MGT302: Analysis of Strategic Management Approaches Report

This report delves into strategic management, exploring three key approaches: the sustainable approach, resource-based view, and industry leadership. The report defines each approach, examining their historical context, benefits, and limitations. A central focus is the application of these strategies, with the Commonwealth Bank serving as a case study to illustrate the sustainable approach and resource-based view. The VRIO analysis is applied to the bank's resources, highlighting its core competencies. The report evaluates the success of each approach, providing insights into how organizations can achieve competitive advantage. The report also discusses the industry leadership approach and its advantages in the market. The report incorporates references to academic literature and real-world examples to support its analysis.

Running head: MARKETING
Marketing
Name of the Student
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Author note

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Executive Summary
In order to gain the competitiveness in the market, there are various methods of strategic
management that will be efficient in making the companies successful. In respective kind of
situation, the report has been suitable in considering the strategic management concept which
is considered to be the branch of management which is concerned with development of
strategic vision along with setting of different objectives. As to act as the guide to
organization, it can be helpful in surviving the different changes which takes place in the
market and overcoming such in a. From the paper, it can be seen that the strategic
management approaches have been capable of behaving as the guide in moving in the
specific direction which are in alignment with vision of company and improve their
competitiveness. Moreover, the sustainable approach, the industry leadership and resource-
based view assisted in development of the core competencies as well as competitiveness
which helped in survival of the business and growth in a successful manner. Lastly, the basic
purpose of the approaches of the strategic management is to gain sustained competitive
advantage which is possible in developing as well as implementing strategies that is effective
in creating value for the customers and improve their brand image in the industry as well.

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Table of Contents
Introduction................................................................................................................................3
Investigation of Three Approaches............................................................................................3
Sustainable Approach.............................................................................................................3
Resource-Based View............................................................................................................4
Industry Leadership................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
Strategic management helps in setting the detailed goals that is effective in analysing
the internal as well as external resources along with analysing the external environment and
the views of the stakeholders. The excellent type of corporate governance requires the
efficient process of strategic management which will be efficient in understanding the
environment in which the firm operates. The purpose of the paper is to identify the different
potential strategic management approaches that makes the companies perform well and
identify the ways to reach to those objectives. The report will be highlighting an organization
which have been successful in managing the approaches and in the present, they are
successful in disparity to competitors.
Investigation of Approaches to Strategic Management
Sustainable Approach
The corporate social responsibility is defined as the concept of self-regulating
business model which assists the organizations to be socially accountable to the stakeholders,
to itself and public. According to Wesselink et al. (2015), the CSR allows the companies to
perform their bit for the society, customers, society and the stakeholders. It gives chance to
the different employees of the company for contributing towards the society and environment
as it will improve the reputation of the company efficiently. Additionally, as stated by
Taticchi et al. (2015), the most socially responsible companies can be improving image and
build their brand. The author has commented that there are different potential advantages of
CSR in business which will create positive reputation of the business, increased loyalty of
customers and better financial type of performance.
In addition, as stated by Volberda and Karali (2015), the corporate social
responsibility gives the different employees with feeling of the unparalleled happiness
wherein the different employees take proper pride in educating the poor people or children
who are not able to afford to go to schools or receive the formal kind of education. The
activities related to CSR helps in strengthening the bond among the employees for helping
others which will be contributing towards the welfare of the society and it will be help the
company in generating high level of revenues in the market.
On the other hand, as orated by Taticchi et al. (2015), the CSR requires high costs in
manufacturing the products when they need to be replaced. Due to the same, there is increase
in the costs along with decrease in the product contribution which will be affecting the
revenues of the company negatively. Additionally, as opined by Saenz et al. (2015), from the
administrative aspect, the different strategies of CSR can end up in becoming the expensive
endeavours with difficult to track the return on investment and the promotion of campaigns of
CSR have financial component that can affect their brand image negatively as the company
will be running in debts.
As observed by Rothenberg, Hull and Tang (2017), the CSR promotes the
greenwashing stated by some of the critics that CSR can be resulting to futility and it will be
leading to greenwashing. There are different companies which just talks regarding the CSR
activities, however they fail to implement the same in the company and due to the same, it
leads to the major drawback that cannot be ignored and it needs to be improved.
For instance- From the analysis of the suggested benefits and the limitations of the
sustainable approach, it can be elaborated with proper illustration of the Commonwealth

