Page 172 - (DK) The Business Book
P. 172
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THE MAIN THING
TO REMEMBER IS,
THE MAIN THING
IS THE MAIN THING
PROTECT THE CORE BUSINESS
IN CONTEXT
Businesses are usually
FOCUS This skill gives the
very good at one
Business strategy thing, such as making company a competitive
advantage.
computer chips.
KEY DATES
1900s–1950s Growth of
large, vertically integrated
corporations that control and
own their assets, requiring
complex and multilayered
If the company diversifies
management structures. into noncore businesses or
...the core business may
1950s–1990s Organizations begin to fail. outsources some
begin to expand by acquiring functions to unreliable
third parties...
unrelated businesses.
1990 Business experts
C. K. Prahalad and Gary Hamel
introduce the idea of “core
competencies” in their The main thing to remember is,
Harvard Business Review the main thing is the main thing.
article “The Core Competence
of the Corporation”.
1995 US companies start to
outsource functions to he expression “Jack of all on using that advantage rather than
companies “offshore,” such as trades” refers to someone branching out with something new.
businesses located in India. T who can do many things, The core business is the “main
but is not particularly good at any thing” at the heart of a company’s
2000s Companies begin to one thing. Unless a company is able operation, and organizations must
sell off unrelated businesses to maximize its competitive remember that “the main thing is
to refocus on their core. advantage over its competitors, the the main thing,” according to
same can also be true in the world Brigadier General Gary Huffman
of business. Success usually relies of the US Army. When a company
