Management: Sustainable, Stakeholder and Dynamic Capabilities Approach

The report has thrown light on analysing the different sustainable, stakeholder approaches along with the dynamic capabilities of the firms to gain competitive advantage. In the case of Apple Inc, it can be seen that it is one of the most suitable examples wherein the sustainable approach along with stakeholder approaches are being followed effectively.

Running head: MANAGEMENT
Management
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Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................2
Analysis of Approaches.............................................................................................................3
Sustainable Approach.............................................................................................................3
History....................................................................................................................................3
Suggested Benefits.................................................................................................................3
Limitations.............................................................................................................................4
Example of Organization.......................................................................................................4
Stakeholder Approach................................................................................................................6
History....................................................................................................................................6
Suggested Benefits.................................................................................................................6
Limitations.............................................................................................................................7
Example of Organization.......................................................................................................7
Dynamic Capabilities.................................................................................................................8
History....................................................................................................................................8
Suggested Benefits.................................................................................................................8
Limitations.............................................................................................................................9
Example of Organization.......................................................................................................9
Conclusion................................................................................................................................10

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Executive Summary
The report has thrown light on analysing the different sustainable, stakeholder
approaches along with the dynamic capabilities of the firms to gain competitive advantage. In
the case of Apple Inc, it can be seen that it is one of the most suitable examples wherein the
sustainable approach along with stakeholder approaches are being followed effectively. In
Apple Inc, the company develops various CSR related activities to impress the different
stakeholders and gain a more strong presence in the market appropriately. Due to the
implementation of such CSR practices, Apple has been able to achieve a strong brand image,
and innovative capabilities are being managed by the company in the competitive business
environment as well.
Furthermore, as per the stakeholder approach, they play a vital role in managing the
success of the organization as they prefer to purchase the different products and services from
the companies which are environmentally friendly and gain more competitiveness in the
competitive business environment. Additionally, the dynamic capabilities have been unique
in case of Apple which has helped them in becoming more inclined towards becoming more
sustainable, and their approach is being approved by all the individuals positively such as by
the different employees, and this has helped them in becoming successful.
Introduction
The report throws lights on analyzing the different approaches which are the potential
aspects of an organization. The history of the methods along with suggested benefits and
limitations have to identify. Strategic management is the continuous planning along with
monitoring the assessment which is essential for meeting goals and objectives. A particular
organization is required to be taken as an example as to analyze the implications of the

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approaches on the organization effectively. The organization which will be considered in the
particular report is Apple Inc Company wherein the different sustainable approaches along
with dynamic capabilities, and core competencies of the organization will be discussed
appropriately.
Analysis of Approaches
Sustainable Approach
History
Andriof et al. (2017), have commented that the sustainable approach in the business is
related to the enterprise which has the minimal negative impact on the global or the local
environment, community or society. It is defined as the business which strives to meet the
triple bottom line approach, and such sustainable businesses have progressive human and
environmental rights policies. In general, the business is considered viable and green which
matches the following criteria:
 It has incorporated the different principles of sustainability in different business
decisions
 It helps in supplying the different environment-friendly products along with services
which assist in replacing demand for the different non-green products as well as
services
 It has tried to make an enduring effort along with commitment towards the different
environmental policies which are inclusive in business operations

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Suggested Benefits
While incorporating the sustainability in the business, it can help in providing various
kinds of benefits which will deliver real benefits to the business operations conducted by the
organization. The benefits which are inclusive are as follows:
It will be helpful in improving brand image along with competitive advantage as
after the surveying 53000 US customers, more than 58% of the customers consider that the
impact of the organization on the environment is regarded as consumers prefer to purchase
goods and services from companies which practice sustainable aspects.
It will be increasing the ability of the business to comply with various regulations as
there are a different state and federal government agencies which are enacting multiple rules
and regulations as to protect the environment and improve the overall scenario.
Limitations
The major disadvantage of sustainable development is the fact wherein in the
developing countries, starting of a new company is difficult, and it can frail as the company
can encounter different resources which are environmentally friendly.
Furthermore, by implementing the sustainable approach in the organization, it incurs
the cost, and it is costly to create different goods and services in an environmentally safe
manner (Bellantuono, Pontrandolfo and Scozzi 2016).
Example of Organization
The appropriate case which has developed a sustainable approach in the organization
is Apple Inc. Apple strives to create different products which are environmentally friendly,
and they are committed to protecting the planet. The various activities which are being
undertaken by Apple are as follows:

