Critical Analysis
The concept of strategy is a multi-dimensional concept that can be applied in all fields of study and life. Strategy has been defined variously by different authors. It can be basically defined as a company’s game plan. No goal can be achieved without a proper planning. Planning is the process of setting goals and choosing the means to achieve them. Plans help managers have a clear idea of what they need to organize. The purpose of formulating strategy is associating a company to its environment. The industry in which a firm competes is the key aspect of the firm’s environment. Porter further argues that the competitive rule of the game as well as the strategies potentially available to the firm has been strongly influence …show more content…
Porter looks at strategy as ‘”fit” while Hamel & Prahlad looks at it “stretch”. Strategic Fit and Strategic Stretch are two basic frameworks that seem to inform the various models of development of strategic plans in organizations. Strategic fit is one way of coming up with a strategy by seeking opportunities in the business environment and adapting resources and competences so as to take advantage of the opportunities. On the other hand, strategic stretch is developing strategy by leveraging the resources and competencies of an institution to provide competitive advantage and yield new opportunities. Strategic fit looks at organizations as passive while Hamel & Prahlad looks at environment as active. They are suggesting that firms try to influence the environment. Porter suggests that a firm should fit its resources to the environment it is in. Institutions strive to satisfy customers needs, and in so doing they achieve their basic corporate objectives of survival and profitability. Because of their concern for satisfying the customer’s needs, the institutions choose their strategies carefully, in order to offer the products/services that are valued by their customers. Directors have the responsibility of proposing corporate strategy, and the success of the strategy rests on the commitment of the managers in carrying it
The concept of strategy is a multi-dimensional concept that can be applied in all fields of study and life. Strategy has been defined variously by different authors. It can be basically defined as a company’s game plan. No goal can be achieved without a proper planning. Planning is the process of setting goals and choosing the means to achieve them. Plans help managers have a clear idea of what they need to organize. The purpose of formulating strategy is associating a company to its environment. The industry in which a firm competes is the key aspect of the firm’s environment. Porter further argues that the competitive rule of the game as well as the strategies potentially available to the firm has been strongly influence …show more content…
Porter looks at strategy as ‘”fit” while Hamel & Prahlad looks at it “stretch”. Strategic Fit and Strategic Stretch are two basic frameworks that seem to inform the various models of development of strategic plans in organizations. Strategic fit is one way of coming up with a strategy by seeking opportunities in the business environment and adapting resources and competences so as to take advantage of the opportunities. On the other hand, strategic stretch is developing strategy by leveraging the resources and competencies of an institution to provide competitive advantage and yield new opportunities. Strategic fit looks at organizations as passive while Hamel & Prahlad looks at environment as active. They are suggesting that firms try to influence the environment. Porter suggests that a firm should fit its resources to the environment it is in. Institutions strive to satisfy customers needs, and in so doing they achieve their basic corporate objectives of survival and profitability. Because of their concern for satisfying the customer’s needs, the institutions choose their strategies carefully, in order to offer the products/services that are valued by their customers. Directors have the responsibility of proposing corporate strategy, and the success of the strategy rests on the commitment of the managers in carrying it