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MEANING: COMPETENCY
Competency: forms of
business-related expertise
Basic business competency:
understanding the organizational and
business processes of a firm
MEANING: COMPETENCY Competency is a bundle of skills andtechnologies that enables a company toprovide a particular benefit to stakeholders
For example,
At Sony – benefit is pocketability
core competence is miniaturization
At Times of India – benefit is on time delivery
core competence is logistics management
At Motorola–benefit is un tethered(rope) communication
core competence is wireless communication.
MEANING: COMPETENCYDetermination competencies: skill identified with
the energy and focus needed to bring a business
into existence
Opportunity competencies: skills necessary to
identify and exploit elements of the business
environment that can lead to a profitable and
sustainable business
Resource competencies: the ability or skill of the
entrepreneur at finding expendable components
necessary to the operation of the business
Time
Information
Location
Financing
Raw materials
Expertise
MEANING: COMPETENCY
MEANING: ENTREPRENEURIAL COMPETENCY
Entrepreneurial competency means the area of expertise, skills, ability, efficiency, updated technology regarding organizational and business processes of a firm.
PERSPECTIVES OF COMPETENCY
Identifying existing competency
Establishing competence acquisition agenda
Building competency
Deploying competency
Protecting and defending competenceleadership
ENTREPRENEURIAL COMPETENCIES
INITIATIVESNATCHES OPPORTUNITYPERSISTENCE, ASSERTIVE, PERSUASIVE, SELF CONFIDENCE, INFLUENCEINFORMATION SEEKINGCONCERN FOR HIGH QUALITYCOMMITMENTEFFICIENCY ORIENTATION, MONITORINGSYSTEMATIC PLANNINGPROBLEM SOLVINGCONCERN FOR WORK AND EMPLOYEESCUSTOMER ORIENTATION
TO BE CONSIDERED COMPETENCE A SKILL MUST MEET THREE TESTS
1. Customer Value: Competencies are the skills that enablea firm to deliver a fundamental customer benefit.
2. Competitor Differentiation: A capability must also becompetitively unique
power trains is a competence at Honda which has never been so at Ford.
Honda’s ability to produce some of the world’s best engines andpower trains does provide customers with highly valued benefitsof superior fuel economy, zippy acceleration, less noise andvibration.
TO BE CONSIDERED COMPETENCE A SKILL MUST MEET THREE TESTS
3. Extendibility: A competitive is truly corewhen it focus the basis for entry
into new product markets.
SKF, the world’s leading manufacturer of roller bearing hascompetencies in antification, precision engineering and makingperfectly spherical devices. In order to achieve extendibility, SKF mustbe capable of manufacturing the round, high precision recording headsthat go inside a VCR, most of which are now manufactured by Japanesefirms.
RISKS OF IGNORING COMPETENCIES
Opportunities for growth will be turned down.
Ignorance of competencies may weaken the enterprise
The lack of competence perspective can make a companydependent on outside suppliers for core products.
A company focused only on end products may fail to investadequately in new competency that may constrain growth inthe future.
The new entrants in the area /competitors may lag the growthof the company.
AWARENESS
Identification of business opportunity.
INDENTIFICATION OF OPPORTUNITY
Tools
1. Environment Scanning
2. SWOT Analysis
FACTORS IN IDENTIFICATION OF OPPORTUNITIES1. Self Experience or Exp. of Pretense / family
members.
2. Ready demand in local market
3. Imports banned or controlled
4. Competition of Medium & large enterprises
5. High profitability
6. Reservation
7. Incentive by Govt.
8. Marketing by Govt.
CAREER ALTERNATIVES IN SELF EMPLOYMENT
Industry – ManufacturingTradeCommercial Services
Banking InsuranceWarehousing, Logistics
Professional Service CA ArchitectsDoctors
ConsultancyEtc
SALES ASSESSMENT
PROCESSES OBJECTIVES
FIRM PRODUCT
1.PRICING
2.SELLING
3.ADVERTISING
1. SALES
2. PROFITS
MARKETING ASSESSMENT PROCESSES OBJECTIVES
FIRM PRODUCT
1.Product Quality
2.Pricing
3.Barnding
4.Advertising
5.Selling
6.Channels
1.Customer
Satisfaction
2.Sales
3.Short term &
Long Term Profits
4.Brand Image &
Goodwill
5.Diversification
Environment
MARKET DEMAND ASSESSMENT
1. Product – Specifications2. Total Volume- Physical Volume / Monetary3. Bought – volume booked / dispatched / paid for /
received / consumed.4. Customer Group.5. Geographical Area.6. Time period –season , plane period.7. Marketing Environment – economic conditions , Govt.
policy , Practical , Consumer Behavior.8. Marketing Program –Pricing , Advertising , Sale
promotion, personal selling , channels, dealers.
