External factors refer to the external environment that can affect an organization’s decisions, performance and strategies.
What are the effects or interactions between internal and external factors?External factors refer to the external environment that can affect an organization’s decisions, performance and strategies. These could include economic conditions, social trends, technological advances, government regulations, competitive environment, and natural disasters.Internal factors are those that are within an organization’s control, such as organizational structure, culture, management style, resources, and employee skills.External and internal factors interact with each other in a variety of ways. For example, external factors can influence an organization’s decision-making process, as well as the resources available for internal initiatives.For example, a company may have to adjust its internal operations in response to changes in the external environment. On the other hand, internal factors can also shape the external environment.https://brainly.com/question/20714228To learn more about external factors and internal factors refer to:
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A bank holds the required reserve off of a new loan / deposit for one customer and then lends the excess reserve to someone else, repeating the _______________ process many times.
A bank creates new money by holding the necessary reserve off of a new loan or deposit for one customer and then lending the surplus reserve to another customer.
A bank is a great example of a financial organization that gives credit because it offers and accepts demand deposits from the general population. Through the capital markets, the bank may engage in lending activities directly or indirectly. Because banks are crucial to a country's financial stability and economic health, they are subject to strict regulation in the majority of those nations. Most nations have institutionalized the fractional reserve banking system, in which banks hold liquid assets that are only roughly comparable to their current liabilities. Banks are often subject to minimum capital requirements based on the Basel Accords, an international set of capital standards, in addition to additional restrictions meant to preserve liquidity.
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When a bank makes a new loan or deposit for one customer, it holds the requisite reserve and lends the excess reserve to another customer as fresh money.
A bank is an excellent illustration of a financial institution that extends credit because it allows and accepts common customer demand deposits. The bank may directly or indirectly engage in lending activities through the capital money markets. The majority of those countries have tight regulations governing banks since they are essential to the financial stability and economic health of those countries. The fractional reserve banking system, in which banks keep liquid assets that are only loosely equivalent to their current liabilities, has been institutionalised in the majority of countries.
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why is it important to compare marginal costs to marginal benefits?
Comparing marginal costs to marginal benefits helps to determine whether or not a particular action or investment is worth pursuing, as it allows one to understand the cost and benefit impact of increasing production or making changes to the process, which helps to make informed decisions by evaluating the costs and benefits of each alternative.
Marginal cost refers to the additional cost incurred by producing one more unit of a good or service. It helps to understand the cost impact of increasing production or making changes to the process. On the other hand, marginal benefit refers to the additional benefit gained by consuming one more unit of a good or service. It helps to understand the benefit of consuming more of a good or service.
When comparing marginal costs to marginal benefits, if the marginal benefit is greater than the marginal cost, it is generally considered a good decision to move forward with that action or investment. This is because the additional benefit outweighs the additional cost. However, if the marginal cost is greater than the marginal benefit, it is generally not considered a good decision to move forward with that action or investment, as the additional cost outweighs the additional benefit.
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when a new issue of common stock is in registration, agents are permitted to a) accept tentative orders b) furnish prospects with a final prospectus c) send a copy of the preliminary prospectus d) receive indications of interest, along with a good-faith deposit
Agents may forward a copy of something like the whistleblower lawsuit when a fresh offer of stock is really being registered.
Why is stock important?How Do Stocks Function? An investment that represents ownership together in portion of the option holder is referred to as a stock, which is also known as equity. Shares, commonly referred to as shares of stock.
How are stocks managed?Stocks are investments made in companies. In order to finance operational costs and spur expansion, corporations issue stock as payment for capital, and investors buy those company stock in the hopes of making a profit.
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What are the 4 investment strategies?
Value investing, growth investing, momentum investing, and dollar-cost averaging are the four investment strategies.
A set of guiding principles is appertained to as an investing strategy. Depending on your threat forbearance, investing style, long- term fiscal goals, and availability to finances, there are colorful investing strategies you can use. Investment tactics can be changed.
You can adjust your choice if it does not work with your schedule or threat forbearance. still, switching investment doctrines has a price. It's possible to induce taxable events each time you buy or vend shares, especially when doing so snappily innon-sheltered accounts. After your investments have lost value, you can also come to the conclusion that your portfolio is unsafe than you'd want.
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Investment supervisors have various methodologies — or 'investment strategies' — to meet the targets of their portfolios. They assume a key part in deciding what's to come dangers and returns related with the portfolio.
