Question 1

What are core competencies?

Accepted Answer

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Question 2

Recently,three cell phone companies announced the addition of a nationwide "walkie-talkie" service to supplement their regular cell phone service.Will this be a sustainable competitive advantage? Justify your answer.

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Question 3

Even though many aerospace manufacturing firms are very profitable,there are very few upcoming firms.Explain the reason using Porter's five-force model.

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Question 4

Explain the advantages and disadvantages of rewarding and promoting development of the core competency.

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Question 5

What is the danger of not having a strategic intent? In your answer,assume your company operates a hospital in a city with a population of 30,000 people,located about 50 miles away from a large city.

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Question 6

How can core competencies be leveraged more effectively?

Accepted Answer

Encouraging exchange of resources across strategic business unit boundaries can help in leveraging core competencies more effectively. This allows different business units to benefit from expertise and knowledge that exist within other units, leading to comprehensive and insightful decision-making processes. It also reduces duplication of efforts, decreases costs, and helps improve communication and collaboration across various units. Binding managers too closely to their respective business units, utilizing the same resources for all types of projects, and viewing individuals as being employed by a particular strategic business unit can limit the organization's ability to leverage its core competencies effectively.

Question 7

Piezo Tech Solutions supplies hospitals with software to track insurance claims.Since insurance regulations and policies are always changing,its software needs to have the ability to be agile and responsive to change.In other words the software needs:

Accepted Answer

Dynamic capabilities refer to the ability of a firm or software to adapt and respond to changing circumstances. Therefore, the best choice for Piezo Tech Solutions' software, which needs to be able to adjust to changes in insurance regulations and policies, would be a software with dynamic capabilities.

Question 8

Which of the following statements is true of core competencies?

Accepted Answer

A firm's core competency is more than just a single ability or technology. It is a unique combination of skills, knowledge, and resources that a firm has developed and refined over time, giving it a competitive advantage in the marketplace. Additionally, core competencies are not easy to imitate, providing a sustainable advantage for the firm. Option C is incorrect because a firm can have multiple core competencies that are leveraged by different business units. Option A is incorrect as it is not just a single ability and Option D is incorrect as it is difficult to imitate.

Question 9

When Western Franchise Services announced that its plans to go international in the next 15 years,it stated its:

Accepted Answer

Western Franchise Services' announcement about its plans to go international in the next 15 years indicates its strategic intent, which is its long-term direction and scope of the organization. A strategic intent often involves expanding into new markets or product lines, which is precisely what Western Franchise Services is planning to do by going international. The other options - A, B, and D - are not applicable to this scenario.

Question 10

When Faslow Medical Center changed its name to Faslow Hospital,it also unveiled a plan to build a medical tower doubling its physical facilities by 100% within the next 10 years.It also announced that its goal was to not only serve Exeter County,but the entire region including the 5 contiguous counties.This is an expression of:

Accepted Answer

The announcement of building a medical tower and expanding the physical facilities with a goal to serve a wider region is an example of strategic intent - a long-term vision and plan for growth and expansion. This move shows that Faslow Hospital is aiming to become a major player in the healthcare industry, and is strategically positioning itself to achieve this goal.

Quiz 6: Defining the Organizations Strategic Direction