The document discusses the concepts of strategic fit and strategic stretch. Strategic fit involves having realistic goals that align with available resources, while strategic stretch involves striving for ambitious goals that push boundaries through creativity and innovation. It argues that leaders should aim for strategic stretch rather than just fit by taking risks, focusing on core competencies, and challenging existing norms. Examples are given of companies like Honda that achieved growth through risky strategies of strategic stretch compared to more conservative strategies of strategic fit.

1. FIT AND STRETCH
STRATEGY
Christina Brink
Veronika Ekman
Melissa Rolas
Ania Seroka
Ming Yu
Yueduoduo Zhang

2. Mahatma Gandhi Martin Luther King Abraham Lincoln
“Be the change” “I have a dream.” “Shake off the existing
government, and form a
new one that suits them
better.”

3. Leadership is the art of
making the impossible
come true!

4. Strategic fit
 “Fit” between resources
and aspirations
 Realistic goals

5. Strategic fit
 Conservative goals
 Lack of courage

6. Strategic stretch
 Strive for the impossible  Make the most of
limited resources
 New ideas

7. Strategic stretch
 Creativity
 Growth and vitality
 One step ahead

8. Break the rules of the game

9.  Innovation
 Knowledge
 Ideas

10.  Create new space
 Challenge the existing norm

11. Honda
 Japanese
 Risky strategies
 Western
 Conservative strategies
Chrysler

12. Alpha
 Wealth of resources
 Industry leader
 Modest aspirations

13. Beta
 Compete with fewer resources
 Ambitions are greater
 Successful strategy

14.  "Whoever runs out of ammunition
first is the loser"
 Confident

15.  Small number of core
competencies
 Guerilla tactics

17.  Achieved innovative goals by taking risks
 A focus on few core
competences

18.  Secondary airports
 Saving money
on staff
training
 High
aircraft
utilization

19.  More routes in Europe
 Fit more passengers
 Save fuel costs

20.  Cost-cutting
 Additional
charges
 Business moral

21. References
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