The Capability-Building Process

question 37

Multiple Choice

The capability-building process

• A) requires first developing the ability to do something, however imperfectly or inefficiently; second, translating this ability into a competence by learning to do the activity consistently well and at an acceptable cost; and then continuing to polish and refine its know-how in an effort to further improve its performance, ideally striving to match or beat rivals in performing the activity.
• B) entails establishing a new department with primary responsibility for developing the expertise to give the company the needed core competencies and capabilities.
• C) stands a better chance of succeeding if a company employs a traditional functional organization structure.
• D) is made much easier if a company abstains from outsourcing important value chain activities.
• E) aims at turning the company's distinctive competencies into core competencies.

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Definitions:

Economic Decisions

Choices made by individuals, households, or firms regarding the allocation of resources.

Cross-Cultural Variations

The differences in norms, behaviors, beliefs, and practices among cultures around the world.

Analytic Cognitive Style

A way of thinking that emphasizes logical analysis, precision, and systematic evaluation of information.

Holistic

An approach that emphasizes the importance of the whole and the interdependence of its parts.