Advantages and Disadvantages of Stakeholders †Click to Get Solution

Question: Discuss about the Advantages and Disadvantages of Stakeholders. Answer: Introduction The strategic management identifies and describes the strategies that are used by the managers for achieving a better performance and a competitive advantage for the organization. It is a bundle of decision and acts that the managers undertake, it is also helpful in deciding the result of the firms performance. The strategic management is applicable to small as well as large organizations, the small organizations too face competition and by implementation and formulation of appropriate strategies sustainable competitive advantage can be attained. The decisions about future directions of the organization in which it is moving can be identified by the proper planning of the strategic management. It is a continuous process that is used to evaluate the working (MSG management study guide, 2017). The current standard linear approach to the strategic management focuses on the planning of the goals, achieving these goals, the planning in this approach is done to deal with the competitors. A good strategy is always a basis for good decisions into a business, those strategies supporting the successful companies and the innovative companies will be responsible for the issues in the environmental as well as social aspects. The approach deals with the competitions for acknowledging the ideas for achieving the goals of the organization. The current standard linear approach develops the logics from the doing of the past, the approach analysis the ways to keep a strong check about the work from the past and leads to a standard increase in the growth. The working of the organization does not run by itself, the type of the strategies and the decisions are the major key to the success. The strategic management is used to gain a very high quality workforce and a good working environment. T he impact in the decision making processes all throughout the year can be also ascertained by the approaches of the strategic management. Approaches to strategic management The strategic management is a process of setting of the long term goals and these goals can be achieved by the implementation of the three approaches into the business. The strategies that are used by the organization in the decision making process for the long term, results in increased growth. The strategic goal of the firm is more likely to be gained by the three different approaches. These approaches of the strategic management help to analyze the competition and the market of the business. The stakeholders approach, the dynamic capability and the sustainable approach have been very useful in the organizational success. The strategies are very much useful in gaining the competitive advantage by their implementation in the process (Freeman, 2010). The stakeholder approach The strategic managements, stakeholders approach suggests that the managers must implement and formulate only those processes which satisfy all those groups that has stake in the businesses. The process is to manage the interests of the stakeholder, the customers, the suppliers, the employees and the other groups in such a way that it may ensure a long term achievement and successes of the firm. The stakeholder approach emphasis on the environment of the organization, the active management of the organization and the promotions of the shared interests. The major importance of the stakeholders approach is in investing relationship with those who have the stake in the firm. The relationships stability depends on the sharing of at least a core principle values, thus allowing the managers to into the formation and implementation of the strategic plan. The approach focuses on developing a strategy that would benefit the firm and lead a direction for the proper decision making in the future. There are several characteristics o0f the approach: It is provides a single strategic framework, a framework that is flexible enough in dealing with the environmental shifts and without the adaptation of the new strategic plans by the managers. The stakeholders approach is a strategic management process not a strategic planning process. It works on actively plotting the new directions that is helpful for the firm, in a consideration of the affect the firm can make to the environment as well as the environment makes on the firm. The survival of the firm is the major concern for the stakeholders approach, therefore for the survival of the firm in the environment that is troublesome; the management must direct a course for the firm, the stakeholders relationships understanding is the main focus for achieving the objectives of the organization. The stakeholders framework is used to identify the needs to analyze the different levels of the issues that occur in the organization; the approach introduces the organizations stake and traces the idea to research the several areas (NCBI, n.d). Dynamic capabilities The dynamic capabilities framework analyzes the methods and the sources of creating the wealth. Term dynamic means the capacity of renewing the competences for achieving the change in the business environment. Whereas the term capabilities are the key role of the strategic management that appropriately adapts, integrates and reconfigures the internal as well as the external skills of the organization, the resources as well the functional competencies that would match the requirements of the changing environment. Dynamic capabilities are the ability of the organization to integrate, build and analyze the internal as well as the external competences to the rapidly changing environment. The dynamic capabilities of an organization reflect the ability of achieving new innovative forms of competitive advantage. The frameworks of the dynamic capabilities are: Processes: the way of doing the things. Positions: the specific and the current endowments, the technology, the customers base, external relations. Paths: the alternatives that can be used in the strategies, the presence or absence of increasing returns. The dynamic capability is considered to be an emerging and potential approach to the newer sources of the competitive advantage. It is necessary to meet the new challenges, the dynamic capability are therefore very necessary for any organization. The new strategies must be formed and the old ones must be transformed or reconfigured. The Apple and the IBM are the two companies whose dynamic capability has been enabled to evolve with the rapid change. There is a unique case with the company Apple, the company is not a technological leader but proves to be a master at the marketing. IBM is a true technological innovator and both internally and externally markets in the areas of its participation. The dynamic capabilities usefully are thought as activities and adjustments (Kleiner, 2013). Sustainable approach The sustainable framework of the sustainable approach shows that all the aspects are of equal importance. Working to the framework will be helpful in the future sustainability, it is a defining and as well as a powerful idea. An organization is said to be sustainable if it creates profit for its shareholders with the improvement and protection of the environment. The idea of the sustainability has been present in the management