The management at WonderPlanners Inc. wants to improve their production and operating capabilities by adopting a leaner process. As such, the employees of WonderPlanners are asked to eliminate the excess use of efforts and materials. WonderPlanners Inc. finally manages to achieve a competitive advantage after its employees follow these new practices repeatedly over time. From the information given in this scenario, we can infer that WonderPlanners Inc. has developed __________.
A)competitive parity
B)dynamic capabilities
C)service inimitability
D)network externalities

Question

Quizplus · Accepted Answer

The scenario describes how WonderPlanners Inc. has adopted a leaner process to improve their production and operating capabilities, which is indicative of the development of dynamic capabilities. Dynamic capabilities refer to an organization's ability to continuously adapt and respond to changes in the market, and this is exactly what WonderPlanners Inc. has done by eliminating excess efforts and materials. Competitive parity refers to a situation where a company is at the same level as its competitors, service inimitability refers to the inability of competitors to replicate a company's service, and network externalities refer to the value a product or service derives from its network of users. None of these concepts are relevant to the scenario described.

The Management at WonderPlanners Inc