Enhance Your Company's Core Competencies

A diversified company is like a tree: the trunk and major limbs are core products; smaller branches are business units; and leaves and fruit are end products. Nourishing and stabilizing everything is the root system: the company's core competencies, which support its competitive strategy.

By building strong core competencies, you reinforce the fit among your firm's diverse production and technology skills--and gain a systematic advantage that rivals can't copy. One way to enhance your core competencies is to invest in needed technologies. For example, Citicorp trumped rivals by adopting an operating system that leveraged its competencies and enabled it to participate in world markets 24 hours a day.

By washingtonpost.com Editors  |  September 5, 2008; 9:38 AM ET  | Category:  Management Tip of the Day
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We should never be afraid to prune some of the limbs if they are withering. If we do not then just like a tree those limbs will suck the life away from the healthy branches.

Posted by: Jacob | September 5, 2008 2:16 PM

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