Sustainable Approaches in Tobacco Industry and Honda

This assignment discusses the sustainability approaches of BAT (British American Tobacco) and Honda. BAT promotes economically sustainable alternatives to tobacco growing, afforestation initiatives to reduce environmental harm, and supports the initiative taken by FCTC group in developing guidelines for finding alternatives in tobacco growing. On the other hand, Honda has dynamically attempted to explain environmental problems and established a low-emission CVCC engine that effectively decreased carbon monoxide, hydrocarbon, and nitrogen oxide discharges. The report also defines three views towards strategic management: stakeholder approach, dynamic capability approach, and sustainable approach.

RUNNING HEAD: Alternative Approaches to Strategic Management
Alternative Approaches to Strategic
management

Alternative Approaches to Strategic Management 2
Executive summary
The report has been prepared with a specific view in new approach towards strategic
management. It gives the introduction of standard linear approach as a successful process in
the organization. It then describes the various approaches towards strategic management
explaining the effect of the new approach on companies. The first approach is stakeholder
approach defining the value of stakeholder to the company. The second approach defines the
dynamic capabilities through which an organization can lead to the market. The third and last
approach is sustainability which explains the effect of sustainability on the existence of an
organization.

Alternative Approaches to Strategic Management 3
Table of Contents
Executive summary...............................................................................................................................2
Introduction...........................................................................................................................................4
3 approaches towards strategic management are................................................................................5
Stakeholder approach.......................................................................................................................5
Coco-cola approach towards stakeholder.....................................................................................6
Ford stakeholder approach............................................................................................................8
Dynamic capabilities..........................................................................................................................8
Coco-cola capabilities are............................................................................................................11
Capabilities of Apple are..............................................................................................................11
Sustainability...................................................................................................................................14
Sustainable approaches by BAT...................................................................................................16
Sustainability approaches by Honda............................................................................................17
Conclusion...........................................................................................................................................18
References...........................................................................................................................................19

Alternative Approaches to Strategic Management 4
Introduction
A strategic management new approach defines the company strategic objectives from a new
point of view. A traditional approach is nowadays is not suitable for certain types of
organization (Hill, Jones &Schilling, 2014). Thus the requirement for the new approach for
strategic management arose. This includes creating a mission statement for the organization,
choosing or defining the organizational intermediate goals, recognizing the approaches or
strategies to achieve goals, identifying the action plans to implement every strategy and in
last monitoring the plan (De Wit & Meyer, 2010). The standard linear approach might not be
useful for all organization. The reason behind it is the requirement of naturalistic planning
procedure which allows flexibility in all activities and perspectives by organizations.
Sometimes it is holistic for some companies.

Alternative Approaches to Strategic Management 5
3 approaches towards strategic management are
Stakeholder approach
A stakeholder approach is engaged to give a one-way strategic structure. It should be flexible
for dealing with environmental trends and should be without the interference of managers to
continuously adopt new strategic paradigms. The motive behind this approach is to break the
traditional circle of:
A stakeholder is a process of managing strategic planning in an organization. But strategic
planning concentrates on predicting the upcoming environmental trend and then creating
plans for the organization to beat that position (Freeman, 2010). In opposite, strategic
management is continuously developing a new plan and direction for the organization. This
help in considering how the environmental effects can harm the firm as well as how the firm
Evironmental
shift
New strategic
problem
Development
of new
strategic
policy
Adoption of
new strategic
practices
New
environmental
shift and new
problem

Alternative Approaches to Strategic Management 6
is affecting the environment. The concern for adopting stakeholder approach is also to create
sustainability in the survival of the firm.
To create a position in a turbulent situation administration should coordinate a course for the
firm, not simply advance current yield. According to Hanna & Rowley (2011) to effectively
change course, management must have the help of the individuals who can influence the firm
and see how the firm will influence others (as over the long haul they may make a receptive
reaction). In this manner, understanding stakeholder approach is, no less than, a matter of
accomplishing the company’s goals which is thus a matter of survival (Luoma-aho & Vos,
2010). The stakeholder approach does not depend on an over-riding administration objective
for all choices. It gives no opponent to the conventional point of "maximizing shareholder
wealth" despite what might be expected, a stakeholder approach rejects the general concept
of expanding.
Coco-cola approach towards stakeholder:
They engage stakeholder through various ways of formal and informal meeting across the
global Coco-cola system. They engage with various stakeholders through meetings with
groups, suppliers, and consumers. At the world level, they are very active with multi-
stakeholder initiatives like UN global compact, world forum which helps in addressing
global challenges. By proactively cooperating with outer partner accomplices, they can
distinguish and address issues by combining the expertise, information, and enthusiasm of
numerous associations and people (Harrison, Bosse & Phillips, 2010). This approach
encourages accomplish far more prominent positive effect on natural, social and different
issues than by working alone.

