The Business Book

(Joyce) #1

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.
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