Strategic Fit
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Strategic fit refers to aligning an organization's resources and capabilities with external opportunities. Functional fit means aligning functional policies and strategies with overall organizational strategy. This includes manufacturing, marketing, engineering, and finance functions. Poor functional fit can result in costly rework, customer complaints, missed targets, and penalties from making products before receiving orders and having long delivery cycles that do not match customer needs or the new strategy. Administrative fit is ensuring major internal systems like organization structure, information systems, incentive systems, and processes support the strategic plan through leadership, culture and management practices.
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- 3. Administrative Fits Major Systems to be aligned with Strategy Organization Information Incentive Structure Systems Systems Strategic Organization Control Planning Processes Systems Systems Management Corporate Leadership Selection & Culture Style Development