Pacer Corporation Had Formed a Steering Committee That Had Gathered

question 33

Multiple Choice

Pacer Corporation had formed a steering committee that had gathered a list of capabilities within the company.The list was analyzed and candidates' core competencies were identified.Next,Pacer should

• A) communicate these competencies throughout the company to engender loyalty to them.
• B) test the candidates' core competencies with the Prahalad and Hamel criteria.
• C) align its strategy in accordance with this list.
• D) ask the entire company to vote on the list.

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Definitions:

Expected Rate of Return

The anticipated amount of profit or loss an investment is likely to generate relative to its cost.

Interest-Rate Cost of Funds

The Interest-Rate Cost of Funds is the interest rate that financial institutions pay for the funds they use in their business, influencing the rates they charge on loans.

Optimal R&D

Refers to the most efficient level of spending on research and development activities, where the marginal benefit of R&D equals its marginal cost.

Interest-Rate Cost of Borrowing

The expense incurred by an individual or entity when borrowing money, calculated as a percentage of the total amount loaned.