Final answer:
Monica's Cosmetics Inc. is benefiting from its core competencies by utilizing its brand across various products, which can lead to economies of scale and a stronger market position.
Step-by-step explanation:
Monica's Cosmetics Inc. is reaping benefits from its core competencies by leveraging its brand name across different products within a functional structure that allows flexibility. This approach aligns with the business principle that a company focusing on its core competency often performs better than those attempting to produce a broad array of products. The core competency here refers to the distinctive strengths and abilities that Monica's Cosmetics possesses, which give it a competitive advantage in the market.
Core competencies can lead to the development of unique products and can also contribute to the creation of value for customers. Monica's Cosmetics is most likely seeing advantages like economies of scale and the ability to focus on quality and innovation within its niche. These efficiencies can lead to cost savings and higher profit margins as specialization and economies of scale support the company in strengthening its market position.