The Three Components of Building a Capable Organization Are

question 45

Multiple Choice

The three components of building a capable organization are

• A) making periodic changes in the firm's internal organization to keep people from getting into a comfortable rut, instituting a decentralized approach to decision-making, and developing the appropriate competencies and capabilities.
• B) hiring a capable top management team, empowering employees, and establishing a strategy-supportive corporate culture.
• C) putting a centralized decision-making structure in place, determining who should have responsibility for each value chain activity, and aligning the corporate culture with key policies, procedures, and operating practices.
• D) staffing the organization, building core competencies and competitive capabilities, and structuring the organization and work effort.
• E) optimizing the number of core competencies and competitive capabilities, making sure that all managers and employees are empowered, and maximizing internal operating efficiency.

---

Definitions:

Bankruptcy Risk

The possibility that a company or individual will be unable to meet their financial obligations when they come due, leading to bankruptcy proceedings.

Financial Characteristics

Attributes that describe the financial health and performance of a company, including liquidity, debt levels, revenue growth, and profitability.

Industry Characteristics

These are the unique traits and trends that define the operations, competitive environment, and market behavior of a specific industry.

WACC

Calculating the Weighted Average Cost of Capital involves evaluating a company's cost of different types of capital and weighting each category based on its contribution to the total capital.