MotorCult Inc

question 77

Multiple Choice

MotorCult Inc.is an automobile company whose core competency lies in manufacturing petrol- and diesel-based cars.The company realizes that more of its potential customers are switching to electric cars.The R&D department of the company acquires competencies in developing electric cars and launches its first hybrid car.In this scenario, MotorCult is primarily:

• A) leveraging new core competencies to improve current market position.
• B) redeploying existing core competencies to compete in future markets.
• C) unlearning existing core competencies to create and compete in markets of the future.
• D) building new core competencies to protect and extend current market position.

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue; a key indicator of financial health.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering fixed costs.

Indirect Expenses

Costs that are not directly tied to a specific product, service, or department and need to be allocated, such as utilities or rent.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, indicating how much contributes to covering fixed costs and generating profit.