strategic fit and stretch

© Copyright 2013 Anupam Kumar 1

Strategic Fit and Stretch

Presented By:

Anupam Kumar

Reader,

School of Management Sciences,

Varanasi

1© Copyright 2013 Anupam Kumar

Strategic Decisions: Characteristics

• Strategic decisions are concerned with the scope of an organization’s activities.

• Strategic decisions try to achieve some advantage for

the organization over competition.

• Strategy is a search for fit with the business environment.

• Strategy can be seen as creating opportunities by building on an organization’s resources and

competences.

• Strategy is affected by the values and expectations of those who have power in and around the organization.


Concept of Strategic Fit

• Strategic Fit is the degree to which an organization is matching its resources and competences with the needs of the external environment.

• It is an attempt to identify the opportunities in the environment in which the organization works and then tailoring the strategy of the organization to capitalize on these.

• However, the strategic intent (or vision) of the organization may not be limited to the extent of the external environment or the available opportunities.

– A small organization shall always remain small if it only tries to match its resources to the available external environment.


Issue with Strategic Fit

• Slow and Steady wins the race.

• Fast and Steady shall always beat the slow and steady.

• A tortoise shall always remain beaten by a hare if the hare takes the race seriously, then how did it challenge the hare to a race and won it?


Concept of Strategic Stretch

• Strategic Stretch is the process of innovation and

development involved in finding new opportunities

and creating a competitive advantage from an

organization’s resources and competencies.

• The difference between the strategic intent and the

available resources is called Strategic stretch.

– Google could beat Microsoft in search and categorization of networked information.

• The key to strategic stretch is leveraging resources.


Leveraging Resources

• Resources can be leveraged, both financial

and non-financial, in five basic ways:

– Concentrating them strategically

– Accumulating them efficiently

– Complementing one resource with another

– Conserving them

– Recovering them from the market place in the

shortest possible time.


© Copyright 2013 Anupam Kumar 2

Concentrating Resources


Accumulating Resources


Complementing Resources


Conserving Resources


Getting Resources from Market


For further details -

Contact:

-Anupam Kumar

Reader,

SMS Varanasi.

Email: [email protected]


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