Strategic Management: Approaches, Examples, and Analysis Report

This report offers a comprehensive overview of strategic management, beginning with an executive summary that highlights key concepts such as the development, formulation, and implementation of effective organizational strategies. It contrasts the standard linear approach with its limitations, while also detailing the stakeholders approach, dynamic capabilities approach, and sustainability approach. The report illustrates how companies like Coca-Cola, Starbucks, IBM, and Unilever utilize these strategic management approaches to achieve long-term advantages and organizational goals. It covers the core principles of strategic management, including creating profit, establishing market positions, and gaining competitive advantages. The report further examines the practical application of these approaches through real-world examples, such as Ford's use of the stakeholder approach and Apple's use of dynamic capabilities, and concludes with recommendations and a final summary.

Running head: Strategic management
Strategic management

Strategic management
Executive summary
The strategic management is the process to develop, formulate and implement the various
effective strategies in the organization so that the company can achieve revenue and profits
within the organization. It explains the standard linear approach and its limitations. It also
describes the stakeholders approach, dynamic capabilities approach and sustainability approach
of the strategic management. It explains that how the various companies is using the strategic
management approaches to gain the long term advantages and benefits.
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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Approaches to strategic management..........................................................................................................5
Stakeholders approach and example............................................................................................................5
Dynamic capabilities and example..............................................................................................................7
Sustainable approach and example..............................................................................................................8
Limitations of strategic management approaches........................................................................................9
Recommendation.......................................................................................................................................10
Conclusion.................................................................................................................................................10
References.................................................................................................................................................12
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Strategic management
Introduction
The report presents a brief overview of the strategic management. It explains the linear approach
and its limitations. Further, it explains the various approaches to the strategic management. It explains
that how the Coca-Cola, Starbucks, IBM, Unilever company uses the various strategic management
approaches to gain the competitive advantages and to achieve the organizational goals and objectives. The
main objective of the strategic management is to evaluate and analyze the external and internal
environment of the company.
Strategic management is the process of formulation and execution of the major goals,
objectives, and initiatives which are taken by the organization’s top management on behalf of the
owners based on the deliberation of resources and evaluation of the interior and exterior
environment. This management provides overall direction and guidelines to the enterprise and it
includes the organization goals, objectives, plans and policies and allocation of resources to
achieve the organizational long-term objectives and goals. Another side, it defines as the art and
science to formulate, evaluate, and implement cross-cultural decisions in order to meet
organizational goals and objectives. It is not related to a single specialization but it covers overall
organization. It is the broad area which covers overall functional areas of the association.
Therefore, it plays a significant role in every organization. There is three basic principles of
strategic management; they are discussed below (Bateman & Snell, 2013).
 Creation of profit and revenue by aligning organization activities and operation with a
strategic mission and vision.
 Generate a unique and effective position in the market.
 Compromise operations and activities in order to achieve satisfaction and morale and
determine activities to gain the competitive advantages (Paiola, Saccani, Perona and
Gebauer, 2013).
The Standard linear strategy in an association is strategy under which business plans, policies
and procedures implement and execute their strategies in an organization accordingly. The linear
model of strategic management focuses on the planning process in order to meet the goals and
objectives according to the requirements of the company. The linear approach provides a good
framework for the organization (Foss & Knudsen, 2013). There are various shortcomings of
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linear approaches. The objective of this approach is very complex and it is very difficult to
understand the financial, social, and institutional constraints. The objectives and functions of the
approach are not clearly specified by the company. Lack of communication and coordination, the
company faces many challenges and key issues. It is very complex and intricate approach. All
these challenges are faced by the company so it should be managed and controlled by the
organization. The company should reduce all these shortcomings and limitations to build a
sustainable organization (Bateman & Snell, 2013).
Approaches to strategic management
The approaches of strategic management play a significant role in every organization. The
company uses the various approaches to identify and evaluate the success and growth of the organization.
The approaches of strategic management have been discussed below (Vogel & Güttel, 2013).
Stakeholders approach and example
The stakeholder's approach is a theory of business ethics and organizational management
which addresses values and morals to manage and control the association. The stakeholders’
strategic management approach creates positive and favorable relationships with various
stakeholders with the help of suitable management. In stakeholder strategic approach,
stakeholders focus on the prerequisite and services of the organization to attain the goals and
objectives of the company. It is the integrated and vital approach to the strategic management.
