Resource-Based Approach
The strategic management of an organization refers to managing of the existing resources of an organization to achieve the desired goals and objectives. Some of strategic concepts has been seen to be conducive in analysing the competitive environment and analysing the internal organizational strategies along with ensuring management adheres to the same. The theories under the concept of the strategic management is discerned to provide the various guidelines which are associated to the developing the policies and plans and allocating the resources to implement the relevant plans. Based on the assessment made by Michael Porter the underlying strategy is seen to be based on the various types of the factors which are seen to be associated to creating unique valuable position and making trade off with the choosing of what the appropriate strategies which needs to be implemented. It has been further seen that the different types of the strategies under the corporate strategic management concepts needs to be evaluated as per the analysis, strategy formulation and goal setting. The implementation is further seen to be taken into consideration with the structure, control and feedback (Bauer and Matzler 2014).
Some of the main of the strategic management approaches are discussed with the use of resource-based approach, market based, and stakeholder approach. The relevant discussions associated to these theories are discussed with the viability, benefits and implementation issues and limitations.
The resource-based view provides the relevant explanation for the competitive heterogeneity with the primes of the close competitors. In addition to this, thee resource based views is seen with the consideration of the various types of the factors which are seen to be related to the use the internal resources for gaining a competitive advantage. The conceptualization of such an approach aims to use the internal resources to form a more durable strategy for the organization (Strategic BCP 2015).
The viability of this strategy is included with the different types of the evaluations which are seen to be considered with achieving the competitive advantage in both strategic marketing and strategic thinking. In addition to this, the different types of the other approaches of this strategic management has been considered with getting a key insight related to the sustainable competitive advantage. The viability of this approach is considered with identifying the potential key resources and evaluating the VRIN criteria such as valuable, rare, imperfectly imitable and non-substitutability. The viability also deals with the developing, nurturing and protecting the resources.
Market-Based Pricing Strategy
The application of this strategy is conducive in terms of the various types of the situations where the management is seen to be facing a tough competition from the other new entrants in market. This strategy is also seen to be conducive in terms of the assessment of the exiting internal resources which are available to the firm. The RBV strategy formulation is also beneficial in terms of the price position, innovation positioning, service positioning, benefit positioning, innovation position and tailored positioning (Unit and Area 2014).
Some of the main implementation issues to this approach has been further seen with resource configurations, role of the products in the markets and limited nature of the perspective implications. In addition to the issues to this theory some of the various types of the other issues to this theory is considered with the failure to consider the factors surrounding the resource and the assumptions of the highly profitable competitive market environment. Some of the various types of the other issues of the study has been taken into consideration with the various types of the factors which are seen to be associated to the factors such as failure to investigate the key capabilities which associated to the internal development. It needs to be further discerned that the different types of the factors taken into consideration in this aspect are related to the assumption which stated with the factors such only VRIN criteria. The profitability of the organization can be only exploited in certain situations when the competitive advantages do not hold in the market (Strategic Direction 2017).
Some of the main limitations to this theory can be depicted with no existence of the managerial implications, implication of infinite regress, limited applicability and non-viability of the sustained competitive advantages. It is further discerned that the application of the various types the theories are related to this approach is seen with the limitation of applicability to the firms. The resource-based approach has only certain concepts which are associated to the “resources, valuable, rare, inimitable and non-sustainable (VRIN)”. It is not able to provide the appropriate feedback on the way management’s way of obtaining these resources. The implications pertaining to the infinite regress as per this theory has been suggested with the various factors which are considered with the various types infinite loop for providing superior capability only when the resources are available in abundant.
The applicability of this theory is seen to be limited in nature with the adoption of this theory only in the large firms. The sustained competitive theory is further based on the several types of the different assumption which shows that the definition of the resources are very broad in nature (Ruiz and Management 2016).
Stakeholder Approach
The market-based pricing strategy is associated to the four P’s of marketing which consists of “price, promotion, place and product”. The market-based strategy is also known as the competition-based strategy. The various types of the methodologies under the proccing strategy are considered with the inclusion of the evaluation process for the prices of the similar products which are taken into consideration with the competitor pricing along with extra features associated to the competitor’s product. For example, if a product “has an extra feature over the competitor’s product, the company could either decide to price it the same”. Henceforth, it is conducive in making the product better in terms of value or decide to price it higher for the additional feature.
The main viability of this strategy is set with the evaluation of the demand, life cycle of the product and price sensitivity. The consideration of the demand is based on the configuration of the pricing as per the market-based pricing strategy. The increasing nature of the demand has been further supported with the various types of the factors which are influenced with higher price. In situation when the demand falls, the company charges higher prices from the customers (Helfat and Peteraf 2015).
The advantages of the market-based strategy are conducive in terms understanding the different aspects of the product price, place, nature and promotional strategies. This approach is particularly advantageous in situations when there needs to be several combinations of the strategies applied in terms of the dynamic pricing or cost-based pricing approach. This approach of strategy is also seen to be beneficial in nature where the seller needs to trade off with other strategies which are related to the application of the mixed approach. Another benefit of this strategy is applicability in both perfectly competitive market and monopolistic competitive market.
