Question

A local pharmaceutical firm has just announced its discovery of a revolutionary new drug for dieting. However, due to its deteriorating relationship with its union, the unionized portions of the company's employees have threatened to strike. In addition, the company's stock has started to drop due to the firm's difficulty in paying off some of its debt. In this example, what was the firm's core competency(ies)?

A. Its research and development.
B. Its human resources abilities.
C. Its financing activities.
D. Its operating activities.

Answer 1

The firm's core competency is its research and development.

Step-by-step explanation:

In this example, the firm's core competency would likely be its research and development (option A). The fact that the company has just announced the discovery of a revolutionary new drug for dieting suggests that its research team has developed a product that sets it apart from competitors. While the other options (human resources abilities, financing activities, and operating activities) are important functions within a business, they do not directly relate to the firm's ability to develop innovative products like the new drug for dieting.