MGT302 Strategic Management: A Report on Alternative Approaches

This report provides a comprehensive analysis of three strategic management approaches: stakeholder, dynamic, and sustainable. The stakeholder approach focuses on satisfying stakeholder needs for long-term success, emphasizing internal and external relationships. The dynamic approach aims to improve financial stability by modifying traditional administrative practices and enhancing profitability. The sustainable approach emphasizes community and environmental benefits alongside business growth. The report discusses the viability and suggested benefits of each approach, along with implementation issues such as stakeholder conflicts, limitations in dynamic problem-solving, and lack of community awareness. It concludes that while each approach has its merits and limitations, the stakeholder approach is broadly applicable across various organizations. Desklib offers a wealth of resources, including past papers and solved assignments, to support students in their academic endeavors.

Running head: STRATEGIC MANAGEMENT
Strategic management
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Executive summary
The strategic approach has a higher level of contribution to the current business industry. In this
study, three types of strategic approaches have been highlighted. In case of stakeholder approach,
it has been identified that the internal and external relationship with the stakeholders are being
developed in this process so that the contribution of the stakeholders in the decision making
process can be increased. On the other hand, in the case of the dynamic approach, the financial
stability of the organization is being improved. In this process, the traditional administrative
practices are being modified, which influence the rate of profitability. In case of the sustainable
approach, both the community and environment are being benefited. Highlighting the
implementation issues it has been mentioned that improper relationship between the
stakeholders, limited field of solution in dynamic approach and lack of awareness among the
community are the major three limitations in three strategic approaches. It has been identified in
this study that among the three approaches the stakeholder approach can be applied to every type
of organizations.

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Table of contents
Introduction......................................................................................................................................3
Different strategic approaches.........................................................................................................4
Viability of each approach...........................................................................................................4
Stakeholder approach...............................................................................................................4
Dynamic approach....................................................................................................................5
Sustainable approach................................................................................................................5
Suggested benefits........................................................................................................................6
Stakeholder approach...............................................................................................................6
Dynamic approach....................................................................................................................6
Sustainable approach................................................................................................................7
Implementation issues..................................................................................................................8
Stakeholder approach...............................................................................................................8
Dynamic approach....................................................................................................................8
Sustainable approach................................................................................................................9
Limitations.................................................................................................................................10
Stakeholder approach.............................................................................................................10
Dynamic approach..................................................................................................................10
Sustainable approach..............................................................................................................11
Conclusion.....................................................................................................................................11
Reference list.................................................................................................................................13

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Introduction
The term strategic management indicates the process in which the planning, as well as the
implementation process of the actions towards goals, is being done. In the current business
scenario, availability of competitors in the market has become the major concern for the
companies (Hitt and Duane Ireland 2017). In this situation creation of valuable and unique
position in the market has become essential for the organizations. In case of strategic
management, numerous models and theories are being developed in the organizations so that the
company can be able to deal with the external situations. It cannot be denied that due to
increasing level of competition in the market, the needs for effective strategic management have
increased. In order to develop the broader perspective to the employees, the strategic
management team helps to understand the job role and responsibilities of the employees for
achieving the goals and objectives of the company. Through the effective strategic management
planning, the organizational culture, as well as the employee satisfaction, gets increased (Barney
2017). Therefore, it can be said that in order to maximize the ability of the employees in an
organization, the effective strategic management planning is required. It cannot be denied that
through the strategic management initiatives, different functional areas are being incorporated in
the organization, which ensures harmonize functional areas in case of understanding the strategic
approach. The purpose of this study is to highlight the different strategic approaches such as
Stakeholder approach, Dynamic approach and Sustainable approach. By mentioning the strategic
approaches the study has elaborated the importance, viability, benefits, implementation issues
and limitations of the approaches have been discussed.

