| In the competitive information age, most enterprises can no longer count on similar technique, resources and knowledge to get its competitive advantages, which are becoming more and more single, or homogeneous; the most important thing we have to realize is that the homogeneous resources have only been a platform to compete, it is not the most important factor to win in the business world. What is the real important factor to win the business? Most entrepreneurs are wondering when they are draft the competitive strategy for their companies, the answer is the core competence derived from its heterogeneous resources: the basic and the most important object is to recognize, nourish, acquire the unique core competence by utilize the heterogeneous resources owned by the enterprise, regardless of they are inside or outside; secondly, the enterprise must have the capabilities to utilize it in the most efficient way, at the same time to get a high EVA (Economic Value-added) and keep enterprise's sustainable operation; with high EVA and sustainable operation, at last the long-term strategy could be achieved, the enterprise could survive, make profit and develop.From the point view of core competence, one enterprise is a capability system, which includes different kinds capabilities. In information age, one of the most important capabilities of the core capabilities is the financial capability, it has shown its unique importance stronger and stronger in the ways to support, reach the aims of the corporate strategy. During the Asian financial crisis in 1997, being lack of the match of core competence and its financial capability, many Asian big firms lost their business and in a statue of deep and long recession. These examples tell us one truth: following the process of diversified business, Chinese enterprises must pay much attention to the match of core competence andits financial capability, take steps to improve their relations and avoid the similar disaster of other Asian firms. In this paper we will mainly focus on the relations and the cross-effects of core competence, financial capability, make some conclusions about the match between them at different stages, lastly make some realistic suggestions for ambitious Chinese enterprises, which is critical to the development of state-owned enterprises. This paper is mainly consisted by four parts: preface, contents, conclusions, and references.Chapter 1 offers the basic theory of core competence, its history, related definitions, important factors and features, evaluation system, especially discusses the whole process of acquiring the core competence. Chapter 2 describes issues of financial capability, such as the basic theory of financial capability, its important factors, the limited acknowledgement of present financial reporting system, the trend and new demands of financial capability in information age, and its acquiring process.Chapter 3 develops a new model of corporate strategy, core competence and financial capability, make comments on the applications of above-mentioned theories and conclusions for enterprises in China, in order to reach the match of core competence and financial capability, we discuss the advantages and weaknesses of the Chinese enterprises when they are try their best to diversify their business, and make some suggestions for achieving the match. Chapter 4 empirically analyzes the successful case of Legend group with the theories mentioned in the chapters above, by carefully discussing the biggest IT company in mainland of China. Readers can get deep insights on the match of core competence and financial capability in the different development stages of Legend, which is very important to Legend's future success. Some constructive suggestions and conclusions are also showed in this chapter.The creative thinking of this paper is that the writer gives us a full picture of the match of core competence and financial capability based on the theoretical and empirical research on core competence, and launch... |
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