Strategic fit

Strategic fit
See also

Strategic fit relates to the situation in which various resources of organization (human, financial, material, technology, knowledge) are aligned with strategic goals and development objectives set by managers in the organization during strategic management process. Strategic fit can be divided into various sub-fits e.g. financial strategic fit, market strategic fit, technology strategic fit. By achieving high degree of strategic fit, managers can exploit opportunities of the organization and reduce negative impact of threats. Strategic analysis and strategic planning helps to identify optimal degree of strategic fit needed to achieve long-term competitive advantage.

There are always two kinds of people. Those who know that there are two types and those who do not know them. If there were only two types of theorists, the universalists would believe that the organization has universal principles and theorists believe that the organization is specific to the environment of the task it faces. Universalists often believe in one of the best ways. Theorists believe that the best way is always specific to the nature of the task and working environment (Thompson 1967).

Differences in organisation and in the pursuit of different strategies are interconnected. The economy and society have specific organisational forms and practices and human resources because economic niches and strategies are different (Sorge, 1991).

Dynamic perspective on strategic fit[edit]

In the Zajac, Kraatz, Bresser study from 2000, we see the development and testing of a dynamic perspective of strategic alignment. A distinctive approach is proposed to check environmental and organisational conditions, which should anticipate possible changes in the company's strategy and show the implications of such changes. The results confirm the model of a dynamic, strategic fit. It turns out that the time, direction and magnitude of changes can be predicted logically based on differences in environmental forces and organisational resources. Organisations, on the other hand, experienced negative consequences in the results.

The identification of factors influencing high productivity is one of the main objectives of the operational strategy research. Since recently, it has also had an impact on the sustainability of competitive results. We can distinguish two basic types of operational strategy research. OS researchers are the first to conduct in-depth case studies of companies operating in specific business environments (Voss, Tsikriktsis and Frohlich, 2002). This gives us insight into individual business situations, but there is a certain limitation in the form of the impossibility of distinguishing between aspects of the phenomenon. Secondly, researchers conduct research on large samples using surveys to obtain more general results (Forza, 2002).


Author: Karina Obiegła