The Strategic Importance of Deliberately Trying to Develop Organizational Competencies

question 14

Multiple Choice

The strategic importance of deliberately trying to develop organizational competencies and capabilities is

• A) lower cost for employee training.
• B) improved strategy execution and a potential for competitive advantage.
• C) increased ability to reduce total operating costs.
• D) the added ease with which strategic fit and resource fit benefits can be captured.
• E) enhanced ability to avoid the perils of outsourcing.

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Definitions:

Product Margin

The difference between the selling price of a product and the cost of goods sold (COGS), indicating the profit per unit sold.

Direct Labor Cost

The total amount of wages paid to employees who are directly involved in the manufacturing or production process.

Meeting With Clients

A business activity where representatives of a company interact with its clients to discuss services, products, or ongoing projects.

Activity Cost Pools

Groupings of individual costs based on the activities that cause the company to incur these costs, used in activity-based costing.