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1 Hamel, Gary
(b. 1954) Gen MgtU.S. academic and consultant. With C. K. Prahalad, introduced the concept of core competences and argued for an innovative approach to corporate strategy creation, based on emotion as well as analysis. They coauthored Competing for the Future (1994), which set out their revolutionary but well-respected view of strategy.Hamel believes that too many managers operate essentially on a hand-to-mouth basis, not devoting sufficient time to thinking about and planning for the future. He argues that developing strategy (‘strategizing’ in his terminology) should be an ongoing, radical, and inclusive process that habitually challenges existing assumptions, involves as many people as possible, and looks for its inspiration as often outside the organization as within it. -
2 Prahalad, C. K.
(b. 1941) Gen MgtIndianborn academic. Developer with Gary Hamel of a new view of competitiveness, strategy, and organizations in reaction to traditional strategic thinking. Prahalad and Hamel originated the ideas of strategic intent, core competences, and strategy as stretch, and published them in Competing for the Future (1994). -
3 core competence
Gen Mgt, HRa key ability or strength that an organization has acquired that differentiates it from others, gives it competitive advantage, and contributes to its long-term success. The concept of core competence is most closely associated with the work of Gary Hamel and C. K. Prahalad, notably in their book Competing for the Future (1994). They describe core competences as bundles of skills and technologies resulting from organizational learning. These provide access to markets, contribute to customer value, and are difficult for competitors to imitate. Core competence is a resource-based approach to corporate strategy. The terms core competence and core capability are often used interchangeably, but some writers make varying distinctions between the two concepts. -
4 corporate strategy
Gen Mgtthe direction an organization takes with the objective of achieving business success in the long term. A number of models such as Michael Porter’s Five Forces model and Gary Hamel and C. K. Prahalad’s model of core competencies have been used to develop corporate strategy. More recent approaches have focused on the need for companies to adapt to and anticipate changes in the business environment. The formulation of corporate strategy involves establishing the purpose and scope of the organization’s activities and the nature of the business it is in, taking the environment in which it operates, its position in the marketplace, and the competition it faces into consideration. Corporate planning and business plans are used to implement corporate strategy. -
5 Doz, Yves L.
(b. 1947) Gen MgtFrench academic. Collaborator with C. K. Prahalad and Gary Hamel in researching strategic models to tackle the complexities and globalization of markets. His Alliance Advantage (1998, coauthor), focuses on strategic partnering. -
6 Porter, Michael E.
(b. 1947) Gen MgtU.S. academic and consultant. Known for his theories such as the value chain designed to help businesses examine their competitive capabilities. In Competitive Strategy (1980), Porter argued that to gain competitive advantage, an organization needs to perform the activities in the value chain more cheaply or in a better way than its competitors. More recently, in response to thinkers such as Gary Hamel, he advised on using the value chain to achieve differentiation from other players in a market.Porter studied at Harvard, and at the age of 26 he became one of the youngest tenured professors in the school’s history. He has served as a counselor on competitive strategy to many leading U.S. and international companies and plays an active role in economic policy with the U.S. Congress, business groups, and as an advisor to foreign governments. -
7 top-down approach
Gen Mgtan autocratic style of leadership in which strategies and solutions are identified by senior management and then cascaded down through the organization. The top-down approach can be considered a feature of large bureaucracies and is associated with a command and control approach to management. A number of management gurus, particularly Gary Hamel, have criticized it as an out-of-date style that leads to stagnation and business failure. It is the opposite of a bottom-up approach.
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