Theoretical literature links strategic fit to desirable performance. Starbucks corporation, an american company founded in 1971 in seattle, wa, is a premier roaster, marketer and retailer of specialty coffee around world. It is a vital term and it should be taken into consideration when evaluating a companys strategy. Scribd is the worlds largest social reading and publishing site. Strategic planning is the process of developing a shared vision of your organizations future and deciding upon the major steps you. Below is an overview of some of the more commonly used strategic analysis tools. Strategic analysis american international universitybangladesh. Strategic fit is an oftenused term in strategic goals. Companies build a competitive strategy to target a set of customer segments and build strategies to satisfy needs and priorities of those customer segments. It is a crucial part of strategic process management. Pdf strategic management analysis tools pamela mcclinton. Strategic planning expert michael porter uses the term strategic fit to sum up the idea that each department s functional strategy should fit and support the company s competitive aims. Corporate culture and strategy the problem of strategic fit. Strategic management is a broader term than strategy and is a process that includes top managements analysis of the environment in which the organization operates prior to formulat ing a strategy, as well as the plan for implementation and control of the strategy.
Drawing on the prominent fit typology proposed to strategy research by miles and snow 1978, we revisit the traditional notions of strategic fit by considering the impact of family influence on. The third section discusses an important conceptstakeholder managementthat must be taken into account during the strategic management process. Strategic fit expresses the degree to which an organization is matching its resources and capabilities with the opportunities in the external environment. Consistency between customer priorities of competitive strategy and supply chain capabilities specified by the supply chain strategy competitive and supply chain strategies have the same goals 2004 prenticehall, inc. Strategic fit among business competitive strategy, human. Strategic thinking and subsequent management must result in action. Corporate culture and strategy the problem of strategic fit christian scholz this article focuses on corporate culture as an important aspect of corporate strategy. Many scholars have offered insights into factors that affect economic and other measures of jv success or failure.
The companys strategy is examined to determine if the company meets the criteria of strategic fit. Genus 1998 highlighted that strategic fit is the concept whereby strategy is a means for achieving a match between the external environment of an organisation and. Ensuring dynamic strategic fit of firms that compete globally in. Pdf on jan 1, 2014, john mcgee and others published strategic fit find, read and. Two important key factors that help organization achieve strategic fit are the planning and implementing strategy.
A high degree of strategic fit from can potentially yield many benefits for an organization. The importance of achieving strategic fit business essay. Based on the analysis of 105 identified studies publicized between 1962 and 2010. In addition the analysis will try to answer which of the iden.
Best case scenario a high degree of strategic fit may be the key to a successful merger, an efficient organization, synergy effects or cost reductions. Strategic fit portrays an organizations ability to utilize its resources and depicts how well it is performing in making the most of the internal and external. We believe this acquisition is a good strategic fit for us. Strategic management process that defining the widespread action plans which identifies the direction that helps to take a longterm plan for a business organization and that guides resource utilization to accomplish the organizational goals of the management with a creative sustainable competitive advantage. We are selling off this part of the business as it is no longer a strategic fit with our companys longterm interests.
Knowledge evolution strategies and organizational performance. The evaluation of the difference between a desired outcome and an actual outcome. It also explains why a strong corporate culture is often associated with corporate success. The success of a merger, joint venture, or strategic alliance may be affected by the degree of strategic fit between the organizations involved. Swot five forces balanced scorecard pest analysis growthshare matrix v t e. To add context, an industry analysis is conducted to determine the key success factors of. This section represents a methodology to calculate the strategic. Feb 11, 2014 strategic fit expresses the degree to which an organization is matching its resources and capabilities with the opportunities in the external environment.
In some cases, the new activity may be closely related to the firms existing activities, thus providing scope for achieving synergy gains across these activities. Final results of the analysis will help the organization determine whether objectives, products, services, projects or goals are a strategic fit. Strategic fit free download as powerpoint presentation. Ensign 2001 also defines strategic fit as an internal consistency or alignment. The benefits of good strategic fit include cost reduction, due to economies of scale, and the transfer of knowledge and skills. This thesis focuses on strategic fit in the context of mergers and acquisitions. In addition, strategic fit also examines the resource base of the organization and explores how they can be utilized to achieve maximum benefits. Meaning, pronunciation, translations and examples log in dictionary. Strategic fit financial definition of strategic fit. Strategic fit is a key factor in determining the gains of the organisation in order to achieve and sustains success, strategic alignment guides the firm in strictly.