There are various stakeholders exist in the organization, they include suppliers, creditors,
employees, unions, project manager, sponsor, community, customers and professional
organization, etc. There is a close relationship between stakeholders and organization (Paiola,
Saccani, Perona and Gebauer, 2013). They play a significant role in an organization because they
help to determine the outcomes of the business. An effective stakeholders approach maintains a
favorable relationship between management and stakeholders of the company. Stakeholders
monitor and analyze the activities and globalization plans of the company. They help to
maintain good communication in an organization and they identify and analyze the key issues
and benefits of the association. They generate new ideas and plans to gain the long-term success
and growth of the organization. Stakeholders may include different people that come from
various areas of the business. This approach protects the interest of the stakeholders and provides
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satisfaction to them. This approach is important to generate high revenue and profit of the
company and it also increases the satisfaction level of the customers. Through this approach, the
association can take various opportunities and control on the various key challenges. Further, the
stakeholder's approach is executed through the following ways (Pearlson, Saunders &Galletta,
2016).
 The Company should identify the company stakeholders group for doing the work. The
company stakeholders include the partners, employees, shareholders, society, and
suppliers.
 The second step is to create a value proposition for each and every stakeholder's group.
There are three elements of values such as financial (volume, ROI, price, margin),
emotional ( offering security to maintain trust) and functional ( providing flexibility,
increasing and enhancing the shareholder's productivity).
 The value creation should be balanced by the company to gain the return and revenue.
 The organization should identify the capabilities to execute and implement the plans and
procedures.
 The organization should use the useful information to create and generate a profit model
to manage and control the certain tradeoffs among the stakeholders of the company.
 Finally, the company should determine the set of key performance indicators to manage
the operation and activities of the business (McKelvie and Davidsson, 2009).
Ford motor company is one of the biggest companies which uses the stakeholder's approach
in their management. The company uses this approach to maintain sustainability and growth of
the organization. The variety of stakeholders includes the bottling partners, customers,
consumers, employees, communities, government, regulatory authorities, and suppliers. The
company conducts stakeholder’s engagement session and programs for the various stakeholders.
The company encourages and enhances the stakeholders approach to gain the competitive
advantage in the market. In this way, the company is using the stakeholder's approach in the
organization. Through the stakeholders’ theory, the association understands the various needs
and expectations to accomplish the goals and objectives. The stakeholders are the owners and
founders of the company and they work for the success and growth of the company.
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Dynamic capabilities and example
In the organizational theory, the dynamic capability is the capacity of an association to utilize
the resources of the company. The dynamic capabilities approach shows the firm ability and
integrity to achieve the goals and objectives of the company. It emphasizes on the capabilities
and potential of the company to perform the task and duties effectively and efficiently. This
theory provides various guideline and support to the top management and seniors of the company
to do work effectively (Klievink and Janssen, 2009). It includes the three capabilities such as
ability, integration, and transformation which are compulsory for every organization. First,
ability shows the working capacity of the employees for doing the work. It is the ability of the
workers to adapt and learn changes within an organization. Second is the integration of new
assets of the company so the organization procedures, process, and plans are initiated and astly,
the reuse and transformational of assets utilized. The stages in dynamic capabilities have been
discussed below (Jantunen, Ellonen, and Johansson, 2012).
 Learning: It is the first stage of dynamic capabilities and it plays a significant role in
every organization. In this stage, managers and employees are required to reorganize and
reschedule their daily routines to promote and enhance interactions. In this way, this
approach helps to maintain collaboration and communication in the organization.
Dynamic capabilities help to resolve the various problems and it reduces the dysfunction
of the company. Human resource management plays a significant role in dynamic
capabilities approach. This department should evaluate the capabilities and potential of
the employees to improve the performance and efficiency of the employees.
 New assets: It is the second stage of the dynamic capabilities and the assets exist in the
company creates and expands the efficiency of the association. It helps to improve quality
and performance of the employees (Petit, 2012).
 Transformation of existing resources: It is the important stage of the dynamic
capabilities. The company can accomplish goals and objectives when the organization
converts all the available assets and resources of the company. Therefore, the interior and
exterior factors should be associated in order to accomplish the goals and objectives of
the organization.
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 Co-specialization: It is the broad concept of the dynamic capabilities. If the company
wants to create co-specialization then it should ensure the maximum utilization of
available resources (Grant, 2016).
Coca-cola, Ford motor company, IBM, and apple are the example of the dynamic capabilities
strategic management approach. These companies use the dynamic capabilities approach to
maintain sustainability in the market. Apple Company ensures the maximum utilization of
resources through dynamic capabilities approach (Kindström, Kowalkowski and Sandberg,
2013). The Ford motor company, IBM, and Coca-Cola Company are also using the various
dynamic capabilities to overcome on the competitors. These companies are taking various
advantages with the help of dynamic capabilities approach of the strategic management. They
can evaluate and analyze the various plans, policies, business activities and operations of the
competitors (Laczniak and Murphy, 2012).
