In the context of a firm, capabilities refers to ________.
A)processes the firm develops to coordinate human activity to achieve specific goals
B)assets that the firm accumulates over time, such as plants, equipment, and people
C)its focus on offering features, quality, convenience, or image that customers cannot get from competitors
D)a company's primary purpose that often specifies the business in which the firm intends to compete

Question

Quizplus · Accepted Answer

Capabilities refer to the processes or systems developed by a firm to coordinate human activity to achieve specific goals, such as efficient production or effective customer service. It involves the development of organizational structures, management systems, and employees' skills and knowledge. Capabilities are different from assets because they are intangible and cannot be easily replicated by competitors. The focus on offering features, quality, convenience, or image that customers cannot get from competitors is more related to a firm's competitive advantage. The primary purpose of a company is its mission statement.

In the Context of a Firm, Capabilities Refers to ________