Alternative Approaches to Strategic Management 7
Coco-cola engagement with Stakeholders:
The various ways in which Coco-cola is engaging with stakeholders are:
• Bottling partners: Everyday collaboration as business accomplices, joint undertakings,
joint business arranging, the functional team on vital issues, Top-to-Top senior
administration discussion, Global Environment Council.
• Consumers: hotlines, local websites, plant visits, explore, reviews, social channels,
centre gatherings.
• Customers: regular visits, dedicated account teams, joint business planning, joint value
creation initiatives, customer care centres, social media engagement, surveys;
• Communities: Community gatherings, site visit, partnership on general argument,
sponsorships, classes in college and universities;
• Employees: engagement studies, senior official market information, corridor
gatherings, representative correspondences, singular improvement designs, wellbeing and
security interchanges projects, group and worker prosperity ventures, morals hotline.
• Governments and regulatory authorities: Foreign direct investment advisory board,
reusing and improvement directives, chambers of commerce;
• Non-governmental organizations (NGOs): progressing discourse, organizations on
regular issues, participations of business and industry affiliations;
• Shareowners and analysts: Annual general meeting of shareholders, quarterly budget
report, webcasts, investor representation, newsletter and conversation with investors and
accountants.

Alternative Approaches to Strategic Management 8
• Suppliers: joint venture creation activities, yearly provider meeting, Supplier Guiding
Principles, creating affiliations.
Ford stakeholder approach:
Ford’s stakeholders are effectively approached through numerous corporate social
responsibilities by various initiatives and programs.
Customer: Ford’s top-need priorities are its customers. The interests of this partner amass are
superior quality products and administrations, particularly after-deals services. Customers are
critical partners since they specifically decide the organization's incomes. Ford’s corporate
social obligation endeavors for stakeholder bunch are product development for quality,
mileage, and security, portage Smart Mobility, portage Driving Skills for Life program.
Employees: Ford positions its employees at second level priority. This group of stakeholder is
keenly interested in career growth, the increment in wages, equivalent opportunities and
treatment in the organization. They are the important part of stakeholder as they are mainly
responsible for production activities and service capacity of the business. if a small deduction
also occurs in employee stakeholder group then it directly leads to decline in company’s
revenue and performance (Weiss, 2014). Ford has adopted some of the CSR initiatives like
Sustainable workforce, online product training, global leadership development and programs
for enhancing leadership.
Dynamic capabilities
The capability of an organization to focus on new forms of competitive advantage is
termed as dynamic capabilities. The capability of a company to innovate
competencies to achieve correspondence with the transforming environment for

Alternative Approaches to Strategic Management 9
business is called as dynamic (Barreto, 2010). The main characteristics of being
dynamic are:
• It needs innovation to be respondent to the situation in arose. Like correct time to
make entry to the market.
• The timing is also vital for such cases.
• Moreover, when there changes in the area of technology, the character of
competition perspective, the market is dynamic to be predictable then dynamic
capabilities become important in competitive advantage (Parente, Baack & Hahn,
2011).
Dynamic capability is generally through a combination of a cluster of 3 major
activities like recognition and evaluation of an opportunity, mobilization of resources
to identify an opportunity as well as capturing value, and transformation. These
practices are required by the firms to be stronger than others. It is also required to
sustain a business in market development and technological change. Execution of
these exercises draws on every one of the abilities and orders utilized as a part of the
business organization all over the world (Katkalo, Pitelis & Teece, 2010). The
Dynamic Capabilities Framework sorts out outfit disciplinary information to apply it
to the errand of building solid upper hand at the venture level. It involves 3 steps to

