Analysis of Alternative Approaches in Strategic Management

This report examines alternative approaches to strategic management, focusing on sustainable, stakeholder, and revolutionary strategies. It delves into the concepts, benefits, and limitations of each approach, providing real-world examples to illustrate their application. The sustainable approach, exemplified by Toyota, emphasizes environmental and social responsibility. The stakeholder approach, with BBC as a case study, highlights the importance of meeting stakeholder expectations. The revolutionary approach, using Thomas Cook as an example, explores innovative strategies for achieving competitive advantage. The report provides a comprehensive overview of strategic management, offering valuable insights for business development and organizational success. It covers the history, benefits, and limitations of each approach, making it a useful resource for students studying strategic management.

ALTERNATIVE APPROACHES TO STRATEGIC
MANAGEMENT

EXECUTIVE SUMMARY
Strategic management is the process of achieving competitive advantage of business
organisation. It is a continuous planning, monitoring, and analysing activity which provide a
necessary information in order to meet future goals. In this current era, continuous development
of innovation, emerging technologies and increased customer experience put pressure on
organisations for developing strategic planning to remain successful in business market. With
this report, it can be summarised that for adopting necessary planning in operational strategy,
strategic approaches play an important role.
In this report, three approaches that is sustainable, stakeholder and revolutionary have
been selected and analysed. Benefits, history and limitations of each approach has been
explained in this report. In sustainable approach, example of Toyota organisation has been
selected and explanation is provided on its contribution towards development of environment
needs. Further, in this report, evaluation is provided on stakeholder approach in which BBC
organisation example have been selected. Strategies which developed by BBC organisation in
order to meet expectations of stakeholders is explained in this report. At last, explanation is
provided on revolutionary approach in which example of Thomas Cook organisation has been
elaborated.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
SUSTAINABLE APPROACH........................................................................................................2
Benefits...................................................................................................................................3
Limitations..............................................................................................................................4
An example of organisation....................................................................................................4
STAKEHOLDER APPROACH......................................................................................................5
Benefits...................................................................................................................................5
Limitations..............................................................................................................................6
An example of organisation....................................................................................................6
REVOLUTIONARY APPROACH.................................................................................................7
Benefits...................................................................................................................................8
Limitations..............................................................................................................................8
An example of organisation-..................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
1

INTRODUCTION
Strategic management is the process which applied by organisation for setting
appropriate direction in order to secure its future (Ansoff and et.al., 2019). The activity used by
entities for directing and strengthening strategies for achieving competitive advantages from
business market. This assessment will provide lights on alternative approaches to strategic
management. Therefore, three approaches have been selected that is sustainable, stakeholder and
revolutionary to provide explanation on all three approaches with the example of particular
organisations in each one of them. Further, Benefits, limitations and history of such approaches
will be discussed in the study.
MAIN BODY
SUSTAINABLE APPROACH
Concept of sustainable development formed the basis of United Nations Conference on
Environment and Development in 1992 by Rio de Janeiro. This concept may be interpreted in
many ways but its core approach looks to balance different competing needs which helps in
creating awareness in environmental, social and economic needs. It is the type of approach which
is used by company for meeting human development goals. It is also known as organizing
principles which is used to provide natural resources and services on which overall society and
economy of the country is depended (Bailey and et.al., 2018). For meeting the present needs in
terms of sustainable development, this approach is used by companies without compromising
future generation's ability. Concept of sustainable development is derived from Brundtland
report and from the ideas of sustainable forest management. According to a global sustainable
development report, concept of this management is to shift focus on economic, social and
environmental protection for future generations of societies.
This approach is used by organisation's for protecting their capital base and to improve
their business image in the eyes of customers. For business enterprises, adoption of these
strategies and activities means to meet the needs of stakeholders, in terms of protecting,
sustaining and for enhancing natural resources which required in the future (Chernev, 2018).
Organisation which have effective strategies of sustainable approach have effective customer
base support, because nowadays, people get attracted in companies which have huge contribution
for development of society.
2

Benefits
It improves brand image: Company which have effective sustainable practise will able to
attract more customers in their organisation. Consumers consider to purchase goods and services
more likely to firms which have effective contribution in environmental development.
Contribution for the protection of environment in which company is established helps
management in getting support from the government.
It increases productivity and reduce cost: Sustainable business practises always result in
generating good corporate profits. Development of business practises in accordance with
sustainable approaches helps in lending efficient operations which streamlines efforts and will
protect resources. This overall helps in enhancing employee productivity and in reducing its
costs of operations.
3
Illustration 1: Sustainable development
(Source: Sustainable Development Goals: Assam- 2030 in light of SDGs, 2018)

