We also see a lot of hype around data analytics, making it easy to jump in without a deliberate and flexible approach. Strategic Management can be defined as a decision-making process that leads to the development of the strategic position i.e. Thus a company has to attract and retain those customers who are profitable. It’s easy to think of reasons why profitability shouldn’t be the key measure of success. This is known as profitability analysis or customer profitability analysis (CPA). In Simple terms – An analysis of cost and revenue of the firm which determines whether or not the firm is profiting is known as profitability analysis Profit is the scorecard. Shouldn’t great customer service and powerful branding lead to profitability? Indeed, it holds great potential for improving decision making and thereby performance, profitability, and value. strategic fit, we first describe its elements in detail. Focus on PROFITABILITY as the Key Measure of Success. A strategic plan allows organizations to foresee their future and to prepare accordingly. The five strategic criteria outlined in this article are primary determinants of the strategic value of an alliance. 1. Strategic fit is expressed in the synergy potential (2 + 2 = 5) of the merger. There are two main elements that constitute strategic fit: (1) the customer’s expectation, which is the main building block of 2. It allows organizations to be proactive rather than reactive. It sought to inform a potential customer about what a business had to offer (product or service), usually through mass advertising. Strategic planning is a coordinated and systematic process for developing a plan for the overall course or direction of the endeavour in order to optimizing the future potential. Here are the top 5 benefits of strategic planning: 1. The main aim of a business is to earn profits. Many middle-market executives are concerned they’re behind the trend when it comes to data analytics. ACHIEVING STRATEGIC FIT For any company to be successful, its supply chain strategy and competitive strategy must fit together. Understanding Profitability and Marketing’s Role. Bottom line. Strategic planning is a business process that many companies employ to identify critical success factors that set the course for future growth and profits. Strategic fit can be used actively to evaluate the current strategic situation of a company as well as opportunities such as M&A and divestitures of organizational divisions. Strategic management is both visionary and practical and, at its best, finds an effective balance between these two poles.The functions of strategic management primarily revolve around setting a direction for your company, guiding the company as it moves in the direction that has been outlined, and evaluating and adjusting the articulated direction as the business and its environment … Strategy fit means that both the competitive and supply chain strategies have aligned goals. Potential strategic fit is a function of all of the following EXCEPT: A. firm’s strengths B. firm’s resources C. brand personalities D. product prices The work of strategic planning doesn’t stop at the strategic plan, but it’s a start! 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