Strategic Management for Executives -

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Strategic Management

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Executive Summary
This report includes a description of the various approaches that are used for the proper
development of the organization. The approaches discussed in this report are a sustainable
approach, stakeholder approach and dynamic capabilities. All these approaches provide several
benefits to the business and increase the productivity of the organization. The history of the
approach, benefits of the approach and limitations of the approach has been described in this
assessment. These approaches are used by several business organizations and they enhance their
growth by using these approaches in their marketing and management process. A sustainable
approach is used for the proper management of sustainability in the marketing process so that the
environment can be managed in a proper manner in business activities. Another approach used in
this process is the stakeholder approach that involves the stakeholders in the organizational
activities and functions. Dynamic capabilities are also used in this assessment as an important
approach for the business. These approaches are too important for business management as they
improve the overall growth of the business. Dynamic capabilities used to manage the changing
environments of the organization and maintain all the process of the company.

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Contents
Introduction......................................................................................................................................4
Sustainable Approach......................................................................................................................5
History.........................................................................................................................................5
Benefits........................................................................................................................................6
Limitations...................................................................................................................................6
Organization for example............................................................................................................8
Stakeholder approach.......................................................................................................................9
History.........................................................................................................................................9
Benefits........................................................................................................................................9
Limitations.................................................................................................................................10
Organization for example..........................................................................................................12
Dynamic Capabilities.....................................................................................................................13
History.......................................................................................................................................13
Benefits......................................................................................................................................13
Organization for Example..........................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction
The report outlines several strategies of the business environment and their proper management.
As the business uses different strategies and approaches that provide several benefits to the
business and these approaches will be briefly described in this assessment. The approaches used
in his report are sustainable approach, stakeholder approach and dynamic capabilities. The
sustainable approach is used for the proper growth and development that manages the natural,
produced and social capital for the welfare of the future generations of the business (Iyigun,
2015). The other approach used in this report is the stakeholder approach that is used to achieve
the satisfaction of the stakeholders which provides long-term success for the firm.

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Sustainable Approach
History
Sustainable development is essential for growth and development. This is also used to manage
the natural and social capital for the proper welfare of future generations. The concept of
sustainable development made on the basis of the United Nations conference on the development
and environment. This helps in the process of action plans and strategies that move towards
sustainable development. This approach is used for the betterment of the organization as per the
environmental sustainability (Franca, et al., 2017). The sustainability concept comes in the
process about 30 years ago and it appeared in 1987 for the first time so that it manages the
overall growth of the business. The conservation of nature comes under the sustainable approach
as nature needs to be saved in the business activities and functions. The sustainable approach
includes social system innovations, technological system innovations and knowledge system
innovations (Collins and Junghans, 2015). By the sustainable approach, the awareness is growing
regarding the ecological crisis and it driving the forces of world history in the period of the end
of the 20th century.

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Benefits
The sustainable approach provides various benefits for the organization as it includes the
different process. The sustainable approach provides different practices to the organization and it
is all used for the proper growth and development of the organization (Prause, 2015). This
approach is much more beneficial for the overall process of the business. The major benefits
provided by the sustainable approach are discussed below-
 The sustainable approach improved brand image and competitive advantage
 It increases productivity and reduces costs.
 It increases the business ability to manage with the several regulations
 The shareholders become happy by using the sustainable approach
 It reduces waste occurred in the business.
 Attract employees and investors
All these benefits are essential for the overall organization as it improves the different parts of
the management and increases the growth of the business. The brand image is too important for
the business and it affects the overall growth of the business (Taghian, et al., 2015). The
competitive advantage also increased by making the business sustainable. The financial
investment gets improved by using a sustainable approach. The sustainable approach is all about
the environmental concept and it increases employee retention and recruitment (Harrison, et al.,
2015). The energy efficiency also gets increased by the sustainable approach.
Limitations
Apart from the benefits of the sustainable approach, there are several limitations occurred in the
use of the sustainable approach. These limitations decrease the interest of the companies to use a
sustainable approach. Some of the limitations of the sustainable approach are discussed below-
 Increased several regulations
The use of sustainable approach increases several rules and regulations. Sustainable
approaches increase several regulations on construction and the daily operations of the

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business (McCarthy, et al., 2012). The tight controls are provided on the environmental
process and several people disagree these regulations occurred in the business.
 Create Resistance to new methods
The sustainable approach is responsible to create resistance into the new methods applied
in the business process. Some of the resistance in the methods comes in the form of
people who denied the idea of sustainable development (Valanbienoaand Jegelevibinitob,
2014). The new ideas and practice get affected by the resistance occurred in the process
of the sustainable approach.
 Increased costs
Sustainable development relies on newer technologies that take more cost in the process
of production (Derry, 2012). The material costs are too high in the overall process of
developers.
 Lower quality of life for some elements of society
The sustainable development shrinks some job sectors and increases the jobless for some
workers (Ayuso, et al., 2014). So, people experience a lower quality of life and it affects
the various elements of society. The people affect sustainably developed areas.

