The “Alignment” Theory: Creating Strategic Fit

It should be recognised that any strategy or management style is appropriate only in a particular set of circumstances, therefore the search for universally applicable strategies and management styles should be abandoned. Strategic fit, however, enables an organisation to operate in its particular competitive situation at peak effectiveness. This is achieved by “alignment”, which is optimised when the appropriate combination of four “logics” ‐production, administration, development and integration – is replicated in four elements, namely competitive situation, business strategy, organisation culture and leadership style. Each of these four elements is subdivided into four distinct types, whose characteristics are set out in detail in table form. The ways in which they can be appropriately aligned are explained. It is concluded that organisations both create and respond to their competitive situations and that the two should not be viewed as separate, interdependent entities but as just different influences in the same global environment.