“Core concept focuses on the evolution of global

“Core Competences for
diversifying: case study of a small business” is prepared by Wheeler, Colin,
Trott, Paul and Mddock, T in 2009. This paper discourses an important breach within
the present body of work on their basis of the firm. This case study has
studied practical situation of a small manufacturing firm of UK. This UK based firmed
supplied hydraulic tube assemblies to the yellow construction industry. This company
has got rapid growth over the ten years. This case study discloses “the
distinctive capabilities that the small firm was able to use as a basis for diversification
into the Leisure Marine industry.” (W.Colin, T. Paul and Mddock, 2009).

The term ‘Core competence”
introduced by C.K Prahalad and Gary Hamel. The unique concept created by these
two scholars is very important for modern business. This concept focuses on the
evolution of global management and status for competency-minded management.
Core competencies means all the departments which are interrelated with each
other to run the business successfully. All department and the staff has the
different skills, which integrated skill can make the company exclusive in
market. Synchronization, incorporation and coordination of various skills and
various creeks technologies are strength of the corporation. The concept of
core competences means being together for the company.

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“Core Competences for
diversifying: case study of a small business” is successful research paper
which illustrated how a small manufacturing firm was able to use core
competence analysis to identify distinctive capabilities a basis for
diversification. The company has been successful, with continuous growth in
turnover and employees, it has full-grown in to a position where 80% of the
business is from one customer. “Having captured this growth, the long-term
strategy is now on reducing the dependency on the single customer and yellow
goods industry”. (W.Colin, T. Paul and Mddock, 2009). The smooth relationship
of the company’s assets and the different capabilities are important for small
and medium business. The case study shows that UK based small company is not only
flexible in its manufacturing operations but it has the ability to respond fast
to customer orders. These generosity of the company is the central to the
company’s success.

 

This research encourages
the small or medium business to change their traditional management policy. Management
is that element that can be creative and make new and strong bond of all
departments of company. Company should use collaborative provisions to bourgeon
internal resources. Strategic construction cannot be fixed, it should be based
on demands, time and the company policy. Whereas the understanding the accessibility,
value creation, uniqueness of department and competitiveness drives the company
towards success. “By evaluating a corporation’s core competencies managers are
able to recognize strengths and weakness, using this valuable information to
identify the key areas that it may build on but more importantly areas which
needs improvement.” (Rodrigo, 2012).  The
strong analysis of this small business tries to make convince that core
competences is one of the most essential idea in this modern business era.

The interrelationship between
core competencies and the definition of a corporation includes facilities
strategy development, encourages innovation; and enforcement and selection. This
analytical research gives lesson to other firm to ensure that a full and
detailed understanding of the firm is most important to run the business. The
firm must recognize the distinguish between resources, capabilities and core
competencies. “The yellow goods industry continues to grow with JCB competing
with Caterpillar and CNH of the US, Komatsu of Japan and Volvo of Sweden.” (W.Colin,
T. Paul and Mddock, 2009).