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Organization for example
The organization selected for this approach is Starbucks that follows the sustainable approach for
the betterment of the environment along with the proper work process. Starbucks manages the
environment by the overall process of a sustainable approach and manages several functions of
the business (Weiss, 2014). It has been analyzed that a sustainable approach is properly followed
by Starbucks by maintaining the sustainability of the environment.

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Stakeholder approach
History
The stakeholder approach suggests that shareholders are one of many stakeholders in a company.
The stakeholder ecosystem involves the person invested and involved. This process is affected
by the company, employees, vendors and several other agencies of government. The company's
real success depends on the satisfaction of the stakeholders not only by achieving profit. The
stakeholder approach helps global economists to make a stronger company. This theory is all
about the stakeholders of the company and not affect any other person in the company. In this
theory, the company only cares about the stakeholders and achieves positive growth in the
market that also provide proper profit (Lawrence and Weber, 2014).
The stakeholder theory can be tracked by the back-management theories from the year 1930s and
it is affected in all over the business world. The approach is also used to decrease the risk of the
organization. It also gives the complex and volatile nature to the corporate structure and several
market forces. This theory made by R. Edward in the year 1984. All the values are easily
managed in the overall process of the organization with the help of this approach (Cooper, 2017).
This approach is related to the several business ethics that placed in the organization. This
approach is mainly used for creating value for the stakeholders.
Benefits
This approach of stakeholders provides several benefits and implement in the business
organization. The organization enhances its growth by the benefits given by the stakeholder
theory. Some of the main benefits of the stakeholder approach are discussed below-
 This theory also includes the ethical and economic aspects into consideration.
 This theory promotes fairness for everyone in the organization and provides better
objectives for the business.
 They provide several benefits to the stakeholders involved in the company.
 This approach is beneficial as it creates social wealth for everyone and maintains the
environment.
 It makes a good combination of economic aspects and ethical aspects.

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 The shareholders are not sufficient for the proper gain of the company so the stakeholders
are also important for the business (Wamba, et al., 2017).
 The stakeholder’s investment directly impacts the overall performance and wealth of the
company.
 The entire company provides several benefits and make a proper frame of mind.
 This approach affected all the customers, suppliers and employees of the company.
Apart from the above benefits, there are several other benefits that provide flexibility in the
working environment and improves the overall value of the shareholders and gain proper and
required profit in the business environment.
Limitations
The stakeholder approach includes various limitations which create several problems in the
overall business environment. The stakeholder approach is used for the betterment of the
stakeholders but at several times it creates several disadvantages. Some of the main
disadvantages are discussed below-
 Standing in the way of progress
The climate change affects the overall process and it affects the relationships and
individuals (Teece, 2014). Change is happening at a breathtaking pace. The process of
labor and management creates several conflicts and key issues that affect the overall
process of the organization.
 Looking out for number one
The human takes their interests on the above and this supports the various claims of
business. Whenever the issues of money and power intersect so the individuals need to
make their decisions to manage their constituents (Helfat and Peteraf, 2015).Several
numbers of decisions create many issues in the overall organization. The support of
people creates many problems in the overall process.
 Fearing Failure
The fear of failure is also one of the greatest disadvantages in the stakeholder approach.
Factors contributing to a party that interfere with business operation and it will not work

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out an issue (Braganza, et al., 2017). This creates a lack of effective communication in
which parties create several developments. Stakeholder management improves the overall
interests and influencing a large number of people.

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Organization for example
The example of organization used in this approach is Starbucks that adopted the stakeholder
approach. Starbucks affects the overall concepts of the stakeholder approach and impacts a
variety of reasons. This impact the overall concept of the organization and these approaches
create many issues in the organization. Stakeholders are very important for the business so the
organization need to solve these issues for the betterment of the business. Starbucks achieves
several concepts related to the stakeholder approach.

