Skip to content

ACCA Strategic Professional · Strategic Business Leader · The internal resources, capabilities and competences of an organisation

Brightwell Retail has long relied on a core competence in managing physical store networks. Online competitors are changing customer behaviour, yet Brightwell's managers keep applying the same store-centred routines. Which concept best describes the risk to Brightwell's competitive advantage?

The risk is core rigidity: a competence that once created advantage becomes a hindrance because managers keep using it as conditions change. Brightwell needs dynamic capabilities to renew or reconfigure its competences for online competition.

  1. ACore rigidity, where a past competence hinders adaptation as conditions changeCorrect
  2. BThreshold capability, where it lacks basic requirements
  3. CUnique resource, where it has too many patents
  4. DEconomies of scope, where it has too many products

Explanation

Core rigidity (Leonard-Barton) arises when competences that once gave advantage become inflexible and block new approaches. Brightwell's store routines persist despite environmental change. Dynamic capabilities are what it needs to counter this. The other terms do not describe the situation.

Did you get it right without looking?

One question tells you little. A timed set on The internal resources, capabilities and competences of an organisation shows your real accuracy, how long you take and where you lose marks.

Practise The internal resources, capabilities and competences of an organisationFree diagnostic mock

More The internal resources, capabilities and competences of an organisation questions