KOI MGT302: Strategic Management Alternative Approaches Report

This report critically examines three key strategic management approaches: sustainable, stakeholder, and dynamic capabilities. It provides detailed definitions of each approach, explores their historical context, and analyzes their respective benefits and limitations within an organizational setting. The report uses real-world examples, including a case study of Amazon, to illustrate how these approaches are implemented and their impact on business performance. The analysis compares and contrasts the approaches, concluding with a discussion on the most suitable approach for the contemporary business environment. The report follows Harvard guidelines and includes an executive summary, table of contents, introduction, detailed analysis of each approach, conclusions, references, and an appendix.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the student
Name of the university
Author note

1STRATEGIC MANAGEMENT
Executive summary
In this study, three important strategic management approaches have been described. By
comparing the impact of all the approaches in organizational context, it can be said that dynamic
capabilities is the significant approach that is suitable for emerging business environment.
Through this approach, the companies like Amazon can ensure its long term growth in the
market by enhancing its resource capabilities.

2STRATEGIC MANAGEMENT
Table of contents
Introduction......................................................................................................................................3
Three approaches.............................................................................................................................3
Conclusion.....................................................................................................................................10
References and bibliography.........................................................................................................11

3STRATEGIC MANAGEMENT
Introduction
In the field of strategic management, in order to formulate as well as implement the
strategic goals, strategic approaches play the significant role (Rothaermel 2016). Based on the
organizational approach, collaboration among the employees can be ensured. In case of positing
in the strong position, the strategic approach adopted by the company can significantly impacts
on driving the business values. Strategic management can be considered as the essential
component in business that significantly evaluated the strategic vision and future plans of the
company (Ansoff et al. 2018). By continuing this it is true that in order to run the business
efficiently and effectively, the strategic management approach can significantly contribute in
driving the organizational values. In the 21st century, based on the organizational values and
target audience, the strategic approach gets varied in different organization. The purpose of this
study is to critically analyze the three important strategic approach such as sustainable approach,
stakeholder approach and abilities. In this study, comparing all the approaches, these benefits on
strategic operational have been examined.
Three approaches
Sustainable approach
Sustainability can be defined as the important business approach that contributes in bringing the
long term opportunities in the workplace that can contribute in managing the risk in the market
(Lasserre 2017). In the year 1994, John Elkington introduced the sustainable theory based on the
triple bottom line approach. Adopting the sustainable approach in the workplace, the
environmental, economic and social development can be ensured by the company. The
stakeholders values can also get increased based on the sustainability concern towards the

4STRATEGIC MANAGEMENT
community. The sustainability based strategic framework can help in case of integrating the
organizational decisions. Especially in the international market, the concept of sustainable
approach is quite popular. In the sustainable business practices developing the interrelationship
between the organizational decision making process and environment as well as economy, the
social benefits are being provided (Najanthong, 2016). The notion of strategic sustainability can
be considered as the broader strategy that can significantly contributes in growing the business
fundamentals as well as it helps to gain thee competitive advantage in the market. By creating
the standard values as well as ensuring the strong distribution, the sustainable approach helps the
company to improvise the value creation process.
The major benefit of sustainability approach is significantly supports the individuals well-being.
By maintaining the bio capacity and health of environment is being maintained. By promoting
better economy, the sustainability approach significantly contributes in reducing the wastage as
well as ensures the better distribution of health and wealth. In the organizational perspective, the
sustainable approach can contribute in improving the competitive advantage and brand image of
the company. It is true that the sustainability approach can help to increase the business
productivity by reducing the costs. On the other hand, reducing the case, it significantly satisfies
the enraging environmental concern among the stakeholders. Generating the better ability
among the employees, the sustainable strategic approach can significantly help to meet the needs
of the stakeholders. On the other hand, informally it contributes in ensuring the profits for people
and plant.
It is true that in the organizational perspective, the sustainable strategic approach is quite
beneficial that can bring huge impact in generating the long term profits in the workplace.
However, it is true that like various advantages, the sustainable strategic approach has some

