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Core Competence Of Corporation Article Review

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¶ … Competency Creating Core Competencies in a Corporate Context

Yielding the best possible results from a large corporate entity requires a clear strategic orientation or a set of concurrent strategies through which employee actions might be governed. Often, however, the highly segmented nature of those corporations engaged in multiple sectors and industries can cause such strategic orientation to become garbled, distorted or obscured. It is thus that the article provided by Prahalad & Hamel (1990) offers a counterpoint to the regimented use of business units as a way of aligning a corporation. Instead, the article espouses the construction and magnification of core competencies as a way of creating dynamic and movable assets from individual employees. The discussion here evaluates the concept of core competency in the corporate context, advocating this...

According to Prahalad & Hamel, one of the errors that corporations commit today is to establish an over-reliance on established markets. Often, business units will be rigidly developed in order to serve the goals within established markets. The article raises the example of GTE, a dominant firm of the 1980s which invested its future prospects in telephone operations with a smaller focus on lighting and defense contracting. By connecting its long-term fortunes to an entrenched prioritization of select…

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Prahalad, C.K. & Hamel, G. (1990). The Core Competence of the Corporation. Harvard Business Review.
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