Coca Cola Alternative Approaches to Strategic Management
The analysis will look into the benefits of the different models, implementation, and viability of each through practical gains achieved in a given market. Moreover, discussions will equally focus on the limitation of each approach to enhance the understanding of the quality of each approach. Table of Contents Executive Summary 2 Introduction 4 Strategic Management Approaches 4 Sustainable Practices Approach to Strategic Management 4 Stakeholder Approach to Strategic Management 6 Dynamic Capabilities Approach to Strategic Management 8 The significance of Strategic Management Evaluation 9 Conclusion 10 References 11 Introduction Strategic management is an important undertaking which creates the best model of achieving quality performance irrespective of market dynamics and challenges. The evolution of society has led to the development of new ways of doing businesses that seek to ensure considerable growth in satisfaction of consumer expectations.
The introduction of information communications technology has enhanced trade engagements through bringing in place globalization that serves to provide better growth for business opportunities. Sustainable business practices and other structural strategies are both substantive when it comes to attaining profitability despite the challenging external and internal business environments (Thompson, & Martin, 2010, 16). Sustainable business practices relates to the mechanisms put in place to ensure the organizational operations are based on minimal costs notwithstanding challenges of asserting efficiency in response to market expectations. Sustainable approach to strategic management is premised on the need to attain adequate economic returns that are able to cover business costs and keep it afloat to perpetuity. The model of production should assure the management the capacity to put in place mechanisms that take cognizance of stakeholders’ expectations such ensuring compliance with regulatory agencies with respect to environmental conservation (Galpin, Whitttington, & Bell, 2015, 10).
An example of sustainable approach by management is evident from Proctor and Gamble through their innovative methods of production taking cognizance of limited resources. The strategic management initiatives are often business specific and require to be consistent over time to keep pace with the market changes. For instance organizations such as Apple Inc. are required to continuously innovate in the market to avoid complacency which might erode their competitiveness across markets (Khan, Alam, & Alam, 2015, 958). Consumers are often informed of the next course of action to limit the ability of the organization to grow their brand despite initiatives put forth by competitors. Stakeholder Approach to Strategic Management On the other hand, stakeholder approach to strategic management provides managers with a roadmap of how to develop a business model that fits the expectations of stakeholders.
The Coca-Cola Company brings across a system of dialogue that allows the input of consumers, bottlers and regulatory agencies to ensure that it attains both the fulfilment of market needs together with upholding a positive corporate image. Coca-Cola Company has integrated the input of stakeholders locally, regionally and internationally to undertake programmes aimed at attaining the better good. Coca-Cola partners with international institutions such as World Economic Forum and United Nations in undertaking the promotion of environmental conservation, quality healthcare, better education, alleviating disease among other activities. Organizations manage their supply chain and distribution channels to enable them competitively advance strategies that enable them to maintain their costs at a level that make it profitable in various markets. The cooperation with different stakeholders help advance the ability of businesses to reduce costs since strategic alliances are defined to deliver better outcomes across several market segments.
The market perception is equally an area of concern to protect an entity from losing their market share due to the impact of an initiative to restructure business operations. Dynamic Capabilities Approach to Strategic Management Dynamic capabilities approach to strategic management involves putting together a framework that looks into the opportunities across markets which are then matched to organizational strengths. Organizations recognize the competitive challenges experienced in the industry and strive to recognize the need for establishing a strategy to combat need to enhance their market niche. The business environment challenges for most entities is being countered by establishing global supply chain models involving creative development in across markets together with outsourcing manufacturing and sourcing component from all over the world to boost competitiveness.
The strategic application of several models within a given business environment is guided by the competitive pressure from industry players to yield the market consumption attention. has demonstrated their capacity to utilize their dynamic abilities to develop products capable of matching the changing consumer preferences. Apple products have managed to exhibit designs which are unique in the market and representative of commitment to challenge the complexity of high technology market. The company success is premised on the dedication to focus on product innovation as a strength point to destabilize the dominance of IBM and Microsoft. The strategic approach represents the management capacity to represent dynamic capabilities in their product range from iPod, iPad, iPhone series and iMac among other developments with unique features.
Nonetheless, it is important to be cognizance of the possibility of failing to realize a broad-based progress since it provides a limited focus on what they deem consumers require which might not offer critical information on the business environment dynamics. Sustainable practices approach to strategic management are applicable across different market segments provided it takes the needs of each segment individually and innovate based on their preferences together with expectations. The ability to match market expectations and imaginations with product qualities goes a long way into attracting and retaining a considerable market following (Galpin et al. The success of the organization in the changing contemporary business environment requires the entity to take an approach that focuses primarily on making the consumer desire the product since it satisfies their needs.
