Final answer:
The passage outlines the benefit for businesses in focusing on their core competency, which often results in greater success by aligning their operations with their strengths and customer expectations. It also highlights the importance of division of labor in businesses of all sizes.
Step-by-step explanation:
The passage discusses a concept in business where a company's core competency is its greatest strength, usually a particular product or service that it does best. It implies that businesses often find more success by focusing on a specific niche, where they can leverage their expertise, rather than offering a wide array of products. This approach not only streamlines operations but also tends to align closely with what the customer values, thereby shaping the business's strategy from the customer's point of view. The mention of how even simple businesses such as restaurants have diversified roles and the specialization seen in larger businesses such as shoe factories or hospitals underscores the division of labor which is critical to business efficiency and effectiveness.