Question Statement :

Goodricke Group Ltd is planning to give top priority to the core competence of production and marketing of tea in 2007. The company intends to increase the production of orthodox varieties of tea. Goodricke is planning to invest Rs. 10 crores to modernize the factories. The company has announced a net profit of Rs. 5.49 crore for 2006 as against Rs. 3.76 crore in 2005.

Production and marketing is core competence of Goodricke Group.
Increase in production of existing products enhances core competence.
Core competence leads to modernization.
Goodricke has given top priority to production because it has earned net profit of Rs. 5.49 crore.
Core competence can be used for furthering company’s interests.