Step 3: determining the competitive value of strategic fit in diversified companies course hero1/30/2024 ![]() ![]() Related: Forward Integration: Definition, How it Works, Advantages and Disadvantages These resources are the second crucial factor that the strategic fit concept considers. On top of that, it also describes how the company uses its resources to achieve its strategy. ![]() This environment is one of the two crucial factors that this concept considers. By exploiting achieving a strategic fit, companies can maximize their resource utilization.Ī strategic fit also describes how a company can fit its strategies with its external environment. ![]() Strategic fit can have various other subsets, for example, financial or market-related fits. In essence, it studies the alignment between their resources and strategic goals or objectives. It examines that base and explores how companies can utilize it to maximize benefits. On top of that, strategic fit also relates to a company’s resource base. It expresses the extent to which a company aligns its resources and capabilities to the external environment. In contrast, the latter consists of the requirements set by stakeholders. The former includes all the capabilities and assets that companies use to achieve long-term goals. Strategic fit is a term used to describe the alignment of a company’s resources to its external environment. Consequently, companies must ensure a strategic fit exists between the existing strategies. Therefore, it is crucial to confirm that they support the achievement of those objectives. As mentioned, these plans may apply to various business areas. When companies develop a plan, they keep their long-term objectives in mind. One of the primary aspects of a strategy includes the improved fit with the environment. Lastly, they also ensure goal congruence within all operations. They help monitor progress in the light of the planned activities. Strategies are also crucial in providing a direction and purpose to a company. On top of that, it allows companies to use their resources better. With these strategies, they can take a forward-looking approach. Furthermore, it helps adapt its scope, resources and operations to external changes in the long run.Ĭompanies develop strategies for various business areas. More specifically, it involves a pattern of activities that seek to achieve a company’s goals. In other words, it is a long-term plan that companies use to meet their objectives. A strategy is a plan of action that companies use to achieve their long-term goals. ![]()
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