Strategic Management Report: Approaches, Benefits, and Implementation

This report provides an in-depth analysis of strategic management, focusing on three key approaches: stakeholder, dynamic capabilities, and sustainable strategies. It begins with an overview of the linear approach to strategic management, highlighting its strengths and weaknesses. The report then delves into the stakeholder approach, examining its framework, benefits, and implementation issues, emphasizing the importance of managing relationships with various stakeholders for long-term success. Next, it explores dynamic capabilities, discussing how organizations adapt to change and leverage resources, including emergent strategies. The report also covers the sustainable approach, emphasizing the importance of balancing social, environmental, and economic aspects, and how sustainable practices can drive value creation and competitiveness. The conclusion summarizes the benefits, limitations, and implementation challenges of each approach, emphasizing their importance for organizational development.

Running head: STRATEGIC MANAGEMENT
Strategic Management
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Executive Summary
This paper will highlight the different approaches of strategic management such as stakeholder
approach, dynamic capabilities and sustainable approach. An in-depth analysis of these
approaches will help to identify the benefits, implementation issues, limitations and other
strategies. Moreover, these approaches are considered v ital for the development ofd an
organization.

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Contents
Introduction......................................................................................................................................3
Approaches to strategic management..............................................................................................3
Stakeholder approach...................................................................................................................3
Dynamic capabilities...................................................................................................................5
Sustainable approach...................................................................................................................6
Conclusion.......................................................................................................................................7
Reference List................................................................................................................................10

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Introduction
The standard linear approach of strategic management focuses on planning of the goals
and means so that it becomes easier to achieve them. The leaders of the particular organization
plan of how effectively they will deal with the problem and achieve the goals of the organization.
The linear approach of strategic management can be described in varied ways and thus it has
made a viable achievement. Liner approach has entailed the art of finding out the proper need in
collecting information and scrutinizing every aspects of the project. In current linear standard
approach, one has to make a clear decision in the strategic processes. It is such a stage where the
processes are endured to meet the basic objectives of the organization (Armstrong and Taylor
2014). Moreover, it is also necessary to have a proper outcome in the enhancement of the
strategic process. This will have an entailment in the organizational structure and thus plays a
clear role in the management of human resources in the long run. An important strategy in this
approach is the strategy evaluation and thus it is very crucial to find out a particular outcome to
make an enhancement in the process. A major drawback of the current standard linear approach
of strategic management is that if any one area of this approach is not managed well, it will not
yield proper results. The results of this stage will be such that it will be dependent on the result of
other stages (Hill et al. 2014).
Approaches to strategic management
Stakeholder approach
This approach was developed in mid 1980s and the main focus of this approach is to
control the stakeholder’s character in the threshold of strategic management. Stakeholders

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approach tries to build a conceptual framework and thus conveys a good managerial fact. This
approach lays more emphasis on using varied kinds of framework by the managers and they
must implement or formulate the plan in such a way that it satisfies all members in the group.
The main responsibility of the managers is to integrate and manage the interest and relationships
of the customers, shareholders, suppliers, customers and other groups such that it will lead to
long term success of the firm. This approach emphasizes the active supervision of the business
environment and the promotion and relationship of its shared interests. The pragmatic approach
to stakeholders’ theory is also gaining attention and thus different theories have been
implemented which contributed to the development of strategic management (Hollensen 2015).
The stakeholder approach must provide a strategic framework which is flexible and
adaptable to any environmental framework. This approach also lays emphasis that the managers
must not only be the persons who are required to adopt any new strategic paradigm. It is also
vital to check the survival of the firm and the achievement of the organizational objectives and
goals. This approach may be regarded as both descriptive and prescriptive approach. For
example, the role of executive in an organization which takes a stakeholder approach in strategic
management can be regarded as an expanded sense of leadership. In such a case, the boundaries
of the organization are broadened and enlarged (Cooper 2017). In such a case, if certain
enterprise strategies are given it may lead to coalition among the stakeholders and thus it is the
duty of the executive to take care of such circumstances. Moreover, in this kind of leadership the
role of the executive is to resolve the conflict and interest among the stakeholders. Another
example can be cited in case of stakeholders approach. If the information systems in the business
venture do not disseminate from the reports on government regulation or critics of the firm, it
may lay an impact on the firm. Moreover, if the style and skills of the managers in the firm are