Increase business ability to comply with regulations: For managing sustainability
development organisations needs to comply with regulations like sustainable development act,
environment regulation act and insurance regulations act. Integrating sustainability in business
practises helps organisation in meeting changing regulations in appropriate manner. Government
agencies enforces regulations to protect environmental climate such as sustainable development
act, environment regulations, insurance regulations etc (Hayes, 2018). Thus, for companies who
have developed such environmental practises are able to comply with changing regulations.
Employees and investors satisfaction: People and especially youth are always like to
work in environment which is more concern in protecting environment of society. They will not
like to work in companies which involved in ecological disasters. Therefore, companies which
involved in these practises helps in retaining employees for long term perspective.
Limitations
Involve huge cost: Development of sustainability practises involves huge cost for
organisations. In carrying out such activities, intentions of companies are good but it requires
huge cost for carrying out such activities. In order to develop such activities, changing
infrastructure, consumption habits of peoples and society development involves huge cost.
Creates Unemployment in specific regions: Develop changes for preserving care for
natural ecosystem and biodiversity sometimes causes problems in industries where they have to
reduce some activities which result in bringing unemployment. Companies and factories are
always considered as responsible for affecting environment of societies (Hislop, Bosua and
Helms, 2018). Such as reducing carbon footprints, etc. Thus, reducing business activities with
regard to environmental concerns leads to , unemployment gets increases.
An example of organisation
Toyota is the company which have huge participation for the development of society. It
has been said by management of company that 'sustainability is a way of life for Toyota'. They
have effective corporate social responsibilities strategies to satisfy needs of their stakeholders.
Recently, company have taken a step for protection in changing climatic conditions of globalised
world (Formentini and Taticchi, 2016). Therefore, to solve issues like reservation of petroleum,
company has introduced new electrified vehicles for enhancing their contribution in
environment. Company is involved in huge research and development activities so that effective
solution will get carried out in order to prevent social environment of the country. Company have
4

certain priorities areas in which they develop their sustainable practises. Such areas are
education, sanitation, water environment and road safety (Lewis, 2019).
Toyota has huge participation towards the welfare of society and because of that it has
developed various strategies like 'customer first', 'electrified vehicles' etc.
“Customer first” practises is been developed by Toyota company in which strategies will get
develop to listen problems of customer efficiently in order to meet their needs. Reactive
approach and predictive approach have been used by company. In reactive approach,
management support with providing donation to community which are in need and with
predictive approach company focus on providing support in education for children across the
world.
STAKEHOLDER APPROACH
This approach was originated by Lan Mitroff in his book named as “stakeholders of the
organisational Mind'. Book was published in 1983 in San Franciso. It is the approach which
suggests that management must have to implement process and strategies by which stakeholders
needs get satisfied. This approach used by company in order to meet long term success of the
company (McAdam, Miller and McSorley, 2019). For getting the support from different
stakeholder, management of organisations analyse market imperfections so that valuable
opportunities will get adopted. This approach is based on the stakeholder theory which focused
on shareholder satisfaction. Implementation of this approach helps organisations in creating
values of firm and to achieve competitive advantage from business market.
With stakeholder approach, companies are able to create its competitive advantages
because it focuses on developing relationship between firm and stakeholders for managing long
term success. Organisational values will also get developed with this approach which helps in
improving business performance. Therefore, needed information will get developed by company
with the help of this approach and management will able to treat well and will able to develop
initiatives where stakeholder needs get achieved. Managing stakeholder helps organisation in
attracting valuable and high-quality workforce where satisfaction in employees will lead in
creating innovations in production process. With the employee satisfaction, management of
organisation will able to retain long term thinking and valuable ideas of workers for meeting
future goals and organisational objectives (Bryson, 2017).
5

