In related diversified firms, core competencies are exploited most effectively when they are developed and applied across different organizational units.

Question

Quizplus · Accepted Answer

Core competencies are a set of unique skills, knowledge or technologies that distinguish companies from their competitors. In related diversified firms, where businesses operate in different industries but have some synergies, core competencies can be leveraged across different units to create value for the overall organization. Therefore, it is true that in related diversified firms, core competencies are exploited most effectively when they are developed and applied across different organizational units.

In Related Diversified Firms, Core Competencies Are Exploited Most Effectively