An investment supervisor might change their technique as indicated by economic situations, and may utilize a mix of styles and strategies.
At a significant level, the most widely recognized strategies for investing are:
Development investing
Development investing centers around choosing organizations which are supposed to develop at a better than expected rate in the long haul, regardless of whether the offer cost shows up high. Sorts of development investments can incorporate more modest organizations, developing business sectors, recuperation offers, web and innovation stock.
Esteem investing
This technique depends available overcompensating to great and terrible news, bringing about limits of stock cost developments which don't be guaranteed to match an organization's drawn out standpoint. Investors purchase stock when the cost is low and sell when it increments.
Quality investing
Quality investing centers around organizations with extraordinary quality attributes, for example, validity of the administration or dependability of the monetary record. A quality portfolio can contain both development and worth credits.
List investing
Record investing is otherwise called detached investing; zeroing in on making a portfolio of resources intended to match the profits of a market file. The resources held by the portfolio will be completely characterized by the parts of the chose record.
Purchase and hold investing
Purchase and hold investing centers around buying protections and holding these for an extensive stretch of time (typically numerous years) to accomplish returns.
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How does a socialist government work with a command economy manage its economy?
A socialist government with a command frugality controls the manufactories along with other forms of product. The government controls manufactories and other forms of products.
The government controls manufactories and other forms of products. Both illiberalism and communism are types of command frugality. In all three, the government controls businesses, coffers, and profitable exertion in the country. All have central planning, too.
Illiberalism is, astronomically speaking, a political and profitable system in which property and the means of the product are possessed in common, generally controlled by the state or government. Illiberalism is grounded on the idea that the common or public power of coffers and means of product leads to an equal society.
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In project time management, a(n) _____ is an output of controlling the schedule
a. activity duration estimate b. project management plan update
c. activity attribute d. milestones list
Answer is d. mileposts List. A mileposts list is an affair of controlling the schedule in design time operation.
A mileposts list is a document, generally generated by the design director, which outlines the crucial points in a design timeline. mileposts are major events or achievements that mark the completion of a phase or exertion in the design. mileposts serve as a way to measure the progress of a design, and to help keep the design on track. mileposts can also be used to identify changes that need to be made to the design plan. A mileposts list is an important document for design success and should be regularly streamlined to insure that the design is progressing as planned.
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CEO duality refers to a situation in which the CEO formulates and implements strategies.the CEO serves as both the CEO and the chair of the board of directors.the CEO is responsible for acting as CEO and serving on the compensation committee.the CEO is responsible for acting as CEO and Chief Operating Officer (COO).
CEO stands for Chief Executive Officer. In a company CEO is the highest-ranking executive. The main function of a CEO is decision-making and managing the operations and resources of a company. CEO act as a communication link between the company and the board of directors.
The chief govt officer (CEO) is the top function in an organization and is accountable for implementing current plans and policies, improving the organization's monetary power, assisting ongoing virtual business transformation, and setting future approaches.
The leader executive officer (CEO) is the very best-ranking man or woman in a company. while every employer differs, CEOs are often answerable for increasing the employer, riding profitability, and within the case of public groups, improving share costs. CEOs manage the general operations of a business enterprise.
Manages and directs the employer closer to its primary dreams and targets. Oversees employment selections at the govt degree of the enterprise. Leads a group of executives to don't forget essential decisions consisting of acquisitions, mergers, joint ventures, or large-scale enlargement.
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What is the business cycle and what factors affect the phases of a business cycle?
The repeated economic shifts that occur in a nation over time are referred to as business cycles. It can be recognized by changes in the GDP and other macroeconomic indicators. The business cycle has four distinct phases: expansion, peak, contraction, and trough.
Which stages of the business cycle are there, and what traits are present in each phase?When the economy has a contraction followed by an expansion, a business cycle is said to have finished. While the shrinkage reflects a recession, the expansion shows a strong rate of economic growth. the expansion, peak, recession, depression, trough, and recovery phases of the business cycle.
What consequences does the business cycle have?Economic effects of the business cycle
A erratic business cycle is thought to be detrimental to the economy. Rapid GDP growth during an economic boom is inevitably followed by inflation, which has a number of negative economic effects. Typically, this inflationary expansion is unsustainable and results in a bust (recession).
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What can you do to maximize your retirement?
An annuity is an investment plan that guarantees payments at regular intervals after retirement.
