Business Learning Centre

The “scope” or “field of activity.” aim is to delimit the field of company performance, namely the extent and characteristics of relations “productive” of it with its socioeconomic environment. This is exactly what is or what “business” in which the company plans to participate.

A “business” in terms of product and market terms. The need to cover, and the technology used to meet this need. Now specify which activities you want to spend the company is clearly necessary but insufficient. It seems logical to also specify by what means can and will tell the company to act in their chosen field. Is the subject of the following two components.

The “distinctive capabilities.” Included in this component resources (physical, technical, financial, human …) and skills (tecnológjcas, organizational, managerial …) present and potential, which owns and dominates the company.

The “competitive advantage”. These are the characteristics that the company can and should develop in order to obtain and / or strengthen an advantage over its competitors. This exceptional potential of the company may be in the possession of some / you use / s core competencies / s, for example, access to raw matera, a technologically sophisticated equipment, patents, expertise, culture especially motivating , an advanced information system fully tailored to the needs of business …

Synergy. That is, the search should be synergistic balance between the level of activity, the distinctive capabilities and competitive advantages. It would be wrong to consider the three above components as independent as one hand is essential to take into account the capabilities and / or competitive advantages that it is better to develop for certain activities, and moreover the existence of certain skills and / or competitive advantages in the enterprise that limits and influences the selection of the portfolio. It must therefore seek positive complementarities among the three components of the strategy.

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