5.5 Managing strategic capability

Question 1

What is meant by “strategic capabilities”?

Answer 1

The combination of the abilities of people and systems of the organisation and the resources at its disposal.

Question 2

Money as a resource falls into three distinct categories:

• profitability - ensuring income exceeds cost
• wealth - creation of tangible/intangible wealth
• __________ - realisation of cash to ensure creditors/employees are paid

Answer 2

liquidity

Question 3

_______ literacy is a core capability at differing levels of operation and not just a director requirement.

Answer 3

Financial