Based on the market-based evaluation of the strategy implementation process in several occasions there has been significant problems associated to the certain negative aspects. These are taken into consideration with the value start up ventures and some of the notable concerns are also discerned with the discounts and premiums, comparable companies, transaction and industries. The primary issues for the palliation of the market-based approach has been seen to be based on the several types of the issues related to the inability of truly comparing the value of the firms. This is evident with the several types of the depictions which are like the structural and operational characteristics. For instance, a company may be depicted with flatter growth and other company may be growing proportionately. This may lead several distortions when comparing the performance with ratios (Herrmann and Nadkarni 2014).
Viability, Benefits, Implementation Issues, and Limitations of Three Approaches
The main areas of the limitation of this of this approach is evaluated with non-availability of the information about the competitors’ strategy and forecast of the future pricing policies. In these situations, it is not possible to know about the threats of the differentiated products and the intended strategy of the company which is related to the factors which are seen to be associated to the barriers to the entry. In case a company wants to operate as a monopoly there is always the possibility of other companies stealing the market share (Management and Hülsemann 2015).
The stakeholder approach was introduced with the main motive of building a management framework which is based on the responsive considerations associated to the unprecedented levels of change and environment control. It needs to be also identified that the various types of the evaluations based on this strategy which needs to be based on the implementation strategy assisted to build a framework contributing to the new opportunities. The purpose of the stakeholder approach has been relied on the several impetuses which relates to the achievement of the organizational objectives. At present there are several arguments of the stakeholders which are associated to the application of the significant conceits related to the corporate planning, CSR theories and organizational theories linked with the stakeholder approach. For instance, in any organization wants to aim for long term success then this approach is depicted to be most suitable in nature (Strategic Direction 2016).
The viability of this strategy is based on the providing single strategic framework, stakeholder approach for the strategic management process instead of strategic planning process. The third important consideration should be considered with the approach is seen to be viable for the survival of the firm, the fourth approach is considered with encouraging the management to develop the strategies by identifying the relationships supporting the long-term success. This considered to be critical for the value-based management strategy which are aligned within the business strategies. In addition to this, the diverse collections of the stakeholders will be conducive in contributing to the long run success of the business. Henceforth, the stakeholder approach is discerned to be critical for the value-based management integrated within the business.
The significants benefits to the single stakeholder will be advantageous in understanding of the concrete stakeholder relationship. The reference of the stakeholder approach is considered with the fiduciary duty of management to benefit for all the stakeholders. The stakeholder theory has been also seen with several initiatives which is conducive in influencing the profit of the company. The use of stakeholder has been useful in supporting the overall growth of the organization (Project Management Institute (PMI) 2016).
Conclusion
The main critical issues are considered as theoretical issues to this approach which has been analysed with its differences existing in compare to0 the other theories. The empirical evidences from the separation thesis has been marked with several problems which has shown that the theory is not applicable in situations where ethics or politics is dissimilar in nature. The different types of the personal values are embedded in our actions, therefore unless the theory approves this concept it cannot be applied to the “stakeholder approach within business ethics and because of the continued neglect of a stakeholder approach in the area of strategic management”. The theorists have further argued that the that this theory is not practical in nature. There have been no foundations to this supported by the economics or business theory. In addition to this, “the approach to business research would challenge the idea that there is a separate world where business is business and where the fundamental principles, self-interest, unfettered competition and the maximizing of shareholder wealth, have already been discovered” (Group 2014).
The main limitations to this theory has been traced with the application of this theory in the real-world application. In several occasions in case firm have no autonomy, then there is difficulty in understanding of the “meaning of corporate strategy or the role of management”. The problems have been formulated with the difficulties related to the understanding of the autonomy of the firm. The difficulty in understanding of the autonomy is seen to be related to the problems associated to understanding of the corporate strategy related to the role of the management. Secondly even if the problems are formulated there is no starting or ending point (Management and Hülsemann 2015).
Conclusions
The assessment of the resource-based view provides the relevant explanation for the competitive heterogeneity with the primes of the close competitors. In addition to this, thee resource based views is seen with the consideration of the various types of the factors which are seen to be related to the use the internal resources for gaining a competitive advantage. The benefit of this application of this strategy is seen terms of the various types of the situations where the management is seen to be facing a tough competition from the other new entrants in market. This strategy is also seen to be conducive in terms of the assessment of the exiting internal resources which are available to the firm. The advantages of the market-based strategy are conducive in terms understanding the different aspects of the product price, place, nature and promotional strategies. This approach is particularly advantageous in situations when there needs to be several combinations of the strategies applied in terms of the dynamic pricing or cost-based pricing approach. significant benefits to the single stakeholder will be advantageous in understanding of the concrete stakeholder relationship. The reference of the stakeholder approach is considered with the fiduciary duty of management to benefit for all the stakeholders. The stakeholder theory has been also seen with several initiatives which is conducive in influencing the profit of the company.
References
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