Emner idag: Revision Fra sidste gang Portfolio Management Eksamensopgave Hjemme opgave

1. Forretning og Ledelse – Lektion11 • Emner idag: • Revision • Fra sidste gang • Portfolio Management • Eksamensopgave • Hjemme opgave • Spørgetime d. 4 januar kl. 17

2. SBU SBU SBU SBU Forretning og Ledelse – Lektion11 Core Competencies Core Competencies Sell?? SBU Competence Buy??

3. Forretning og Ledelse – Lektion11 • A company's core competency is the one thing that it can do better than its competitors. A core competency can be anything from product development to employee dedication. Modern business theories suggest that most activities that are not part of a company's core competency should be outsourced. • IThe concept of core competencies was developed in the management field • C.K. Prahalad and Gary Hamel introduced the concept in a 1990 Harvard Business Review article. They wrote that a core competency is "an area of specialized expertise that is the result of harmonizing complex streams of technology and work activity." • As an example they gave Honda's expertise in engines. Honda was able to exploit this core competency to develop a variety of quality products from lawn mowers and snow blowers to trucks and automobiles. To take an example from the automotive industry, it has been claimed that Volvo’s core competence is safety. • According to Prahalad and Hamel a core competence has three characteristics: • it provides potential access to a wide variety of markets, • it increases perceived customer benefits and • it is hard for competitors to imitate. • For example, Black and Decker's core technological competency is in 200 to 600 W electric motors. All of their products are modifications of this basic technology (with the exception of their work benches, flash lights, battery charging systems, toaster ovens, and coffee percolators).

4. SBU SBU SBU SBU SBU Divisions Divisions Core Products Core Products Core Products Core Competencies Forretning og Ledelse – Lektion11

5. Market Growth Rate High Question Mark Star 10% Cash Cow Dogs Low 1.0 High Low Relative Market Share Forretning og Ledelse – Lektion11 The Growth Share Matrix

6. Forretning og Ledelse – Lektion11 Business Strength Strong Medium Weak High Market Attractiveness Medium Low

7. Business Strength Strong • Protect Position • Invest to grow at maximum digestible rate • Concetrate effort on maintaining strength Medium • Invest to Build • Challenge for leadership • Build selectively on strength • Reinforce vulnerable areas Weak • Build Selectively • Specialize around limited strengths • Seek ways to overcome weaknesses • Withdraw if indication of sustainable growth are lacking High • Build Selectively • Harvest heavily in most attractive segments • Build up ability to counter competition • Emphasize profitability by raising productivity • Selectivity/Manage for Earnings • Protect existing program • Concentrate investments in segments where profiitabiity is good and risks are relatively low • Limited Expansion or Harvest • Look for ways to expand without high risk; otherwiise minimize investment and rationalize operations Market Attractiveness Medium • Protect and Refocus • Manage for current earnings • Concentrate on attractive segments • Defend strength • Manage for Earnings • Protect position in most profitable segments • Upgrade product line • Minimize investment • Divest • Sell at time that will maximize cash value • Cut fixed costs and avoid investments meanwhile Low Forretning og Ledelse – Lektion11

8. Forretning og Ledelse – Lektion11 Offentlig Sektor Ability to Serve Effectively High Low High Public Sector Star Political Hot Box Public Need + funding attractiveness Golden Fleece Back Drawer Issue Low

9. Forretning og Ledelse – Lektion11

10. Forretning og Ledelse – Lektion11 Sidste Opgave! Sammenlign Arla og Thise Mejeri i deres brug af marketing mix og differentieringsvariable Arla: www.arla.dk Thise: www.thise.dk