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Reduction of Waste and Recycling of Apple
 Apple tries in offering different recycling programs in 99% of the countries wherein it
operates, and the organization has diverted 500 million pounds of electronic waste
from the different landfills since the year 2008 (The Guardian 2019)
 In the year 2015, 99% of packaging of Apple has been done from recycled paper
which is sourced from sustainably managed forests (Bourne 2016)
 Apple is working with 160 recycling organizations around the world, and in 2015, the
company tried to collect 90 million pounds of the e-waste through recycling programs
(Rothaermel 2015)
Emissions of Carbon by Apple
In the year 2016, the large footprints of carbon were 29.5 billion metric tons in
comparison to the other years. From the graph, it can be analysed that CO2 emissions per
product are consistently decreasing during the last few years as to reach 97 kg in 2016.
Figure 1: Changes in the Emission of Carbon per product
(Source: Rowe, Besson and Hemon 2017)
Sustainable Sourcing at Apple

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 More than 99% of the packaging is done by the wood fibre which is recycled
 Apple has partnered with The Conservation Fund as to protect 36000 acres of
sustainable forest (Helfat and Peteraf, 2015)
Stakeholder Approach
History
The stakeholder approach suggests that the different managers should formulate along
with implement processes which helps in satisfying the needs of the stakeholders as to ensure
long-term profitability and success of the firm (Apple 2019). The particular approach is based
on stakeholder theory which is the counterpart to understand the business and management
which is focused on the satisfaction of the shareholders. The initial implementation of the
approach which helps in reinforcing the values of the firm along with gaining competitive
advantage (Girod and Whittington 2017).
Suggested Benefits
There are various benefits of the stakeholder approach which is required to be
analysed by the firms are as follows:
The particular approach is being able to create a competitive advantage as it helps in
creating a link between stakeholders and firms. In this aspect, the company will be able to
maximise the different interests of the stakeholders such as customers, employees and the
shareholders of the organization. The firm which follows the stakeholder approach will be
receiving information which is required for satisfying the needs of the employees and making
it easier to develop expertise (Wamba et al. 2017).
Furthermore, the firms which manage for the stakeholders are required to attract a
high quality workforce as the job satisfaction among employees play vital role n fostering

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innovation in organization and gain competitive advantage. The reciprocity is the critical
aspect of the overall approach wherein the stakeholders stay for the benefit, and it is defined
as the utility function (Teece and Leih 2016).
Limitations
On the other hand, there are different kinds of constraints which affect the overall
stability of the firm negatively.
There can be the inclusion of divergent interests as when the company is trying to
satisfy the different needs of the customers, it is becoming difficult, and it complicates the
governance. It is time-consuming in engaging all parties, and the assumption has been
critiqued as regarding inequality of the different resources along with negotiating power and
time which is required (Li and Liu 2014).
The other issue which can be seen is related to the overvaluing the customers as it
has been suggested that the obtaining of the different information about utility functions of
the stakeholders may produce various costs and it can exceed the benefits. There can be the
inclusion of inequality among the distribution of resources and the negotiation of power and
time which is required (Ferretti 2016).
Example of Organization
In the case of Apple Inc, the most important stakeholders are the customers,
employees of Apple, Investors and Employees of Distributors and Suppliers.
Customers- The stakeholder group comprises of organizational buyers and
individuals of products of Apple. The primary interest of the customers in the market is to
buy effective and efficient products which are priced reasonably. On the other hand, the
premium strategy of Apple is being accepted as it matches high quality along with the

