Which of the Following Is TRUE of the Capability Building

question 105

Multiple Choice

Which of the following is TRUE of the capability building process?

• A) It requires two things: (1) developing the ability to do something, however imperfectly or inefficiently, and (2) molding these efforts into an organizational ability and as experience grows and personnel perform the activity consistently well and at an acceptable cost, it is transformed into a tried-and-true competence and as they continue to polish and refine their know-how into further improvements, they then create a real competitive capability.
• B) It entails (1) deciding which value chain activities to perform internally and which ones to outsource; and (2) deciding how much authority to centralize at the top and how much to delegate to down-the-line managers and employees.
• C) It is essential (1) when the company does not have the ability to create the needed capability internally (perhaps because it is too far afield from its existing capabilities), and (2) when industry conditions, technology, or competitors are moving at such a rapid clip that time is of the essence.
• D) It involves (1) staffing the organization with people capable of executing the strategy well, (2) developing the resources and building the organizational capabilities needed for successful strategy execution, and (3) creating an organizational structure supportive of the strategy execution process.
• E) It must (1) supplement the design with appropriate coordinating mechanisms, and (2) institute whatever networking and communications arrangements are necessary to support effective execution of the firm's strategy.

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Definitions:

Analyzing

The process of examining components or data closely to understand their relationship, structure, or meaning.

Context

The circumstances or background that provides understanding and relevance to a specific event, statement, or idea.

Summarizing

The act of presenting the main points or essence of a text or speech in a concise form.

Credit

Recognition or acknowledgment for someone's contributions or the ability to borrow money or resources with the promise of repayment.