MGT302 Report: Evaluating Strategic Management Approaches

This report provides a critical analysis of three alternative strategic management approaches: the Stakeholder Approach, the Hierarchical Approach, and Agency Theory. The report begins with an executive summary outlining the key components of each approach, including their respective benefits and limitations. The Stakeholder Approach, exemplified by Wesfarmers Australia, emphasizes the importance of aligning with stakeholder needs for long-term organizational success, but it also acknowledges the challenges of divergent interests and potential overvaluation of stakeholders. The Hierarchical Approach, using Westpac Banking Corporation as a case study, focuses on clear communication and task allocation within an organizational structure, but it is also limited by its inflexibility and potential for departmental rivalries. Finally, Agency Theory, illustrated by The Australian Stock Exchange, addresses the relationship between principals and agents, highlighting advantages such as clear authority but also potential conflicts of interest. Each approach is thoroughly examined, including its history, benefits, limitations, and a real-world company example to demonstrate its practical application. The report concludes with a comparative analysis of the three approaches and their viability in modern strategic management.