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CA Intermediate · Financial Management and Strategic Management · Strategic Analysis: Internal Environment

Anand Pharma has a research lab whose staff of scientists have combined their knowledge over years to develop skills in rapid drug formulation that rivals find hard to copy and that is used across all its product lines. In strategic management terms, this is best called:

It is a core competency. Core competencies are collective skills and knowledge built through organisational learning, valuable across several products and hard for rivals to imitate, so they provide competitive advantage. A threshold resource only allows basic participation in the market, and a tangible asset is physical or financial.

  1. AA tangible asset
  2. BA core competencyCorrect
  3. CA threshold resource
  4. DA strategic business unit

Explanation

A core competency is a collective, hard-to-imitate skill built through organisational learning that spans several products and gives competitive advantage. A tangible asset is physical or financial. A threshold resource is only what is needed to compete at a basic level, so it would not give advantage here.

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