Michael Porter emphasizes “fit” as the tailoring of the firm’s functional strategies to support its corporate and competitive strategies. On the other hand, the concept is viewed by Gary Hamel and C. K. Prahalad more as a “stretch”, that is, supplementing internal resources and capabilities and doing more with what the firm has rather than just “fitting” the strategic plan to these resources. (Dessler, 2005, p. 34)
The very concept of strategy had been adopted from its military application, that is, strategy is the bridge that spans the gap between means and ends. (Nickols, 2006, p. 1) The many factors that influence the environment pose various challenges to the organization. The assessment of these challenges by management should lead them to devise the appropriate goals and objectives to guide organizational activities. This is the process of strategic planning, and to provide a systematic framework in the assessment of environmental conditions and the conceptualization of appropriate strategic goals and tactics, management may draw upon a wealth of theoretical models which have been developed by strategic management theorists in the academe.
There are some models that have become the popular choice of practitioners because of their power, simplicity and ease of application. Some models address the task of external strategic analysis. The Five Forces model of Porter resolves the industrial environment into five aspects: the power of buyers, suppliers, new entrants, substitutes, and competitive rivals. (Grundy, 2006, p. 213). Another model, the PESTLE model, was the culmination of succeeding independent efforts exerted by different authors (Aguilar, Brown, Fahey and others). It classifies factors influencing the macro-environment subject to analysis, namely, the Political, Economic, Social, Technical, Legal, and Ecological. (Morrison, 2008)
On the other hand, the internal strategic analysis forms the basis