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.
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.
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 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.
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.
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 the increasing growth has become important so that the position in the competitive industry can be maintained.
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.
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.
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 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.
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.
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. (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.
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 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.
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.
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 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.
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, 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.
Reference list
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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.
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.
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