“BUSINESS STRATEGY: CONCEPTS, MODELS, AND THEORIES

CASE STUDY OF GREENGATES GROUP OF COMPANIES”

BY

ONYENEKWE, CHARLES CHUKWUMA

BEING A TERM PAPER SUBMITTED TO THE UNIVERSITY OF LAGOS

BUSINESS SCHOOL (ULBS) IN PARTIAL FULFILMENT OF DBA 911 (BUSINESS

STRATEGY) COURSE OF THE DOCTOR OF BUSINESS ADMINISTRATION

PROGRAMME

FACILITATORS

DR. S. E. IFERE

DR. Z. W. ABIOLA

FEBRUARY 2025
Table of Contents

1.0 Introduction

2.0 Definition of Keywords

3.0 Key Elements of Strategy

3.1 Vision

3.2 Mission

3.3 Value

3.4 Objectives

4.0 Levels of Business Strategy

4.1 Corporate

4.2 Business

4.3 Functional

5.0 Concepts of Business Strategy

5.1 Strategic Analysis

5.2 Competitive Advantage

5.3 Sustainability in Strategy

6.0 Models of Business Strategy

6.1 SWOT Analysis

6.2 PESTEL Analysis in Business Strategy

6.3 Porter’s Five Forces in Business Strategy

6.4 VRIO Analytical Model

6.5 Steiner Model

6.6 Value Chain Concept

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7.0 Theories of Business Strategy
7.1 Resource-Based View (RBV)
7.2 Dynamic Capabilities Theory
7.3 Stakeholder Theory
7.4 Contingency Theory
7.5 Institutional Theory
7.6 Survival Theory
7.7 SMART Objective Theory
7.8 CAGE Theory
7.9 Lewin’s Force Field Theory
7.10 Balanced Scorecard Theory

8.0 Applicability of Business Strategy Concepts, Models and Theories in Greengates

8.1 SWOT

8.2 PESTEL

8.3 Resource Base Theory

8.4 Dynamic Capability Theory

8.5 Survival Theory

8.6 Porter’s Five Forces

9.0 Recommendations

10.0 Conclusion

References

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1.0 INTRODUCTION

The ever-changing and often unpredictable nature of today's global business scene highlights how

essential good business strategy is. Business strategy involves making, putting into action, and

looking at decisions that help organizations reach their goals and keep an edge over others. This

process needs a careful look at what resources a company has and what's happening in the market,

as both shape the direction a company takes. Coming up with strategies isn't just about setting

goals. It's also about keeping up with what's new in the industry dealing with what competitors are

doing, and coming up with fresh ideas that make organizations stand out from others.

Using business strategy ideas, models, and theories is key to matching what an organization has

with what the market offers. Tools like SWOT analysis, PESTEL analysis, and Porter's Five

Forces help businesses get a full picture of where they're working. At the same time, models like

the Ansoff Matrix and Blue Ocean Strategy show organizations ways to grow and bring in new

ideas. Ideas like the Resource-Based View and Stakeholder Theory help us understand better how

a company's own strengths and its relationships with different groups contribute to its success.

Strategy is crucial for organizations to navigate the ever-changing business landscape. Tools like

SWOT analysis help companies identify their strengths, weaknesses, opportunities, and threats.

By leveraging their strengths and addressing their weaknesses, businesses can position themselves

to capitalize on opportunities and mitigate risks.

2.0 CONCEPTS

Business

A business refers to the organized efforts of individuals or entities engaged in producing, selling,

or distributing goods and services to meet consumer needs while generating economic value

(Drucker, 1954). Businesses operate within structured systems that include financial, operational,

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marketing, and managerial components, all of which are strategically aligned to achieve long-term

sustainability and competitive advantage (Porter, 1985).

A business encompasses multiple aspects, including its legal structure, industry positioning,

revenue models, and market engagement strategies. It functions within an external environment

shaped by economic, technological, social, and regulatory forces, which influence decision-

making and performance (Mintzberg, 1994). Successful businesses adopt strategic planning

frameworks that enable them to optimize resources, enhance operational efficiencies, and adapt to

market changes (Barney, 1991).

