Discuss About The Portfolios Project In Dynamic Environments?
The report presents a brief overview of the strategic management. It explains the linear approach and its limitations. Further, it explains the various approaches to the strategic management. It explains that how the Coca-Cola, Starbucks, IBM, Unilever company uses the various strategic management approaches to gain the competitive advantages and to achieve the organizational goals and objectives. The main objective of the strategic management is to evaluate and analyze the external and internal environment of the company.
Strategic management is the process of formulation and execution of the major goals, objectives, and initiatives which are taken by the organization’s top management on behalf of the owners based on the deliberation of resources and evaluation of the interior and exterior environment. This management provides overall direction and guidelines to the enterprise and it includes the organization goals, objectives, plans and policies and allocation of resources to achieve the organizational long-term objectives and goals. Another side, it defines as the art and science to formulate, evaluate, and implement cross-cultural decisions in order to meet organizational goals and objectives. It is not related to a single specialization but it covers overall organization. It is the broad area which covers overall functional areas of the association. Therefore, it plays a significant role in every organization. There is three basic principles of strategic management; they are discussed below (Bateman & Snell, 2013).
The Standard linear strategy in an association is strategy under which business plans, policies and procedures implement and execute their strategies in an organization accordingly. The linear model of strategic management focuses on the planning process in order to meet the goals and objectives according to the requirements of the company. The linear approach provides a good framework for the organization (Foss & Knudsen, 2013). There are various shortcomings of linear approaches. The objective of this approach is very complex and it is very difficult to understand the financial, social, and institutional constraints. The objectives and functions of the approach are not clearly specified by the company. Lack of communication and coordination, the company faces many challenges and key issues. It is very complex and intricate approach. All these challenges are faced by the company so it should be managed and controlled by the organization. The company should reduce all these shortcomings and limitations to build a sustainable organization (Bateman & Snell, 2013).
The approaches of strategic management play a significant role in every organization. The company uses the various approaches to identify and evaluate the success and growth of the organization. The approaches of strategic management have been discussed below (Vogel & Güttel, 2013).
The stakeholder’s approach is a theory of business ethics and organizational management which addresses values and morals to manage and control the association. The stakeholders’ strategic management approach creates positive and favorable relationships with various stakeholders with the help of suitable management. In stakeholder strategic approach, stakeholders focus on the prerequisite and services of the organization to attain the goals and objectives of the company. It is the integrated and vital approach to the strategic management. There are various stakeholders exist in the organization, they include suppliers, creditors, employees, unions, project manager, sponsor, community, customers and professional organization, etc. There is a close relationship between stakeholders and organization (Paiola, Saccani, Perona and Gebauer, 2013). They play a significant role in an organization because they help to determine the outcomes of the business. An effective stakeholders approach maintains a favorable relationship between management and stakeholders of the company. Stakeholders monitor and analyze the activities and globalization plans of the company. They help to maintain good communication in an organization and they identify and analyze the key issues and benefits of the association. They generate new ideas and plans to gain the long-term success and growth of the organization. Stakeholders may include different people that come from various areas of the business. This approach protects the interest of the stakeholders and provides satisfaction to them. This approach is important to generate high revenue and profit of the company and it also increases the satisfaction level of the customers. Through this approach, the association can take various opportunities and control on the various key challenges. Further, the stakeholder’s approach is executed through the following ways (Pearlson, Saunders &Galletta, 2016).
Ford motor company is one of the biggest companies which uses the stakeholder’s approach in their management. The company uses this approach to maintain sustainability and growth of the organization. The variety of stakeholders includes the bottling partners, customers, consumers, employees, communities, government, regulatory authorities, and suppliers. The company conducts stakeholder’s engagement session and programs for the various stakeholders. The company encourages and enhances the stakeholders approach to gain the competitive advantage in the market. In this way, the company is using the stakeholder’s approach in the organization. Through the stakeholders’ theory, the association understands the various needs and expectations to accomplish the goals and objectives. The stakeholders are the owners and founders of the company and they work for the success and growth of the company.