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not conducive so that it can convince the stakeholders, there will be high chances of misfit in the
organization (De Brucker et al. 2013).
Dynamic capabilities
In dynamic capability, the organization can purposefully adapt to the changes according
to the various resource base. The theory of dynamic capabilities is associated with the
development of certain strategies for the senior managers so that they can adapt to the radical
changes in the organization while maintaining the minimum capability standards. For example,
there are certain industries that rely on various types of manufacturing processes. In such a case,
it is not easy to change the process quickly and easily on a short span when any new technology
arrives (Ayuso et al. 2014). In such situations, the managers have to adapt to their own routines
to utilize the existing resources and thus plan accordingly for future change in such processes
when the old technologies depreciates. It is also important for the managers to conserve the
business resources such as products, cash, service standards, staff morale and many more.
Moreover, dynamic approach is closely linked to an environment in which the organization
engages or the factors which influences the choice and standard of strategic management.
However, in certain cases it is seen that the environment becomes turbulent and the various
planning strategies may become useless because there is high level of predictability which is
associated with it. Emergent strategy is an important and advanced dynamic approach (Schilke
2014). This strategy includes the traditional approaches of the mission and vision formulation.
This approach also helps to understand the close functioning of an organization and it also helps
to keep a track of the employees and the happenings within the organization. The dynamic
capabilities can be distinguished from the organizational capabilities and thus it pertains to the

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current operation of the organization. Moreover, these dynamic capabilities are also important to
fulfill the new challenges of the organization (Kerzner 2013).
Sustainable approach
Sustainable strategic management is due to the effect of natural evolution of the strategic
thinking processes in fulfilling the expectations which is placed in the environment. The idea of
sustainability has become common for the organizations of this era. There are certain other
factors which are associated which has led to the reduction of different kinds of risks. This has
led to a change in the perception and perceptive of organizing the different kinds of strategic
implementation processes in the organization. There are certain general rules for sustainable
development of businesses such as ability and capacity to strike a balance between the social,
environmental and economic aspects of the business, openness to diversity and complexity and
managing the interest of the stakeholders (Kramar 2014). An important principle associated with
sustainable strategic management is associated with the participants. This implies active
participation of the employees in implementation, communication and creation of a particular
strategy. It is necessary to review the various processes which are associated with strategic
management processes before implementing the sustainability rules in management. Moreover a
sustainable company includes the workers in the implementation of a particular strategy (Bourne
2016). Moreover, sustainability helps the company to harmonize and optimize the goals and it
includes different stakeholders of the company. The companies identify the environmental
impact and then determine the benefits from such impacts in sustainable approach of strategic
management (Vogel and Güttel 2013). From the economic and the overall perspective of the
society it is necessary for the businesses to pay due attention to sustainability and thus try to
reduce the environmental footprint. This will benefit both the environment and the businesses.

