image in the market. This image could be made by both lowering the cost and increasing the quality and setting the fixed proportion of both the quality and quantity. The core competencies focus on the best performance and increased work efficiency. It could be bifurcated in four modes i.e. organizational, personal care, outsourcing and developing core competencies (Ingram, 2017). The organizational competencies oscillate around a specific quality. No organization is cent percent adequate and qualified in every aspect of the business but the crux is to gain expertise at least in one or more field and set a remarkable benchmark which could not be easily attained by the competitors. In a company multiple departments work together to come out as the best, the competent individual of all field needs to be selected to excel and grow ahead in the external market establishing a better goodwill in order to attract the consumers, investors and other related stakeholders. This way the organizational and individual competencies link together to create wonders (SHRM, 2012). To justify the latter personal core competencies are embraced which states about the quality of an individual to perform the activity and to run the sole business. As the organizations differ from each other so as the people, some consist of better leadership quality and can prove to be a good manager while other lacks the leadership but owns the marketing tactics and can influence the customers perfectly thereby enhancing the business. It depends upon the individual traits along with deep research, knowledge, and practice in the interested field (Silverthorne, 2009). To gain competencies a lot of investment is required in the study field. Now the problem that arises is how to engage all the experts at a single base thus to resolve this issue outsourcing opts. Outsourcing helps in clubbing the individual and organization by saving the recruitment cost and accomplishing the desired work because a company is not able to hire all the gems at one. Some cream employees are working within while for certain contract or projects which are time being are rendered to other people in different organization paying them on the contractual basis likewise saving the hiring and training cost. Most of the time small organization outsources the finance and account experts to scrutinize the busines s financial affairs at the time of closing, contacting the civil engineers for partial construction at a specific area and paying them for accomplishing their part. This helps in diverting the work and retaining the efficiency to stay in the lime light (Sperling, 2009). Till now the emphasis is on creating and enhancing competencies but the root is that some portion is inherent while other is need to be developed to gain the exact perfection. In order to develop the competencies individual as well as an organization needs to work on their very own strength, picking up challenges and learning from the mistakes (Ingram, 2017). To illustrate core competency even better it could be explained with the help of a live example of Cadbury dairy milk. Cadbury was initiated by John Cadbury in the year 1824 by opening a small shop of tea and coffee in Birmingham. Later on cocoa and drinking chocolate was also introduced and likewise business was flourishing. The core competencies of the Cadbury are attaining a high financial position and maintaining the top quality of chocolate. In order to maintain the quality best cocoa is been used which is imported from Ecuador Venezuela; these are the country which provides best raw cocoa (Cadbury, 2017). The main product and brand that is concentrated more are Cadbury Dairy milk but to expand and introduce more variety will help in fulfilling the financial goal as well. Thus, divergent varieties of dairy milk were inaugurated namely Cadbury dairy milk fruit and nut, hazel nut, silk, almond silk, bubble and much more in different size, shape, and design. To stay connected with the customers there is a need to be in everyones reach. This will help in growing the business and varieties to attract the customers (Google user content, 2017). Cadbury introduced the small shots, bytes, gems and other products available in small packaging, this brought the revolution in the field of sweet snacks which are easy to carry and do not create a mess as other bars of it do at times. Another perspective of the company was to follow and regulate the social responsibility of business towards community; therefore it renders healthy stuff with good quality and adequate quantity at reasonable prices. This example clarifies the idea of core competencies and how to maintain such competencies and its importance (Chatterjee, 2004). Core competencies are individually related to the person and organization discussing the interpersonal skills and qualities they master in whereas the corporate strategies are in connection with the business only. Corporate strategies are the framework and plan that is adopted in order to accomplish the objective. These are the strategies which are acquired to successfully run the business for a longer period of time. Keeping in mind the changing business environment prior preparation should be done and anticipatory strategies should be implemented so as to adopt the changes and positively respond to it. For that sake, business model