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Bank, situated at Australia. In case of Commonwealth Bank, from the time of beginnings in
the year 1911, the bank is the most sustainable company on global 100 index for third year
running and it has been appropriate for them in improving their brand image
(Commbank.com.au 2019). During the year 2017, the Climate Change Position Statement has
been capable of outlining the different ways wherein the CBA Bank has been supportive of
transition to net zero emission economy till the year 2050. Moreover, the company has been
dedicated to finance more than $15 billion for lowering the carbon projects till the year 2025
(Commbank.com.au 2019).
Figure 1: CSR Programs of Commonwealth Bank
(Source: Commbank.com.au 2019)
Additionally, the company is fruitful in rolling out the most renewable program for
their retail network branch and till 2017, the bank has been accomplished of including the
different solar panels in more than 34 locations in entire Australia with 500kW capacity in
total. On the other hand, the other CSR related program which have been incorporated by
CBA is reflecting in incorporating diversity and inclusion in society wherein women
represent more than 58% of the workforce of respective bank and more than 37% of the
women are the executive managers till 2017 that has been suitable for improving their
growth-related prospects (Commbank.com.au 2019). As analyzed from various surveys, the
Commonwealth Bank has tried to put in place the number of targeted solutions in achieving
the equity in gender pay that has been successful for becoming competitive in comparison to
other banks such as ANZ Banking Corporation. The Reconciliation Action Plan is capable of
making significant strides for including diversity in workplace (Poff et al. 2016).
Resource-Based View
The Resource-Based View is termed as the managerial framework that is being used
in such a manner which will be effective in determining strategic type of resources of the
organization that can be exploiting for gaining competitive advantage. As opined by Parola,
Satta and Panayides (2015), the RBV is the managerial aspect which helps in determining
strategic resources of the firm can be exploited by the firm for achieving competitiveness in
the market. In analysing the RBV of the company includes two main components such as
internal resources along with capabilities as the source of the superior performance of the
firm. In the respective case, the VRIO analysis is the tool in the strategic planning used by the

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firms in making effective decisions related to business and it helps in providing information
as well as the results which will be providing the competitive advantage (Cycyota, Ferrante
and Schroeder 2016).
While the different companies need to implement the VRIO analysis, it will be
providing them with the brief overview on the different kinds of competitive aspects that
makes them unique in contrast to the other competitors present in the market. In the RBV, the
different resources which are being used by the company are essential for helping them in
becoming competitive. As opined by Pan and Seow (2016), the different companies need to
look inside the company for finding the suitable sources of competitive advantage through
proper usage of resources that can help them in increasing their competitiveness. On the other
hand, as opined by Le Blanc (2015), there are different cons of the Resource-Based View in
the usage of the same in the company that is the RBV entails the progress that is infinite and
the different firms who have the capability that can put in practice best can be overtaken by
the firm which can be developing the overall capability better than the other companies who
is best in practice. Furthermore, the aspect is limited in nature wherein the authors have
argued the fact that RBV does not apply in smaller firms and it can be creating negative
implication on growth of firm (Lonial and Carter 2015).
In order to understand the respective RBV can be described and analyzed with the
help can be effective. In case of Commonwealth Bank, the VRIO analysis can be helpful in
understanding the scenario. From the respective table, the different competencies of
Commonwealth Bank can be identified which will be effective in understanding the position
in contrast to the other competitors such as ANZ Banking Corporation. As commented by
Kolk (2016), RBV relies on different resources which includes tangible and intangible
resources which must be heterogenous and immobile in nature and it helps the companies in
acquiring the new skills for each different opportunity. The RBV model can be assisting the
different resources in providing major role in helping different organizations for achieving
higher performance in the organizational aspects. Through the VRIO analysis, the tangible
and intangible aspects related to resources have been analyzed for acquiring the resources for
creating the same as the sustainable competitive advantage.
Particulars Valuable Rare Worthy for
Imitating
Organization Implications in
Relation to
Competitiveness
Development
Related to
product
Yes No Yes Yes There is
somewhat
similarity in the
product related
development
Support
Related to
Products and
Services
No No Yes Yes There is
inclusion of
similarity in the
development of
the products

