Assessments And Improvement Strategies For The Core Competence Of State-owned Commercial Bank In China

In 1990, C. K. Prahald and G. Hamel raised for the first time the concept of "core competence" in their article published in Harvard Business Review, hence initiated an upsurge of research into corporate core competitiveness. At present, the core competence theory has won worldwide recognition, and has become a new theory, a new perspective and a new focus in the research of corporate development and corporate core competence building.With the deepening of economic globalization and China's entering WTO, the competence among commercial banks turned to be fiercer. At home, the increase in the amount of commercial banks, and the large emergence of banks with various scales and equities made the domestic competence more intense. Aboard, Chinese financial market began its total opening up to the outside world on December 11, 2006, and thus Chinese and overseas commercial banks started to compete with each other on the same platform. How to survive and develop in the competition? Could Chinese state-owned commercial banks exert their native advantages and win their own way in the competition? This problem became the focus of attention and consideration for every Chinese state-owned commercial bank. For Chinese state-owned commercial banks, if they want to win in the battle against the "invasion" of foreign banks and in the new challenge of financial changes, they must enhance their core competencies, and increase their competitive advantages. This would be a strategic choice for Chinese state-owned commercial banks currently and for a certain following period. Hence, first and foremost, we need to investigate the questions such as "what is the core competence of commercial banks", "how are the core competencies of Chinese state-owned commercial banks and how to enhance them".Up to date, the domestic and abroad research focus more on the overall evaluation of the competitiveness of commercial banks, and are fairly scarce about the evaluation and improvement strategies of commercial banks' core competence, hence no scientific and definite evaluation standards have been made concerning whether Chinese state-owned commercial banks have built their core competence or not. Therefore, it would be a significant project for us to try to objectively and effectively identify and evaluate Chinese state-owned commercial banks' core competencies with qualitative standards, analyze the degree of their competencies, and on the basis of referring to the successful experiences of foreign banks, raise the specific measures to build Chinese state-owned commercial banks' core competencies. This could help Chinese commercial banks to seize the opportunity and choose the correct market competitive strategies, and thus ensure their smooth transition.This thesis falls into the following four parts.The first part makes a theoretical analysis. It mainly introduces the connotation of the commercial banks' core competence theory, and sets up a system for commercial banks' core competence evaluation standards.The second part makes an assessment of the current state of Chinese state-owned commercial banks' core competence, and points out the problems involved.The third part probes the major beneficial experiences of foreign banks' improving their core competence, from the perspectives of organizational competence, human resources management competence, and financial technological innovative competence.The fourth part comes up with strategies for building Chinese state-owned commercial banks' core competence, such as bettering and perfecting organizational structure, realizing strategic human resources management, and facilitating financial innovation. It is expected that these three major measures would enhance greatly the core competence of Chinese state-owned commercial banks.