MGT302 Strategic Management Analysis: Alternative Approaches

This report provides a comprehensive analysis of strategic management, focusing on three key approaches: stakeholder, dynamic capabilities, and sustainable practices. It begins with an introduction to strategic planning and its importance in contemporary business environments, outlining the conventional linear design approach. The report then delves into each of the three approaches, exploring their historical context, suggested benefits, and limitations. For the stakeholder approach, Coca-Cola is used as an example of successful implementation. The dynamic capabilities approach is exemplified by Apple, highlighting its innovative marketing strategies and product development. Finally, the sustainable practices approach is illustrated through Procter & Gamble's commitment to environmental responsibility. The report concludes by emphasizing the need to understand the issues associated with strategic management to ensure effective planning and implementation, and it includes a comprehensive reference list and appendices.

Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
Name of student
Name of university
Author’s note:

1STRATEGIC MANAGEMENT ANALYSIS
Executive summary
This report has provided overview regarding importance of strategic planning and procedures
for implementing strategic planning. It has explained three important approaches for strategic
planning which include Stakeholder approach, dynamic capabilities approach and sustainable
practices approach as well. These approaches are analysed in terms of its applications and
how different organizations have successfully implemented this approaches to ensure
organizational success as well.

2STRATEGIC MANAGEMENT ANALYSIS
Table of Contents
Introduction................................................................................................................................3
Three Approaches for strategic management.............................................................................3
Stakeholder approach.............................................................................................................3
Dynamic capabilities approach..............................................................................................6
Sustainable practices approach..............................................................................................8
Conclusions..............................................................................................................................10
References:...............................................................................................................................11
Appendix:.................................................................................................................................13

3STRATEGIC MANAGEMENT ANALYSIS
Introduction
Organizations consider strategic planning for effectively managing business scenario in
contemporary market along with changes in market that affect business as well.
Organizations design strategy for ensuring that they are capable of achieving specific
objectives according to organizational requirements. Therefore, strategic planning play an
important role in organizational context. In order to implement strategic planning, managers
often consider linear design, which is a conventional approach in this context. Linear design
identifies organizational perspective in terms of organizational mission, vision and
organizational values as well (Rothaermel 2017). In this approach, identification of
organizational mission, vision and organizational values is considered as the primary step for
implementing strategic planning. Once these aspects are identified, it is then required to
execute a situational analysis which is considered for analysing internal and external
environments in accordance with the organization. After outcomes of situational analysis are
obtained, it is then required to design long-term goals that is consistent with the
organizational mission and vision and this is one of the most important aspect of this
approach for implementing strategic planning. However, it is not enough to define goals, it is
also required to design strategies and proper action plan for accomplishing those goals as
well.
Three Approaches for strategic management
Stakeholder approach
History
The concept of stakeholder approach for strategic planning was first introduced in later part
of 1980s. This approach was first published in 1984 and it was a part of the Pitman series in

4STRATEGIC MANAGEMENT ANALYSIS
Business and Public Policy. It was a revolutionary concept in formulation of stakeholder
theory.
In management, a stakeholder approach provides that in order to ensure proper stakeholder
management, it is important that managers should know how to formulate and implement
strategies required for satisfying stakeholders' needs. It is required for ensuing that the
organization is capable of obtaining the long-term success for the organization. However, it is
required to analyse what is the degree of participation ensured by the different groups and in
accordance to that the company needs to improvise on market imperfections for creating
opportunities that ensure values for the organization (Bryson 2018). It provides importance to
strategies required along with relationships while promoting the shared interests as well. This
approach follows the stakeholder theory which does not promote the dominant way
considered for understanding business and management that has been provided for
shareholders satisfaction.
If this approach is properly implemented, then it is capable of enhancing the firm values and
therefore creating competitive advantage as well.
Suggested Benefits
In order to enhance organizational values and obtain competitive advantage, it is important to
ensure that stakeholder satisfaction is ensured. If requirements of the stakeholders are not
properly integrated with the business strategies, then it is not easy for the organization to
enhance its business process. However, in order to identify stakeholder requirements and
implement those requirements through organizational strategies, it is required to ensure that
there is proper link between stakeholders and organization (Smith 2017). This approach for
strategic planning is capable of establishing coordination between stakeholders and
organization which is required for ensuing success of that organization as well. Along with

