Flour Manufacturing Enterprise's Core Competitiveness Study

Both in theory and management practice, the concept of core competence and the case analysis of large amount of successful enterprises in the 1990s' have elucidated the essential effort of core competence to the existence and development of an enterprise, and also to the realization, construction and cultivation of continual competitive advantages. This paper is to exert related theories to research on the tactical managing process of how the flour manufacturers adapted to the changing operation environment, strengthened the enterprise competence, created continual competitive advantages and promoted the lasting and steady development of an enterprise through maintaining and development enterprise's core competence.The paper will be divided into three main parts. In the first part, the fundamental theories of core competence will be clarified. It is about the basic concept and characteristics core competence, and the conclusion and analysis of major tactical management theories. It is going to appoint that the core competence has become an important trend of the development of tactical management theory nowadays. Meanwhile, the vitality of this theory lies in the successful exertion in the practices of enterprise management.The second part is to case study on the core competence of the South Flour Group. Through the analysis of its achievement, potential of development and strategic situation, I will come to a conclusion that the key of its success lies in its core competence in the strategic managing practice. The South Flour Group defined the core competence as the organic combination of the production competence, the brand influence, the ability of research and develop, ability to renovate its internal resources, and ability to utilize its managing methods. Upon this basis, the South Flour Group set up the management mode of core competence.According to the clarification of theory and the result of the case analysis, the third part is to define the core competence of the flour manufacturers as the organic combination of the competence of product, the ability to the marketing exploitation,the influence of brand, the ability of research and exploitation and the ability of innovation, etc.. The process of the core competence' management includes five main steps. The first step is to build up the mind to satisfy the customers, nail down the direction of development and the mission of the enterprise, formulate the object which is composed of market, innovation, profit and society, and determine the direction of development. The following step is to analyze comprehensively the opportunities and threats from the external environment, and also the advantages and disadvantages in the internal environment, as to construct and foster the core competence of the flour manufacturers. The third step is to exert comprehensively the strategy of cost-leading strategy, difference strategy integrate strategy target-focus strategy and diversification strategy to foster and maintain the core competence. The fourth step is to work out function strategy, to carry out organization transformation by the carrier of core competence with the final aim of customers' satisfaction, to enhance the leaders' sense of core competence, and to maintain and develop the core competence. The last step is to develop and reform the core competence.