ACCA Strategic Professional · Strategic Business Leader · The internal resources, capabilities and competences of an organisation
Brindle Pharma has strong R&D routines that earlier created market-leading drugs. Managers now apply the same routines rigidly to digital health products, where they perform poorly, and resist changing them. Which concept best explains this situation?
This is a core rigidity: capabilities that once created advantage have become entrenched and now block adaptation to a new context. The firm is applying old routines inflexibly to digital health, so the competence has turned into a constraint, which dynamic capabilities would be needed to overcome.
- ACore competence providing sustained advantage
- BThreshold capability
- CCore rigidityCorrect
- DUnique resource
Explanation
A core rigidity arises when previously valuable capabilities become inflexible and inhibit innovation in new contexts. A core competence providing advantage would be working, but here the routines are failing. Threshold capability and unique resource do not describe an inhibiting effect of past success.
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.
More The internal resources, capabilities and competences of an organisation questions
- Verdana Foods has a unique supplier network that competitors cannot easily replicate and which delivers high-quality produce. However, Verda…
- Brightwell Retail has long relied on a core competence in managing physical store networks. Online competitors are changing customer behavio…
- Corvane Pharma has a patented drug formulation process, a skilled research team and strong brand recognition. A consultant says that, to be …
- Kestrel Retail has a distinctive store-experience capability. Analysts say competitors cannot copy it because it grew from years of unique h…
- Tessaro Motors can match rivals on safety certification, dealer coverage and warranty terms, which all car makers must offer to compete. Whi…
- Brindle Telecom has invested heavily in a network of base stations, a customer database and a billing system. A strategy review finds that a…