Strategy

Strategy, within the domain of business strategy, refers to the deliberate planning and execution

of actions designed to achieve long-term organizational objectives, create competitive advantages,

and navigate industry complexities (Chandler, 1962). It encompasses a comprehensive set of

decisions regarding resource allocation, market positioning, and organizational structure, ensuring

alignment with both internal capabilities and external environmental factors (Mintzberg,

Ahlstrand, & Lampel, 1998).

A well-defined strategy provides a roadmap for achieving corporate goals while adapting to

uncertainties and market shifts (Whittington, 2001). It determines how an organization competes

in its industry, either through cost leadership, differentiation, or niche market specialization

(Porter, 1980). In this regard, strategy serves as both a long-term vision and a tactical guide for

day-to-day operations (Ansoff, 1988).

3.0 KEY ELEMENTS OF STRATEGY

Effective business strategy is built on core elements that provide direction, purpose, and

measurable goals for an organization. These elements—Vision, Mission, Value, and Objectives—

ensure that strategic initiatives align with long-term aspirations and operational execution
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 (Mintzberg, Ahlstrand, & Lampel, 1998). Each of these elements plays a crucial role in shaping

an organization’s identity, decision-making processes, and competitive positioning.

i.Vision: A vision statement defines the long-term aspirations of an organization, outlining what it

aims to achieve in the future. It serves as an inspirational guide that influences strategic decision-

making and motivates stakeholders (Collins & Porras, 1996). A strong vision statement is future-

oriented, ambitious, and reflective of the company’s core purpose.

Vision statements are not concerned with immediate operations but rather set the direction for

growth and transformation over time (Kotter, 2012).

ii.Mission: A mission statement articulates an organization’s purpose, defining what it does, whom

it serves, and how it delivers value. Unlike vision statements, which focus on the future, mission

statements emphasize the present and the company’s core activities (Campbell & Yeung, 1991). A

well-defined mission provides clarity for employees, aligns stakeholders, and informs strategic

planning by ensuring that day-to-day operations contribute to broader business objectives (Drucker,

1974).

iii.Value: Values represent the fundamental beliefs and ethical principles that shape an organization’s

culture and decision-making processes. They define how a company conducts business, interacts

with stakeholders, and maintains corporate responsibility (Freeman, 1984).

Values such as integrity, customer focus, innovation, and sustainability form the foundation of

corporate identity. Strong organizational values enhance brand reputation, employee engagement,

and stakeholder trust (Schein, 2010).

iv.Objectives: Objectives are specific, measurable targets that organizations set to achieve their

strategic goals. They provide a clear framework for performance evaluation and resource

allocation (Doran, 1981). Objectives follow the SMART criteria - Specific, Measurable,

Achievable, Relevant, and Time-bound - ensuring clarity and feasibility (Locke & Latham,

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2002).

Objectives help bridge strategic planning with operational execution, ensuring that organizations

track progress and adjust strategies as needed (Kaplan & Norton, 1996).

4.0 LEVELS OF BUSINESS STRATEGY

Business strategy operates at different levels within an organization, ensuring that decisions align

with long-term goals, competitive positioning, and operational efficiency. The three primary levels

of strategy - Corporate Strategy, Business Strategy, and Functional Strategy - work in an

integrated manner to drive organizational success (Grant, 2016). The three levels of business

strategy form a hierarchy that ensures alignment between overarching corporate goals, market

competition, and operational execution.

1. Corporate Strategy: Corporate strategy defines the overall scope and direction of an

organization, focusing on long-term growth, resource allocation, and market positioning across

multiple business units (Chandler, 1962). This top-level strategy is formulated by senior

executives and is concerned with decisions such as diversification, mergers and acquisitions,

international expansion, and sustainability initiatives (Ansoff, 1988).

Corporate strategy also involves decisions regarding vertical integration (expanding into supply

chain processes) and horizontal integration (acquiring competitors). Effective corporate strategy

ensures that all business units align with the overall corporate vision and strategic priorities

(Porter, 1987).

2. Business Strategy: Business strategy, also known as competitive strategy, focuses on how a

company competes within a specific industry or market segment. It is concerned with gaining a

competitive advantage through cost leadership, differentiation, or niche market focus (Porter,

1980).
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Business strategy is developed at the strategic business unit (SBU) level and is designed to achieve

profitability, market share growth, and customer loyalty. It involves decisions related to pricing,

product positioning, customer engagement, and competitive responses (Mintzberg, 1994).

