Case Study
Topics: Strategic management, Management / Pages: 6 (1488 words) / Published: Jul 28th, 2013

Ans – 1
Definition of 'Core Competencies'
The main strengths or strategic advantages of a business. Core competencies are the combination of pooled knowledge and technical capacities that allow a business to be competitive in the marketplace. Theoretically, a core competency should allow a company to expand into new end markets as well as provide a significant benefit to customers. It should also be hard for competitors to replicate.

Ans – 3
One topic that interested FlexCon managers was a discussion of how core competencies relate to outsourcing decisions. FlexCon management commonly accepted that a core competency was something the company "was good at." This view, however, is not correct. A core competence refers to skills, processes, or resources that distinguish a company, are hard to duplicate, and make that firm unique compared to other firms. Core competencies begin to define a firm's long run, strategic ability to build a dominant set of technologies and/or skills that enable it to adapt quickly to changing market opportunities. The presenter argued that three key points relate to the idea of core competence and its relationship to insourcing/outsourcing decisions:

 A firm should concentrate internally on those components, assemblies, systems, or services that are critical to the finished product and where the firm possesses a distinctive (i.e., unique) advantage valued by the customer.

 Consider outsourcing components, assemblies, systems, or services when suppliers have an advantage. Supplier advantages may occur because of economies of scale, process specific investment, higher quality, familiarity with a technology, or a favorable cost structure.

 Recognize that once a firm outsources an item or service, it usually loses the ability to bring that production capability or technology in-house without committing significant investment.

The manager or team responsible for making an insourcing/outsourcing decision must develop a

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