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Dynamic Capabilities
History
This concept of Dynamic capabilities was launched in the 1997 and it was introduced by Amy
Shuen, David Teece and Gary Pisano. This concept is basically related to the concept of the
operational capabilities where the change in the operations is responded and resources are
developed effectively. There are many discontinuous changes in the companies so the senior
managers maintain the minimum capability standards to develop the strategies to ensure the
competitive advantage.
Dynamic capabilities are the ability to analyses the changes which are occurring in the
environment related to the internal and the external factors. It is the ability to address the changes
which are occurring in the company through the environment by building, integrating and
reconfiguring the things. There are many shortcomings which have arisen in the company so this
concept is the capability to purposefully adopt the resource-based organization (Ambrosini and
Bowman, 2009). In any organization there are many changes has been seen due to the fluctuation
in the market so this concept is the ability of the firm to react timely and adequately on
addressing the rapid changes so that goals of the company can be met.
Benefits
The major benefits which the companies get from the dynamic capabilities are that they get to
know the changes which are occurring in the environment and due to this, the competitive
advantage can be gain in the market. This concept helps in analysing the internal and external
changing which were taking place in the company and with the help of this new changes can be
adopted easily by the company and new environmental requirements can be met.
With the help of dynamic capabilities, the company can easily evaluate who is leading the
market. The rivals and their strategy can be easily evaluated through this. The knowledge has
been gained regarding the market so the companies can be aware of what is coming in the market
and what trends are going to be happening. The effective decision can be made by eh company
evaluating the uncertainties of the market (Pavlouand El Sawy, 2011). The external market can
be responded easily through this concept. The efficiency of the companies can be improved
which gives a competitive advantage to the company. the good relationship can also be built

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through this approach with the customers, suppliers and with the other competitors. The elements
of the core competencies can be gain which helps in giving the proper strategic direction to the
company.
Limitations
It becomes very difficult for companies to evaluate the external market. The rapid changing is
even changing so fast that evens the companies don't get the time to respond to them properly.
There is nothing which so constant in the market so the companies get affected. This concept is
based on the traditional strategy so to identify the market uncertainties and to achieve the goals is
not easy for the company. Another disadvantage for the companies is that the value is constraints
so certain challenges have to be faced.
In the rapidly changing environment to attain a sustainable competitive advantage is quite
difficult. The approach is effective in a static environment but nowadays the environment is
frequently changing. The changing results do not give the companies many valuable answers.
Even it becomes quite costly for the companies to respond so such cages rapidly and sometimes
this approach is not even becoming effective (Inan and Bititci, 2015).
Organization for Example
Starbucks Company uses the concept of the dynamic capabilities to evaluate the external
business environment so that they can respond to the market changes very quickly. Due to this
approach the company has gained many competitive advantages and now they are leading in the
market. The company was aware of any changes which will be occurring in the environment and
they make strategies related to that so that they can respond to them timely. This helps the
company in maintaining its position in the market and also helps in satisfying the customers. The
needs and wants of the customers also change with the time but the company have maintained
their taste in coffee and earn a huge value in the market. They have gained a competitive
advantage from many other coffee companies and maintained their good reputation among the
customers.

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Conclusion
From the above report, it has been concluded that the discussed three approaches are important in
the proper management of the organization. The three approaches discussed above are
sustainable approach, stakeholder approach and dynamic capabilities. All these approaches are
essential in the proper management of the business. The conservation of nature comes under the
sustainable approach as nature needs to be saved in the business activities and functions. The
other approach discussed in this process is the stakeholder approach. The stakeholder theory can
be tracked by the back-management theories from the year 1930s and it is affected in all over the
business world. The third approach discussed in this process is dynamic capabilities which affect
the overall concept of the organization.

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References
Ambrosini, V. and Bowman, C., 2009. What are dynamic capabilities and are they a useful
construct in strategic management?. International journal of management reviews, 11(1), pp.29-
49.
Ayuso, S., Rodríguez, M.A., García-Castro, R. and Ariño, M.A., 2014. Maximizing
stakeholders’ interests: An empirical analysis of the stakeholder approach to corporate
governance. Business & society, 53(3), pp.414-439.
Braganza, A., Brooks, L., Nepelski, D., Ali, M. and Moro, R., 2017. Resource management in
big data initiatives: Processes and dynamic capabilities. Journal of Business Research, 70,
pp.328-337.
Collins, D. and Junghans, A., 2015. Sustainable facilities management and green leasing: The
company strategic approach. Procedia Economics and Finance, 21, pp.128-136.
Cooper, S., 2017. Corporate social performance: A stakeholder approach. Routledge.
Derry, R., 2012. Reclaiming marginalized stakeholders. Journal of Business Ethics, 111(2),
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Harrison, J.S., Freeman, R.E. and Abreu, M.C.S.D., 2015. Stakeholder theory as an ethical
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Inan, G.G. and Bititci, U.S., 2015. Understanding organizational capabilities and dynamic
capabilities in the context of micro enterprises: a research agenda. Procedia-Social and
Behavioral Sciences, 210(2), pp.310-319.

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İyigün, N.Ö., 2015. What could entrepreneurship do for sustainable development? A corporate
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