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This 3 page paper briefly discusses core competencies, what they are, and how they might be used to help an organization evolve. Bibliography lists 3 sources.
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3 pages (~225 words per page)
File: D0_HVEvoOrg.rtf
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how to change an organic, entrepreneurial structure to a mechanistic one and still encourage innovation. Discussion Gary Hamel and C. K. Prahalad suggest that companies prosper when they build their
operations around their "core competencies"-those things that they do particularly well, and which give them competitive advantage (Core competencies, 2007). These core competencies lead the company to develop and build
"core products" that are not sold to end users, but are used to build a "larger number of end-user products" (Core competencies, 2007). (This source gives the example of motors
as a core product that can be used in a number of other applications.) It also suggests that businesses like this succeed when the various business units "tap into the
relatively few core products to develop a larger number of end user products based on the core product technology" (Core competencies, 2007). Examples of core competencies and the companies that
developed them include NECs semiconductors and Hondas gas engines (Core competencies, 2007). There are three tests to determine if a product really is a core competence. First, it should
"provide access to a wide variety of markets" (Core competencies, 2007). Second, it should "contribute significantly to end product benefits" and finally, it should be "difficult for competitors to imitate"
(Core competencies, 2007). Core competencies are not necessarily expensive to develop; however, they do usually require the coordination of various groups within the company to bring them to fruition (Core
competencies, 2007). With these things in mind, how does an organization evolve? We are asked to consider an "organic, entrepreneurial" company that is becoming a mechanistic one. That sounds
like it is moving from a small operation that began as one persons idea into a larger concern; it is logical to assume the company is growing because the basic
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