Sometimes a Company Can Short-Circuit the Task of Building an Organizational

question 90

Multiple Choice

Sometimes a company can short-circuit the task of building an organizational capability in-house by

• A)putting in high-incentive bonuses to reward individual employees who train hard to develop the desired capability.
• B)launching an extensive training effort to develop the capability quickly with newly hired employees.
• C)either acquiring a company that has already developed the capability or else acquiring the desired capability through collaborative efforts with outsiders having the requisite skills, know-how, and expertise.
• D)using benchmarking and the adoption of best practices to imitate a capability that rivals have already developed.
• E)empowering a team of employees to develop the capability however they best see fit.

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Definitions:

Capital Allocation Line

A graph line that represents all possible combinations of risk-free and risky assets for an investor.

Mean Standard Deviation Graph

A graphical representation that shows the variability of a dataset around its mean value, often used in statistics.

Expected Return

Expected return is the weighted average of the probable returns of an investment, accounting for all possible scenarios.

Risky Asset

An asset that carries a significant chance of losing part or all of its investment value.