What is the concept of strategic fit?
What is the concept of strategic fit?
(strəˈtiːdʒɪk fɪt ) business. (in business) the degree to which the activities of different sections of a business or businesses working together complement one another to achieve competitive advantage and business success.
What is strategic fit PDF?
The term strategic fit is used to indicate how a strategy needs to be “fitted” with its external context and how the internal organization needs to be properly meshed with the strategy. Related and derived concepts of fit include market-related fit, operating fit, management fit, and financial fit.
Why achieving strategic fit is important?
This is because achieving strategic fit is an effort to support both the customer and Procurement in their own goals. For Procurement this often remains as identifying supply demand at the lowest possible cost. Achieving Strategic Fit allows Procurement to align their goals with the greater business needs.
What three things must an Organisation do to achieve strategic fit?
Terms in this set (3)
- step 1 (Understand the customer and supply chain uncertainty) -Identify the needs of the customer segment being served.
- step 2 (Understand the supply chain capabilities) Supply chain responsiveness: The ability to – Respond to wide ranges of quantities demanded.
- step 3 (Achieve strategic fit)
What is SAF criteria?
The Suitability, Acceptability and Feasibility (SAF) method helps in evaluating strategies; as per the framework, a strategy must meet three criteria for it to be successful – it must be suitable, acceptable and feasible (JOHNSON and SCHOLES, 1997).
What is strategic fit in SCM?
Strategic fit means that both the competitive and supply chain strategies have the same goal. It refers to consistency between the customer priorities that the competitive strategy hopes to satisfy and the supply chain capabilities that the supply chain strategy aims to build.
