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Strategic fit expresses the degree to which an organization is matching its resources and capabilities with the opportunities in the external environment. The matching takes place through strategy and it is therefore vital that the company has the actual resources and capabilities to execute and support the strategy
Strategic planning expert Michael Porter uses the term strategic fit to sum up the idea that each department s functional strategy should fit and support the company s competitive aims.
For example, Southwest Airlines is a low-cost leader. It aims to deliver low-cost, convenient service on its routes. To accomplish this, Southwest builds its departments activities around supporting certain core aims. Southwest s core aims include limited passenger services (such as meals); short-haul, point-to-point service between mostly mid-size cities; high aircraft utilization; and lean highly productive ground crews. Achieving these aims means that each department's efforts needs to fit these aims. Southwest s ground crew department must get fast 15-minute turnarounds at the gate. That way, Southwest can keep its planes flying longer hours and have more departures with fewer aircraft. Its purchasing and marketing departments shun frills like meals and premium classes of service.
To ensure highly productive ground crews, the HR department will provide high compensation, flexible union contracts, and employee stock ownership.
Garry Dessler (Human Resource Management) 13th Edition