5STRATEGIC MANAGEMENT ANALYSIS
enhancing stakeholder satisfaction, this approach also helps in identifying and analysing
market imperfections. Organizations which identifies these market imperfections are capable
of improvising on this which creates opportunities for organizations, therefore, enhancing
organization values as well.
Limitations
However, there are some limitations in this approach. When all of the stakeholders are
involved in designing organizational strategies, then it provides divergent views and
therefore, it affects decision making process as well. When organizations try to satisfy all of
its stakeholders, it makes organizational governance complicated and along with this,
involving all of the stakeholders is time consuming as well (Nickols 2016). When
information regarding stakeholder requirements is identified, it might require cost that
exceeds benefit, therefore affecting efficiency of this process as well. Therefore, even if the
intention is to create value, but it might lead to resource allocation where stakeholders are
assigned resources even though they do not need it. Therefore, it not only increases cost, but
also affect organizational value as well.
An organisation for an example
One of the leading companies that has successfully implemented this approach is Coca-Cola.
It considers various formal and informal approaches for engaging with stakeholders and this
approach is followed in design and implementation of organizational strategies as well. Coca-
Cola has ensured good relation with the World Economic Forum and the United Nations
Global Compact which is an initiative of the company to resolve global issues for satisfying
objectives of various stakeholders as well. The proactive involvement that the organization
has ensured with various external stakeholders has provided Coca Cola context for
integrating the expertise along with passion that is associated with various individuals and

6STRATEGIC MANAGEMENT ANALYSIS
organization as well. Therefore, Coca-Cola has successfully implemented this approach for
designing and implementing strategic planning for obtaining organizational objectives as
well.
Dynamic capabilities approach
History
Dynamic capability is referred to as organizational capability in optimizing and ensuing
effective application of organizational resources for achieving objectives of the organization.
This theory was first provided by David Teece, Gary Pisano, and Amy Shuen and provided
detailed description regarding this in their 1997 paper titled “Dynamic Capabilities and
Strategic Management”. This theory emphasis on capability of the organization in creating,
integrating and reconfiguring of internal along with external competencies of the organization
to response to market environment which is not only dynamic but volatile as well (David and
David 2019). Therefore, in order to ensure that this dynamic and volatile nature of market
environment does not affect organizational success, dynamic capabilities approach is required
as well.
Suggested Benefits
If organizations consider concept of dynamic capabilities and strategic management, then it is
easier for them to expand their business not only in national markets, but in international
markets as well. This approach includes business alliances which is to make partnership with
business organizations which share similar short term along with long term objectives. This is
a strategic alliance that helps organizations in expanding their business as well. There are
different structures through which business alliances might be established as well (Cooper
2017). Application of this approach as strategic planning provides organizations context to
design products that are not only new but also innovative in the market, especially while

7STRATEGIC MANAGEMENT ANALYSIS
compared with competitors. It also allows organizations to identify market trends and
therefore makes it easier to offer services to consumers according to their requirements which
enhances consumer satisfaction as well.
Limitations
In order to ensure that this approach for strategic management is properly applied, it is
important to ensure that employees including important stuff members and managers are
effectively analysing their roles and responsibility. It is required for ensuing proper
interactions with management which provides context for effective problem-solving. If this is
not ensured then it is not easy to maximize benefits of this approach and this is an important
limitation of this approach as well (Venkataraman 2019). If issues and dysfunctional
activities are not identified that are affecting business process, then this approach is not
effective for formulating strategic planning as well. It requires to invest in new assets for
integrating technological aspects with external organizational activities and this is ensured
through alliances and partnerships with other organizations as well (Schaltegger, Burritt and
Petersen 2017). In order to apply this approach, it is required to ensure significant internal
and external transformation with reference to market dynamics and increased competition in
market. Therefore, it is required to reconfigure existing assets structure of the organization
for implementing internal and external transformation as well.
An organisation for an example
The organization which has successfully implemented this approach is Apple and this success
is obtained in a market which is dominated by technological companies like IBM and
Microsoft. It is important to note that Apple is not a company which is a technological leader,
but it has marketed its products so effectively that it has established itself as a master of
advertising technological products. It marketing strategies are so innovative that consumers

