The Difference Between a Core Competence and a Distinctive Competence

question 41

Multiple Choice

The difference between a core competence and a distinctive competence is that a

• A)distinctive competence refers to a company's strongest resource or competitive capability, whereas a core competence refers to a company's lowest-cost and most efficiently executed value-chain activity.
• B)core competence usually resides in a company's base of intellectual capital, whereas a distinctive competence stems from the superiority of a company's physical and tangible assets.
• C)core competence is a competitively and strategically relevant activity that a firm performs well compared to its other activities, whereas a distinctive competence is a competitively relevant activity a firm performs well compared to other rival firms.
• D)core competence represents a resource strength, whereas a distinctive competence is achieved by having more resource strengths than rival companies.
• E)core competence usually resides in a company's technology and physical assets, whereas a distinctive competence usually resides in a company's know-how, expertise, and intellectual capital.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Early Neutral Evaluation (ENE)

A process similar to that of a settlement hearing, which may result in a final decision or be used to help shape the final decision.

Mediation

A form of alternative dispute resolution where a neutral third party helps disputants reach a voluntary, negotiated agreement.

Arbitration

Arbitration is a form of alternative dispute resolution where a neutral third party, known as an arbitrator, makes decisions to resolve a dispute outside of court.