Question

For an organization to achieve "strategic fit" the supply chain must be aligned to corporate strategy as well as market and competitive strategies. Describe potential challenges an organization might face in achieving this objective.

Answer 1

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Organiza­tion’s Competitive Strategy (CS) explains the set of customer priorities, relative to its compet­itors that it pursues to fulfill through services and products. CS takes into account customers inclinations as well as the moves of competitors, to form a comprehensive program of fulfilling customer needs through services and products.

The major findings revealed existence of a causal relationship between CS and SCS (Supply Chain Strategy) with CS as independent variable and SCS as dependent variable. It was also found that choice of CS and SCS affects business and supply chain performance. The other finding was establishment of the existence of strategic fit in the manufacturing industry, which was explained by analyzing the interaction effect between CS and SCS. It was also found that a major hurdle in implementing SCM practices in the manufacturing industry is overcoming traditional practices. Originality/value – The manufacturing industry is growing by leaps and bounds, but to date there is no study that has explored the mediation effect of supply chain strategy between competitive strategy and performance.