CASE STUDY BIC & The Compentency Theory
Go!
Presented by Camille Poupard Economics Of Organizations
1959 , The theory of growth of the firm, English economist Edith Penrose
The firm is seen here as a collection of productive resources
(material, immaterial and human) organized outside market mechanisms
Activities refer to the various stages in the production process, while Skills refer to the knowledge, know-how and experience held by firms, enabling them to carry out certain activities.
- When activities are complementary (they are part of the same production process) and similar (they require similar skills), then the company has to take on these activities itself: it must achieve vertical integration.
- If the activities are non-complementary and similar, then the company has skills that it can deploy in another sector of activity: it can then carry out a "coherent diversification" (BIC Case).
BIC's application of Competency Theory
RESULTS
Thanks to its commitment to competence theory, BIC has achieved several successes:
Maintained a worldwide reputation for product quality and reliability.
Ability to remain competitive in the global marketplace despite fierce competition.
Improved operational efficiency through effective use of employee skills.
Continuous innovation and development of new products to meet consumer needs.
BIC manufactures a diversified range of products by capitalizing on its distinctive manufacturing, marketing and distribution skills, as well as its internal resources
wow
Conclusion
Compentency Theory : the firm distinguishes itself from its competitors through a particular combination of productive resources
Definition to remember :
In 1972, in "The Organization of Industry", George Richardson extended Penrose's analysis, explaining how companies determine the scope of their production
A Multinational Company
BIC has specialized in the manufacture of functional, disposable and inexpensive consumer products
- Founded in 1945 by Marcel Bitch in France
What is a company ?
A company produces wealth (G&S) by combining labor and capital. It invests and distributes income.
Companies can be distinguished according to the nature of their activities, their size, their legal status or their objectives.
For neo-classical theory, the company is a point-firm.
For transactional approaches, the existence of transaction costs justifies the existence of the firm.
In contractual approaches, the firm is a knot of contracts.
Why do companies exist?
Cognitivist approaches emphasize the skills held by the firm, which determine its evolution.
BIC Case Study
Camille Poupard
Created on March 21, 2024
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Transcript
CASE STUDY BIC & The Compentency Theory
Go!
Presented by Camille Poupard Economics Of Organizations
1959 , The theory of growth of the firm, English economist Edith Penrose
The firm is seen here as a collection of productive resources
(material, immaterial and human) organized outside market mechanisms
Activities refer to the various stages in the production process, while Skills refer to the knowledge, know-how and experience held by firms, enabling them to carry out certain activities.
BIC's application of Competency Theory
RESULTS
Thanks to its commitment to competence theory, BIC has achieved several successes:
Maintained a worldwide reputation for product quality and reliability.
Ability to remain competitive in the global marketplace despite fierce competition.
Improved operational efficiency through effective use of employee skills.
Continuous innovation and development of new products to meet consumer needs.
BIC manufactures a diversified range of products by capitalizing on its distinctive manufacturing, marketing and distribution skills, as well as its internal resources
wow
Conclusion
Compentency Theory : the firm distinguishes itself from its competitors through a particular combination of productive resources
Definition to remember :
In 1972, in "The Organization of Industry", George Richardson extended Penrose's analysis, explaining how companies determine the scope of their production
A Multinational Company
BIC has specialized in the manufacture of functional, disposable and inexpensive consumer products
What is a company ?
A company produces wealth (G&S) by combining labor and capital. It invests and distributes income.
Companies can be distinguished according to the nature of their activities, their size, their legal status or their objectives.
For neo-classical theory, the company is a point-firm.
For transactional approaches, the existence of transaction costs justifies the existence of the firm.
In contractual approaches, the firm is a knot of contracts.
Why do companies exist?
Cognitivist approaches emphasize the skills held by the firm, which determine its evolution.