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aesthetics of the products. The organization has different environmental programs for
recycling which is responsible for sourcing the needs of customers for the sustainability of
the business (Eskerod and Jepsen 2016).
Employees of Apple- The employees are the second most priority of Apple towards
the approach of CSR. The primary interest of employees is inclusive of career development
and compensation. They are essential as they directly help in determining capabilities of
human resources to develop profitable products. The CSR approach of Apple helps in
satisfying the needs and interests of employees as the primary stakeholder group (Bouzon,
Govindan and Rodriguez 2018).
Investors- The investors are major stakeholders along with determinants of the CSR
programs in business. In the case of Apple, the investors play a significant role in maximising
returns of the company.
Dynamic Capabilities
History
The dynamic capabilities help in emphasizing on the overall ability which provides
the ability to react appropriately and timely manner towards the external changes which are
the combination of the multiple skills. Dynamic capability is the overall capability which
helps in analysing the ability of the firm as to integrate and reconfigure the external and
internal competencies as to address towards the rapidly changing environment (Gunarathne
and Lee 2015).
Suggested Benefits
Additionally, the ability to achieve the new forms of competitive advantage is referred to
as the dynamic capabilities, and the main benefits of the dynamic capabilities are as follows:

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 It requires the definite innovation which is responding to a situation which is the right
time in entering in the market (Pisano 2017)
 Timing is vital in the case which will help in managing the overall efficiency
 When there are different swift changes in technological aspects, it can be analysed
that market is ascertained and it becomes dynamic as this is vital in becoming a
competitive advantage in the market
Limitations
There are different limitations of dynamic capabilities which are as follows:
 There can be a limitation of the various resources in an organization which can result
in less core competency of the organization
 The new organizations can lack in innovation in the different aspects which are
being developed by them, and it can affect the overall dynamic capability of the firm
Example of Organization
Apple is one of the best examples wherein the dynamic capabilities play a vital role in
managing the different activities appropriately. The different dynamic skills of the firm are as
follows:
 Innovation- The product innovation created values for Apple through delivering
innovative products and services wherein they diversified the business by offering
new software along with hardware along with new operating system (Helfat and
Martin 2015)
 Leadership- The leadership is the other dynamic capability of Apple through the
mixed combination of the style of administration such as benevolent and democratic.

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 User Friendly- The products of Apple are usually user friendly such as iPad and
iPhone which are simple to learn along with it is useful for creating and the customer
directions appropriately (Barney 2017).
 Human Resources- Apple has well-equipped employees along with executives from
the different streams such as Hardware, software along with various engineers and the
main reason behind the strong core competencies of Apple is the dynamic capability
of human resources department of Apple Inc appropriately.
 Leverage and Diversification in New Markets- As to sustain the growth in the overall
competitive business environment, Apple tried to follow the old strategy known as
diversification and the diversification is in terms of relevant categories of the product
which are being made by leveraging the brand value along with entering the new
market appropriately to become more aware of the different new products and
services
From the dynamic capabilities of Apple, it can be analysed that Apple is one of the
most active firms which have the sustainable approach in gaining strong stakeholder presence
and become the most user-friendly company in the entire market.
Conclusion
Therefore, it can be concluded that the different approaches such as sustainable,
stakeholders and the dynamic capabilities of the firm play a significant role in managing the
various activities of the firm appropriately. From the dynamic capabilities, it can be identified
that human resources play a significant role in maintaining the different operations
appropriately along with managing the stakeholders in the organization which will be
beneficial for the overall success of the firm effectively. Apple is one of the most successful

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organizations wherein they follow the sustainability-related practices as to become more
competitive and gain a competitive advantage in the market.

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