3. Functional Strategy: Functional strategy operates at the departmental level, ensuring that

specific business functions—such as marketing, operations, finance, and human resources—

support the overall business and corporate strategies (Kaplan & Norton, 1996). It involves detailed

action plans that enhance efficiency, optimize resource utilization, and achieve departmental

objectives.

Functional strategies are critical for translating high-level strategic goals into day-to-day actions,

ensuring that departments work collaboratively toward overall organizational success (Drucker,

1999).

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 5.0 CONCEPTS OF BUSINESS STRATEGY

Concepts of business strategy provide the foundational principles that underpin the formulation

and execution of strategic decisions. These concepts serve as the building blocks for more

advanced models and theories, enabling businesses to understand and respond to their competitive

landscapes effectively. This section discusses three key concepts in detail: strategic analysis,

competitive advantage, and sustainability in strategy.

5.1 Strategic Analysis

Strategic analysis is the process of assessing an organization's internal and external environments to

inform strategic decision-making and ensure long-term competitiveness (Grant, 2016). It involves

evaluating industry trends, market dynamics, and organizational capabilities to identify

opportunities, mitigate risks, and align business strategies with evolving market conditions.

It provides businesses with data-driven insights that guide decision-making. By evaluating

competitive forces, customer preferences, and organizational strengths, firms can anticipate

challenges, seize opportunities, and optimize resource allocation. This process ensures adaptability

and resilience, allowing companies to navigate uncertainties while sustaining growth, innovation,

and competitive advantage in dynamic markets.

5.2 Competitive Advantage

Competitive advantage refers to an organization’s ability to achieve superior performance relative

to competitors by leveraging unique resources, capabilities, or market positioning (Porter, 1985). It

allows firms to create greater value for customers through cost leadership, differentiation, or niche

strategies, ensuring sustained profitability and industry dominance.

Understanding competitive advantage in business decision enables businesses to stand out in

crowded markets. By capitalizing on innovation, operational efficiency, or brand strength, firms can

enhance customer loyalty and financial success. Strategic decisions must focus on sustaining this

edge, ensuring adaptability to changing market conditions while reinforcing long-term

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differentiation and business resilience.

5.3 Sustainability in Strategy

Sustainability in strategy refers to an organization’s ability to achieve long-term success by

balancing economic growth, environmental responsibility, and social well-being (Elkington, 1997).

A sustainable strategy ensures that businesses meet present needs without compromising future

generations, integrating ethical practices, resource efficiency, and stakeholder engagement into

decision-making.

Sustainability in strategy shapes responsible decision-making, ensuring businesses innovate, grow,

and remain competitive while minimizing environmental impact and fostering social responsibility.

By aligning profitability with ethical governance, companies strengthen stakeholder trust, comply

with regulations, and future-proof their operations, ultimately driving long-term resilience and

sustainable value creation.

These core concepts are central to effective strategic management and serve as the foundation for

applying models and theories discussed later in this paper.

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6.0 MODELS OF BUSINESS STRATEGY

Business strategy models provide organized ways to examine challenges and guide decisions.

Here's a breakdown of key models like SWOT analysis, PESTEL analysis, Porter's Five Forces,

VRIO analytical model, STEINER Model, Value Chain Concept and McKenzie 7S Model.

6.1 SWOT Analysis

SWOT analysis is a strategic framework used to evaluate an organization’s internal strengths and

weaknesses alongside external opportunities and threats. This model helps businesses develop

strategies that maximize strengths and opportunities while mitigating weaknesses and threats,

ensuring strategic alignment and competitiveness (Gürel & Tat, 2017).

i. Strengths: Strengths are internal factors that provide a competitive edge, such as advanced

technology, skilled personnel, financial stability, and brand reputation. Businesses that

leverage their strengths can differentiate themselves in the market.

ii. Weaknesses: Weaknesses are internal limitations that hinder an organization’s ability to

compete effectively. These may include outdated technology, high operational costs,

inefficient processes, or a lack of skilled employees. Recognizing weaknesses is crucial

for closing performance gaps and improving efficiency.

iii. Opportunities: Opportunities are external factors that businesses can exploit for growth.

These include emerging market demands, technological advancements, regulatory

incentives, or shifting consumer preferences. Identifying and capitalizing on these

opportunities allows organizations to align their strategies with favourable market trends.

iv. Threats: Threats are external challenges that can negatively impact business performance.