Benefits
It helps in engaging stakeholder for long term: With the stakeholder’s approach,
organisations will able to engage stakeholders support for long term. Stakeholder management
was to try to build a framework that was responsive to the concerns of managers who were being
buffered by unprecedented levels of environmental turbulence and change.
It helps in developing ethical work practises: Stakeholder only provide support to firm
which follows ethical practises at work culture. Ethical practises like equality and diversity act
will encourage shareholders value and their perspectives. With this development of approach,
organisations are able to achieve competitive advantages and positive work culture.
Creates values through innovation: This approach is a good combination of
organisational culture and innovation (Serrat, 2017). Therefore, by following stakeholder
approach, feedback from customers, creditors, employees, suppliers will be taken by company
which helps in promoting social wealth and awareness will get developed regarding stakeholders
perspective.
Limitations
Divergent interests: With the implementation of stakeholder approach, it may produce
divergent views which makes it difficult to company in reaching any agreement. Each
shareholder has different interest and benefits and to satisfy each and every needs of
6
Illustration 2: stakeholder approach
( source: stakeholder value approach, 2018)

stakeholders. It is also a time-consuming process where management of company needs to
identify needs of shareholders. To identify prices and opportunity costs of different stakeholders,
huge process of time is involved.
Overvaluing stakeholders: Obtaining information about utility of stakeholders with this
approach produce huge cost which exceed benefits. This involvement of cost sometimes creates
value which end with allocating too many resources. Different stakeholder has different needs
and to comply with everyone needs, profitability of company gets affected.
An example of organisation
BBC is the company which have applied to stakeholder approach for getting back
stakeholders support. In this, organisational culture is so influencing where employees are facing
harassment, bullying and many other problems related to their security. Stakeholders have
consent issues regarding no fair practises of work in organisation. According to past history of
BBC organisation, there was a time when company is losing trust of its stakeholders. In such
period, employees of organisation are claiming that they are experiencing bullying and
harassment with higher authority of company. This complaint by customers provide a negative
impact on image of company and as they are losing with the trust of its stakeholders. Evaluation
of problems which faced by employees badly affected the performance and image of
organisation in the eyes of stakeholders. To overcome with this issue and for again gaining trust,
company have applied stakeholder theory.
For regaining trust of stakeholders, company have applied strategies where everyone is
treated with dignity. BBC have provided more emphasis on creating values where a proper
assurance is provided to employees regarding their safety and security. Effective leadership
qualities have been applied by leaders of organisation where they have created environment
where mutual respect by making fair distribution of power and responsibilities. The focus of
management is on managing employee satisfaction by involving key person in decision making
to understand workplace issues. is provided to everyone. Proper discipline at work culture will
get developed so that employee work with motivation. Regular training and development session
have also been conducted for employees where assurance have been provided regarding grantee
of safety. With these strategies, CEO of companies get succeeded in regaining trust of
stakeholders and employees are also feeling free to work with equal and respect and safety.
7

Implication of stakeholder approach is beneficial for managing stakeholder’s satisfaction at
every level and managing competitive performance of business.
REVOLUTIONARY APPROACH
This approach of strategic management developed in 1990, and is defined by Hamel and
Markides. For this approach of management, emphasis is provided on planning (Glass, 2018).
Author have considered planning as a necessary element of this process which helps in
eliminating undesirable options and will help in developing information by which new
operational strategies got developed. With this foundation of work, management of companies
will able to identify effective strategies by which organisational objectives get achieved.
According to Markides, with the following points companies will able to conduct good
start of revolutionary approach.
 By identify customers and who are able to become customers of organisation
 for fulfilling value of customers what offers will be provided to them
 strategies need to adopt for completing above two points.
These are the points which needs to considered by management of every organisation in order to
gain competitive advantage of business. For removing business variance and obstacles,
revolutionary approach needs to be adopted in the process of strategic management. Change
needs to be specify in integral part of operation management so that existing business operations
of company will not get affected (Cooper, 2017). With this approach, companies will able to
specify business practises which needs to improve for satisfying customer needs.
Benefits
It helps in increasing productivity: With the development of revolutionary approach,
companies will able to increase their productivity. Valuable work gets developed through this
process because of new rules and responsibilities by which new forum get developed and will
result in increasing quality of work. It also involves proper planning process which will always
prove beneficial for the growth of organisation as it aids in managing uncertainties.
It helps in improving quality of work: Revolutionary approach is the tool which is
involved in planning process. Therefore, with accurate planning process companies which are
adopting new strategic operations will able to improve their quality of work by which
organisational objectives gets fulfilled. Therefore, with this approach, companies may able to
8

