Master the Game: 2025 Strategic Supply Chain Management Challenge – Ready, Set, Supply!

To achieve strategic fit, firms must align their competitive and functional strategies. This alignment ensures that the entire organization is working towards the same goals and objectives, enabling it to respond effectively to market demands and competitive pressures. Competitive strategy defines how a firm competes in the marketplace—whether through cost leadership, differentiation, or focus—while functional strategies outline how various departments such as marketing, operations, and supply chain management will support and implement the competitive strategy.

When there is a clear alignment between these strategies, it leads to operational coherence and efficiency, allowing the firm to effectively meet customer needs and achieve its overarching strategic goals. This integrated approach also helps in optimizing resource allocation, minimizing conflicts between departments, and enhancing overall performance.

The other options tend to focus on more isolated or short-term objectives rather than the holistic consideration necessary for strategic fit. For instance, maximizing profits in all departments may lead to intra-departmental competition instead of collaboration. Reducing the number of external suppliers could limit strategic options and flexibility, and focusing solely on customer satisfaction may neglect other critical elements like cost efficiency and operational effectiveness. Therefore, aligning competitive and functional strategies best supports the achievement of strategic fit.