There are several investment options that may be suitable for a retired person, depending on their financial goals and risk tolerance:
Fixed income investments such as bonds, CDs, and annuities can provide a steady stream of income and low risk.
Dividend-paying stocks can provide a source of income and potentially grow in value over time.
Mutual funds and ETFs offer a diverse range of investments and can provide a balance of income and growth potential.
Real estate investments such as rental properties or REITs can provide a steady stream of income and potentially increase in value over time.
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How to minimize the impact of impediments in Sprint Delivery?
Use a sprint goal, don't wait until the daily scrum to raise an impediment, and be aware of the distinction between "blocks" and "impediments"
What are Sprint Delivery Obstacles?
The Scrum Team should, in the long run, identify the primary reason behind any significant challenges that arise during a Sprint. Did it originate from within or without the company, Was there a bottleneck in the process.
If the team is unable to identify the cause on its own, bringing in an outside expert or coach might be beneficial.
The Scrum Team can add the necessary action items to the Product Backlog to assist in solving the issue once you are aware of its root cause.
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All medical device bags produced by PlastiPharm include filters, although some kinds are used more than others. To proactively manage inventory of the filters, they are classified as A (critical), B (key), or C (standard). Great attention is paid to the level of A filters and less attention to the B and C filters. Why should the company differentiate in its attention to the inventory levels of the filters
The company should differentiate in its attention to the inventory levels of the filters to give the highest quality medical bag devices.
At PlastiPharm, the empoyees are committed to providing our customers with the highest quality medical device bags. All of bags include filters, although some are more critical than others in terms of their usage. To ensure that we have the right inventory of filters on hand, we have implemented a classification system based on criticality.
A filters are classified as critical, and we pay great attention to their inventory levels. B and C filters are classified as key and standard, respectively, and so receive less attention. By taking this approach, we are able to ensure that our customers are always able to get the filters they need when they need them.
By proactively managing our inventory levels and differentiating between the criticality of our filters, PlastiPharm is able to provide our customers with the best possible medical device bags.
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When producers maximize their profits from the production of a good or service they are ?
The cases where we see producers seeking to increase their profits from the production process of goods or sometimes services as purposeful behavior.
Profit is the widely known term that is majorly used to describe in order to get the monetary benefit experienced when there is no revenue from a commercial activity as well as outpaces the costs, costs, and taxes incurred to maintain the activity in question.Three key metrics for profit are available. The three major terms which is generally used to refer to gross profit, operating profit, and net profit.When income is considered as more than expenditures and expenses, the business is considered to be making a profit. . She then charges $2 for the drink. She made a $1.75 profit on the cup of lemonade.A profits interest is the name given to an equity right granted to a person for their contributions to a partnership that is based on the partnership's potential future value. Receiving the prize is what it entails.To know more about profits here
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A global corporate-level strategy emphasizes
a. sensitivity to local product preferences.
b. decentralizing control and limited monitoring.
c. economies of scale.
d. differentiated products.
A global corporate-level strategy emphasizes economies of scale. means the option C is correct.
In microeconomics, economies of scale refer to the cost advantages that organisations have as a result of their size of operation. They are frequently measured by the quantity of production produced in a specific amount of time. When the cost of production per unit falls, scale may be expanded. Economies of scale may be based on organisational, technical, statistical, or other factors that are pertinent to the degree of market domination. This only serves as a basic summary of the concept.
When it comes to a variety of organisational and business problems, economies of scale can be applied at multiple levels, such as a production line, a facility, or an entire business. An overall decrease in costs as output is a hallmark of economies of scale.
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What is meant by collective farming?
An establishment known as a collective farm is one in which several people coexist on a plot of land under the management of the farm's manager.
What is collective farming management?An establishment known as a collective farm is one in which several people coexist on a plot of land under the management of the farm's manager. The farm owner or the members of the organization may choose the management (s). He or she carries out agricultural techniques and resource management. Identification of small and marginal farmers in a contiguous area and grouping them into Farmer's Interest Groups (FIG) with 20 farmers are key components of collective farming. The Farmer Producer Group (FPG), which consists of 100 farmers, would incorporate 5 Figs The Soviet kolkhoz, which dominated agriculture in that country from 1930 until 1992, and Israeli kibbutzim are two common examples of community farms.To learn more about collective farming refer to:
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Why do companies automatically enroll employees in 401k?
Companies have begun to automatically enroll their employees in 401k plans, in order to help them save for their future.
