BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Value is measured by a product’s performance characteristics and by its attributes for which customers are willing to pay. Those particular bundles of resources and capabilities that provide unique advantages to the firm are considered core competencies (Prahalad & Hamel, 1990).

Detailed explanation-2: -Which of the following is a true statement about capabilities? Capabilities based on human capital are more vulnerable to obsolescence than other intangible capabilities because of the tendency for employee knowledge to become outdated.

Detailed explanation-3: -The idea here is that if a firm is to maintain sustainable competitive advantage, it must control a set of exploitable resources that have four critical characteristics. These resources must be (1) valuable, (2) rare, (3) imperfectly imitable (tough to imitate), and (4) nonsubstitutable.

Detailed explanation-4: -Core Competencies Criteria If a resource or capability meets the following criteria it contributes to a firm’s competitive advantage over industry rivals and allows the firm to achieve profitability. A resource or capability is a core competency if it is valuable, rare, costly to imitate, and non-substitutable.

Detailed explanation-5: -Which of the following characteristics is not a test of whether a strategic capability is a distinctive (or core) competence? It is protected by patents.