Core Competencies
Firms are repositories of capabilities as determined by the social knowledge structured by organizing principles. (Kogut, Zander)
New knowledge can be created on the basis of combinative capabilities of the firm.
Core competencieds of a firm can be firm specific and those that are in public domain (Belcher, Hassard & Procter 1996). These can be applied into a core competency grid which consists of all possible meanings of core competencies with respect to a firm.
It involves product, process and administrative competencies.
Coca Cola has its product competencies in its brand name and the distinct taste that Coke offered. Coca Cola has become an indispensible component of the American culture. The company's brand name and popularity and identity all over the world are what make it saleable to all types of individuals.
It is able to create products that taste goods and is liked by many people. However, in case of New Coke, the new product in itself was an attack on the "Coke" brand name and hence not accepted by the product.
Coke has firm specific competencies as its model of licensed bottlers and a "secret" concentrate have not been successfully imitated by the competitors. The company makes use of a formula for their product that is top secret and it helps them achieve uniqueness in its industry. According to this view, firm-specific core competencies evolve only when there is a desire by the company or the customers to develop them. (Duarte & Snyder 2003).
The company makes use of a formula for their product that is top secret and it helps them achieve uniqueness in its industry. The next core competency is the administrative competency. The public domain competencies are a part of the human category of administrative competencies and can be well-defined procedures for administrative activities, for instance organizational structure, administrative capabilities etc. (Deal & Kennedy 2000).
Coke has a well organized organization structure which gives it administrative competency. It ensures that the company performs well and achieves its targets.
The total core competencies of Coca Cola can be summarized as strong brand value, franchise network, cost controls, distribution network and administrative control.
Therefore, the core competency of Coca-Cola can be shown in a grid as follows:
Reference: Strategic management and core competencies, Anders Drejer
Resources and Capabilities
The figure below shows the method Coke uses to interface between strategy and firm.
We can see that they are moving from emphasis on the Environment Strategy to a Firm Strategy. With regards to the decisions made by Coke, the following are the two notable points:
Internal resources and capabilities are used for formulating strategy rather than external market focus
The primary source of superior profitability is competitive advantage rather than industry attractiveness
The figure below shows the process through which Coke links its resource, capability and competitive advantage. The organizational capabilities in order to implement its strategy and attain competitive advantage are also given below.
Coke follows a strategy of leveraging its brand building capabilities to attract and retain consumers for its products. Thus, the competitive advantage of Coke is its 'Brand'.
The organizational capabilities of Coke in each functional area can listed be as follows:
Read more: http://www.ukessays.com/essays/business/coca-cola-a-resource-based-view-business-essay.php#ixzz3qPFpST51
ความสามารถหลักบริษัท repositories ความสามารถตามที่กำหนดไว้ โดยจัดโครงสร้างตามหลักการจัดระเบียบความรู้สังคมได้ (Kogut, Zander)สามารถสร้างความรู้ใหม่ตามความสามารถในการ combinative ของบริษัทCompetencieds หลักของบริษัทได้เฉพาะของบริษัทและผู้ที่อยู่ในโดเมนสาธารณะ (Belcher, Hassard และ Procter 1996) เหล่านี้สามารถใช้เป็นตารางสมรรถนะหลักซึ่งประกอบด้วยความหมายไปทั้งหมดเชกับบริษัทมันเกี่ยวข้องกับผลิตภัณฑ์ กระบวนการ และความสามารถดูแลความสามารถของผลิตภัณฑ์ในชื่อแบรนด์และรสชาติแตกต่างกันที่โค้กโค้กได้ โค้กได้กลายเป็น ส่วนประกอบ indispensible ของวัฒนธรรมอเมริกัน ชื่อแบรนด์ของบริษัท และความนิยม และอัตลักษณ์ทั่วโลกมีอะไรให้มันเหมาะที่ขายทุกประเภทของบุคคลจึงสามารถสร้างผลิตภัณฑ์ที่รสชาติสินค้า และจะชอบหลายคน อย่างไรก็ตาม ในกรณีโค้กใหม่ ผลิตภัณฑ์ใหม่ในตัวเองถูกโจมตีในชื่อยี่ห้อ "โค้ก" แล้วจึง ไม่ยอมรับผลิตภัณฑ์โค้กมีความสามารถเฉพาะของบริษัทของรุ่นอัดอนุญาต และสมาธิ "ความลับ" มีไม่ได้เรียบร้อยแล้วห้ามลอกเลียนแบบ โดยคู่แข่ง บริษัททำให้ใช้ของสูตรผลิตภัณฑ์ของพวกเขาที่เป็นความลับสูงสุดและช่วยให้พวกเขาบรรลุเอกลักษณ์ในอุตสาหกรรมนั้น ตามมุมมอง เฉพาะบริษัทชาญพัฒนาเฉพาะเมื่อมีความต้องการ โดยบริษัทหรือลูกค้าเพื่อพัฒนาพวกเขา (Duarte & Snyder 2003)The company makes use of a formula for their product that is top secret and it helps them achieve uniqueness in its industry. The next core competency is the administrative competency. The public domain competencies are a part of the human category of administrative competencies and can be well-defined procedures for administrative activities, for instance organizational structure, administrative capabilities etc. (Deal & Kennedy 2000).Coke has a well organized organization structure which gives it administrative competency. It ensures that the company performs well and achieves its targets.The total core competencies of Coca Cola can be summarized as strong brand value, franchise network, cost controls, distribution network and administrative control.Therefore, the core competency of Coca-Cola can be shown in a grid as follows:Reference: Strategic management and core competencies, Anders DrejerResources and CapabilitiesThe figure below shows the method Coke uses to interface between strategy and firm.We can see that they are moving from emphasis on the Environment Strategy to a Firm Strategy. With regards to the decisions made by Coke, the following are the two notable points:Internal resources and capabilities are used for formulating strategy rather than external market focusThe primary source of superior profitability is competitive advantage rather than industry attractivenessThe figure below shows the process through which Coke links its resource, capability and competitive advantage. The organizational capabilities in order to implement its strategy and attain competitive advantage are also given below.Coke follows a strategy of leveraging its brand building capabilities to attract and retain consumers for its products. Thus, the competitive advantage of Coke is its 'Brand'.The organizational capabilities of Coke in each functional area can listed be as follows:Read more: http://www.ukessays.com/essays/business/coca-cola-a-resource-based-view-business-essay.php#ixzz3qPFpST51
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