These include economic downturns, regulatory changes, competitive pressures, and

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 technological disruptions. For instance, increased competition from new entrants can erode

market share, while stricter environmental regulations may increase compliance costs.

Economic instability, such as inflation or fluctuating exchange rates, poses risks,

particularly for businesses with global operations. To mitigate these threats, organizations

implement risk management strategies, diversify investments, and optimize operational

efficiency.

6.2 PESTEL

PESTEL analysis is a strategic framework that evaluates Political, Economic, Social,

Technological, Environmental, and Legal factors affecting business operations. It provides a

structured approach to identifying external risks and opportunities, ensuring businesses can adapt

to dynamic market conditions (Yüksel, 2012).

i. Political Factors: Political factors encompass government policies, taxation, trade

regulations, and political stability, all of which influence business environments.

Organizations must navigate regulatory frameworks, geopolitical risks, and trade policies

that impact market access and supply chains. Government incentives and foreign

investment policies can create growth opportunities, while shifting regulations may require

strategic adjustments.

ii. Economic Factors: Economic factors include inflation, interest rates, exchange rates,

unemployment, and GDP growth, all of which shape consumer purchasing power and

business costs. Economic expansion fosters demand, while downturns introduce financial

constraints. Organizations must monitor economic indicators to anticipate market shifts

and manage financial risks associated with cross-border transactions, capital investment,

and pricing strategies.

iii. Social Factors: Social factors address demographic trends, cultural norms, and consumer

behaviour that drive market demand. Population growth, lifestyle shifts, and ethical values

influence business strategies, requiring alignment with societal expectations. Companies

must adapt to evolving consumer preferences, such as sustainability concerns, digital

advantage.

iv. Technological Factors: Technological factors focus on innovation, automation, digital

transformation, and data analytics. Businesses must integrate emerging technologies to

enhance operational efficiency, optimize supply chains, and improve customer

engagement. However, rapid advancements demand continuous investment in research,

development, and workforce upskilling to sustain competitiveness in tech-driven

industries.

v. Environmental Factors: Environmental considerations involve climate policies, resource

management, and sustainability regulations. Organizations are increasingly expected to

adopt eco- friendly practices, reduce carbon footprints, and comply with environmental

standards. Regulatory frameworks governing emissions, waste management, and

renewable energy adoption present both challenges and strategic opportunities for

businesses.

vi. Legal Factors: Legal factors include employment laws, intellectual property rights,

competition regulations, and data protection policies. Adhering to legal requirements

mitigates risks associated with compliance failures, lawsuits, and reputational damage.

Businesses must navigate complex legal environments, ensuring operational integrity

while leveraging regulatory incentives for growth and expansion.

PESTEL analysis equips businesses with a holistic understanding of external influences, allowing

them to anticipate risks and capitalize on opportunities. It complements SWOT analysis and

Porter’s Five Forces, providing a broader perspective on industry dynamics. By integrating macro-

environmental insights into strategic planning, businesses enhance adaptability, minimize

uncertainties, and sustain long-term competitiveness.

6.3 Porter’s Five Forces

Porter’s Five Forces is a strategic framework developed by Michael Porter (1980) to analyse
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 industry competition and assess factors influencing profitability. The model identifies five key

forces: industry competition, threat of new entrants, threat of substitutes, bargaining power of

buyers, and bargaining power of suppliers. By evaluating these forces, businesses can identify

competitive pressures and develop strategies to gain a sustainable advantage.

i. Industry Competition: Industry rivalry refers to the intensity of competition among existing

market players. High levels of rivalry lead to price wars, reduced profitability, and increased

costs for advertising and product differentiation. The level of competition depends on factors

such as the number of competitors, market growth rates, and product similarities. In industries

experiencing slow growth, firms must differentiate through innovation, cost efficiency, or

superior customer service to remain competitive.

ii. Threat of New Entrants: The ease with which new competitors enter an industry depends on

barriers to entry, such as capital requirements, economies of scale, brand loyalty, and access to

distribution networks. Industries with low entry barriers, like e-commerce, see frequent new

entrants, while highly specialized sectors, such as aerospace manufacturing, require significant

investment, limiting new competition. To maintain market positioning, firms must invest in

brand strength, innovation, and customer relationships to deter new entrants.