Alternative Approaches to Strategic Management 10
recognize dynamic capability.
Recognition and evaluation: It is a basic set of entrepreneurial set of abilities which includes
exploring technological innovation, searching market, communicating with the customer, and
also scanning other parts of the business system (Pitelis & Teece, 2010). It needs
management to develop and evaluate hypothesis related to market and technological
innovation because it includes identification of recent trend in the market.
Mobilization of resources: It includes seizing capabilities which include designing of
business models to fulfill the demands of the customer and acquire value (Prange & Verdier,
2011). It needs access to capital and compulsory human resources. An employee motivation
and incentive scheme for hem is also needed to perform to best in the area of operations.
Companies which are successfully fulfilling these values are making high profits.
Transformation: It refers to renewing company internal structures and maintaining its
importance to customers. This requires managers of the company to continuously improve,
Recognition
and
evaluation
Mobilization
of resources
Transformatio
n

Alternative Approaches to Strategic Management 11
and amend organizational objective. It is also a key to create sustainable and technologically
advanced growth.
Coco-cola capabilities are:
With a strong financial position, Coco-cola is proceeding towards developing
international market on large scale. The money is used in investing for various purposes like
developing infrastructure, employee training, and growing distribution channels. They use
financial sources in implementing strategies of competitive advantage.
Coca-Cola proves be having an effective organizational capacity. It can employee 100
thousand employees at a time and offers the collection of more than 500 brands of soda pop
in almost 200 nations around the globe (Gehani, 2016). Their items show up nearly in every
eatery, stores, films halls, school and vending machines. Coca-Cola knows how to reduce the
distance between the customer and their products.
Capabilities of Apple are:
Evaluation Modification Transformation Result
Ipod Present Mp3
were of very
old technology.
form an
artistically
interesting
movable device
which provides
a simple
boundary on an
enhanced
product
port iTunes
software to
opponent
Windows
platform;
increase keen
on content
dispersal with
iTunes Music
command over
transferrable
digital music
competitor
marketplace;
development to
audio-visual
competences
(replay and

Alternative Approaches to Strategic Management 12
expansion
sequence;
improving with
special
FairPlay DRM
popular in the
iTunes Music
Store
Store; altering
corporation
weight starting
from
workstations to
customer
electronics
disbursement)
iphone Prevailing
“smart phones”
reserved a
difficult edge
too near toward
their mobile
phone origins.
Construct a
software
headset by an
outsized
display plus a
spontaneous
edge;
encourage
balancing asset
formation of
the App Store
structure.
Improve
telephonic
competencies;
go into the
structured
telephonic
marketplace.
one of the
corporations
generating
profits through
smart phones
(Hoog &
Strzempka,
2011).
iPad “netbooks”
deliver an
unproductive
calculating
involvement
Measure up the
iPhone edge to
deliver
wealthier
programme
Encompass the
“modest
boundary”
artistic to a
computing
Too early to
calculate.

Alternative Approaches to Strategic Management 13
and “E-
readers” are
delivered
incomplete
functionality
policy devoid
of mobile
functionality.
stage.

Alternative Approaches to Strategic Management 14
Sustainability
Accomplishing sustainability is the biggest target in the 21st century. So far businesses
find trouble in revolving rhetoric interested in authenticity. Numerous companies have the
deficiency in the structures, tools, and abilities to apply fully their purposes, plus reporting
and evaluating presentation.
Inserting sustainable growth through either the community or else private sector is
difficult as the concerns are cross-cutting plus the notion itself is generally challenged. A
mass number of methodologies has been developed (Hallstedt, et al., 2010). They have in
shared is that they pursue to:
• Incorporate societal, fiscal and ecological traits.
• A comprehensive method to shareholder participation and permission
• And an extended period opinion.
This chart explains the strategic approach to transforming sustainability:

Alternative Approaches to Strategic Management 15
It is significant to have the clear vision regarding sustainable development which suits in
organizational main business, actions, and aims (Fooks, et al., 2011). Thorough
understanding helps the organization to understand the key factors:
• Why should a business adopt a practical approach to define sustainability with main
business?
• The risk associated with it for not fulfilling above approach.
• Better knowledge of benefits which an organization can achieve.
Identify key issues and drivers
Develop startegy
Establish goverance and accountability
Set target and action plan
Monitor
Report and evaluation

