What is a key characteristic of capabilities in an organization?

Capabilities within an organization are defined as the unique abilities or competencies that enable it to execute its strategy effectively. A key characteristic of capabilities is that they require strategic application to leverage effectively, meaning that merely having a capability isn't enough; organizations must apply it in a way that aligns with their goals and competitive advantages. This strategic application allows organizations to utilize their resources and skills in a manner that creates value and differentiates them from competitors.

When capabilities are strategically applied, they can lead to improved performance and the ability to adapt to changing markets or consumer demands. The focus on strategic leverage highlights the importance of contextualizing these capabilities within the framework of the organization’s goals rather than just possessing them as standalone assets.

In contrast, the other options touch on elements related to capabilities but do not fully encapsulate the strategic importance: capabilities may stem from standard procedures or resources, but that alone does not define their effectiveness. Additionally, alignment with industry trends or being established by external benchmarks might inform capabilities but does not capture the crux of leveraging them for organizational success.