The implementation of the strategic management initiatives should be a subject evaluation as an undertaking to demonstrate the excellence of a given initiative. The assessment of the strategies is mostly carried out with the intention of establishing whether there is any limitation in the strategic mechanisms practiced by the company. Bromiley, P. , McShane, M. , Nair, A. and Rustambekov, E. Enterprise risk management: Review, critique, and research directions. Global Journal of Flexible Systems Management, 16(3), 283-293. Clarke, T. , & Boersma, M. The governance of global value chains: Unresolved human rights, environmental and ethical dilemmas in the apple supply chain. Journal of Business Ethics, 143(1), 111-131. AMS review, 6(1-2), 23-32. Hill, C. W. , Jones, G. R. International Journal of Economics, Commerce, and Management, 3(6), 955-961. Priem, R.
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Additionally, the report will focus on the viability of each approach, its suggested benefits and limitations. More so, it will offer in-depth analysis in application of the stakeholder approach in the case of Coca Cola Company to promote its growth and sustainability. Dynamic capabilities approach will employ the case of Apple Company, and how it develops its strategic approaches to the dynamic market conditions. The sustainable practice approach will discuss on the management approach utilized by Proctor and Gamble. In conclusion, the report will offer recommendations on these alternative strategic management approaches. Strategic management does not allow any omission of any of the step. The linear formulation of this model is a major limitation since it reduces the prospects of allowing adjustments in another stage of strategic implementation (Eden & Ackermann, 2013).
A linear model focuses on an organization’s internal and external environments which impact on the strategy implementation. As a result, there is little emphasis given to other essential parts of the organization such as stakeholder analysis. Existing models do not discuss stakeholder analysis in detail which is essential in acquiring stakeholder’s views which allows for strategic development and hence allow for the sustenance of their interests. At that time, the conventional strategy failed to provide or accommodate new opportunities. Additionally, it was unable to give strategic direction and ways of responding to change. The standard policies of strategy were founded on the economic aspects of strategic management. The introduction of conventional policies was designed to define the role of stakeholders in an organization (Grant, 2016).
This group was defined as people responsible for the performance of the organization. The current approach focuses on a company’s strategic direction rather than predicting future plans. It, therefore, creates various action plans for the company. Stakeholder approach has a great emphasis on the environment in which an organization operates in. Similarly, it focuses on the impact of the environment on the company, which is a large market for this approach. The issue of surviving capabilities or sustainability in a certain market environment is dealt with by identifying and taking advantage of the existing entities which allow competition rather than developing strategies to increase their current production levels. This company uses a stakeholder’s approach to the involvement of all the groups, which has greatly contributed to its growth and sustainability.
Coca-Cola, the world large st beverage producer, uses both formal and informal communication to involve all the groups and stakeholders in its organizational structure. The company’s association with stakeholders is seen in different levels including the locally, regionally and nationally. Through this, the company indulges in its promises with the suppliers and consumers. Coca-Cola has also collaborated with the United Nations Global Compact and the World Economic Forum to solve all emerging issues and hence achieve various stakeholder goals. Coca-Cola understands that employees form a component of the business environment who have a stake in the company’s sustainability. The company has therefore involved their employees through communication, employee development plans, and updates in administrative changes and ethics hotlines. Coca-Cola has worked hard to improve on other prolific aspects to achieve reliable results like favorable relationships with communities.
Dynamic Capabilities Approach This approach is commonly applicable to company’s acquisition. This enables an organization attains a competitive advantage over their competitors in the environment it operates. The dynamic capabilities approach ensures a renewal of competencies and an acquisition of capabilities critical to the organization. The ability of employees to accommodate and adapt to new changes is essential to an organization since it is a reflection of the organization’s flexibility in coping with the changing business environment. Apple. inc An example of a company that uses a dynamic capabilities approach in strategic management is the Apple. Inc. Despite making a profit, it is the duty of organizations to make sure that there is a strong relationship between the business and local community in which it operates.
Additionally, organizations must make sure that they remain sustainable in the market environment they operate. Sustainable business practices comprise corporate social responsibility, safe environmental practices and protection, and cultural initiatives (Redpath et al. Cultural interactions enable organizations to have an experience in the market environment they are operating in. As a result, stakeholder relationships are strengthened. The formation of strategic plan together with policies and objectives ensure that employees meet the organization’s requirements. Various impacts of corporate culture to adopt sustainable practices in the process of strategic management have assisted in promoting the relationship between the internal and external environment of a business. Proctor and Gamble An example of a company that uses sustainable practices approach of management is the Procter and Gamble.
The company’s innovation was linked with the sustainable and innovative products and services. All these accounted for, contribute to 11% of the total sales from 2007 to 2012. These approaches have been invented on selective parts of literature, and therefore, their application is wide in strategic management, and hence requires further research. References De Brucker, K. , Macharis, C. and Verbeke, A. Multi-criteria analysis and the resolution of sustainable development dilemmas: A stakeholder management approach. M. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons. Hitt, M. A. Administration & Society, 47(6), pp. Hubbard, G. , Rice, J. and Galvin, P. Strategic management. Priem, R. L. , Li, S. and Carr, J. C. , Whitehouse, A. , Amar, A. , Lambert, R. A. , Linnell, J. International Journal of Management Reviews, 15(4), pp.
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