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Marketing
Aspects
Yes Yes Yes Yes Sustainable
Competitive
Advantage
Services or
Sales
Yes Yes Yes Yes Sustainable
Competitive
Advantage
Social and
Human
Resource
Development
Yes Yes No Yes There is
inclusion of
similarity in the
development of
the products
Information
technology
Yes Yes Yes Yes Sustained Kind
of Competitive
Advantage
From the VRIO analysis of Commonwealth Bank, it can be identified that there are
different core-competencies as well as areas related to sales like the other companies such as
ANZ Banking Corporation. The respective bank has the power to drive the different
capabilities for following the basic policies of the company which helped in improving the
growth of the company suitably. From the respective example of the VRIO analysis of
Commonwealth Bank, it can be seen that VRIO attributes have the power to become in
exploiting the different external opportunities that will be effective in gaining
competitiveness and improve their efficiency in the market of Australia as well (Kabue and
Kilika 2016).
Industry Leadership
The industry leadership is the aspect wherein the different companies that are leading
in the industry are the ones which have the power to achieve the competitiveness in the
market in a sustainable manner. As commented by Irtaimeh (2018), the industry leaders or
leading organizations includes advantages that includes power connected to estimating,
acknowledgement of the brand as well as gaining the loyal base of the customers that helps in
achieving the goals in a sustainable manner. In addition, as stated by Heracleous and Werres
(2016), brand, firm or the product which has been successful in acquiring the largest aspect of
share in market has been capable of gaining and dominating the market share and improve
their brand image successfully. Additionally, as commented by Hitt, Xu and Carnes (2016),
the company which is important in the particular or respective industry as it has highest level
of the sales, the best products which is the most important aspect in the entire industry or
business.
As commented by Hajer et al. (2015), the market leader is the aspect wherein the
leaders try to expand their total share in market and it continuously defend the current

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practices in the business against the enemy attacks. There can be innovations that can be
incorporated by the company in managing their position which is competitive which allows
them in developing the intuition and publicly addressed the changes in the respective industry
suitably. Furthermore, as commented by Frankson et al. (2016), the market leader firms can
gain maximum when the total market expands their business wherein the product is in the
lifecycle. On the other hand, as opined by Genovese et al. (2017), the different market leaders
can be having different kinds of disadvantages that includes the fact that in becoming the
market leader, there are negative prospects which includes that they have the pressure for
being on the top position and it affects their brand image negatively. In order to remain in the
top position of the company, there can be constant pressure on employees and employers as
to create innovative contents for becoming the top player and being the top most priority of
the different customers as well. For managing their long-term growth in the competitive
environment of business, there can be different kinds of risks which are associated with it that
needs to be overcome by them appropriately (Foege, Piening and Salge 2017).
The industry leadership aspect of the strategic management can be elaborated with the
help of the suitable example such as Commonwealth Bank has been the top market leaders in
comparison to other competitors such as ANZ Banking Corporation. Commonwealth Bank
has been capable of achieving more than A$26.005 billion revenues that has made them
competitive in competitive market (Commbank.com.au 2019). The bank has been termed as
the largest Australian listed organization on Australian Securities Exchange that assisted
them in increasing the profitability effectively and generate high level of revenues in the
competitive scenario of the market as well. Moreover, due to the innovative aspects that has
been incorporated by the company, the implementation of technology in the core banking
related services has helped in increasing the quality of the different services which have been
delivered by them to the different customers and sustained growth prospects
(Commbank.com.au 2019).
Additionally, due to the innovative aspects used by the company, they have been
successful in expansion of the different activities in Asia and other kind of emerging markets
that has been capable of helping bank in having long-term growth and it has been capable of
gaining their market share suitably. The bank is considered to be the only company which
appear in Dream Employers top 20 list of the different preferred employers. From the
respective example, it can be seen that the industry leader is the most suitable aspect that
needs to be managed by the company which has been successful in improving their prospects
and improve their capability of achieving competitiveness in the Australian market
(Commbank.com.au 2019). The bank has been successful in owing the various kind of brands
such as commonwealth Insurance Limited along with others which has made them effective
in managing their operations regarding the business and increase their efficiency level to a
great extent in market (Balashova and Gromova 2016).
Conclusion
On analysing the potential approaches of the strategic management, it can be inferred
that CSR is the most effective element which needs to be managed by the companies for
increasing their reputation and brand image. In addition, the industry leadership is the
approach through which the company can become the market leader and maintain the
position appropriately. Lastly, the VRIO or resource-based view is the aspect in which the
company has been capable of understanding the internal capabilities which is successful in
becoming competitive in contrast to competitors. In addition, these are the most suitable
approaches which will be effective in expanding their business and the same has been

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analyzed with the example of Commonwealth Bank which is successful in following the
different approaches.

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