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Different strategic approaches
Viability of each approach
Stakeholder approach
In the strategic management, the stakeholder approach suggests to the managers for
implementing and formulating the process to satisfy the needs of the stakeholders. In order to
gain the long-term success in an organization, the stakeholder approach can be beneficial for the
organizations. Stakeholders can be classified into two parts. In the below diagram the different
types of stakeholders have been mentioned.
Figure: Types of stakeholders
(Source: Wellens and Jegers 2014)
The stakeholder approach is being developed based on the stakeholder theory. According
to Ayuso et al. (2015), the stakeholders' approach has the higher level of impact in case of
running a business successfully, the stakeholder approach is very important. By following the
stakeholder approach in the organization co-equal status of the employees is being maintained.
On the other hand, it is true that depending on the stakeholder approaches, the understanding

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between organizational constitutions and organizational activities can be analysed. Therefore, it
can be said that by adopting the strategy of stakeholder approach, the company will be able to
maintain loyal stakeholders for the long time, which can indirectly influence its business growth.
Dynamic approach
The term dynamic approach indicates the necessity of discovering the multiple forces,
which can be developed depending on the different situations. It has been identified that in the
case of organizational development or bringing the change action in the organization, the
dynamic approach is appropriate. In case of dynamic approach, the economic stability in an
organization can be introduced in the better manner. By implementing the dynamic approach in
the workplace, the root problems regarding the finance can be solved in a proper manner. On the
other hand, it is true that with the help of dynamic approach in the workplace, the traditional
approach can be improved. By continuing this Dorça et al. (2016) stated that by reducing the
limitation of traditional approaches, the dynamic business strategy can help to serve the company
in an effective way. It is also true that if an organization will be able to adopt the dynamic
approach in the workplace in the right manner, it can help to lead the enterprises in delivering the
effective strategic ambition.
Sustainable approach
In the current business scenario, the sustainable approach has become popular in the
industry. In case of business sustainability as well as maintaining the increasing rate of
profitability, the sustainable approach is important to be adopted by the organizations. By
protecting the organizational environment the sustainable approach helps to improve the living
standard of the people who are associated with the working environment. In the current
competitive business industry, it has become important for the business organizations to maintain

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the increasing growth has become important so that the position in the competitive industry can
be maintained.
Suggested benefits
Stakeholder approach
The major benefit of stakeholder approach is in this process the uniqueness of the
organization can be maintained. In this process, the corporate dealing is being clarified to the
employees. Therefore, it can be said that in this process the transparency is being maintained. In
the words of Ayuso et al. (2014), in order to develop the effective management strategies, the
stakeholder approach is important. By supporting this Wellens and Jegers (2014) stated that the
stakeholder approach indicates the people who are able to understand the expectations and needs
of the corporation.
Dynamic approach
In the words of Bariviera (2017), in case of dynamic approach, the innovation is being
introduced in organizational environment. The benefit f the dynamic approach is in this process
both the socioeconomic and regional environment in an organization are being benefited. By
supporting this Secundo et al. (2015) stated that depending on the dynamic approach the
complexity of the sustainable business systems can be solved. Therefore, it can be said that the
biggest strength of the dynamic approach is in this process the business sustainability can be
maintained in a holistic manner. It can be said that in order to maintain the sustainable position in
the market, this strategies approach will be beneficial for the organizations. It cannot be denied
that using the dynamic strategic approach, the social, economic, environmental and internal
operational aspects can be maintained properly.

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Sustainable approach
Figure: Sustainable development model
(Source: Li et al. 2016)
In order to maintain the long-term sustainable value, the sustainable approach has higher
level of contribution to the business industry. In case of implementing the business strategy, the
sustainable approach helps to consider the dimensions of business operations. On the other hand,
it is also true that by following the sustainable approach in the strategic management, the social,
cultural, environmental, economic and ethical components of the business operations can be
maintained. In the words of Carosio et al. (2015), by using the sustainable approach in the
workplace, the correlation between the market effectiveness and strategic management
sustainably. By supporting this Li et al. (2015) said, in order to develop the successful
enterprise, the positive correlating between the strategic management practices and sustainability
level is required so that the competitive advantage, as well as the marketing effectiveness, can be
gained. On the other hand, according to Ismail and Abdel Kareem (2015), the sustainable
business model is the green business model. The first priority of this model is to reduce the
negative impact on the environment, community and society. The important benefits of the

