The fit concept in strategic management

After a short introduction about strategy which is defined by Michael E.

The fit concept in strategic management

Igor Ansoff "The father of Strategic management" Igor Ansoff developed a unique strategic management school of thought that is a synthesis of his years in industry, the work of several significant predecessors, his own keen insight into the significant variables that are related to successful strategic behavior, and empirical research that supports his theories and prescriptions.

The Ansoff school of thought is environment driven. The foundational pieces of his approach are introduced here in a unique format. Specialists in the field present their views as to how the material relates peppering it with their own views and personal contact with Igor Ansoff.

The only emprirically validated approach to date. He is known as the father of Strategic management. Igor Ansoff was born in Vladivostok, Russia, in Following Stevens Institute, he studied at Brown University where he received a Doctorate in applied mathematics with a major in Mathematical Theory of Elasticity and Plasticity and a minor in Vibration.

He was a distinguished professor at United States International University now Alliant International University for 17 years, where several institutes continue his work in strategic management research.

Naval Reserve, and served as a liaison with the Russian Navy and as an instructor in physics at the U. Professionally, Igor Ansoff is known worldwide for his research in three specific areas: The concept of environmental turbulence; The contingent strategic success paradigm, a concept that has been validated by numerous doctoral dissertations; Real-time strategic management.

To honor his body of work, the prestigious Igor Ansoff Award was established in in The Netherlands.

The Concept of Strategic Fit

The award is given for research and management in the study of Strategic Planning and Management. Igor Ansoff Contribution to Strategy Until the publication of Corporate Strategy, companies had little guidance on how to plan for, or make decisions about, the future.

The fit concept in strategic management

Traditional methods of planning were based on an extended budgeting system which used the annual budget, projecting it a few years into the future. By its nature, this system paid little or no attention to strategic issues.

With the advent of greater competition, higher interest in acquisitions, mergers and diversification, and greater turbulence in the business environment, however, strategic issues could no longer be ignored. Ansoff felt that, in developing strategy, it was essential to systematically anticipate future environmental challenges to an organisation, and draw up appropriate strategic plans for responding to these challenges.

In Corporate Strategy, Igor Ansoff explored these issues, and built up a systematic approach to strategy formulation and strategic decision-making through a framework of theories, techniques and models. Strategy decisions Ansoff identified four standard types of organisational decisions as related to strategy, policy, programmes, and standard operating procedures.

The last three of these, he argued, are designed to resolve recurring problems or issues and, once formulated, do not require an original decision each time. This means that the decision process can easily be delegated. Strategy decisions are different, however, because they always apply to new situations and so need to be made anew every time.

This distinguished decisions as either: Sumantra Ghoshal has since proposed a 3Ps model--purpose, process and people--to replace it. To establish a link between past and future corporate activities the first time such an approach was undertaken Ansoff identified four key strategy components: Ansoff Matrix Variously known as the "product-mission matrix" or the "2 x 2 growth vector component matrix", the Ansoff Matrix remains a popular tool for organisations that wish to understand the risk component of various growth strategies, including product versus market development, and diversification.

Present New Present 1. Market expansion New 3. Diversification Of the four strategies given in the matrix, market penetration requires increasing existing product market share in existing markets; market expansion requires the identification of new customers for existing products; product expansion requires developing new products for existing customers; and diversification requires new products to be produced for new markets.

Paralysis by analysis It has sometimes been suggested that the application of the ideas in Corporate Strategy can lead to an overheavy emphasis on analysis. Ansoff himself recognised this possibility, however, and coined the now famous phrase "paralysis by analysis" to describe the type of procrastination caused by excessive planning.

One of his key aims in establishing a better framework for strategy formulation was to improve the existing planning processes of the stable, postwar economy of the USA, since he realised these would not be sufficient to cope with pressures that rapid and discontinuous change would place on them.

By the s change, and the pace of change, had become a key issue for management in most organisations. Ansoff recognised, however, that if some organisations were faced with conditions of great turbulence, others still operated in relatively stable conditions.

Consequently, although strategy formulation had to take environmental turbulence into account, one strategy could certainly not be made to fit every industry.

These ideas are discussed in Implanting Strategic Management, where five levels of environmental turbulence are outlined as: Repetitive--change is at a slow pace, and is predictable Expanding--a stable marketplace, growing gradually Changing--incremental growth, with customer requirements altering fairly quickly Discontinuous--characterised by some predictable change and some more complex change Surprising--change which cannot be predicted and which both develops, and develops from, new products or services.Applications of balanced scorecards, activity-based costing/management (ABC/ABM), lean manufacturing, value chain analysis, and supply chain management have become established practices within the business community.

Fred R. David's revision of his popular text gives students of all levels a thorough and interesting introduction to strategic management — one that will show you the value and the excitement of the field.

One of the fundamental paradigms of strategic management is the concept of strategic fit. However, recent developments raise the question if the concept still works today.

To answer that question, this thesis analyzes the concept of strategic fit and examines the different research streams. Webpage on Management Functions, Human Resource Management, Economic and Social Environment, Accounting and Finance for Managers, Marketing, Management Information System, Quantitative Analysis, Management Economics, Organisational Design Development & Change, Strategic Management, Social Processes and .

Strategic intent refers to the purpose for which the organization strives for. It is the philosophical framework of strategic management process. The hierarchy of strategic intent covers the vision and mission, business definition and the goals and objectives.

. Although the concept of "fit" appears to be a central theme in strategy literature, it has been inadequately defined as it relates to strategic management. A conceptual scheme based on two.

Igor Ansoff the father of Strategic management From A to Z Strategy Gurus