Final answer:
Core competencies are the unique strengths of a business that provide competitive advantage, typically including workforce skills and market knowledge, but not physical facilities. Competitive priorities, which are strategic focus areas like cost and quality, are not core competencies but decisions about where to excel.
Step-by-step explanation:
Core competencies are fundamental strengths of a business, often contributing to the competitive advantage and value proposition the firm offers in the marketplace. These may include workforce expertise, technology, and market and financial know-how. Core competencies are usually intangible assets, such as brand, skills, and knowledge, rather than physical assets.
The options provided - workforce, facilities, and market and financial know-how - all can be a part of a firm’s core competencies. Workforce refers to the human capital and accumulated expertise within the company, market and financial know-how encompasses the understanding of market dynamics and financial acumen, and facilities relate to the physical plant and equipment. However, when considering classic definitions, facilities are not typically recognized as a core competency since they are tangible assets and not necessarily distinctive to a firm’s strategic advantage in the same way specific knowledge or expertise can be.
Competitive priorities, on the other hand, refer to the critical operational dimensions a company chooses to focus on to create value for its customers. These include cost, quality, delivery, and flexibility. Since competitive priorities are strategic choices rather than inherent strengths, they would not be classified as a core competency.