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sustainable business approach are in this process the human right policies and progressive
environmental practices are being maintained. Different types of CSR initiatives are also
included in the sustainable strategy. As it is beneficial for the developing a strong brand image in
the industry, therefore, it can be said that this strategic approach is beneficial for the
organizations to establish a popular image to the customers.
Implementation issues
Stakeholder approach
After the introduction of modern corporate firm, the obligations in implementation of
stakeholder approaches in the organization have increased. It cannot be denied that in case of
developing the effective relationship among the stakeholders is difficult. Depending on the role
and contribution of the stakeholders, the organizations develop the strategy for satisfying the
needs of them (Wellens and Jegers 2014). In this situation, the other stakeholders become
dissatisfied. It has been identified that some of the cases dissimilarities of the stakeholders’
opinion, brings the organization in tough position. On the other hand, it is true that depending on
the business profitability, the internal conflicts among the stakeholders creates barrier for the
organization to implement the strategy.
Dynamic approach
Due to its complex system, the approach is hard to implement in the case of the dealing
with the business challenges. It cannot be denied that t is hard to define all the components of
dynamic approach to the employees as it is very time-consuming. On the other hand, it is true
that due to the lack of data understanding as uncertainties regarding the system implementations,
the changes can be increased regarding the strategic implements. In the words of Secundo et al.

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(2015), in case of the dynamic approach, the time element has a higher level of contribution. It
cannot be denied that the economic variables in the dynamic approach are being influenced
depending on the time element. It creates various problems in terms of identifying the proper
solution depending on the challenging situation. According to Dorça et al. (2016), the biggest
implementation issue in dynamic approach is, in this case, the solution is being introduced
depending on the economic and mathematical calculations. Due to this reason, it becomes harder
for the normal people to understand the implantation process. Therefore, it can be said that in
case of implementing the dynamic approach in the strategic management, the potentiality and
knowledge of mathematics are required. In this situation, lack of understanding regarding the
economic variables, it becomes harder for the employees to understand the purpose of the
approach.
Sustainable approach
It cannot be denied that due to increasing opportunities in the industry, the challenges for
the organization have also increased. Due to the complexity of the sustainable approach, most of
the organizations do not get the chance to implement the conception of the workplace. On the
other hand, before developing any kind of strategic planning, the clarification of the strategies to
the employees is important (Carosio et al. 2015). It has been identified that in some of the cases
due to lack of understanding regarding the strategic implementation, the sustainable strategy
faces the failure. Due to the challenges in decision making process, resource allocation and
identifying the mission of the company, the sustainability procedure faces the challenges. On the
other hand, it has been identified that due to lack of potentiality of the manager, the
implementation of the sustainable strategy faces the challenges (Li et al. 2016). Therefore, it
can be said that in order to develop the sustainable approach in the organization, the educational

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potentiality of the managers is required. Modern technological implementation, human resource
and investment are the three major components in the case of adopting the sustainability
approach in the organization. It becomes harder for the companies which are not financially
stable.
Limitations
Stakeholder approach
The biggest limitation of stakeholder approach is there is higher level of chance to be
influenced by others. Due to this reason, the decision making process of the stakeholders can be
changed. On the other hand, it cannot be denied that in some of the cases the stakeholders show
very little influence on the overall decision of the organization. Due to the lack of interest of the
stakeholders, it becomes harder to adopt this strategy. On the other hand, the study has already
mentioned that there are two types of stakeholders and in case of decision making the similarity
of the decisions is required in terms of implementing the operations. It has been identified that
due dissimilarities among the stakeholders' opinion, it becomes harder for the organizations to
adopt a particular strategy (Ayuso et al. 2014). It has been identified that some of the cases lack
interaction among the stakeholders with organization, the internal and external relationship
between the stakeholders and organization is being affected. Lack of coordination between the
organization and stakeholders is the major limitation in stakeholder approach.
Dynamic approach
In the words of Secundo et al. (2015), in case of dynamic approach, depending on the
size and probability rate of the challenges, limits of implementation of the approach can be
influenced on the other hand, it is also true that depending on the organizational size, the driving

