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

Kaveri Pharma Ltd finds that its ability to combine R&D, regulatory know-how and manufacturing skills across divisions has let it launch new generics faster than any rival, and this skill is hard to trace or copy. In strategic management terms, this bundle of skills is best called a:

It is a core competence. A core competence is a collective capability that integrates skills and technologies across functions, delivers superior customer value and is hard for rivals to copy. It differs from tangible or financial resources and from an organisational unit.

  1. ATangible asset
  2. BCore competenceCorrect
  3. CStrategic business unit
  4. DFinancial resource

Explanation

A core competence is a collective, cross-functional capability, built from integrating skills and technologies, which gives superior value and is hard to imitate. It is not a physical or financial asset, and it is not an organisational unit like an SBU.

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