8STRATEGIC MANAGEMENT ANALYSIS
often think that no other company could have made application of a technology like Apple
has implemented. Therefore, even though Apple itself does not invent any technology, it has
established itself as a leading company in technological market.
However, it is not only innovative that makes Apple so popular among its consumers, but it is
also for its identification and integration consumer requirements with its products as well.
Therefore, even though Apple products are expensive, they are definitely premium and of
superior quality. For this, Apple has been successful in obtaining consumer trust and ensure
consumer loyalty as well.
For identifying success of Apple in implementation of dynamic capability approach it is
important to analyse some of its revolutionary products which include iPod, iPad and iPhone
all of which have been highly successful in market and made Apple a leading company for
consumer electronics as well. These products are marketed on emphasis of features that are
new and innovative provided in each of these products and therefore, it was successful in
selling millions of these products in national and international markets as well.
Sustainable practices approach
History
Sustainable practices approach for strategic planning has been designed in 21st century and its
objective is to provide context to organizations to ensure profit for a specific amount of
money that the organization invest in its business as well (Yeow, Soh and Hansen 2018). It is
to ensure that it is easier for organizations to obtain maximum benefit for its investment.
Suggested Benefits
The sustainability of an organization depends on economic returns that is ensured by that
organization. Financial revenue is important for any organization and it helps organizations in
recovering its initial investment which for continuing its business process as well (Hermano

9STRATEGIC MANAGEMENT ANALYSIS
and Martín-Cruz 2016). This approach helps organizations to implement cultural initiatives,
strategies for protecting environment and ensure corporate social responsibilities as well
(Epstein 2018). Cultural interactions and cultural experiences that are established with the
market environment is required to enhance relationship with stakeholder and ensure
dominance of the organization for a particular business environment in which the
organization implement its business strategies as well.
Limitations
In order to ensure cultural relation with the market it is required to enhance this cultural
relations in internal and external environment. Therefore, it makes this process complicated
as well (Teece 2018). In order to ensure effective application of this approach it is required to
coordinate organizational strategies with sustainable approaches, otherwise it will affect
organizational success as well. Therefore, coordination between organizational strategy and
sustainable approaches is important as well.
An organisation for an example
One of the leading companies that has successfully implemented this approach of strategic
management is Procter and Gamble. The innovation framework considered by the company
has helped in designing products that are innovative and sustainable. For example, it has
designed products which are capable of reducing consumptions of water and energy. This has
helped this company to promote itself as an organization which consider responsibility
towards environment as an important organizational strategies and therefore enhancing
implementation of sustainable approach as well.

10STRATEGIC MANAGEMENT ANALYSIS
Conclusions
Strategic management is a linear process and therefore, there are various issues associated
with this and it is required to analyse these issues for ensuing that implementation of strategic
planning is effective and efficient as well. Strategic planning is implemented with a linear
approach and therefore, it is not easy to make modification in later phase of strategy design
and implementation as well. It provides significant priority to analysis of internal and external
environment of organization for designing strategies as well. Therefore, it does not consider
other aspects that are important for enhancing effectiveness of strategic planning as well.
Therefore, three alternative approaches have been considered which include Stakeholder
approach, dynamic capabilities approach and sustainable practices approach as well.

11STRATEGIC MANAGEMENT ANALYSIS
References:
Bryson, J.M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Cooper, S., 2017. Corporate social performance: A stakeholder approach. Routledge.
David, F.R. and David, F.R., 2019. Strategic management: A competitive advantage
approach, concepts and cases. Pearson.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Hermano, V. and Martín-Cruz, N., 2016. The role of top management involvement in firms
performing projects: A dynamic capabilities approach. Journal of Business Research, 69(9),
pp.3447-3458.
Nickols, F., 2016. Strategy, strategic management, strategic planning and strategic
thinking. Management Journal, 1(1), pp.4-7.
Rothaermel, F.T., 2017. Strategic management. New York, NY: McGraw-Hill Education.
Schaltegger, S., Burritt, R. and Petersen, H., 2017. An introduction to corporate
environmental management: Striving for sustainability. Routledge.
Smith, R.D., 2017. Strategic planning for public relations. Routledge.
Teece, D.J., 2018. Dynamic capabilities as (workable) management systems theory. Journal
of Management & Organization, 24(3), pp.359-368.
Venkataraman, S., 2019. Stakeholder Approach To Corporate Sustainability: A Review (No.
319).

12STRATEGIC MANAGEMENT ANALYSIS
Yeow, A., Soh, C. and Hansen, R., 2018. Aligning with new digital strategy: A dynamic
capabilities approach. The Journal of Strategic Information Systems, 27(1), pp.43-58.

13STRATEGIC MANAGEMENT ANALYSIS
Appendix:
Stakeholder approach in strategic management
Dynamic capabilities approach in strategic management