Final answer:
The correct number of core competencies required for a business strategy depends on the business itself. Each business must evaluate its unique strengths and market position to decide how many core competencies to focus on for optimal success.
Step-by-step explanation:
The number of core competencies a business should define to build its strategy is not fixed and should be tailored to the specific needs and capabilities of the business. The essential idea is that businesses often find success when they focus on a limited set of products or services that they can deliver exceptionally well, rather than trying to offer a wide variety that may dilute their efforts and expertise. Therefore, the correct answer to the question is D) Depends on the business. Each business must analyze its strengths, market opportunities, and competitive landscape to determine an optimal number of core competencies to hone.
For instance, a technology company may decide to focus on two core competencies software development and customer support, whereas a manufacturing firm might identify quality control, efficient production processes, and supply chain management as its key areas. It is the alignment of core competencies with the business strategy that helps in building a competitive edge and ensuring long-term success.