The strategic importance of deliberately trying to develop organizational competencies and capabilities is
A) lower cost for employee training.
B) improved strategy execution and a potential for competitive advantage.
C) increased ability to reduce total operating costs.
D) the added ease with which strategic fit and resource fit benefits can be captured.
E) enhanced ability to avoid the perils of outsourcing.

Question

Quizplus · Accepted Answer

Developing organizational competencies and capabilities improves strategy execution, which can lead to a potential for competitive advantage. This is because capabilities are unique to the organization and difficult for competitors to imitate, giving the company a distinctive edge in the marketplace.

The Strategic Importance of Deliberately Trying to Develop Organizational Competencies