In the organizational theory, the dynamic capability is the capacity of an association to utilize the resources of the company. The dynamic capabilities approach shows the firm ability and integrity to achieve the goals and objectives of the company. It emphasizes on the capabilities and potential of the company to perform the task and duties effectively and efficiently. This theory provides various guideline and support to the top management and seniors of the company to do work effectively (Klievink and Janssen, 2009). It includes the three capabilities such as ability, integration, and transformation which are compulsory for every organization. First, ability shows the working capacity of the employees for doing the work. It is the ability of the workers to adapt and learn changes within an organization. Second is the integration of new assets of the company so the organization procedures, process, and plans are initiated and astly, the reuse and transformational of assets utilized. The stages in dynamic capabilities have been discussed below (Jantunen, Ellonen, and Johansson, 2012).
Coca-cola, Ford motor company, IBM, and apple are the example of the dynamic capabilities strategic management approach. These companies use the dynamic capabilities approach to maintain sustainability in the market. Apple Company ensures the maximum utilization of resources through dynamic capabilities approach (Kindström, Kowalkowski and Sandberg, 2013). The Ford motor company, IBM, and Coca-Cola Company are also using the various dynamic capabilities to overcome on the competitors. These companies are taking various advantages with the help of dynamic capabilities approach of the strategic management. They can evaluate and analyze the various plans, policies, business activities and operations of the competitors (Laczniak and Murphy, 2012).
This approach ensures the growth and development of the organization. In this approach, the management focuses on the sustainability and development of the company. It is the process of growth and development which uses the various resources within the organization. Through sustainable approach, maximum utilization of resources can be done by the company. If the company maintains the sustainable development then it can easily gain the organizational goals and objectives. Further, there are various aspects of sustainability which are important for the success and growth of the company (Priem and Swink, 2012). This approach helps to make decisions effectively and it provides support for collaboration and teamwork. The managers and top management should maintain the sustainability of the organization. It will also help to reduce the global warming activities. Further, there is a close relationship between corporate social responsibility and sustainable development. There are three pillars of the sustainability; they are such as economic development, environmental protection, and social development. It helps in economic and social growth and development. It promotes environmental education and awareness to achieve the mission and vision of the company. Thus, the managers need to analyze and evaluate the market conditions and they analyze the relationship between the customers and company. It helps to reduce the pollution and waste generation. In this way, this approach maintains the effective sustainability in the organization (Peppard and Ward, 2016).
There are various companies which use the sustainable approach in order to meet long-term growth and success. Starbucks, Coca-cola and Unilever companies exercise and maintain the sustainability of the organization to flourish and expand its business activities and operations across the world. The star buck’s corporation uses the sustainable approach to attract the more customers in the market. After the various researches, it has been found that sustainable approach is initiated and implemented by the many companies (Rettie, Burchell and Riley, 2012). The suppliers, customers, and local community give full contribution in sustainable development. Many software companies also use the sustainable development approach to reduce the carbon emissions. Sustainability help to build the good position in the market. Through sustainability, the company can identify the threats and risks of the market as well as the competitors. In this way, it takes various competitive advantages and benefits. The organization can identify and analyze the plans and policies of the competitors through excellent sustainable development (Luyet, Schlaepfer, Parlange and Buttler,2012).
All these strategic management approaches play a significant role in every organization to face the various challenges and obstacles.
Although, entire approaches of the strategic management are playing a vital and integral role in every business organization. But the organization faces many challenges and difficulties. The interest of the stakeholders is the big issue in these strategic management approaches. The company cannot measure the interest of the stakeholders in monetary terms. Involvement of stakeholders in the stakeholder’s approach takes a lot of time. Therefore, various limitations exist in the stakeholder’s approach (Osbaldiston and Schott, 2012).
On the other hand, there are various limitations exist in the dynamic capabilities. Through this approach, many companies annoy the various existing resources in order to gain long-term competitive benefits across the world. In this way, they waste the various resources to gain long the long-term growth and success in the market (Hassini, Surti and Searcy, 2012).
Another side, many organization face various difficulties with using the sustainable development approach within the organization. The sustainable approach affects the national policies adversely. Sustainable development is based on the set of requirements, therefore, it creates various problems within the organization. It is affecting the culture and social services of the country. Therefore, the company needs to focus on these limitations and weaknesses in order to meet long-term mission and vision of the corporation (Garcés-Ayerbe, Rivera-Torres and Murillo-Luna, 2012).