Sustainable approach and example
This approach ensures the growth and development of the organization. In this approach,
the management focuses on the sustainability and development of the company. It is the process
of growth and development which uses the various resources within the organization. Through
sustainable approach, maximum utilization of resources can be done by the company. If the
company maintains the sustainable development then it can easily gain the organizational goals
and objectives. Further, there are various aspects of sustainability which are important for the
success and growth of the company (Priem and Swink, 2012). This approach helps to make
decisions effectively and it provides support for collaboration and teamwork. The managers and
top management should maintain the sustainability of the organization. It will also help to reduce
the global warming activities. Further, there is a close relationship between corporate social
responsibility and sustainable development. There are three pillars of the sustainability; they are
such as economic development, environmental protection, and social development. It helps in
economic and social growth and development. It promotes environmental education and
awareness to achieve the mission and vision of the company. Thus, the managers need to analyze
and evaluate the market conditions and they analyze the relationship between the customers and
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company. It helps to reduce the pollution and waste generation. In this way, this approach
maintains the effective sustainability in the organization (Peppard and Ward, 2016).
There are various companies which use the sustainable approach in order to meet long-
term growth and success. Starbucks, Coca-cola and Unilever companies exercise and maintain
the sustainability of the organization to flourish and expand its business activities and operations
across the world. The star buck’s corporation uses the sustainable approach to attract the more
customers in the market. After the various researches, it has been found that sustainable approach
is initiated and implemented by the many companies (Rettie, Burchell and Riley, 2012). The
suppliers, customers, and local community give full contribution in sustainable development.
Many software companies also use the sustainable development approach to reduce the carbon
emissions. Sustainability help to build the good position in the market. Through sustainability,
the company can identify the threats and risks of the market as well as the competitors. In this
way, it takes various competitive advantages and benefits. The organization can identify and
analyze the plans and policies of the competitors through excellent sustainable development
(Luyet, Schlaepfer, Parlange and Buttler,2012).
All these strategic management approaches play a significant role in every organization
to face the various challenges and obstacles.
Limitations of strategic management approaches
Although, entire approaches of the strategic management are playing a vital and integral
role in every business organization. But the organization faces many challenges and difficulties.
The interest of the stakeholders is the big issue in these strategic management approaches. The
company cannot measure the interest of the stakeholders in monetary terms. Involvement of
stakeholders in the stakeholder's approach takes a lot of time. Therefore, various limitations exist
in the stakeholder's approach (Osbaldiston and Schott, 2012).
On the other hand, there are various limitations exist in the dynamic capabilities. Through
this approach, many companies annoy the various existing resources in order to gain long-term
competitive benefits across the world. In this way, they waste the various resources to gain long
the long-term growth and success in the market (Hassini, Surti and Searcy, 2012).
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Another side, many organization face various difficulties with using the sustainable
development approach within the organization. The sustainable approach affects the national
policies adversely. Sustainable development is based on the set of requirements, therefore, it
creates various problems within the organization. It is affecting the culture and social services of
the country. Therefore, the company needs to focus on these limitations and weaknesses in order
to meet long-term mission and vision of the corporation (Garcés-Ayerbe, Rivera-Torres and
Murillo-Luna, 2012).
Recommendation
After the various researches, it has been analyzed that the company is using the various
strategic management approaches in the organization. The main objective of the strategic
management is to gain long-term sustainability. The company should comply the various rules,
regulations, laws and corporate social responsibilities. It should focus on the limitations and
shortcomings of the strategic management approaches. In this way, the company can meet and
achieve the various long-term goals and objectives of the organization. Further, the company
should use innovative technologies to gain the competitive benefits in the market across the
world. To reduce the limitations and obstacles, the organization should develop and build the
effective human resource management.
Conclusion
The report is based on the strategic management. The strategic management approaches play a
vital role in the growth and sustainable development of the company. These approaches help to maintain
the trust among the various stakeholders. The strategic management helps to build and maintain the
strong and effective position and goodwill of the company in the market. On the other hand, these
approaches consist some limitations which are not good for the success and growth of the company.
These limitations affect the business activities and operations adversely. Now it is concluded that the
company must make the effective strategies to overcome on the competitors. The organization should use
the maximum utilization of resources and assets. In this way, the company can increase its revenue and
outcomes. The association should focus on the key challenges and barriers of the strategic management
approaches. The company should maintain the sustainable human resource department to formulate and
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implement the various policies and plans for the success and growth of the organization (Sangrà,
Vlachopoulos and Cabrera, 2012).
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References
Bateman, T.S. and Snell, S., 2013. Management: Leading & collaborating in a competitive
world. McGraw-Hill Irwin.
Foss, N.J. and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2).
Routledge.
Garcés-Ayerbe, C., Rivera-Torres, P. and Murillo-Luna, J.L., 2012. Stakeholder pressure and
environmental proactivity: Moderating effect of competitive advantage
expectations. Management Decision, 50(2), pp.189-206.
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Hassini, E., Surti, C. and Searcy, C., 2012. A literature review and a case study of sustainable
supply chains with a focus on metrics. International Journal of Production Economics, 140(1),
pp.69-82.
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