iii. Threat of Substitutes: Substitutes are alternative products or services that fulfil the same need

as an existing offering. Their presence reduces demand and forces businesses to innovate or

adjust pricing strategies. Industries with high substitute threats, such as transportation, media,

and retail, must focus on continuous innovation to remain relevant. Firms can counteract

substitutes by enhancing product differentiation, improving customer experience, and adopting

emerging technologies to stay ahead of market trends.

iv. Bargaining Power of Buyers: Buyer power is strong when customers have multiple alternatives

and low switching costs. This force is particularly influential in industries with few large buyers

negotiating lower prices, such as wholesale and retail chains. Businesses can mitigate buyer

power by offering superior quality, personalized services, and long-term contracts to retain

customer loyalty and reduce price sensitivity.

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v. Bargaining Power of Suppliers: Suppliers hold power when they provide critical inputs,

control supply chains, or have few competitors. Industries dependent on rare raw materials,

such as semiconductors or metals for battery production, often face strong supplier influence.

Businesses can reduce supplier dependency by diversifying procurement sources, forming strategic

partnerships, or vertically integrating supply chains to secure input stability.

This framework helps businesses identify competitive risks and opportunities, enabling them to

craft strategies that enhance market positioning and profitability. By understanding industry

dynamics, firms can adjust their strategies to strengthen competitive advantages and minimize

threats.

While widely used, Porter’s Five Forces has limitations. It assumes static industry structures and

does not fully account for rapid technological disruptions or internal firm capabilities. Combining

it with SWOT or PESTEL analysis provides a more comprehensive strategic perspective.

6.4 VRIO Analytical Model

The VRIO framework, developed by Barney (1991), is a strategic tool used to evaluate an

organization's resources and capabilities to determine their potential for achieving sustainable

competitive advantage. The acronym VRIO stands for Value, Rarity, Inimitability, and

Organizational Alignment, representing the four key attributes a resource must possess to create

long-term success. By systematically assessing these factors, businesses can identify their strategic

assets and deploy them effectively.

i. Value: A resource is valuable if it enables an organization to exploit opportunities or

neutralize threats. Valuable resources enhance efficiency, reduce costs, improve product

quality, or create differentiation in the market. If a resource fails to add value, it may hinder

performance and require re-evaluation. Resources such as advanced technology, strong

brand reputation, and efficient supply chains contribute to an organization’s ability to

compete effectively and align with customer needs.

ii. Rarity: A resource must be rare to offer a competitive edge. If multiple competitors have

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 access to the same resource, it ceases to be a differentiator. Rare resources include patented

technologies, exclusive supplier agreements, and unique expertise that are not easily acquired by

rivals. Without rarity, even valuable resources may only allow a firm to achieve industry parity

rather than superiority. Organizations must continuously assess and protect their rare assets to

maintain an advantage.

iii. Inimitability: Inimitability refers to the difficulty of replicating a resource. The more

complex and unique a resource, the harder it is for competitors to copy. Inimitability arises

from historical conditions, proprietary knowledge, unique business models, or intellectual

property protections. Organizations that possess resources that are costly, time-consuming,

or legally restricted from imitation can sustain a long-term market advantage.

iv. Organizational Alignment: Organizational alignment ensures that valuable, rare, and

inimitable resources are effectively utilized. Without proper structures, even the most

strategic resources may remain underutilized or mismanaged. Companies need efficient

systems, skilled personnel, and streamlined processes to fully capitalize on their advantages.

For example, a firm with cutting-edge technology but a lack of skilled workforce or

operational inefficiencies may fail to achieve its full potential.

The VRIO framework provides a structured approach to internal resource management, enabling

firms to sustain competitive advantage. Businesses must continuously evaluate their resources to

ensure they meet VRIO criteria. If a resource lacks rarity or inimitability, investments in R&D,

innovation, or workforce training may be required. Similarly, if a resource is valuable but lacks

organizational alignment, restructuring efforts can improve efficiency and maximize its potential.

By applying the VRIO model, organizations can identify assets that differentiate them from

competitors and drive long-term success. This strategic approach ensures that resources are not

just identified but also optimized, fostering resilience and adaptability in a competitive

marketplace.