ASSESSMENT OF COMPETITION
1. Competitions
2. Market Share of competitors
3. Strength and weakness of consumer, Image of competitor products-price features.
4. Consumers’ Image towards competitors’ products / services.
5. Trade practices of competitors-Discount to dealer.
6. Major customers of each brand.
ASSESSMENT OF SITEFactory
Personal Factors
Economics
Competition
Geography
Local Law’s
ProcedureCriteria
Factors
Location Alternatives
Evaluate
Select
SITE-SELECTION
FACTOR WEIGHT SCORE WEIGHT SCORE WEIGHT SCORE
1.Production
Cost
2. Raw
Material
Supply
3. Labour
Availability
4. Cost of
living
5. Enviro
nment
6. Market
WEIGHT
SITE-A SITE-B SITE-C
Total
score
LOCATIONAL & BREAK-EVEN ANALYSIS
Site A
Site B
Site C
Rs. 1 Lakh
Rs. 1.5 Lakh
Rs. 2 Lakh
Rs.100
Rs.50
Rs.25
POTENTIAL
LOCATION
FIXED COST
PER YEAR
VARIABLE COST
PER UNIT
MAKE OR BUY
1. Facilities. 2. Plant Capability – Equipment , Quality ,
Quantity , Personnel.3. Economic Advantage.4. Trade relations. 5. Supplier Reliability6. Trade Union Views.7. Alternative Resource Uses.8. Legal Restrictions (Patents).
ASSESSMENT OF PRODUCTION PROCESS
1. Product / Service requirement 2. Technological Feasibility3. Financial Considerations4. Labors & skill5. Output & capacity needs6. Compatibility win existing facility7. Flexibility8. Raw materials9. Size & other limits a plant/ building 10. Spare parts inventory
PRELIMINARY PRODUCT DESIGN
PILOT PROJECT
DETAILED PRODUCT DESIGN
PRE PRODUCTION RUN
MANUFACTURE
DESINGNING PRODUCT / SERVICE INTERNAL
ENVIRONMENTIDEACOLLECTION EXTERNAL
ENVIRONMENT
MARKET
APPRAISAL
1. Demand
2. Supply
3. Competition
4. Physical Appearance:
Colour, Style, Fashion
5. Diversification
6. Packaging
7. Cost
8. Import & Export
9. Consumer Behavior
10. Distribution Channels
TECHNICAL
APPRAISAL
1. Inputs
2. Quality of
Materials
3. Production
Technology
4. Productivity
5. Equipment Choice
6. Location & Site
7. Lay-out
8. Work-Schedule
9. Value Analysis
10. Standardization
FINANCIAL
APPRAISAL
1. Investment
2. Financial
3. Cost
4. Profitability
5. Breakeven
6. Cash flow
7. Investment
Worthiness
ECONOMIC
APPRAISAL
1. Cost & Benefit
2. Impact on
Society
3. Employment
NEW PRODUCT DEVELOPMENT
Feasibility Study
10 COMPETENCIES FOR ENTREPRENEURIAL SUCCESS:
Major competencies that contribute towards top performance to entrepreneur
Integrity - the entrepreneur has a clear sense of values and beliefs that underpin the creative and business decisions that they make; and that influence the actions they take, particularly when in difficult or challenging circumstances
10 COMPETENCIES FOR ENTREPRENEURIAL SUCCESS:
2. Conceptual Thinking - the entrepreneur is prepared to use fresh approaches; comes up with crazy ideas that may just work, leading to radical change or significant improvements; and takes time to listen to new ideas without pre-judgement
10 COMPETENCIES FOR ENTREPRENEURIAL SUCCESS:
3. Risk taking - the entrepreneur understands that risk taking means trying something new, and possibly better, in the sense of stretching beyond what has been done in the past; and that the constant challenge is to learn how to assess choices responsibly, weighing the possible outcomes against his/her values and responsibilities
10 COMPETENCIES FOR ENTREPRENEURIAL SUCCESS:
4. Networking - the entrepreneur understands that networking is a key business activity which can provide access to information, expertise, collaboration and sales; and that careful planning and preparation helps achieve desired results
10 COMPETENCIES FOR ENTREPRENEURIAL SUCCESS:
5. Strategic Thinking - the entrepreneur understands and values the planning process, thinking and planning over a significant timescale; recognizes external trends and opportunities; and is able to think through any complex implications for the business 6. Commercial Aptitude - the entrepreneur keeps up to date with developments in the sector; seeks out best practice; and identifies and seizes opportunities that are not obvious to others
10 COMPETENCIES FOR ENTREPRENEURIAL SUCCESS:
7. Decisiveness - the entrepreneur resolves issues as they arise; does not get bogged down in analysis during decision making; and responds flexibly to deal with changing priorities
8. Optimism - the entrepreneur persists in pursuing goals despite obstacles and setbacks; operates from hope of success rather than from fear of failure; and sees setbacks as due to manageable circumstance rather than a personal flaw
10 COMPETENCIES FOR ENTREPRENEURIAL SUCCESS:
9. Customer Sensitivity - the entrepreneur builds trust and long term relationships with customers; generates an expectation of high level of customer service; and regularly exceeds customer expectation
10. People Focus - the entrepreneur creates common purpose with colleagues through shared vision and values; walks the talk; sees and values the best in others; builds the total capability of the immediate and wider team; and always considers the principles of inclusiveness in planning and dealing with others
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