group 4-article 4 presentation

8/3/2019 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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group 4-article 4 presentation

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