EcoMerc

Strategic Organizational Consulting

Profit Impact

Seizing unused strategic design opportunities in an organization has been shown to improve the return on assets (ROA).

The research of Burton and Obel shows the following increases on assets return when opportunities revealed are seized:

Strategic fit: 3,3% - Contingency fit: 4,7% - Total design fit: 10%

The analysis by Burton and Obel demonstrates that unused situation opportunities affect the economic result of a company negatively, meaning that companies with unused situation opportunities will have a significantly lower increase in performance compared to companies with no unsused situation opportunities.

More information

Please note that in the referenced articles the term misfit is equivalent with unsused opportunity.