Ancho Corp

question 99

Multiple Choice

Ancho Corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel-based cars. The company realizes that more of its potential customers are switching to electric cars. The R&D department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. In this scenario, Ancho is primarily

• A) leveraging new core competencies to improve current market position.
• B) redeploying existing core competencies to compete in future markets.
• C) unlearning existing core competencies to create and compete in markets of the future.
• D) building new core competencies to protect and extend current market position.

---

Definitions:

Rate of Return

The financial gain or loss encountered on an investment over a fixed term, represented as a percentage of the investment's first expenditure.

EPS

Earnings Per Share, a key indicator of a company's profitability, calculated as the company's profit divided by the number of outstanding shares.

Rate of Return

The appreciation or depreciation in an investment's value over a set period, articulated as a percentage of the investment's buying price.