Group 4-Article 4 Presentation
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Transcript of Group 4-Article 4 Presentation
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GROUP 4Mr. Raymond T. RamaMs. Kathleen O. Mayhay
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Products1.Display Solution (e.g. Monitors and Projection)2.Computing Products (e.g. PCs, Notebooks and
Servers)
3.Software (e.g. Middleware)
4.Enterprise Network & Communication
5.Social Infrastracture (Digital Broadcast)
6.Electronic Devices (Fiber Optic Devices)
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GTE Corporation(formerly General Telephone &Electronics Corporation)
-the largest of the "independent"US telephone companies during
the days of the Bell System.
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1. Portfolio of Competencies.
2. In early 70s, articulated strategic intent to exploit the convergence ofcomputing and communications.
3. Constituted a "C&C Committee" of top managers to overseedevelopment of core products and competencies.
4. Entered into myriad strategic alliances--over 100 as of 1987--aimedat building competencies rapidly and at low cost.
5. Director of Research quote: "From an investment standpoint, it wasmuch quicker and cheaper to use foreign technology. There wasn't aneed for us to develop new ideas."
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1. Portfolio of Business.
2. No such clarity of strategic intent and strategic architecture appearedto exist at GTE.
3. Decentralization made it difficult to concentrate on corecompetencies.
4. Instead, individual business units became increasingly dependent onoutsiders for critical skills, and collaboration became a route to
staged exits.
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NEC vs.GTE
Portfolio of Business vs. Portfolio of Competence
SBU (Strategic Business Units) vs. Core Competencies
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CORE COMPETENCIES
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Walt Disney World Resort
3 Main Core Competencies:
a. Animatronics and Show Design
b. Storytelling, Story Creation andThemed Atmospheric Attractions
c. Efficient operation of theme parks
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A.Potential access to a wide varieties of
market
B. Make a contribution to the perceivedcustomer benefits of the end product.
C.Difficult for competitors to imitate.
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A Outspending rivals on R&DB Sharing costs among business units
C Integrating vertically
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Outsourcing provides only a short cut to a
competitive product.
Forgoing the opportunities to establish
competencies that are evolving in the existing
business.
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Stop thinking of business units as sacrosanct.
Identify people and projects to embody the firms
core competencies.
Gather managers to identify next generation
competencies.
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COREPRODUCT
Core
Competency
Core
Competency
Core
Competency
Core
Competency
END PRODUCT
3 different planes on which battles for global (or anybusiness) leadership are waged: core competence,
core products, and end products.
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PRODUCT Core Product End Product
CANONDesktop Laser Printer-
84%Laser Printer
PANASONIC Compressors-40%Air-conditioning &
Refrigerator
Advantages1. Maintain world manufacturing dominance in core products,
and you reserve the power to shape the evolution of end
products.
2. Reduce COST, TIME and RISKS in new product development.
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http://www.google.com.ph/imgres?imgurl=http://4.bp.blogspot.com/_G2LZbA4Qemg/SrmgUiKetbI/AAAAAAAAADI/wJPADK_HRxI/s320/Light+Bulb.jpg&imgrefurl=http://rogerlovesnica.blogspot.com/2009/09/pick-up-lines-minimal-dosage-please.html&h=309&w=278&sz=12&tbnid=JnzbIhoRNzfReM:&tbnh=237&tbnw=213&prev=/search?q=PHOTOS+Of+light+bulb&tbm=isch&tbo=u&zoom=1&q=PHOTOS+Of+light+bulb&hl=tl&usg=__EV2fxc8XUdtO2aMfTCbz9xLIEDU=&sa=X&ei=SszMTfu9I4bEvgPU462TCg&ved=0CB0Q9QEwAA -
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DEVELOPSTRATEGIC
ARCHITECTURESTRATEGIC ARCHITECTURE
is a road map of the future thatidentifies which corecompetencies to build and their
constituent technologies.
http://www.google.com.ph/imgres?imgurl=http://4.bp.blogspot.com/_G2LZbA4Qemg/SrmgUiKetbI/AAAAAAAAADI/wJPADK_HRxI/s320/Light+Bulb.jpg&imgrefurl=http://rogerlovesnica.blogspot.com/2009/09/pick-up-lines-minimal-dosage-please.html&h=309&w=278&sz=12&tbnid=JnzbIhoRNzfReM:&tbnh=237&tbnw=213&prev=/search?q=PHOTOS+Of+light+bulb&tbm=isch&tbo=u&zoom=1&q=PHOTOS+Of+light+bulb&hl=tl&usg=__EV2fxc8XUdtO2aMfTCbz9xLIEDU=&sa=X&ei=SszMTfu9I4bEvgPU462TCg&ved=0CB0Q9QEwAA -
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Provides logic for product and market diversification.
A.
Should make resource allocation priorities transparent to the entire
organization.
B.
Provides a template for allocation decisions by top management and
helps lower level managers understand the logic of allocation priorities
and disciplines senior management to maintain consistency.
C.
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Yields a definition of the company and the markets it serves.
D.
Is a tool for communicating with customers and other externalconstituents.
E.
Reveals the broad direction without giving away every step
F.
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Consistency of
ResourceAllocation
Developmentof an
administrative
infrastructure
STRATEGICARCHITECTURE
CriticalfortheExistenceof
StrategicArchitectu
re
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TeamworkCapacity to
change
Share
resources
Think long
term
Protect
Proprietary
skills
No
duplication
by the
competitors
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Core Competency should be the focus ofstrategy at corporate level.
Build Organization on the hierarchy of corecompetency, core products and end products.
Top Management must add value via strategicarchitecture.
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