ITPEC FE Subject A April 2024 Question 50
Which of the following is an explanation of core competence that is adopted in business administration?
Explanation
The company's unique skills and technologies that give it a competitive advantage — core competence is a strength that rivals cannot easily imitate.
Core competence is the set of skills, technologies and know-how that is superior to competitors', hard to copy and usable across many products. The company builds its strategy on it and concentrates resources there.
Answer (c)
Why not others:
- •(a) — understanding one's products, services and operations by comparison with the strongest competitor or advanced companies is benchmarking
- •(b) — radically redesigning business processes for dramatic gains in cost, quality, service and speed is BPR (business process reengineering)
- •(d) — managing company-wide resources in an integrated way to raise management efficiency is ERP (enterprise resource planning)
Key rule: Match the keyword: unique strengths means core competence, comparing with the best means benchmarking, radical redesign means BPR, integrated resource management means ERP.
Business Strategy Management · AI-written, may contain errors
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