The Owner of a Store That Sells Fine-Quality Fabrics for Home

question 28

Multiple Choice

The owner of a store that sells fine-quality fabrics for home seamstresses bemoans the fact that few young women know how to do fine tailoring, much less simple dressmaking.Many potential customers are unable to appreciate the premium quality of the fabrics and are deterred by the high prices, as well as the complexity of fine sewing.In the past, the store had a strong demand for fabrics, large classes for women learning the fine points of sewing, and a reputation for excellent service and technical advice.Now the store is earning lower-than-average returns.This case is an example of:

• A) the hazard of competitors being able to imitate a firm's core competency.
• B) the need for firms to stick to their core competencies through temporary downturns in market demand.
• C) the lack of intangible resources undermining the core competencies of the firm.
• D) core competencies that have become core rigidities.

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Definitions:

Basal Metabolic Rate

The pace at which energy is expended by the body during rest to preserve critical activities such as respiration and temperature regulation.

Unfamiliar Foods

Food items that are not known or recognized by an individual, often leading to hesitancy or curiosity in tasting.

Toxic Substances

Materials or compounds that can cause harm to living organisms through ingestion, inhalation, or skin contact.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically showing improvement in performance on simple or well-learned tasks.