ITPEC FE Morning April 2022 Question 65
Which of the following is an explanation of the core competence?
Explanation
A company's predominant abilities in its business area that competitors cannot imitate — that is core competence.
Core competence is the bundle of skills and technologies that lets a company deliver value its rivals cannot easily copy, and that can be carried into several products and markets. Strategy built on it concentrates resources where the company is strongest and outsources the rest.
Answer (d)
Why not others:
- •(a) — running the business in line with laws, regulations and social norms is compliance
- •(b) — the field of activity defined by market (customers), technology and products or services is the business domain
- •(c) — optimising business and systems across the whole organisation to achieve its purpose describes enterprise architecture
Key rule: Core competence is what the company is uniquely good at and others cannot copy; the domain is where it competes, compliance is how it obeys the rules.
Business Strategy Management · AI-written, may contain errors
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