The Business Book

170

T H E M A I N T H I N G

T O R E M E M B E R I S ,

T H E M A I N T H I N G

I S T H E M A I N T H I N G

PROTECT THE CORE BUSINESS

T

he expression “Jack of all

trades” refers to someone

who can do many things,

but is not particularly good at any

one thing. Unless a company is able

to maximize its competitive

advantage over its competitors, the

same can also be true in the world

of business. Success usually relies

on using that advantage rather than

branching out with something new.

The core business is the “main

thing” at the heart of a company’s

operation, and organizations must

remember that “the main thing is

the main thing,” according to

Brigadier General Gary Huffman

of the US Army. When a company

Businesses are usually

very good at one

thing, such as making

computer chips.

...the core business may

begin to fail.

This skill gives the

company a competitive

advantage.

If the company diversifies

into noncore businesses or

outsources some

functions to unreliable

third parties...

The main thing to remember is,

the main thing is the main thing.

IN CONTEXT

FOCUS

Business strategy

KEY DATES

1900s–1950s Growth of

large, vertically integrated

corporations that control and

own their assets, requiring

complex and multilayered

management structures.

1950s–1990s Organizations

begin to expand by acquiring

unrelated businesses.

1990 Business experts

C. K. Prahalad and Gary Hamel

introduce the idea of “core

competencies” in their

Harvard Business Review

article “The Core Competence

of the Corporation”.

1995 US companies start to

outsource functions to

companies “offshore,” such as

businesses located in India.

2000s Companies begin to

sell off unrelated businesses

to refocus on their core.