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 6.5 Steiner Model

The Steiner Model, developed by George Steiner (1979), provides a structured approach to

strategic planning, ensuring that organizational objectives translate into actionable initiatives. It

focuses on goal setting, resource allocation, and monitoring mechanisms, bridging the gap

between vision and execution (Bryson, 2018).

i. Goal Definition: Clearly defined goals aligned with an organization’s vision provide direction

for decision-making and resource allocation. Goals must be Specific, Measurable,

Achievable, Relevant, and Time-bound (SMART) (Doran, 1981). This ensures a systematic

approach to measuring progress and achieving long-term sustainability (Bryson, 2018).

ii. Resource Allocation: Strategic resource allocation ensures that financial, human, and

technological resources are effectively utilized. This prevents inefficiencies, maximizes

returns, and supports long-term innovation and adaptability (Mintzberg, 1994; Ansoff, 1988).

iii. Implementation and Monitoring: The model emphasizes execution and continuous

assessment, incorporating Key Performance Indicators (KPIs) to track progress (Kaplan &

Norton, 1996). Monitoring allows organizations to identify gaps, adjust strategies, and enhance

agility in response to external changes (Bryson, 2018).

The model ensures that strategic plans are effectively executed while maintaining flexibility in

dynamic environments. By integrating with tools like the Balanced Scorecard (Kaplan & Norton,

1996), businesses can enhance both strategic clarity and operational efficiency.

The Steiner Model offers a systematic planning framework that aligns organizational vision with

practical execution. It remains valuable for navigating business complexities and achieving

sustainable growth.

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6.6 Value Chain Concept

The Value Chain model, introduced by Porter (1985), analyses business activities that add value

to a product or service, improving efficiency and profitability.

A.Primary Activities

i. Inbound Logistics – Managing raw material sourcing and transportation to reduce costs.

ii. Operations – Streamlining production processes to enhance quality and output.

iii. Outbound Logistics – Efficient distribution to improve customer satisfaction.

iv. Marketing & Sales – Targeted strategies to drive revenue and brand awareness.

v. Service – Post-sale support to enhance loyalty and long-term engagement.

B. Support Activities

i. Procurement – Sourcing quality inputs to ensure operational efficiency.

ii. Technology Development – Innovations to boost productivity and differentiation.

iii. Human Resource Management – Employee training and development for sustained

competitiveness.

iv. Firm Infrastructure – Strong leadership and systems for strategic success (Hergert &

Morris, 1989).

The Value Chain model helps businesses identify areas for cost reduction, operational efficiency,

and customer satisfaction, strengthening competitive advantage.

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7.0 THEORIES OF BUSINESS STRATEGY

In navigating the complexities of contemporary business environments, theoretical frameworks

provide a foundation for understanding the mechanisms that underpin organizational performance

and strategy. These frameworks serve as a lens through which organizations can evaluate internal

capabilities, external influences, and stakeholder dynamics to develop informed strategies that

ensure resilience and competitiveness.

7.1 Resource-Based View (RBV)

The Resource-Based View (RBV), formulated by Barney (1991), highlights that competitive

advantage originates from internal resources and capabilities, provided they are valuable, rare,

inimitable, and non-substitutable (VRIN). This theory shifts the strategic focus from external

opportunities to leveraging intrinsic strengths for long-term benefits.

In practice, organizations operating across multiple sectors capitalize on proprietary systems and

skilled talent pools, creating a strategic edge. For example, advanced training programs for

workforce enhancement ensure continual innovation and efficiency, aligning with RBV's core

premise. Furthermore, safeguarding intellectual property rights, such as trademarks and patents,

not only secures uniqueness but also prevents competitive erosion. These principles resonate with

empirical findings by Newbert (2007), which confirm the direct correlation between resource

uniqueness and performance metrics.

A successful implementation of RBV demands a holistic view, where resource orchestration aligns

with long-term strategic objectives. Such an approach fosters resilience, enabling firms to

consistently outperform rivals in competitive and uncertain markets.

7.2 Dynamic Capabilities Theory

Teece, Pisano, and Shuen’s (1997) Dynamic Capabilities Theory builds on RBV by emphasizing

adaptability and responsiveness in fluctuating environments. Firms with dynamic capabilities can

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sense market opportunities, seize them effectively, and reconfigure resources to sustain a

competitive edge.

Real-world applications often illustrate the seamless interplay of agility and innovation. Firms

employing advanced analytics can identify shifts, such as the rising demand for eco-friendly

solutions, and reorient their operations to capture emerging opportunities. Strategic mergers and

acquisitions further reflect the agility required to expand competencies and respond to external

challenges.