After the various researches, it has been analyzed that the company is using the various strategic management approaches in the organization. The main objective of the strategic management is to gain long-term sustainability. The company should comply the various rules, regulations, laws and corporate social responsibilities. It should focus on the limitations and shortcomings of the strategic management approaches. In this way, the company can meet and achieve the various long-term goals and objectives of the organization. Further, the company should use innovative technologies to gain the competitive benefits in the market across the world. To reduce the limitations and obstacles, the organization should develop and build the effective human resource management.
Conclusion
The report is based on the strategic management. The strategic management approaches play a vital role in the growth and sustainable development of the company. These approaches help to maintain the trust among the various stakeholders. The strategic management helps to build and maintain the strong and effective position and goodwill of the company in the market. On the other hand, these approaches consist some limitations which are not good for the success and growth of the company. These limitations affect the business activities and operations adversely. Now it is concluded that the company must make the effective strategies to overcome on the competitors. The organization should use the maximum utilization of resources and assets. In this way, the company can increase its revenue and outcomes. The association should focus on the key challenges and barriers of the strategic management approaches. The company should maintain the sustainable human resource department to formulate and implement the various policies and plans for the success and growth of the organization (Sangrà, Vlachopoulos and Cabrera, 2012).
References
Bateman, T.S. and Snell, S., 2013. Management: Leading & collaborating in a competitive world. McGraw-Hill Irwin.
Foss, N.J. and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2). Routledge.
Garcés-Ayerbe, C., Rivera-Torres, P. and Murillo-Luna, J.L., 2012. Stakeholder pressure and environmental proactivity: Moderating effect of competitive advantage expectations. Management Decision, 50(2), pp.189-206.
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Hassini, E., Surti, C. and Searcy, C., 2012. A literature review and a case study of sustainable supply chains with a focus on metrics. International Journal of Production Economics, 140(1), pp.69-82.
Jantunen, A., Ellonen, H.K. and Johansson, A., 2012. Beyond appearances–do dynamic capabilities of innovative firms actually differ?. European Management Journal, 30(2), pp.141-155.
Kindström, D., Kowalkowski, C. and Sandberg, E., 2013. Enabling service innovation: A dynamic capabilities approach. Journal of business research, 66(8), pp.1063-1073.
Klievink, B. and Janssen, M., 2009. Realizing joined-up government—Dynamic capabilities and stage models for transformation. Government Information Quarterly, 26(2), pp.275-284.
Laczniak, G.R. and Murphy, P.E., 2012. Stakeholder theory and marketing: Moving from a firm-centric to a societal perspective. Journal of Public Policy & Marketing, 31(2), pp.284-292.
Luyet, V., Schlaepfer, R., Parlange, M.B. and Buttler, A., 2012. A framework to implement Stakeholder participation in environmental projects. Journal of environmental management, 111, pp.213-219.
McKelvie, A. and Davidsson, P., 2009. From resource base to dynamic capabilities: an investigation of new firms. British Journal of Management, 20(s1).
Osbaldiston, R. and Schott, J.P., 2012. Environmental sustainability and behavioral science: Meta-analysis of proenvironmental behavior experiments. Environment and Behavior, 44(2), pp.257-299.
Paiola, M., Saccani, N., Perona, M. and Gebauer, H., 2013. Moving from products to solutions: Strategic approaches for developing capabilities. European Management Journal, 31(4), pp.390-409.
Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2016. Managing and Using Information Systems, Binder Ready Version: A Strategic Approach. John Wiley & Sons.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a digital strategy. John Wiley & Sons.
Petit, Y., 2012. Project portfolios in dynamic environments: Organizing for uncertainty. International Journal of Project Management, 30(5), pp.539-553.
Priem, R.L. and Swink, M., 2012. A demand?side perspective on supply chain management. Journal of Supply Chain Management, 48(2), pp.7-13.
Rettie, R., Burchell, K. and Riley, D., 2012. Normalising green behaviours: A new approach to sustainability marketing. Journal of Marketing Management, 28(3-4), pp.420-444.
Sangrà, A., Vlachopoulos, D. and Cabrera, N., 2012. Building an inclusive definition of e-learning: An approach to the conceptual framework. The International Review of Research in Open and Distributed Learning, 13(2), pp.145-159.
Vogel, R. and Güttel, W.H., 2013. The dynamic capability view in strategic management: A bibliometric review. International Journal of Management Reviews, 15(4), pp.426-446.
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