5STRATEGIC MANAGEMENT
limitations. In the current business scenario, sustainability has become the rapidly developing
concept that has brought the dynamic changes in human ecological systems (Najanthong, 2016)).
In some of the cases, sustainability approach is highly concentrating towards the ethical
practices, where it is distracting the leaders from the actual business objectives. On the other
hand, it is true that in some of the cases due to changes in policy decisions, sometimes it become
challenging for the companies to maintain all the sustainable standard. Sustainability approach
requires the huge investment as it brings the impact on larger aspect. It is true that some of the
cases, collecting fund for the sustainability effort. In some of the cases, lack of understanding
regarding the actual aim of the strategic initiative, the sustainability strategy gets the failure
while gaining competitive advantage. In the initial stage, the sustainability approach helps the
companies to generate strong relationship with the customers, however, in the long run, the
conflicting situation arouse for collaborating the sustainable and competitive advantage approach
in an organization.
As an example, Amazon can be considered as the important example of a global brand that
mainly focuses on sustainable approach for its strategic management. In case of integrating all
the business functions, Amazon has gained sustainable competitive advantages by maintaining
the entry barriers in different areas of operations. Sustainable approach has been followed by
the company in both the direct and indirect manner. In order to contribute in economic
empowerment, the company has get involved in different CSR activities for reducing the food
wastage. In order to set the business values, Amazon has made the sustainable growth strategies
for satisfying the economic, environmental and social demands. By designing the green building
strategy, it has promoted positive approach towards the environment, which has helped the
company to reduce wastage, that indirectly impacted on its cost effectiveness.

6STRATEGIC MANAGEMENT
Stakeholders approach
In the 19th century, the stakeholders approach can be considered as the traditional approach that
significantly contributes in driving the strategic directions in the companies (Su et al. 2016). In
the business field, Stakeholders approach significantly contributes in formulating as well as
implementing the strategic process, which mainly aims to satisfy the needs of the stakeholders.
On the other hand, it is true that by following the stakeholder approach strong relationship can be
developed between, customers, investors, suppliers, communities and business. In order to
sustain in the imperfect business environment, the stakeholder approach can help the managers to
create valuable opportunities. In the year 1984, R Edward Freeman has introduced the
stakeholders approach in the business context for addressing the values as well as morale of the
companies. As per this approach, the stakeholders can be defined as the important component in
the business context, which can significantly drive the strategic directions. The stakeholder
business approach highly concentrated towards the ethical practices adopted by the managers. As
this approach, by involving people, the organizations focus on implementing the strategic
decisions.
Analyzing the major benefits of stakeholders approach, it can be said that creating competitive
advantage it helps to develop the interrelationship between the stakeholders and firm. In order to
enhance organizational values as well as enhancing the ethical morale in the workplace, this
strategic approach is beneficial (Rebs, Brandenburg and Seuring 2019). On the other hand,
increasing the trust of the stakeholders, this approach enhances the loyalty of them towards the
company. Reinforcing the access of business operation, the stakeholders approach significantly
focuses on driving the core competencies of the company. Driving the organizational culture, the
stakeholder approach creates the values by bringing innovation in the market. In order to attract

7STRATEGIC MANAGEMENT
higher quality of workforce, the stakeholder approach helps to generate satisfaction by bringing
the innovation. The key aspects of this approach are providing benefits to the people who are
associated with the company and understand the strategic flexibility in the workplace.
It is true that stakeholders approach can bring the significant impact on generating the values in
the organization, however, it has various limitations which create challenges for the managers
while implementing the stakeholders approach as the strategic initiatives (van Niekerk and Getz
2019). In some of the cases the companies try to over value the stakeholders, which increases the
expanse compared to the benefits. In order to satisfy the intention of value creation and ensuring
the stakeholders satisfaction, the companies focuses on allocating huge resources for well-being,
as its result, the firm’s profitability gets compromised. Enhancing the distribution value, some of
the cases the stakeholders ask for maximizing the returns, which sometimes create challenges for
the managers. On the other hand, implementing the divergent views of the stakeholders, it is
quite challenging for the firms. Implementing the stakeholders approach as the strategic practice
is quite difficult for managers. This approach is time consuming and negotiating the mutual
interest sometimes become challenging for the companies. Depending the acceptance ability of
the stakeholders towards changes, it becomes easier for the companies to bring any type of
strategic change in the market. However, as the result of stakeholders approach sometimes the
lack of adoption ability among the stakeholders, the firms face huge challenges to introduce
growth benefits.
Amazon can be considered as the perfect example for the companies that follow the stakeholder
approach for enhancing growth in the market. The stakeholder approach especially being
followed in the service industries, where the entire sales rate depends on the stakeholders’
relationship. In the year 1984 the stakeholders approach has been published and after the

