Which of the following statements is false?
A dynamic capability is the ability to modify, deepen, or reconfigure the company\u2019s existing resources and capabilities in response to changes in the environment or market.
None of these.
Managers must look toward correcting competitive weaknesses that make the company vulnerable, dampen profitability, or disqualify it from pursuing an attractive opportunity.
A company\u2019s internal strengths should always serve as the basis for its strategy.
Managers need to keep close track of how cost effectively the company can deliver value to customers relative to its competitors.<\/p>\n\n\n\n
The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n The correct answer<\/strong> is:<\/p>\n\n\n\n A company\u2019s internal strengths should always serve as the basis for its strategy.<\/strong> \u2705 (False statement)<\/strong><\/p>\n\n\n\n While a company’s internal strengths<\/strong> are undeniably important and can often serve as a foundation<\/strong> for strategic planning, stating that they should “always<\/strong>” be the basis<\/strong> for a company\u2019s strategy is too narrow and potentially misleading<\/strong>. This absolute phrasing makes the statement false<\/strong> because it fails to consider several critical strategic factors, including:<\/p>\n\n\n\n Strategy formulation must balance internal strengths with external opportunities and threats<\/strong>. A company that focuses only on its internal strengths without adapting to changing market dynamics<\/strong>, customer needs<\/strong>, technological shifts<\/strong>, or competitor actions<\/strong> may fail to remain competitive.<\/p>\n\n\n\n Just as strengths are valuable, identifying and correcting internal weaknesses<\/strong> and external threats<\/strong> is also essential. A sound strategy often involves mitigating weaknesses<\/strong> that could make the company vulnerable<\/strong> or unfit<\/strong> to pursue certain market opportunities.<\/p>\n\n\n\n In a rapidly changing business environment, the ability to modify, reconfigure, and adapt<\/strong> resources \u2014 referred to as dynamic capabilities<\/strong> \u2014 is critical. Companies that rest on existing strengths without evolving risk being left behind.<\/p>\n\n\n\n A successful strategy should also ensure the company can deliver superior value to customers<\/strong> cost-effectively<\/strong>, compared to competitors. This requires continuous improvement and market orientation<\/strong>, not just reliance on past or present strengths.<\/p>\n\n\n\n Although internal strengths are important, an effective strategy must be holistic<\/strong>, factoring in external conditions, weaknesses, and evolving capabilities<\/strong>. Therefore, the statement that internal strengths should always<\/strong> be the basis of strategy is false<\/strong> due to its inflexibility and incompleteness<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":" Which of the following statements is false?A dynamic capability is the ability to modify, deepen, or reconfigure the company\u2019s existing resources and capabilities in response to changes in the environment or market.None of these.Managers must look toward correcting competitive weaknesses that make the company vulnerable, dampen profitability, or disqualify it from pursuing an attractive opportunity.A […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-211461","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/211461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=211461"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/211461\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=211461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=211461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=211461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\n\n\nExplanation:<\/strong><\/h3>\n\n\n\n
\n\n\n\n1. Importance of External Environment:<\/strong><\/h3>\n\n\n\n
\n\n\n\n2. Role of Weaknesses and Threats:<\/strong><\/h3>\n\n\n\n
\n\n\n\n3. Dynamic Capabilities Matter:<\/strong><\/h3>\n\n\n\n
\n\n\n\n4. Value Delivery Relative to Competitors:<\/strong><\/h3>\n\n\n\n
\n\n\n\nConclusion:<\/strong><\/h3>\n\n\n\n