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Core Competencies DefinitionThe core competencies definition is a resource or capability that gives a firm competitive advantage. Core competencies are the business functions or operational activities that a company does best. A company’s core competencies are what differentiate it from the other competitors in its industry. They are also the resources and capabilities that allow the company to achieve profitability. A firm should devise its strategy so as to exploit the resources and capabilities that comprise its core competencies. ResourcesA company’s resources are the operational inputs that allow it to perform its business activities. Resources are often divided into three categories, including the following:
Resources can also be classified as either tangible resources or intangible resources. Tangible resources are physical assets, such as equipment or property. Intangible resources are non-physical assets, such as reputation, brand equity, or superior organizational architecture. Resources become core competencies or contribute to core competencies when they meet the criteria outlined below. CapabilitiesA company’s capabilities are the activities and functions it performs to utilize its resources in an integrative fashion. Capabilities are practiced and honed over time. As they become stronger, the
company enhances its expertise in a particular functional or operational area. This expertise allows the company to differentiate itself from competitors. Furthermore, capabilities are operational activities that the
company has mastered. They are inimitable or difficult for competitors to figure out and replicate. When capabilities meet the criteria outlined below, they contribute to the company’s competitive advantage and
profit potential, and are considered core competencies. Core Competencies CriteriaWhen a company’s resources or capabilities meet certain criteria they can be called core competencies. If a resource or capability meets the following criteria it
contributes to a firm’s competitive advantage over industry rivals and allows the firm to achieve profitability. A resource or capability is a core competency if it is valuable, rare, costly to imitate, and
non-substitutable. [box]Strategic CFO Lab Member Extra Access your Exit Strategy Checklist Execution Plan in SCFO Lab. The step-by-step plan to put together your exit strategy and maximize the amount of value you get. Click here to access your Execution Plan. Not a Lab Member? Source: Harrison, Jeffrey S., Michael A. Hitt, Robert E. Hoskisson, R. Duane Ireland. (2008) “Competing for Advantage”, Thomson South-Western, United States, 2008. Wahib Ali 0% found this document useful (0 votes) 165 views 20 pages © ©
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Buy the Full Version Reward Your CuriosityEverything you want to read. Anytime. Anywhere. Any device. No Commitment. Cancel anytime. What a capability should not satisfy Among given following criteria in order to become a core competency?Answer: a. Capabilities emerge over time through complex interactions of tangible and intangible resources.To be a core competency, a capability must satisfy all of the following criteria EXCEPT:a. be technologically innovative.
What four criteria must capabilities satisfy for them to become core competencies?Describe four criteria used to determine whether resources and capabilities are core competencies.. Valuable capability.. Rare capability.. Costly to imitate capability.. Nonsubstitutable capability.. What are the 4 elements of core competencies?Variables of the Four Core Competencies
The model focuses on a combination of specific, collaborative, integrated and applied knowledge, skills and attitude.
What are the 3 main core competencies?The 3 Core Competencies. Communication.. Thinking.. Personal and Social.. |