8STRATEGIC MANAGEMENT
establishment of this approach large numbers of organizations have started adopting this
approach for implementing the CSR activities (Cooper 2017). By following the stakeholders’
route the company has made its significant position in the market in which the company has
developed its strategic position in the market. In order to gain the competitive advantage in the
market Amazon clearly choose the customers and stakeholders’ over all, which has made the
company unique in the global ecommerce market. It is true that in order to enhance the broad
scope in the market, satisfying the interest of the stakeholders’ the company has made strategic
position in the market. As the leading global brand, the customers are in the highest priority of
thee company while implementing the CSR strategies in the market.
Dynamic capabilities
In the year 1997, David Teece, Gray Pisano and Amy Shuen introduced the dynamic capabilities
in the strategic decision. It can be considered as the important concept that integrates the firm
abilities in case of reconfiguring as well as building the internal and external competencies in the
fastest changing business environment (Breuer and Lüdeke-Freund 2019). The Dynamic
capabilities are being purposefully being adopted by the companies for properly utilizing the
business resources. On the other hand, it is true that emphasizing the ability of individuals for
adequately reacting on the changing external environment, it helps to enhance the multiple
capabilities of individuals. Analyzing the theoretical primary concept of dynamic capabilities in
strategic management, it can be said that enhancing the operational capabilities this concept has
got introduced in the business context. In order to enhance the strategic framework in the
workplace, based on the main assumption of the organizational competencies, the competitive
advantage is being gained (Teece 2018). In order to gain the sustainable competitive advantage,
dynamic capabilities contribute in adopting the radical discontinuous change. In the 21st century,

9STRATEGIC MANAGEMENT
the strategic practices in the organizations have got changed. In that case the new framework has
been developed for implementing the concept of dynamic capability for strategic management.
Dynamic capabilities are closely related to the ordinary capabilities concept. It is true that in
order to achieve the new form of competitive advantage the dynamic capability significantly
contributes in providing the in depth understanding on the particular topic. By continuing this, it
can be said that inherent capabilities of the company that purposely being adopted for utilizing
the existing resource of the company, can bring significant change in the business performance.
On the other hand, analyzing the benefits of dynamic capabilities, it can be said that it can
significantly influence the perspective of the firm towards the external environment. The
dynamic capabilities in the firm is highly interrelated to the resource based view, as in this
strategic concept, gaining the competitive advantage existing resources of the company is being
utilized. It can significantly focuses on sustain the business advantage in the volatile and
complex business environment. In order to improve the resource base in the company, this
initiative can significantly contribute in creating the extension of organizational perspective
towards the competitive advantage.
It is true that in order to reposition a form, the dynamic capabilities allow the firm to execute it
for gaining it in better manner. Some of the cases, due to lack of understanding regarding the
proper utilization of resources, it becomes challenging for the firms to implement this concept. In
some of the cases, the companies face the failure if the allocation of resources get increased, in
that case, rather than gaining the profits, huge loss can be faced by the company (Pisano 2017).
On the other hand, it is true that while adopting the dynamic capability approach, it becomes
challenging for identifying the problem variables and deciding the proper area of development. It