The main benefit of automatic enrollment is that it provides a streamlined way for employees to save for retirement.
By automatically enrolling employees in a 401k plan, companies can ensure that their staff are taking advantage of the tax-advantaged savings opportunities that these plans offer.
Automatic enrollment also makes it easier for employees to understand their retirement options, as they do not need to actively enroll in the plan.
Additionally, automatic enrollment can be beneficial for companies as it helps them to attract and retain talented employees.
By showing that they are looking out for their employees’ long-term financial security, companies can demonstrate that they are invested in their employees’ future.
This can be a great way to incentivize current staff to stay with the company and make it more attractive to potential employees.
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What happens to equilibrium price when price decreases?
Reduced demand will result in a drop in the equilibrium price and a reduction in supply.
What Is Equilibrium price?The price is at equilibrium when supply and demand are in balance. When a major index experiences a phase of consolidation or sideways momentum, it can be argued that the forces of supply and demand are comparatively equal and the market is in an equilibrium. Prices often swing close to the equilibrium levels, according to research. If the price rises too much, market forces will push sellers to enter the market and create more. A price that is too low will result in higher bids from more buyers. These acts sustain the relative equilibrium of the equilibrium level over time.
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Higher interest rates result in less borrowing as ________ business projects become viable for a profit.
Higher interest rates lead to less borrowing as none of the above businesses become profitable.
The required details for Interest rate in given paragraph
Interest rate is the amount of interest payable over a period of time, expressed as a percentage of the amount borrowed, deposited or borrowed (known as principal). The total interest rate on an amount lent or borrowed depends on the principal amount, the interest rate, the compounding frequency and the length of the period for which it is lent, deposited or borrowed. Annual interest rate is over a period of a year. Different interest rates apply for different periods, e.g. B. a month or a day, but are usually annual. The interest rate has been defined as "an index of preference...of current [earnings] in dollars versus future earnings in dollars."
The borrower wants or needs the money as soon as possible and is willing to pay a fee – the interest rate – for this collateral.
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How do I avoid taxes on savings bonds?
According to the 1961 Income Tax Act, payment on the Bonds will not be subject to income tax.
How do bonds work?When they need to raise money, governments and businesses issue bonds. You are essentially lending the issuers money when you buy a bond. In return, they agree to pay you the whole amount owed on the loan on a specific date as well as regular interest payments (usually twice a year) throughout the repayment period.
What 5 different types of bonds exist?Five categories can be used to classify bonds: corporate, municipal, agency, saving, and Treasury. Every type of bond has a different set of issuers, objectives, buyers, and risk-to-return ratios. If you truly want to profit from bonds, you can also purchase affect economic on bonds.
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68. The most efficient way to accomplish closing entries is to a. credit the income summary account for each revenue account balance. b. debit the income summary account for each expense account balance. c. credit the owner's drawing balance directly to the income summary account. d. credit the income summary account for total revenues and debit the income summary account for total expenses.
The most efficient way to accomplish closing entries is to credit the income summary account for total revenues and debit the income summary account for total expenses.
Income, often expressed in money, is the spending and savings opportunities earned by a business over a period of time. Conceptually, income is difficult to define and may be defined differently in different fields.
Income, as defined by tax law, is the sum of all wages, salaries, income, interest payments, rent, or other forms of income earned by a U.S. family member or individual in a calendar year. Gross income, less taxes and other deductions, is a common definition of disposable income and is often used as a measure of taxpayer welfare.
Hence the correct option is D
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How TTL is calculated in ping?
The TTL of a packet decreases by one with each additional hop. The TTL reported by ping represents the packet's actual final TTL at the destination. TTL, or Treasury Tax and Debt Service.
What does an associate in loan servicing do?The Mortgage Servicing Associate has the chance to manage crucial lender connections while managing a number of tasks required for the efficient servicing of Government Secured Commercial Loans.
What does a loan service fee entail?A monthly percentage of a mortgage is given to a loan company as a fee for transferring money and remitting them to such lender. This cost is typically 0.25percent . this means to 0.5% of said mortgage total.
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A pharmaceutical company testing drugs to determine possible side effects is a part of O A. risk assessment O B. control procedures O C. monitoring controls OD. information systems
Option (a), Risk assessment includes drug testing by pharma firms to identify potential negative effects.
