Internal Strategic Alignment and SMEs - A case study in efficiency

Abstract: Prominent international organizations such as the EU, OECD and the World Bank frequently describe the importance of Small to Medium Sized companies (SME) for the domestic and international economies. To some degree, SMEs operate under different circumstances than large corporations and in the theoretical field of strategic alignment; much of the research made is focused specifically on the larger corporations. The strategic alignment concepts has its roots in the theoretical school of the Resource Based View and stresses the significance of that the entire firm, its resources, capabilities, and competence is aligned in a coherent direction to reach a common goal. The purpose of this thesis is therefore to highlight the importance of strategic alignment for SMEs and offer suggestions regarding how it can be evaluated. Through a qualitative single case study we identify issues and opportunities within a SME in relation to strategic alignment. We proposed a tool to assess the strategic alignment by applying the 7-S framework. The 7-S framework incorporates the whole firm by assessing seven interrelated elements, strategy, structure, systems, style, skills, staff, and shared values. To achieve strategic alignment these elements should complement and empower each other towards strategic goals, with the aim to achieve an efficient and coherent organization. Our conclusion is that internal evaluation in regards to strategic alignment is highly important for SMEs. As our case company SME had grown certain aspects of the organization was moving in different directions. Issues as well as opportunities were identified in relation to strategic alignment when applying the 7-S framework.