The foundation for a firm's capabilities is (are) the:
A) ability to increase capacity as demand warrants.
B) amount of capital resources readily available.
C) good reputation a firm has built throughout its customer base.
D) skills and knowledge of its employees.

Question

Quizplus · Accepted Answer

Skills and knowledge of employees are the foundation for a firm's capabilities as they enable the firm to develop and deliver products and services that meet or exceed customer expectations. The amount of capital resources and good reputation are important, but without skilled and knowledgeable employees, a firm may not be able to effectively utilize those resources or maintain its reputation. While the ability to increase capacity as demand warrants is important, it is not a foundational capability, but rather a strategic decision that builds on existing capabilities.

The Foundation for a Firm's Capabilities Is (Are) The