Critical review of Prahalad, C. K. and Hamel, G. (1990) The Core Essay

Critical review of Prahalad, C. K. and Hamel, G. (1990) The Core Competence of the Corporation in Harvard Business Review, May-June - Essay Example They have dwelt on the role of core competence in the consolidation of business and their discussion of the topic has been on a very high level of consolidating the deeper roots of the tree that a corporation can be compared. If roots are strong, competitive advantage is always in reach (Ward & Rivani 2005). As there are different schools of strategic thought and leadership like the Great Man theory of leadership (Bodega 2004)), Prahalad and Hamel (2005) have analysed the leadership issue in detail through the means of consolidating the core competencies to lead not only through SBUs but overall exchange of competencies internally to avail all possible benefits from it. The article) provides knowledge of the strategic positioning of business from a heightened platform and perspective of how corporations should manage their business functions through core competency (Ward & Rivani 2005). The larger perspective of any industry requires P5F MODEL employing suitable tools like SWOT and PEST, then comes the time to strategise. Out of the choicest divisions of schools of thoughts on strategy building, the most comprehensive strategy has been presented by Whittington based on four approaches being Deterministic or Emergent, Single goal or Pluralistic, Strategy style and Influences. Examining the work of Prahalad and Hamel (2005), from Whittington’s model one can easily categorise it to the period of 1990s influencing the global economics with embedded strategy style, both single or plural and deterministic as well as emergent. What Prahalad and Hamel have said can be both compared and contrasted with what Whittington’s (2005) four approaches on strategy development are. The article stresses on both core competencies and core products in collaboration with alliance partners. Contrast seems to be in the deeper understanding

Btec hnd in business Assignment Example | Topics and Well Written Essays - 3250 words

Btec hnd in business - Assignment Example The market forces including cultural changes that have impacted Giorgio Armani have been touched upon. Finally an attempt has been made to gauge the impact of globalization, international trade and WTO on the functioning of Giorgio Armani Group. 2.0 Introduction The Giorgio Armani Group is a leading player in the luxury and fashion goods market. The group is privately owned and is vertically integrated. The behemoth designs, manufactures, distributes  and retails its products through a network of close to 500 stores in 46 different countries of the world (Armani, 2013). Since its inception in 1975, the Giorgio Armani Group has grown by leaps and bounds through a series of important alliances, relevant acquisitions and rolling out licenses. Its teaming up with Reebok to manufacture high-end fashion shoes under the brand name EA7 is one such example of sound business tie-ups. The group’s product portfolio includes a vast array of lifestyle and fashion items including apparel, accessories, cosmetics, eyewear, fragrances, home furnishings, jewellery, shoes and watches (Armani, 2013). Giorgio  Armani is the founder of the vast empire that bears his name. The group comprises of the Giorgio Armani S.p.A, the parent  company and many other subsidiaries. ... Jeans, A/X Armani Exchange, Armani Junior, Armani Teen, Armani Baby, Armani/Casa, Armani Beauty, Armani Hotels, Armani/Fiori, and Armani/Dolci (Armani, 2013). 3.0 Mission, Vision, Strategy and Goals The group’s mission is to ‘create  clothes and accessories  that aspire to a kind of perfection that transcends fashion’. The group’s vision is to dominate the world of fashion in the long run. The Giorgio  Armani Group pursues its mission and vision by investing in technology and infrastructure that enables it to manufacture new product lines and create new divisions to handle its ever expanding portfolio of products and services. The fashion house strives to create an ambience in its retail stores that that ingeniously give a boost to the displayed products (Annunziato, 2001). Today, Armani is one of the strongest brands in the world. It enjoys the enviable position of being one of two Italian companies along with Prada to find place in the top 100 brand s drawn up by Interbrand and Business Week (Galbraith, 2004). The long term strategic goal of the group is to keep its luxurious image intact. The group has diversified into various other industries but it the customers still see it as the epitome of luxury and fashion. As a strategy, the Armani Group keeps a tight control over all aspects of its business, be it manufacturing, distribution or retail. The apparel maker has limited the Emporio Armani merchandise to  Emporio Armani  stores because of the issue of control (Business World, 1998). The group has bought back factories from licensees to ensure tight control over production. In fact, Mr Giorgio Armani is known to be a hard task master who takes decisions on his own. While he listens to suggestions and takes feedback, the ultimate decision rests in his hands