Alternative Approaches to Strategic Management 16
This procedure drive must deliberate the consequences for processes and essential actions,
whether it may be providing products and amenities or deciding public policy.
Sustainable growth is an intricate idea aimed at several individuals and businesses.
Consequently, it is of important value to spend some period inside to reach some kind of
general understanding and linguistic roughly how the establishment takes sustainable
development. Planning on conflicting issue, coordination for sustainability strategy, other
strategic planning, and much more is a strategic challenge in sustainable development (Bonn
& Fisher, 2011).
As with any other corporate strategy or planning process on a cross-cutting issue,
coordinating a sustainability strategy with the range of other strategic and planning processes
in any organization is a challenge. Creating a complete multi-dimensional sustainable
development approach in a distinct file is the choice that many groups have a tendency to
desire in creating their strategy.
Sustainable approaches by BAT
Sustainable agriculture: BAT experts contract with agriculturalists towards cultivating the
crop inaccurate way. It also advises on water management, biodiversity, use of agrochemicals
and pest management (Deyton, Sharfstein & Hamburg, 2010). BAT also supplies seeds to the
farmer that are less harmful to nature. Bat is also providing ways to access sustainable
farming technologies like fuel-efficient curing barns and advice on growing other crops as
well.
Alternative crops: BAT promotes appropriate economically sustainable alternatives of
tobacco growing. As alternative crops minimise the effect on the environmental harm caused
by tobacco and also acts as a sustainable approach by BAT for the environment. Growing
trade of tobacco crop is not a right option for any nation. So BAT is also ensuring

Alternative Approaches to Strategic Management 17
economically viable alternatives for employees and farmers. The company also supports the
initiative taken by FCTC group in developing guidelines for finding alternatives in tobacco
growing.
Afforestation: BAT afforestation initiatives encourage tree plantation for making a
sustainable source for woods for agricultural. This would act as an approach toward wood
saved for tobacco curing. They are also aiming at the negligible use of natural forests for
curing and directly contracting with farmers (British American tobacco, n.d). In 2012 there
was progress in this target was achieved by 3%. And also 140 million trees were planted to
absorb carbon dioxide emissions. The co emissions were half of annual CO emissions by leaf
curing by farmers. Moreover, the potential of all trees planted was considerably greater.
Sustainability approaches by Honda
Honda has dynamically attempted to explain environmental problems. Honda
established the low effluence CVCC engine that effectively decreased carbon monoxide,
hydrocarbon and nitrogen oxide (NOx) discharges, although Honda is the world’s leading
company to compete with U.S. Honda can adopt the above set procedure for achieving the
strategic management. The Honda should identify the key issues present in environment due
to company’s practices. Then Honda should develop some strategy like reducing pollutants
from environment to lessen the harm caused by it. Thirdly, Honda should establish
governance and accountability to check the plan is going according to strategy established or
not. After deciding governance it should set its target plan and action to remove the harms or
reduce the harm caused. In last monitoring and evaluating the set plans accordingly to
achieve he target should be the main of the Honda. Honda is continuously changing its
product life cycle to become more sustainable.

Alternative Approaches to Strategic Management 18
Conclusion
The above report defines the standard linear approach towards strategic management. The
linear approach consists of 3 views towards growth of organization. The stakeholder
approach is viable and applicable to organization for whom the stakeholders are of significant
value. The benefits are involvement of stakeholder at every stage of organization growth.
This is sometime difficult to implement due to change in preference and demand of customer
according to trend. And a limitation of this approach is too much involvement of stakeholders
effects the decision making of organization. The dynamic capability approach explains the
significant capabilities of organization (Mitropoulos & Prevedouros, 2011). Its benefits are
recognising own resources and capabilities lead an organization to success. This is difficult to
adopt when organization is having limited resources to be use. And its imitation is greater
reliability on organization which can be harmful in difficult time for a company to cope up.
The last approach is sustainable approach which defines the importance of sustainability in an
organization. Its benefits are huge as people are attracted towards more sustainable
companies nowadays. The difficulty in applying this approach is needed to provide
justification of every cost and activity to board. Its limitation is too much approaches for
sustainability diverts the organization from main objective to sustainable development.

Alternative Approaches to Strategic Management 19
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business strategy, 32(1), pp.5-14.
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Alternative Approaches to Strategic Management 20
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Alternative Approaches to Strategic Management 21
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