Question

A car parts company decides to discontinue the production of its lowest-selling products and instead focuses on its areas of expertise. The company innovated a new automobile product with unique value. This is an example of using its:_______
a. Core competency.
b. Competitive advantage.
c. Management strategies.
d. Market power.
e. Management skills.

Answer 1

Answer:

A) Core Competency

Explanation:

Core Competency

Core competency refers to an organisation's strategic advantage over its competitors, it means the capabilities and the resources that a business must find, cultivate and explore in order to have an advantage over its competitors in the same line of business.

In order for an activity to be defined as a business' core competence, that activity must be unique, making it difficult for others to re-produce an it must also produce a unique level of benefit or value for the consumers of the product.

Since the car parts company has innovated a new automobile product with unique value, It has cultivated and explored its core competency

Answer 2

Answer:

The correct answer is letter "C": Management strategies.

Explanation:

Strategic Management involves the series of steps companies take to use their resources efficiently to achieve their objectives. Strategic management implies making changes to the corporate structure tearing down barriers for the development of new strategies. The firm's corporate culture and its employees' skills are the principal factors that will allow managers to change tides when the organization is struggling.