Certified Production & Operations Manager (POM) Practice Exam

Unique attributes of firms that provide a competitive edge are known as?

1. Core competencies

2. Functional strategies

3. Balanced scorecards

4. Sustainable initiatives

The correct answer is: Core competencies

The term that refers to the unique attributes of firms that provide a competitive edge is core competencies. Core competencies represent the combination of pooled knowledge and technical capacities that allow a company to be competitive in its industry. These are what the organization does best and can lead to a competitive advantage by differentiating its products or services from those of its competitors. For example, a firm may have unique skills in innovation, exceptional design capabilities, or superior customer service that create value and are difficult for competitors to replicate quickly. Core competencies are fundamental to strategic planning and help in identifying where a firm can leverage its strengths to maximize customer satisfaction and market share. Other options like functional strategies, balanced scorecards, and sustainable initiatives refer to different concepts and frameworks within business operations. Functional strategies focus on specific areas of a business, balanced scorecards are a tool for performance measurement across various business dimensions, and sustainable initiatives relate to practices that promote environmental and social sustainability rather than focusing on competitive abilities.