More Related Content Similar to Strategic fit and stretch (20) More from Anupam Kumar (20) Strategic fit and stretch1. © 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.
2© Copyright 2013 Anupam Kumar
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.
3© Copyright 2013 Anupam Kumar
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?
4© Copyright 2013 Anupam Kumar
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.
5© Copyright 2013 Anupam Kumar
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.
6© Copyright 2013 Anupam Kumar
2. © Copyright 2013 Anupam Kumar 2
Concentrating Resources
7© Copyright 2013 Anupam Kumar
Accumulating Resources
8© Copyright 2013 Anupam Kumar
Complementing Resources
9© Copyright 2013 Anupam Kumar
Conserving Resources
10© Copyright 2013 Anupam Kumar
Getting Resources from Market
11© Copyright 2013 Anupam Kumar
For further details -
Contact:
-Anupam Kumar
Reader,
SMS Varanasi.
Email: anupamkr@gmail.com
13© Copyright 2013 Anupam Kumar