The Strategic Importance of Deliberately Trying to Develop Organizational Competencies

question 56

Multiple Choice

The strategic importance of deliberately trying to develop organizational competencies and capabilities is

• A)lower costs for employee training.
• B)improved strategy execution and a potential for competitive advantage.
• C)an increased ability to reduce total operating costs.
• D)the added ease with which strategic fit and resource fit benefits can be captured.
• E)the enhanced ability to avoid the perils of outsourcing.

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Definitions:

Transfer Price

The price charged for the sale of goods or services between divisions within the same company.

Transfer Price

The selling price for goods and services among different segments within the same enterprise.

Idle Capacity

Unused production capability or facilities that could be producing goods or services but are currently not due to lack of demand or inefficiency.

Connector Division

A segment or department within a company that specializes in producing connectors, often seen in electronics and manufacturing firms, aiming to enhance operational efficiency and product specialization.