Final answer:
A core competency is a widespread skill or capability that a corporation excels at and crosses divisional boundaries. It is essential for competitive advantage in the marketplace and must be maintained.
Step-by-step explanation:
The competency defined as a collection of competencies that crosses divisional boundaries, is widespread, and is something that the corporation can do exceedingly well is known as a core competency. Core competencies are crucial for a firm’s success and sustainability.
They differentiate a company from its competitors and can often be applied to a variety of products and markets. Focusing on core competencies allows a firm to leverage unique skills or capabilities, providing competitive advantage in the marketplace. Core competencies must be nurtured and protected to maintain this advantage.
Following a resource-based view of the firm, identifying and cultivating core competencies is essential. This strategic focus aligns with the pattern within businesses where effectiveness is achieved by concentrating on a few key areas of expertise. Moreover, this is akin to strengths-based management, which emphasizes utilizing individual strengths for organizational performance, although it must be balanced with attention to areas of weakness to avoid performance issues.