BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Something the business can do well
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Something unique that the business is good at
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Something the business uses to build strength
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Being the market leader
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Detailed explanation-1: -Typically, a core competency refers to a company’s set of skills or experience in some activity, rather than physical or financial assets. An organizational core competency is an organization’s strategic strength. Honda’s strategic strength, for example, lies in its engine and propulsion systems.
Detailed explanation-2: -What are core competencies? Core competencies are the defining products, services, skills and capabilities that give a business advantages over its competitors. Put another way, business core competencies are competitive advantages that no competitor can reasonably offer or replicate.
Detailed explanation-3: -A core competency is a unique element that can not be easily replicated by other companies. Therefore, a company can identify its core competencies by thinking through how the company is different from other businesses.
Detailed explanation-4: -According to Prahalad and Hamel, a core competency should allow the company access to a wide variety of markets, benefit potential consumers, and be difficult to imitate by competitors. Core competency examples include exceptional quality control, quantifiably lower costs, or expertise in a unique specialization.
Detailed explanation-5: -Competencies fall into three main categories: Core, Cross-functional and Functional. All are important, but there is a hierarchy.