Abstract
The core competence is a capability to create a successful product mix in the future, and to sustain the competitive edge of these products. The core competence is not produced by the scattered business units, but by the strong head office and by the hybrid product division structures. These organizational structures enable the company to concentrate the key resources into the development of strategic products, to improve the interface of various departments' abilities. A head office which has strength in size and capability is also able to store and develop the specialized knowledge and supply these knowledge to various departments. The strong head office and the hybrid division structure are particularly effective where the present and future products are technology related or marketing related. Under the changing environment, the concentration of authority is necessary to construct the strong competitive power in the growth area and thus to achieve a successful financial performance.
