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:

Correspondence Theory

A philosophical theory regarding truth, holding that the truth or falsity of a statement is determined by its correspondence to facts or reality.

Relativism

The doctrine that knowledge, truth, and morality exist in relation to culture, society, or historical context, without absolute universal standards.

Method of Doubt

A philosophical methodology attributed to René Descartes involving skepticism towards one's beliefs to discover what can be known with certainty.

Descartes

René Descartes, a French philosopher, mathematician, and scientist, considered the father of modern philosophy, known for his statement "I think, therefore I am."