The COVID-19 pandemic served as a litmus test for dynamic capabilities. Companies that

successfully transitioned to digital workflows and hybrid operational models showcased the

transformative power of this theory. As Eisenhardt and Martin (2000) assert, these capabilities

ensure not only survival but also enable firms to thrive in uncertain conditions.

7.3 Stakeholder Theory

Stakeholder Theory, introduced by Freeman (1984), advocates for a holistic approach to corporate

governance, emphasizing the importance of balancing the interests of all stakeholders, including

employees, customers, suppliers, communities, and shareholders. Businesses adopting this

perspective recognize that long-term success depends on fostering trust and collaboration across

their ecosystem.

Stakeholder engagement manifests in various forms. Internally, initiatives such as competitive

compensation and career development programs cultivate a motivated workforce. Externally,

partnerships with suppliers to promote sustainable practices ensure value co-creation. Similarly,

prioritizing customer feedback helps refine offerings, bolstering loyalty and satisfaction.

The broader societal impact of businesses reflects their commitment to ethical principles.

Investments in community development projects or compliance with environmental standards not

only fulfil regulatory expectations but also enhance legitimacy. Harrison and Wicks (2013)

highlight that firms prioritizing stakeholder relationships achieve superior financial performance

and reputational strength, underscoring the practicality of this theory.

Contingency Theory, championed by Fiedler (1967), asserts that effective strategies are contingent

upon contextual factors, including the external environment, organizational structure, and

leadership approach. Rather than advocating a one-size-fits-all model, the theory promotes

flexibility and adaptability.

Organizations with diversified portfolios exemplify this adaptability. For instance, during

economic downturns, shifting focus to cost-effective solutions can stabilize revenue streams, while

in periods of growth, luxury products or premium services may dominate the strategy.

Decentralized decision-making models allow subsidiaries to address unique market needs while

maintaining overarching corporate alignment.

Leadership plays a pivotal role in contingency-based approaches. Task-oriented leadership styles

can drive operational efficiency in structured environments, whereas transformational leadership

fosters creativity and innovation in dynamic sectors. As Donaldson (2001) notes, the strength of

Contingency Theory lies in its pragmatic application across complex organizational contexts,

ensuring resilience and relevance.

7.5 Institutional Theory

Institutional Theory, rooted in the works of DiMaggio and Powell (1983), examines how

institutional pressures influence corporate strategies. Organizations adapt to coercive, mimetic,

and normative pressures to secure legitimacy and align with societal and regulatory expectations.

Adherence to industry norms, such as sustainability certifications or ISO standards, exemplifies

normative alignment. Similarly, emulating successful competitors, particularly in volatile markets,

reflects mimetic adaptation. This strategic imitation minimizes risks associated with entering new

sectors.

Institutional Theory highlights three key drivers of organizational conformity:

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 a. Coercive Isomorphism: Arises from legal and regulatory pressures, such as compliance

with government policies or industry standards.

b. Normative Isomorphism: Stems from professional norms and values, often shaped by

education, certification, or peer influence within industries.

c. Mimetic Isomorphism: Occurs when organizations imitate successful peers to manage

uncertainty and enhance their legitimacy.

Institutional compliance not only builds trust but also mitigates operational uncertainties.

Regulatory adherence, coupled with a proactive approach to industry standards, enhances an

organization’s standing within its field. As a result, institutional theory acts as a bridge between

external expectations and internal practices, fostering a sustainable competitive edge.

7.6 Survival Theory

Survival Theory, underpinned by Hannan and Freeman’s (1977) principles of organizational

ecology, posits that adaptability is key to enduring market disruptions. Firms capable of evolving

their structures and processes to match environmental changes are better positioned to achieve

long-term stability. This theory reinforces the need for continuous transformation and strategic

foresight.

Strategic diversification ensures resilience by mitigating risks associated with reliance on a single

revenue stream. For instance, balancing investments across manufacturing, logistics, and

technology reduces vulnerability to sector-specific downturns.

Baum and Oliver (1991) emphasize that firms aligning strategies with environmental and

institutional demands are more likely to survive. This reinforces the necessity of a forward-looking

perspective, where adaptability becomes synonymous with sustainability.