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factors of this model also changes. Therefore, the major limitation of this approach is in this
process, it functions individually in case of different situation in different organization. If any of
the organizations want to adopt the dynamic approach in the workplace, it cannot be possible if
the situation or size will not match with the dynamic model functions. Hence, it can be said that
the field of dynamic approach is limited as it mainly focuses on the financial status of the
company. Although the dynamic approach is beneficial in case of influencing the social, cultural
and environmental elements in the business, but in case of economic profitability the approach
can bring the higher level of benefits.
Sustainable approach
Although the sustainable approach has higher level of contribution in the current business
scenario, due to its critical implementation process, it becomes time-consuming. O the other
hand, it cannot be denied that in case of sustainable approach, the mentality of the associated
people is needed to be improved. In case of sustainable approach, the values of the customers are
being developed. In some of the cases, the organizational activities create dissatisfaction among
the customers, which impact negatively on the business. Since the 21st century, rapid growth in
the industry has changed the business trend (Barney 2017). Customers have become very
demanding and due to the availability of the organizations, the demands and needs of the
customers are rapidly changing. In this situation, for bringing the sustainable situation, the large
organizations invest in CSR activities. Some of the cases, organizations face the failure to satisfy
the needs of them. As its result, the brand image of the company gets affected.
Conclusion
In the conclusion, it has been identified that depending on the situations, all the three
strategic approaches can be beneficial for the organizations. Analyzing all the three approaches,

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it can be said that in the case of the stakeholder approach, the relationship between the
stakeholder and organization can influence the organizational development. On the other hand, it
as also been mentioned in this study that, an improper relationship with the stakeholders can also
bring the negative impact in the workplace. In case of dynamic approach, the rate of profitability
has been considered as the important key driver. It is mentioned in this study that if the dynamic
approach can be introduced in right way, it will help in case of modifying the traditional
administrative practices in the workplace, which can be beneficial for the company. Lastly, the
study has mentioned the sustainable approach. In this strategy, it has been mentioned that
depending on the business practices of the environment as well as the community can be
benefited. In this strategy, the modern technological equipment and large amount of investment
are required. Therefore, it can be said that the sustainable strategy is not possible to adopt by the
small organizational as it needs large amount of investment. After analyzing all three strategic
approaches, it can be said that depending on the situation and financial status of the
organizations, these approaches can be appropriate. Among all the strategic approaches, I
believe, the stakeholder strategic approach can be beneficial for both the large, medium and
small sized organizations. As the stakeholders are being considered as the backbone of every
organization, therefore, by developing strong relationship between the organization and
stakeholders the strategy will bring long-term benefit to the organization.

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Reference list
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.
Bariviera, A.F., 2017. The inefficiency of Bitcoin revisited: A dynamic approach. Economics
Letters, 161, pp.1-4.
Barney, J.B., 2017. Resources, capabilities, core competencies, invisible assets, and knowledge
assets: Label proliferation and theory development in the field of strategic management. The
SMS Blackwell handbook of organizational capabilities, pp.422-426.
Carosio, F., Fontaine, G., Alongi, J. and Bourbigot, S., 2015. Starch-based layer by layer
assembly: efficient and sustainable approach to cotton fire protection. ACS applied materials &
interfaces, 7(22), pp.12158-12167.
Dorça, F.A., Araújo, R.D., De Carvalho, V.C., Resende, D.T. and Cattelan, R.G., 2016. An
automatic and dynamic approach for personalized recommendation of learning objects
considering students learning styles: an experimental analysis. Informatics in education, 15(1),
p.45.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Ismail, Z.Z. and AbdelKareem, H.N., 2015. Sustainable approach for recycling waste lamb and
chicken bones for fluoride removal from water followed by reusing fluoride-bearing waste in
concrete. Waste management, 45, pp.66-75.

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Li, S.H., Liu, S., Colmenares, J.C. and Xu, Y.J., 2016. A sustainable approach for lignin
valorization by heterogeneous photocatalysis. Green Chemistry, 18(3), pp.594-607.
Secundo, G., Elena-Perez, S., Martinaitis, Ž. and Leitner, K.H., 2015. An intellectual capital
maturity model (ICMM) to improve strategic management in European universities: A dynamic
approach. Journal of Intellectual Capital, 16(2), pp.419-442.
Wellens, L. and Jegers, M., 2014. Effective governance in nonprofit organizations: A literature
based multiple stakeholder approach. European Management Journal, 32(2), pp.223-243.