Analyze and synthesize inconsistencies between the firm’s strategy and its goals. Does the strategy establish a direction and set aspirations that motivate and inspire the members of the organization to achieve its goals? Evaluate how the firm leverages its resources and capability to execute the business strategy. Are the firm’s capabilities found in its functions or the value chain, or both? Referring to Figure 3.5, are the firm’s resources and capabilities allocated to establish and sustain competitive advantage? Does the strategy give coherence to decisions about allocation of resources? Evaluate the effectiveness of the organizational structure and management system design, and its ability to support the key resources and capabilities that execute the business strategy. Is the organizational structure suited for the particular tasks and particular business environment of the firm? Articulate concerns or opportunities regarding shareholders and stakeholders, distribution of excess profits, or other ethical dilemmas. Does the strategy consistently balance stockholders and stakeholder interests? Articulate concerns or opportunities about the strategic fit between the firm’s capabilities, organizational structure, and management systems. Compose a preliminary strategic fit report on the firm and its internal environment and how strategies are applied to product lines or market segments.

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