Position Paper

Throughout the business world, there are many factors that define the success of a business, their operations and efficacy. These factors include but are not limited to: ethics, corporate culture, good leaders, and strategies. When a business incorporates these characteristics it will assist in their success and succeeding in whatever endeavors they pursue. Although having the necessary practices and characteristics of a healthy company will help you prevail, it does not ensure that you will succeed. The company’s success is based upon a plethora of characteristics and will be explained in the paper.

The business is responsible to develop a strategy that complements their business and ties to their core competency. When the company develops this strategy they are equipped with the right methodology for success. Core competencies include a business's ability to organize their diverse skills and technologies. A better way to understand a company’s core competencies is to “think of a diversified company as a tree: the trunk and major limbs as core products, smaller branches as business units, leaves and fruit as end products. Nourishing and stabilizing everything is the root system: core competencies” (C.K. Prahalad and Gary Hamel 1990). When the company focuses on their core competencies, they invent complex integrated systems that help establish better fitting of their skills in technology and production, which allows them to obtain a systematic advantage that other companies will be unable to duplicate.

When the business clarifies their core competencies, the company as a whole better understands how to support their competitive advantage, and supports their ability to distribute resources in the development of cross-unit technology and assembly lines.

Some of the questions a business will want to ask when trying to clarify and better their core competencies are: what is the time length for domination of the business if we don’t have control of this competency,...