The Value Adding Manager

Core competencies exercise

Overview of exercise to be completed
Core competencies provide potential access to a wide variety of markets; make a
significant contribution to the perceived customer benefits of the end product; and are
difficult for competitors to imitate (Prahalad and Hamel, 1990:84). Core competencies,
resources and capabilities, distinctive competencies, core capabilities, and dynamic
capabilities can be used interchangeably to describe how an organization achieves the
delivery of products and services in order to accomplish competitive advantage.
The purpose of this exercise is to provide an overview of the resources and competencies
that your case study firm uses to compete effectively. It builds upon the body of
knowledge in strategic management that is often referred to as the resource-based view.
The argument put forth by leading thinkers in this area is that firms must combine
effectively the resources at their disposal with the competitive methods that drive value.
In other words, none of the firms resources should be directed toward competitive
methods that are not expected to yield significant future value to the organization. The
end state is perfect alignment between competitive methods and resource allocation. This
alignment must be consistent, that is, resources must be consistently allocated to those
most important value producing competitive methods.
Objectives of exercise
Upon completion of this exercise, the learner shall possess a comprehensive
understanding of the core competencies of the case study firm and how those
competencies are aligned with the competitive methods the firm employs to achieve
sustainable competitive advantage. In addition, the learner should be capable of
performing a critical analysis of how well aligned the firm is in order to deliver the
competitive methods that have been identified as the greatest value producers.
Resources to use in completing the assignment
The learner is directed toward chapter six in Strategic Management in the Hospitality
Industry, 2nd Edition, by Olsen, West and Tse and published by John Wiley and Sons.
Additional resources include:
Brotherton, B & Shaw, J., (1996), Towards an Identification and Classification of Critical Success Factors
in UK Hotels Plc., International Journal of Hospitality Management, 15(2), 113-135.
___________, & Leslie, D., (1991), Critical Information Needs for Achieving Strategic Goals, In Teare, R.
& A. Boer, eds, Strategic Hospitality Management: Theory and Practice for the 1990s, Cassell, London,
33-44.
De Chabert, J., West, J. & Olsen, M.D. (2000). A model for the implementation and use of core
competencies for competitive advantage. Monograph.

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The Value Adding Manager

Core competencies exercise
DeNoble, A., (1986), Restaurant Acquisitions: The Post Merger Integration Process, The Practice of
Hospitality Management II, Lewis, R.C., Geggs, T.J., Shaw, M., & Croffoot, S.A., eds., AVI Publishing,
Westport, CT, 91-101.
Geller, A. N., (1985), Tracking Critical Success Factors for Hotel Companies, Cornell Hotel Restaurant
Administration Quarterly, 25(4), 76-81.
Griffin, R. K., (1994). Critical Success Factors of Lodging Yield Management Systems: An Empirical
Study. Unpublished doctoral dissertation. Virginia Polytechnic Institute and State University, Blacksburg,
Virginia.
Min H. C., (1994). Predicting Business Failure in the Hospitality Industry: An Application of the Logit
Model. Unpublished doctoral dissertation. Virginia Polytechnic Institute and State University, Blacksburg,
Virginia.
Cho, W., (1996). A Case Study: Creating and Sustaining Competitive Advantage Through an Information
Technology Application in the Lodging Industry. Unpublished doctoral dissertation. Virginia Polytechnic
Institute and State University, Blacksburg, Virginia.
DeNoble, A. & Olsen, M. D., (1981). The Relationship Between the Strategic Planning Process and the
Service Delivery System, in, The Practice of Hospitality Management, Pizam, A., Lewis, R., & Manning, P.
(Eds.)., AVI Publishers, 229-236.
Becker, C & Olsen, M.D., (1995), Exploring the Relationship Between Heterogeneity and Generic
Management Trends in Hospitality Organizations, International Journal of Hospitality Management 14(1),
39-52.
Bell, C.A., (1993), Agreements with Chain Hotel Companies, Cornell Hotel Restaurant Administration
Quarterly, 34(1), 27-33.
Rispoli, M., (1997), Competitive Analysis and Competence Based Strategies in the Hotel Industry, in
Dynamics of Competence Based Competition, eds. Sanchez, R., Heene, A., & Thomas H., Pergamon,
London, 119-137.
Roberts, C. & Shea, L., (1996), Core Capabilities in the Hotel Industry, Hospitality Research Journal,
19(4), 141-153.
Schmelzer, C. D., (1992). Case Study Investigation of Strategy Implementation In Three Multi-unit
Restaurant Firms. Unpublished doctoral dissertation. Virginia Polytechnic Institute and State University,
Blacksburg.
Tse, E., (1988), Defining Corporate Strengths and Weaknesses: Is It Essential For Successful Strategy
Implementation? Hospitality Education and Research Journal, 12(2), 57-72.
Van Dyke, T., & Olsen, M. D., (1987), An Exploratory Study of Key Variables Affecting the Profitability of
Mid-Priced Hotels and Motels, Hospitality Education and Research Journal, 11(2), 123-133.

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The Value Adding Manager

Core competencies exercise
Assessment of the degree of alignment between competitive
methods and core competencies
Considering your organization in its present state, this exercise is designed to identify and
describe the core and peripheral competencies that you feel your firm excels in against
the present day competition. To that end you are asked to list and describe the core and
peripheral competencies that you consider to be a major strength of your case
organization and to provide an assessment of the degree of alignment between them and
the identified competitive methods.
Evaluation criteria
1. Give a comprehensive and detailed description of each core and peripheral
competency identified for the case study firm. This should include resources such as
raw materials, capital, people, and processes designed to achieve competitive
advantage. Use classification schemes such as the functions of management
(administration, finance, human resources, marketing, operations, and research and
development) or identifying the most important value producing competitive methods
and what is required to effectively deliver these methods in the market place.
2. Evidence must be presented justifying the list prepared for your answers in criterion
one.
3. An explanation of how each competency adds value to the organization.
4. An assessment of how the case study firm compares with its key competitors on each
competency. In this case, it must be determined whether your firm is ahead, equal to,
or behind the competitive set. Benchmarking is permitted to be used here.
5. An explanation of how these competencies provide competitive advantage.
6. A determination of the amount of the firms resources that are invested in these core
competencies.
7. Determine how these key competencies are communicated throughout the
organization.
8. Develop a matrix linking the core competencies with the identified competitive
methods of the firm. Each cell of the matrix should specifically spell out how each
identified core competency relates to each competitive method.
9. An assessment of the overall degree of alignment between core competencies and
competitive methods must be made. Likewise, a critique as to what is not in
alignment is required.

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The Value Adding Manager

Core competencies exercise
Competency and competitive method matrix
Core competencies

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Competitive methods

The Value Adding Manager

Core competencies exercise
Scorecard for exercise
Company:
Team members:
Date submitted:

Criteria
The core competencies are linked to the competitive methods
The core competencies reflect the resources and capabilities of the organization
Assessment of competencies compared to competition
Explanation of how the competency can add value
Assessment of how competencies are communicated to the firm
Determination of how resources are allocated to core competencies
Overall degree of alignment
Total points

Points
/50
/50
/50
/50
/40
/60
/60
/360

Comments:

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