should be constructed attaching the flexibility to it so that scope of changes remains and betterment could be driven out from it. Corporate strategies are also inculcated to fight with the macro environment that prevails (Mckinsey, 2017). Other than the constant changes there are other factors as well that affect the business and they maintain the posit ion in the market, be an innovator, fight the competitor and follow the social obligations. The most common technique used to analyze the corporate strategies is SWOT analysis where the organization could figure out weak points and work upon them by applying suitable strategy and converting the weakness into opportunity and then to strength. Corporate strategies work better when connected with core competencies. Core competencies as discussed are the inbuilt and developed expertise that every individual and organization possess. For organizations, it is essential to identify core competencies and accordingly designing the strategy to be in a win-win situation (Writepass, 2012). Corporate strategy is introduced by C K Prahalad and Gary Hamel and they stated that for gaining development and stand firmly in the market certain strategies should be built up and these strategies must be constructed by studying the core competencies of the business. Applying strategies on the disinterested portion will not be a much beneficial decision. When core competencies are linked with the corporate strategies risk factors starts diminishing as the experienced and known strategies are easy to implement and knowledge of the related field helps in dealing with the situations (Harvard business review, 2005). Another strategy that is highly f ruitful in beating up the competitor is to compete with oneself. This can be done by developing and enhancing own performance, setting up the benchmark and breaking up owns the record. This will help in the flow of enthusiasm and motivation to achieve the goal smartly and maintain the best position. If at a certain point some of the decisions are good for the organization but much expertization is not gained the relevant training should be undertaken, more emphasis must be paid for that part. Immediate launching should be restricted and new plan shall be inaugurated only when entire preparation has been made (Agha, Alrubaiee Jamhour, 2012). The Cadburys example remains intact. In order to achieve the objective and using the core competencies like making a profit and maintain quality Cadbury is gaining a lot of customer support as it adopted the relevant corporate strategies of establishing a customer relationship. This method helps in attracting consumers as the company obeyed the social responsibility and fulfilling the promise of higher quality and higher taste which enhances the popularity and it always makes the promotions and advertisement in such a way that people feel connected with. Wherever the personal connection has been made the productivity increases and customer relationship blossoms up and booming relations results in customer loyalty which is very precious for any organization. Thus, Cadburys customer base is strong and getting stronger day after day leading to the simultaneous growth of organization and individual as well (Shih Chiang, 2003). Hence, the essay concludes about the core competencies and corporate strategies given by Hamel Prahalad. Core competencies vary from person to person and our inbuilt under an individual while the organization has to develop certain core competencies to lead the market. Corporate strategies are the plan that an organization must undertake to establish the market position and give tough competition by targeting the niche market and attracting consumers by using innovative or modified techniques. The business is likely to flourish when core competencies are linked with corporate strategies. In this way, the strong and weak areas are identified. Using the strength trend could be set while using weakness challenging opportunities could be given birth and turning solutions can be figured out to create a miracle. References Agha. S., Alrubaiee. L. Jamhour. M. (2012). Effect of core competence on competitive advantage and organizational performance. 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Viewed on 23rd August 2017. https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/how-we-help-clients/corporate-strategy. Shih. H. Chiang. Y. (2003). Exploring relationships between corporate core competence, corporate strategy, and HRM practices in training institutions. Asia Pacific Management Review. Vol.8. no.2. 281-309. SHRM. (2013). Competencies: how can our company determine its core competencies? Viewed on 23rd August 2017. https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/corecompetencies.aspx. Silverthorne. S. (2009). 5 personal core competencies for the21st century. Viewed on 23rd August 2017. https://www.cbsnews.com/news/5-personal-core-competencies-for-the-21st-century/. Sperling. E. (2009). Outsourcing core competencies. Viewed on 23rd August 2017. https://www.forbes.com/2009/08/01/outsource-john-lutz-technology-cio-network-ibm.html. Writepass. (2012). Corporate Strategy Analysis of Kraft in relation to Cadbury Acquisition. Viewed on 23rd August 2017. https://writepass.com/journal/2012/11/corporate-strategy-analysis-of-kraft-in-relation-to-cadbury-acquisition/.