What is activity fit?

• A. Activities are internally consistent and mutually reinforcing across the value chain.
• B. Activities are independent.
• C. Activities are always outsourced.
• D. Activities are irrelevant to value proposition.

Answer: (A)

Activity fit means the activities a firm conducts across its value chain are internally consistent and mutually reinforcing, so they reinforce the way the firm delivers its value proposition. When activities align like puzzle pieces, they amplify each other—reducing waste, improving quality, and creating stronger capabilities. This coherence also helps the firm achieve either lower costs or stronger differentiation, or both, by making each step support the others.

That’s why the best choice is the one that describes activities as internally consistent and mutually reinforcing across the value chain. If activities were independent, there would be little synergy and the overall offer could be weaker or more expensive. Claiming that activities are always outsourced ignores the deliberate design of how activities should work together. Saying activities are irrelevant to the value proposition would misstate how a firm builds and delivers value—the fit of activities is what enables the value proposition to come to life.