shift their focus, restructure their roles and responsibilities according to changing business
environment and corporate governance which will help the business in improving quality of
work.
Decreased delivery times: As this approach mainly adopt by companies when they are
going through a crisis, and to overcome with certain problems of company effective research has
been conducted by the marketing managers. Therefore, with this strategic planning and
productivity, quality of work get increases in organisation because it supports implication of
technology, shared work culture, sustainability, market research and competitor strategies. Thus,
this approach helps in developing proper availability goods and services in business market.
Limitations
Possibility of risk and uncertainties : There is no guarantee that developing new
operational changes with strategic planning get successful. Sometimes, adopting new strategic
planning increases chances of getting failed, which provides negative impact on company's
performance. With the implementation of changes, it gets often rolled back and risk of going into
loops gets increases.
Chances of employee’s dissatisfaction: Developing new operational strategies,
sometimes leads to employee dissatisfaction and resistance which can hamper performance of
business. This can influence work priority which is major barrier to sustainability and
competitive advantage of firm.
An example of organisation-
Thomas Cook is the organisation which have applied revolutionary approache in their
business operations. Technology revolution has brought a transformation in sector of travel
industries. According to a report of travel and tourism competitiveness report 2017 (The Travel
and Tourism competitiveness Report, 2017) there are almost three quarters of consumers which
have booked their holidays and tickets online rather than to visit travel agent. Thomas Cook
organisation have also shifted their business in online platform so that more customers get
attracted in organisation. In these types of strategy, company have developed their own websites,
where individual may visit and book their holiday plan in accordance with their own preference.
For improving customer service, Thomas Cook have developed Al Chatbots tool with the
use of which travel agents will able to provide effective customer services. With this tool, travel
9

agents of Thomas Cook are able to offer multi-channel experience to individuals who are visiting
their stores.
By providing holiday brochures on websites of company, more travellers get attracted in
company (Black, 2017). By providing more images and videos of destination, customers get
influenced easily and profitability of company get increases. Through the use of internet,
Thomas Cook organisation have brought an effective revolution strategy in business operations
of company. Through social media and through e-mailing management of company have
developed a direct communication with customers where any new holiday destination will easily
get promoted among them. With the use of VR headset, customers are now able to look around
facilities of hotel which company is providing. With this revolution approach, Thomas Cook has
attained an effective success in their business operations.
CONCLUSION
From the above report it can be concluded that in order to achieve competitive advantage,
strategic management plays an important role. Strategic management provide a vision for
companies to analyse reason behind success and failure of business operations. In this report,
three strategies approaches have been selected that is stakeholder, revolutionary and sustainable.
In order to get support from consumers and legislation, sustainable approach have been used by
organisation. For meeting stakeholders needs, stakeholder approach has been followed by
organisations and to develop new operational strategies, revolutionary approach is been selected
by companies. Therefore, in order to provide the best explanation of such approaches examples
of organisation have been given in this report.
10

REFERENCES
Books and Journals
Ansoff, H.I and et.al., 2019. Strategic dimensions of technology. In Implanting Strategic
Management (pp. 255-283). Palgrave Macmillan, Cham.
Bailey, C and et.al., 2018. Strategic human resource management. Oxford University Press.
Bryson, J., 2017. Managing information services: a sustainable approach. Routledge.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Cooper, S., 2017. Corporate social performance: A stakeholder approach. Routledge.
Formentini, M. and Taticchi, P., 2016. Corporate sustainability approaches and governance
mechanisms in sustainable supply chain management. Journal of Cleaner Production. 112.
pp.1920-1933.
Glass, C.R., 2018. Knowledge for Social Change: Bacon, Dewey, and the Revolutionary
Transformation of Research Universities in the Twenty-First Century.
Hayes, J., 2018. The theory and practice of change management.
Hislop, D., Bosua, R. and Helms, R., 2018. Knowledge management in organizations: A critical
introduction. Oxford University Press.
Lewis, L., 2019. Organizational change: Creating change through strategic communication.
Wiley-Blackwell.
McAdam, R., Miller, K. and McSorley, C., 2019. Towards a contingency theory perspective of
quality management in enabling strategic alignment. International Journal of Production
Economics. 207. pp.195-209.
Serrat, O., 2017. The sustainable livelihoods approach. In Knowledge solutions (pp. 21-26).
Springer, Singapore.
Online
Black, N., 2017. The technology revolution is transforming the travel industry. [Online].
Available through <https://www.itproportal.com/features/the-technology-revolution-is-
transforming-the-travel-industry/>
Sustainable Development Goals: Assam- 2030 in light of SDGs. 2018. [Online]. Available
through <https://planningtank.com/blog/sustainable-development-goals-assam-2030-in-
light-of-sdgs>
11

The Travel and Tourism competitiveness Report. 2017. [Online]. Available through
<https://www.weforum.org/reports/the-travel-tourism-competitiveness-report-2017>
Stakeholder Value Approach. 2018. [Online]. Available through
<http://www.businessdictionary.com/definition/stakeholder-value-approach.html>
12