Which of the Following Statements About Developing Organizational Competencies and Capabilities

question 87

Multiple Choice

Which of the following statements about developing organizational competencies and capabilities is FALSE?

• A) Core competencies or capabilities are most often bundles of skills and know-how that grow out of the combined efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain.
• B) Evolving changes in customer needs and competitive conditions often require tweaking and adjusting a company's portfolio of competencies and intellectual capital to keep its capabilities freshly honed and on the cutting edge.
• C) Normally,core competencies and competitive capabilities emerge incrementally as a company (1)acts to bolster skills that contributed to earlier successes,or (2)acts to respond to customer problems,new technological or market opportunities,and the competitive maneuvers of rivals.
• D) Building organizational capabilities is best and most cost-effectively accomplished by hiring a cadre of people with the right talent and expertise,putting them together in a single work group,and then teaming the work group with key strategic allies/partners to mesh the skills,expertise,and competencies needed to perform the desired capabilities with some proficiency.
• E) The key to leveraging a core competence into a distinctive competence (or transforming a capability into a competitively superior capability)is concentrating more effort and talent than rivals on deepening and strengthening the competence or capability so as to achieve the dominance needed for competitive advantage.

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Definitions:

Ending Inventory

The total value of all goods available for sale at the end of an accounting period.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by shareholders' equity, indicating the level of debt used to finance assets.

Provided Data

Information or statistics supplied for analysis, typically used as a basis for decision-making or calculation in various fields.

Total Asset Turnover

Total Asset Turnover is a financial ratio that measures a company's efficiency in using its assets to generate sales revenue.