Concept of strategic fit according to venkatraman 1989, strategic fit is the match between related variables. Strategic fit meaning in the cambridge english dictionary. This study employs multiple perspectives of strategic fit moderation, mediation, profile deviation, and covariation to examine the effect of the internal fit among strategy, structure, and. Jagdish sheth, a respected authority on marketing and strategic planning, provides. Jan 11, 2014 starbucks corporation report uploaded on april 2017 contains the application of the major analytical strategic frameworks in business studies such as swot, pestel, porters five forces, value chain analysis and mckinsey 7s model on starbucks. It aims to deliver lowcost, convenient service on its routes.
The purpose of the study conducted is to evaluate identified potential buyers of volvo cars from multiple perspectives of strategic fit. Strategic analysis of starbucks corporation 1 introduction. Strategic fit of an organisation defines the how well the resources and capabilities matched with the opportunities to the external environment. Strategic analysis tools topic gateway series 5 one of the key skills of a strategic analyst is in understanding which analytical tools or techniques are most appropriate to the objectives of the analysis. Market related fit arises when value chains of different businesses overlap so that the products can be used by same customers, marketed and promoted in a similar way and have a common distribution channel common dealers and retailers. Strategic gap analysis attempts to determine what a. Drawing on the prominent fittypology proposed to strategy research by miles and snow 1978, we revisit the traditional notions of strategic fit by considering the impact of family influence on. The following table revisits opportunities and threats faced by starbucks in the uk market and briefly analyses the extent of fit between these and starbucks strengths and weaknesses. Strategic fit definition and meaning collins english dictionary. Pdf knowledge evolution strategies and organizational. Pdf analysis of samsung electronics strategy for the. Strategic fit means the meeting of the organizational external environment requirements or demands to organization by buyers or customers. Mba strategic management lecture notes pdf download mba 3rd.
We discuss how each of the 12 chapters addresses these three processes and provide examples from each chapter. Vikram razdan, business consultant and technical writer. Analysis of samsung electronics strategy for the period 20142017, and development of strategic options for growth and sustainability author. The strategic fit concept helps firms to manage their resources more efficiently, reduce operational costs, respond to environmental change, and take advantage of new opportunities. From strategic fit to customer fit semantic scholar. Strategic fit analysis of starbucks coffee company bartleby. Strategic planning is the process of developing a shared vision of your organizations future and deciding upon the major steps you will take to move the organization in that direction. Introduction the necessity of using analytical models in strategic situation analysis an underlying assumption of this paper is the necessity of using established business models as analytical tools when conducting a firms strategic situation analysis. Definition of strategic fit from the cambridge business. The concept of strategic fit moritz garlichs masterarbeit bwl unternehmensfuhrung, management, organisation. Strategic fit portrays an organizations ability to utilize its resources and depicts how well it is performing. Kenya, however, information on strategic fit and performance of public universities in western kenya is not known. Strategic fit the concept, strategic fit, strategic fit.
The article proposes to consider both corporate strategy, with its necessity of strategic fit, and corporate culture, as elements of a dualistic model which provides answers to the question of how to create strategic fit. From this analysis, the most interesting segments for lego, or the ones where its core competences have the best fit, are the traditional from the company, preschool and preteen children under 12 years old. To add context, an industry analysis is conducted to determine. Fundamentals of strategic management sage publications. Starbucks strategic fit analysis researchmethodology. Describe the scope of your report strategic fit analysis of tesco uk. To add context, an industry analysis is conducted to determine the key success factors of the tracing industry. Strategic thinking and strategic management strategic planning is only useful if it supports strategic thinking and leads to strategic management and, even more importantly, execution.
926 1237 2 574 260 861 876 1016 1013 234 923 1292 1387 66 199 629 930 889 64 51 1140 1512 671 594 1157 1574 844 731 412 1367 1294 630 210 671 997 300 402 1158 1378 51 846 538 498 1401 69 1483 470 939 1039 355