Question

QUESTION TwO (20 MARKS) a) Compare and contrast the terms "Strategic stretch and Strategic fit" (10 marks) Ab) Explain the difference between the learning and design school in strategy formulation? (10 marks)

Answer 1

a) A strategic fit is a scenario wherein the resources and capabilities of an organization is aligned with the opportunities and trends that are emerging in the market place. It is a good place for an organization to be so that the company can grow sustainably and remain profitable in the long run.
On the other hand, a strategic stretch is a scenario wherein the resources and capabilities of the organization are lagging with respect to the kind of growth opportunities available in the market or the vision of the company. So in this case, the company is being stretched for its resources and is not able to grow at a desired rate due to the inherent resource crunch.

b) In a learning school concept, strategy is seen as something which evolves over time and leaders undergo strategic learning to refine the process of strategy formulation.
In contrast, the design school method places more emphasis on finding a strategic fit between the capabilities of the firm and the opportunities that are present in the market.