The capability-building process
A) requires first developing the ability to do something, however imperfectly or inefficiently; second, translating this ability into a competence by learning to do the activity consistently well and at an acceptable cost; and then continuing to polish and refine its know-how in an effort to further improve its performance, ideally striving to match or beat rivals in performing the activity.
B) entails establishing a new department with primary responsibility for developing the expertise to give the company the needed core competencies and capabilities.
C) stands a better chance of succeeding if a company employs a traditional functional organization structure.
D) is made much easier if a company abstains from outsourcing important value chain activities.
E) aims at turning the company's distinctive competencies into core competencies.

Question

Quizplus · Accepted Answer

The capability-building process involves first acquiring the ability to perform an activity, then developing it into a competence, and finally refining it to achieve superior performance. This process focuses on improving a company's ability to perform its distinctive abilities to become core competencies. It does not require establishing a new department, and it can work with any organizational structure. Outsourcing can be beneficial or not depending on the situation.

The Capability-Building Process