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TRUE or FALSE In related diversified firms, core competencies are exploited most effectively when they are...

TRUE or FALSE

In related diversified firms, core competencies are exploited most effectively when they are developed and applied across different organizational units

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Answer #1

Answer: True

Explanation:

Core competencies are capabilities that serve as a source of competitive advantage for the firm over its competitors in the market. Core competencies relate to an organization’s functional skills like manufacturing, marketing, finance and research and development. Capabilities are developed over time through experience and knowledge and in related diversified firms, core competencies are exploited effectively when they are developed and applied across different organizational units. For example after purchasing Quaker Oats, PepsiCo utilizes its competence in distribution systems to exploit the Quaker assets.

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