Capabilities That Have Been the Bases of Advantage May Become

question 37

Multiple Choice

Capabilities that have been the bases of advantage may become difficult to change - they have become core rigidities. Identify the two main reasons for this.

• A) They tend to persist beyond their usefulness.
• B) Financial performance tends to lead the causes of strategic drift.
• C) They are easy to identify with hindsight.
• D) They become embedded in organisational routines and become difficult to unravel.

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Definitions:

Corporate Mergers

The combination of two or more companies into a single entity, often with the aim of boosting growth, reducing competition, and achieving economies of scale.

Oligopolies

Are giant corporations that control part of an economy. They are few in number and tend not to compete against one another. Instead, they can set prices at levels that are most profitable for them.

Primary Labour Market

describes sectors of the economy that offer high-paying jobs, secure employment, good working conditions, and benefits.

Supply And Demand

An economic model explaining price determination in a market based on the relationship between the quantity of a commodity available and the desire of buyers for it.