What does pharma risk assessment entail?By analyzing the design and measures that have control over their occurrence and detection, it is a quantitative or qualitative process that links the severity and probability of harm (severity is a gauge of a hazard's potential effects).
What is the primary goal of risk analysis?An understanding of potential issues is aided by risk assessment, which also offers solutions and preventative measures to lower the likelihood of an accident.
Enhancing occupational health and safety is the ultimate goal of risk assessments. But in order to do this, workplace hazards must be identified and the risks they cause must be diminished or eliminated as part of the risk assessment process.
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What is R and why is it important?
Advanced statistical computations and calculations are carried out using the language R. As a result, data scientists and business executives across a variety of sectors—from academia to business—use it extensively.
R is still used, but why?The quick and reliable online help provided by the R language makes it stand out as a statistics program. Engineers, biologists, and statisticians who have little or no experience with computer programming have swiftly embraced the R language, giving it a large following. Excel and R each have advantages over the other. Due to its efficiency and speed, Excel is typically recommended as the reporting program to use. Excel is simpler to learn when first introduced. R is created to handle bigger data sets, be reproducible, and provide more intricate graphics.
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A typical feasibility study includes all of the following areas, except:
O The concept for your venture
O The technical feasibility of your idea
O The supply situation
O International trade regulations
The correct response is D. International trade regulations. All of the above, with the exception of international trade laws, are covered in a standard feasibility study.
People engage in international trade, which entails the exchange of capital, goods, and services across international borders, to satisfy a need or demand for items or services. The bulk of countries' gross domestic products benefit greatly from this trade (GDP). Although international trade has always existed (for example, along the Uttarapatha, Silk, and Amber Roads, in the race for Africa, the Atlantic slave trade, and on salt roads), its political, social, and economic significance has grown during the past few centuries. When comparing international trade to local trade, the latter involves more difficult procedures. International trade between two or more states is influenced by a number of factors, including money, laws, markets, government policies, the economy, and the judicial system. The creation of various international economic organizations, like the World Trade Organization, has enabled trade between nations with disparate economic positions easier and more reasonable in the modern era. These organizations advocate for the expansion and facilitation of global trade. International trade statistics, supranational and intergovernmental statistical services, and governmental statistical organizations all have official publications.
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What are the 5 main types of insurance?
There are five main types of insurance that individuals and businesses can purchase to help protect their financial security: Health insurance, Life insurance, Property insurance, Liability insurance, Business insurance.
Insurance is a form of financial protection that helps to provide coverage for a wide range of potential accidents, illnesses, and other risks.
1. Health insurance: This type of insurance helps to cover medical expenses, such as doctor’s visits, hospital stays, and prescription drugs.
2. Life insurance: This type of insurance provides financial support to an individual’s family after the insured has passed away.
3. Property insurance: This type of insurance covers risks associated with damage to a person’s home, car, and other personal property.
4. Liability insurance: Liability insurance helps to protect individuals and businesses from lawsuits or other claims that may arise from accidental injury or damage caused by their actions.
5. Business insurance: Business insurance helps protect businesses from losses caused by theft, fire, or other disasters. It can also cover legal fees associated with any claims made against the business.
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Motivation refers to forces that
O energize, direct, and sustain a person’s efforts.
O are acquired through education.
O are basically involuntary.
O promote groupthink.
O reduce group cohesiveness.
The term Motivation refers to forces that energize, direct, and sustain a person’s efforts.
Here the term motivation is defined as the process of why a person does something.
And it is also the driving force behind human actions.
This process that initiates, guides, and maintains goal-oriented behaviors. For example if motivation is what helps you lose extra weight, then or pushes you to get that promotion at work.
So, the simple definition of motivation is defined as the process of motivating individuals to take action in order to achieve a goal.
So, basically, motivation is the energy booster that will make you to achieve your target and move your position to the next level.
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Which statement is consistent with the law of supply?
O At a zero price quantity supplied will be infinite
O A reduction in market price wilt lead to an increase in quantity supplied
O An increase in market price wil ead to a decrease in quantity supplied.
O An increase in market price will lead to an increase in quantity supplied
Out of the choices given, it can be realized that an increase in the market price will lead to an increase in the quantity supplied is the statement that is consistent with the supply law in the market. Therefore, the option D holds true.
The law of supply can be referred to be understood as the concept that tends to explain the legalities related to the basic nature of supply of goods and services within an economy wherein the market is expected to be perfectly competitive. According to this law, a change in price leads to a change in the supply, which is direct in nature.