field for a very long time. The sustainability is defined to be a concept that has the holistic perspective of the development of the goals of the organization, the sustainable approach to strategic management is an effect of the evaluation of the strategies towards the environment. The result of the sustainable approach not only changes the perspective but also the perception of the implementing the organizational strategies. Sustainable approach is simple and universal; it is a concept that is not amenable. The sustainability changes over time as the information increases and the societys evolving priorities. The organizations sustainability remains indefinite. It is seen that the ability of making changes varies according to the size of the organization. Taking an example of the forest industry, it has always had a difficulty in defining the reason that contributes to the sustainable forest management. It is believed by some critics that the replacement of the trees is not enough, simply the reason being that, harvesting destroys the forests biodiversity. The future of the organization depends on the decision that would be helpful to stimulate the working. The sustainability activities are used to compare the peers of the organization to the competitors, the strength, key opportunities evolving to the firm. The sustainability approach in the strategic management helps to cut through the information that would focus on the right thing and the right order with a higher ambition. The more use of the resources in a better way for the sustainable development of the firm ensures the right decision to make a better working in the organization (Witek, 2012). Conclusion The strategic management is the process by which the managers identify and describes the strategies that are used in achieving a better performance and desired result. The three approaches of the strategic management, the stakeholders approach, the dynamic capabilities and the sustainable approach have been explained, the stakeholders approach manages the stake of the organization, and the dynamic capabilities of an organization reflect the ability of achieving new innovative forms of competitive advantage, the sustainable approach focuses on the improvement of the environment. The strong organization has an excellent chance of becoming Viability of each approach: The strategic managements approaches takes time to be implemented, but the viability of the approaches the stakeholders approach, dynamic capabilities and the sustainable approach are very much useful and results in long term gain and also results in putting into action the strategies for a better profit gain in the future, the success of the organization depends on every each step by step process that takes place within the organization. The strategies used are therefore very much important to be better resulting. Suggested benefits The stakeholders have several key benefits, the stakeholders approach helps in the decision making process, the approach also helps in securing the resources for assisting the decisions on the projects. The approach helps in building trust that leads to a better decision making (Ryckman, 2017). The dynamic capabilities concerns the development of the organizations ability, adapt the radical discontinuous change, also maintaining the minimum standards of capability to the survival of the competition. The sustainability approach reaps many benefits in the strategic management, it is a source of innovation and growth for the organizations, and the strategic advantages that are gained by the sustainable approach are: attract top talent, creates a legacy, operational efficiency and responsible innovation (Mckinseycompany sustainability resource productivity, 2010). There are many benefits that are gained by the use of the three approaches to the strategic management. These approaches are responsible for the increase in the ability of the firm to take decisions regarding the proper functioning and working. Implementation issues: The issues that have been a major concern for the implementation of the stakeholders approach is the time, the timeline of the project. The supervisory issues have been one of the greatest concerns also. Involving the stakeholders and not taking their advice leads to distrust and hamper the morale. The dynamic capabilities major implementation issues have been seen in the areas that have a very rigid acceptance of the factors that bring changes. It also has seen to be difficult and takes time to come into flow, so there can be many issues that may arise in the implementation. The implementation issues of the sustainable approach is that, the sustainable approach takes long time for it to be considered in working force, it takes a lot of planning as the future of the organization is also concerned. Limitations The following have seen to be the limitation of the approaches: Time consuming and difficulty in the coordination. Some individuals may not express their opinions in the group. The dynamic may hamper the prioritization process. Can be divergent and difficult to reach. The strategic management approaches are considered to be time consuming, the reason being that, the implementation of these can be very much into consideration and also expecting a longer run result or output. There may be at time that, within some of the organizations the individuals of some groups do not express themselves very clearly, which in turns leads to the wrong decision making, the approaches used are therefore affected and are considered to be not giving a better result, effecting the performance of the organization. The dynamic capabilities are essential but sometimes the changes so made suddenly are very likely to hamper the working within the organization. This in turns brings a huge effect to the organization and the processes. These approaches can be at some point of time divergent and also considered to be difficult to attain and reached (Ryckman, 2017). Reference Ryckman, L, 2017, Advantages and Disadvantages of Stakeholders, viewed on 22nd of January 2017, https://smallbusiness.chron.com/advantages-disadvantages-stakeholders-32179.html Witek, A, 2012, Sustainable Strategic Management and Market Effectiveness of Enterprises, Procedia- social and Behavioural science, vol no. 58, p.p. 899-905 MSG management study guide, 2017, Strategic Management - Meaning and Important Concepts, viewed on 21st of January 2017, https://www.managementstudyguide.com/strategic-management.htm Mckinseycompany sustainability resource productivity, 2010, How companies manage sustainability: McKinsey Global Survey results, viewed on 21st of January 2017, https://www.mckinsey.com/business-functions/sustainability-and-resource-productivity/our-insights/how-companies-manage-sustainability-mckinsey-global-survey-results Kleiner, A, 2013, The Dynamic Capabilities of David Teec, viewed on 21st of January 2017, https://www.strategy-business.com/article/00225?gko=d24f3 MSG Management study guide, 2017, Dynamic Capabilities, viewed on 21st of January 2017, https://www.managementstudyguide.com/dynamic-capabilities.htm Freeman, E, R, 2010, strategic management, Cambridge University press 2010, New York NCBI, n.d., Strengths and Limitations of Stakeholder Engagement Methods, viewed on 21st of January 2017, https://www.ncbi.nlm.nih.gov/books/NBK62575/