IPA FE Subject A sample Question 52

A question IPA Japan published in 基本情報技術者試験科目A サンプル問題問52, translated into English. ITPEC is based on the same exams.

Same question on ITPEC: Apr 2022 Q65

Which of the following is an explanation of the core competence?

a)Corporate activities that comply with laws, various regulations, and social norms for managing businessb)The business domain decided from the viewpoint of the market, technology, and products (or services)c)The overall business and system optimization methods for achieving the purpose of organizational activitiesd)The predominant abilities in the company’s business area, which competitors cannot imitate

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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This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.