Question

Core competency is related with

• A. Intrinsic value addition
• B. External value addition
• C. Both (A) and (B)
• D. None of these

Hint:

An organization’s core competency lies where internal efficiency meets external excellence — combining intrinsic and external value addition.

Answer 1

The Correct Option is C

Step 1: Understanding core competency.
Core competency refers to the unique capabilities, skills, and expertise that give an organization a competitive advantage in the marketplace.
It is what a company does exceptionally well compared to its competitors.
Core competencies are deeply embedded in an organization’s systems, culture, and employees.
Step 2: Relation with value addition.
Core competencies are directly connected to both intrinsic and external value addition.
- Intrinsic value addition focuses on improving internal processes, innovation, efficiency, and overall organizational strength.
- External value addition emphasizes providing superior products or services that add value to customers and the market.
Step 3: Why both are important.
A company’s true core competency lies in its ability to integrate internal efficiency with customer satisfaction.
For example, a company like Apple has intrinsic strength in design and technology (internal value) and delivers externally through user experience and branding (external value).
Step 4: Analysis of options.
- (1) Intrinsic value addition: True but incomplete.
- (2) External value addition: True but not sufficient by itself.
- (3) Both (A) and (B): Correct — as core competency connects both internal and external value creation.
- (4) None of these: Incorrect.
Step 5: Conclusion.
Hence, core competency is related to both intrinsic and external value addition.