10STRATEGIC MANAGEMENT
is true that identifying the programming problem is another important challenge that influences
the strategic direction.
As an example, it can be said that in order to build the strategic framework, Amazon has adopted
this approach for enhancing its sensitivity towards the broader environment. Rather than
focusing on the short term profitability, the firm has contributed towards the long term goals.
Through the dynamic capabilities, Amazon has brought innovation opportunities in the market
that has helped to enhance its dynamic capabilities in the market. Implementing this strategic
approach, Amazon willingly experimented the dynamic capabilities that has helped the company
to establish its image in the market as the innovative organization (Teece 2018). This approach
has helped the company to develop innovation friendly environment that has generated strong
values in the market. By allocating sufficient resources, this dynamic capability framework has
helped Amazon to strengthen its financial status. After the adoption of dynamic capabilities as
the strategic direction, it has helped amazon to effectively design the top management system.
Analyzing the strategies adopted by the company, it can be said that by gaining the benefits from
both the external and internal resources the company has ensured its better understanding
towards the distinct role of business environment.
Conclusion
In this study it can be concluded that in the organizational context, all the three strategic
approaches are important for driving the organizational growth. However, among all the
strategies discussed in the study, it can be said that dynamic capabilities are the significant
strategic approach that can properly generates values as well as growth in the organization.
Comparing it with all the approaches it has been identified that in all the cases for gaining the
competitive advantages, the strategic decisions are being adopted. However, contradicting all the

11STRATEGIC MANAGEMENT
approaches, it can be said that in the first case, the strategic focuses are driven by the
environmental wellbeing, in the case of stakeholder approach, the strategic directions get
influenced. In the third vase, the utilization of organizational resources has been highlighted as it
can not only covers the above two approaches, but also it can significantly generated competitive
advantage in the market.

12STRATEGIC MANAGEMENT
References and bibliography
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
Bogers, M., Chesbrough, H., Heaton, S. and Teece, D.J., 2019. Strategic Management of Open
Innovation: A Dynamic Capabilities Perspective. California Management Review, 62(1), pp.77-
94.
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.
Breuer, H. and Lüdeke-Freund, F., 2019. Values-Based Stakeholder Management: Concepts and
Methods. In Rethinking Strategic Management (pp. 217-239). Springer, Cham.
Cooper, S., 2017. Corporate social performance: A stakeholder approach. Routledge.
David, F. and David, F.R., 2016. Strategic management: A competitive advantage approach,
concepts and cases. Pearson–Prentice Hall.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Najanthong, M., 2016. COMPETITIVE ADVENTAGES FOR DEVELOPMENT OF
SUATAINABLE COMMUNITY ENTERPRISE: CASE STUDY OF TURTLE SCALES
WEAVING. Sakon Nakhon Graduate Studies Journal, 13(61), pp.101-106.
Pisano, G.P., 2017. Toward a prescriptive theory of dynamic capabilities: connecting strategic
choice, learning, and competition. Industrial and Corporate Change, 26(5), pp.747-762.

13STRATEGIC MANAGEMENT
Rebs, T., Brandenburg, M. and Seuring, S., 2019. System dynamics modeling for sustainable
supply chain management: A literature review and systems thinking approach. Journal of
cleaner production, 208, pp.1265-1280.
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Su, C.M., Horng, D.J., Tseng, M.L., Chiu, A.S., Wu, K.J. and Chen, H.P., 2016. Improving
sustainable supply chain management using a novel hierarchical grey-DEMATEL
approach. Journal of Cleaner Production, 134, pp.469-481.
Teece, D.J., 2017. Dynamic capabilities and (digital) platform lifecycles. Entrepreneurship,
innovation, and platforms, 37, p.211À225.
Teece, D.J., 2018. Business models and dynamic capabilities. Long Range Planning, 51(1),
pp.40-49.
Teece, D.J., 2018. Dynamic capabilities as (workable) management systems theory. Journal of
Management & Organization, 24(3), pp.359-368.
van Niekerk, M. and Getz, D., 2019. Generic Stakeholder Management Strategies.