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Employers are willing to pay and to workers, because they expect to be able to sell the goods and services at prices high enough to cover the costs of production.
Employers need to pay a fair wage to attract and retain quality workers, as well as to ensure that their workers are motivated and productive.
What is Employers?Employers are the individuals or organizations that hire and manage employees. Employers provide employees with wages, benefits, and the working environment necessary to perform their jobs. Employers typically hire employees to do a specific job, provide them with resources to do that job, and then oversee their progress.
In addition, paying a fair wage can help to increase employee morale and loyalty, which can lead to higher productivity and better customer service. Furthermore, employers are often willing to pay more for workers with specialized skills, knowledge, or experience.
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What effect does the issuance of a 2-for-1 stock split have on each of the following? Par Value per Share Retained Earnings A. No effect No effect B. Increase No effect C. Decrease No effect D. Decrease Decrease
No effect when the issuance of a 2-for-1 stock split have on each of the following Decrease .
The number of shares in the market and the number of shares that must be returned will simply double if the stock experiences a two-for-one split before the shares are returned. The value of the shares likewise splits when a firm divides its shares.
The price of a share drops and there are more shares available as a result of stock splits, which divide a company's shares into more shares. This implies that existing stockholders of that company will acquire more shares for each share they now own.
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Using the following information: 12/31/09 Accounts receivable $525,000 Allowance (45,000) Cash realizable value $480,000 During 2010, sales on account were $145,000 and collections on account were $86,000. Also during 2010, the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $54,000. The change in the cash realizable value from the balance at 12/31/09 to 12/31/10 was a a. $50,000 increase. b. $59,000 increase. c. $42,000 increase. d. $51,000 increase.
The change in cash realizable value from December 31, 2006 to December 31, 2007 was $42,000 increase. [(525,000 + 145,000 - 86,000 - 8,000 - 54,000 = 522,000) (522,000 - 480,000 = 42,000)].
What does cash realizable value mean?Cash realizable value is the amount of cash remaining after deducting the uncollectible amount from the receivable. This net amount can be determined by combining the accounts receivable balance and the allowance for bad debts on the company's balance sheet.
What is net realizable value?The net realizable value of an asset is the value of the asset at the time of sale after deducting all costs associated with the sale. Net realizable value is the current selling price less the cost of completing and selling the product.
Is net realizable value equal to cash realizable value?Net realizable value (NRV) is the amount of cash a business expects. Therefore, net realizable value is sometimes referred to as cash realizable value. The term net realizable value is often used in relation to current assets, accounts receivable, and inventory.
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Managers can use the VRIO framework to Multiple Choice a. analyze a firm's competitive potential. b. conduct strategic planning. c. achieve organizational goals. d. provide corrective feedback.
Managers can utilize the VRIO framework to analyze the competitive potential of a firm using the four-question framework. The VRIO stands for the questions of Value, Rarity, Imitability, and Organization.
The VRIO framework is used for doing business analyses that fit within a company's overall strategic plan. Companies follow a fundamental strategy process that includes establishing goals, analyzing internal and external factors, making strategic decisions (at the corporate and business levels), and implementing those decisions. The company will be hoping that this procedure gives them a competitive edge in the industry they work in.
In the internal analysis of the VRIO framework, the V's primary inquiry is, "Is this ability or resource beneficial to the business?" In this instance, whether a resource or capability helps to take advantage of an opportunity or lessen a threat in the marketplace defines its value.
A company may benefit from a rarity in terms of competitive advantage. When a company possesses a valuable resource or capability that is completely unmatched by a group of its present and potential rivals, it is said to be rare. How do you tell if a company's resource is unique and gives it a competitive edge? For a corporation to maintain a competitive advantage over time, its resources and competencies must both be in low supply and endure over time.
Do organizations without a resource or competence experience a cost disadvantage in obtaining or growing it compared to firms that currently possess it? This is the main "imitability" question posed in the VRIO framework in internal analysis. Companies with valuable and hard-to-replicate resources might win first-mover advantages in the market and subsequently gain a competitive edge.
Imitation typically manifests as either direct replication or substitution. The resource used by the inventive firm can be directly copied by another firm after observing the competitive advantage of other businesses. The competitive advantage will be maintained if copying is expensive. If not, the advantage will only last a short while. Otherwise, a copycat company may try to utilize a replacement in an effort to duplicate the creative company's competitive edge.
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