Research On Enterprise's Core Competence

In 1990, C. KPrahald and G.Hamel put forward the concept of"core competencies"for the first time published in Harvard Business Review. Subsequently, the research on the core competencies of enterprises was in full swing. At present, the theory of core competencies has gained international recognition, and is conducive to the research on developing enterprises and fostering the enterprise's core competitive edge from a new perspective.China's banking is encountering substantive opportunities and challenges, which are generated as a result of tremendous changes in the environment of China's banking. With the deepening of globalization of the world economy and China's accession to the WTO, the competition among commercial banks is increasingly fierce. In China, commercial banks have increased continuously in number, and vary from each other in scale and nature of property right. Thus, the competition becomes tougher. Internationally, in accordance with the commitment to the WTO, market access conditions of foreign banks are gradually eliminated in China, and foreign banks have been offered comprehensive national treatment since December 11, 2006. So the China's financial market is fully opened up. Foreign investment in China's banking has increased in amount and intensity. By the end of October 2007, there have been 20 foreign-owned banks with 95 branches, 3 joint-venture banks with 5 branches and 1 subsidiary body, and 3 foreign-owned financial companies in China. In addition, 72 foreign banks from 22 countries and regions have set up 130 branches in China. Among them, 6 foreign banks have access to the operation of RMB business in China. How do Chinese and foreign commercial banks survive and develop in the competition on the same platform? Can China's state-owned commercial banks bring local edges into full play and own its market share? Those are urgent issues state-owned commercial banks concern themselves about. In order to take their own market share in face of "invasion" of foreign banks and financial reform, China's state-owned commercial banks should enhance their core competencies and enforce their own competitive advantages, which is of strategic significance to develop themselves in current and coming years. Thus, what we should do first is research the concept, potential and development of core competencies of state-owned commercial banks in China.At the same time, China's economic development and income growth pose great requirements to banking services and financial deepening. In the condition of opening current account, the increase of foreign trade and investment has demanded for foreign bank services. In this context, it is particularly important to conduct research on the impact and influence of foreign banks on China's banking.4 main parts are included in the research:Part 1 (Chapter 1): Significance of the research and status quoPart 2 (Chapter 2): Theoretical analysis, introducing the basic theories, contents and features of the core competencies of commercial banksPart 3 (Chapters 3, 4): Main part of the research, to address the current status of China's commercial banks and analyze the component elements of core competencies of commercial banks in organizational capacity, human resources management capacity and financial technology innovation Part 4 (Chapter 5): The paper puts forward the strategies to enhance the core competencies of state-owned commercial banks at the basis of current status of China's enterprises by optimizing and improving the organizational structure, implementing strategic human resource management and accelerating the pace of financial innovation. Furthermore, the paper draws a conclusion that enterprises should adapt to cope with the changeable market and industry environment at the basis of their capacity. This paper is designed to offer reference to the development and organizational restructuring of commercial banks in China.