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There are many companies which are benefitted from sustainable approach to strategic
management. For example, Toyota’s response to environmental concern is an important issue of
sustainable strategic management. Strtaegic sustainable business practices also helps in value
creation and thus strengthen the competitiveness of the company. These helps the company to
earn huge profits and it can also be referred to as “win-to-win” for the businesses and the
societies. The private companies can also address the various environmental issues. Thus, it can
be said that sustainable strategic business practices is the main source of competitive advantage
for the company and it is beneficial for the company to a large extent (Peppard and Ward 2016).
Conclusion
Stakeholder approach is viable to the top management of the company and thus it
suggests the various areas of management practices. It is beneficial for the managers and thus
helps the managers for the development of new strategies and new opportunities in the
businesses. The theories which are associated with the stakeholder approach are inconsistent
with the kind of changes in the organization. When the organizations face different kinds of
challenges, this approach has helped them in overcoming those and thus framing a new
conceptualized framework. There are also certain implementation issues which are associated
with stakeholders approach. It must be ensured that the managers can define the moral
responsibilities of the company as well as the managers and thus implement them accordingly.
This approach cannot be implemented if the stakeholders of the company do not know their roles
and responsibilities. This approach also focuses on the internal as well as the external benefits of
the company. However, this approach also has certain challenges. In certain cases, it may not be
beneficial for the organization to increase the productivity without any implementation of

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various frameworks. Some external changes are required for the expansion and development of
the business organization.
Dynamic capability is viable for the organization and the employees to meet the new
challenge. The employees also have the ability to build new strategic assets as well as learn
quickly from these opportunities. This approach benefits the employees and the managers and
thus it enhances interaction between them. The concept of dynamic capabilities helps in the
development of human resources, physical assets as well as intellectual property in an
organization. It also helps them to develop at the same time and thus it is beneficial for the
organization. There are several implementation issues which are associated with dynamic
capabilities such that the capacity of the organizations to change the dynamic capabilities into
substantive capabilities. Moreover certain problems are involved in the ability to solve a problem
or achieve a particular result in the organization. The limitation of dynamic capability is that only
the entrepreneurs can combine the resources and minimize the skills in this approach. The
entrepreneurs are only regarded s the important individuals who can improve the potential and
thus create social values. The process of entrepreneurship which is associated with dynamic
capabilities involves the development of both dynamic and substantive capabilities. Moreover,
dynamic capability is associated with the organizations to change the substantive capabilities
The concept of sustainable approach in strategic management has been receiving a
growing recognition and it is vital for many business executives. It is important to protect the
capital base of the organization because in certain circumstances it is noticed that the
organizations cannot identify its sustainable strength. If sustainable development is in such a way
that it can achieve the potentials of the business and thus must be integrated in measurement and
planning processes. Sustainable strategic approach also helps the top management of the

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organization in applying the concepts in their own organization. It is also important and vital to
emphasize the concept of sustainable approach by different organizations because it is not
possible by a single enterprise. Some companies face different challenges and hurdles in
implementation of sustainable approach. The company has to bear additional cost for
incorporating the social issues in the organization. There may also be lack of proper training of
the employees and thus it becomes difficult for the organization to implement and adapt the
changes. Lack of information in the organization for ethical, social and environmental concerns
is also a major limitation of sustainable approach in strategic management. Moreover, there may
be certain issues which are associated with the commitment of the top level managers. They may
not have the idea of implementing the principles or adapting to the new technologies of the
organization. Such problems may also lead to various kinds of implementation issues in
sustainable management and thus it will result in loss to the organization.

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Reference List
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
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.
Bourne, L., 2016. Stakeholder relationship management: a maturity model for organisational
implementation. CRC Press.
Cooper, S., 2017. Corporate social performance: A stakeholder approach. Taylor & Francis.
De Brucker, K., Macharis, C. and Verbeke, A., 2013. Multi-criteria analysis and the resolution of
sustainable development dilemmas: A stakeholder management approach. European journal of
operational research, 224(1), pp.122-131.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Kramar, R., 2014. Beyond strategic human resource management: is sustainable human resource
management the next approach?. The International Journal of Human Resource
Management, 25(8), pp.1069-1089..

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Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Schilke, O., 2014. On the contingent value of dynamic capabilities for competitive advantage:
The nonlinear moderating effect of environmental dynamism. Strategic Management
Journal, 35(2), pp.179-203.
Vogel, R. and Güttel, W.H., 2013. The dynamic capability view in strategic management: A
bibliometric review. International Journal of Management Reviews, 15(4), pp.426-446.