7.7 SMART Objective Framework

Doran’s (1981) SMART framework—Specific, Measurable, Achievable, Relevant, and Time-

bound—offers a structured methodology for goal setting. This clarity ensures alignment between
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strategic initiatives and organizational objectives.

i. Specific: Divisions within an organization must establish precise objectives aligned with

their unique competencies.

ii. Measurable: Progress should be tracked through key performance indicators (KPIs).

iii. Achievable: Goals need to be realistic and aligned with available resources.

iv. Relevant: Objectives must connect to the organization’s broader strategic goals.

v. Time-bound: Deadlines are essential to maintain accountability and focus.

Locke and Latham (2002) affirm that clear, actionable objectives significantly enhance

performance, making SMART objectives indispensable in modern strategy formulation. SMART

objectives drive strategic clarity, discipline, and operational alignment.

7.8 CAGE Theory

The CAGE Distance Framework, proposed by Ghemawat (2001), explores the challenges

associated with cross-border operations by analysing cultural, administrative, geographic, and

economic distances. The CAGE framework provides a strategic tool for evaluating potential

markets and addressing challenges associated with internationalization.

i. Cultural Distance: Success in foreign markets requires understanding cultural nuances.

ii. Administrative Distance: Overcoming legal and regulatory differences often involves

partnerships with local entities. Collaborating with regional players helps ensure

compliance with local laws and facilitates smoother operations in new markets.

iii. Geographic Distance: Logistical challenges posed by physical distance can be mitigated

by investing in advanced supply chain technologies and establishing regional distribution

hubs.

iv. Economic Distance: Pricing strategies should reflect the economic realities of target

markets.

Empirical studies, such as Berry et al. (2010), affirm the efficacy of CAGE in mitigating

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globalization challenges, reinforcing its value for firms entering diverse markets.

7.9 Lewin’s Force Field Theory

Lewin (1947) describes organizational change as a balance between driving forces (innovation,

efficiency gains) and restraining forces (resistance, outdated processes). His Unfreeze-Change-

Refreeze model guides change management:

• Unfreeze – Identifying outdated processes.

• Change – Implementing new systems.

• Refreeze – Reinforcing new norms (Burnes, 2004).

This theory ensures smooth transitions and sustainable change adoption.

7.10 Balanced Scorecard Theory

Kaplan and Norton’s (1992) Balanced Scorecard (BSC) bridges strategic objectives with

actionable metrics. Its four perspectives—financial, customer, internal processes, and learning and

growth—enable comprehensive performance tracking.

Firms employing the BSC ensure alignment across all dimensions, from profitability goals to

employee development initiatives. Metrics such as customer retention rates, operational efficiency

scores, and innovation outputs provide actionable insights, enhancing strategic coherence. Kaplan

and Norton (1996) stress that BSC ensures both short-term agility and long-term sustainability,

making it a cornerstone of modern strategy execution.

By synthesizing these theories, organizations can build robust strategies that are not only grounded

in solid theoretical principles but also tailored to the complexities of real-world operations. This

multidimensional approach equips businesses to thrive in competitive landscapes, achieve long-

term growth, and maintain operational excellence in an ever-evolving global environment.

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 8.0 Applicability of Business Strategy Concepts, Models, and Theories in Greengates

Group Business

Greengates Group Limited is a multinational conglomerate with over 30 years of experience,

operating across various sectors in Nigeria and internationally. The Group's diversified portfolio

includes:

• Capital Markets: Active as broker/dealers on the Nigerian Exchange (NGX) bourse.

• Manufacturing: Engaged in chemical raw material and additive manufacturing, as well as

industrial and domestic packaging.

• Banking and Finance: Operates a finance company regulated by the Central Bank of Nigeria

(CBN).

• Agribusiness: Involved in agricultural ventures for both export and local markets.

• Real Estate Development: Offers services in property development and management.

• Humanitarian Services: Committed to various social responsibility initiatives.

The Group's headquarters are located at 294, Murtala Mohammed Way, Yaba, Lagos, Nigeria.

One of its subsidiaries, Greengates Specialties Limited, established in 1996 and incorporated in

1997, is recognized as one of the fastest-growing food ingredient companies in Nigeria.

Greengates Group's diversified operations and strategic investments have positioned it as a

significant player in Nigeria's economic landscape. The group's diversified portfolio demonstrates

its commitment to leveraging corporate entrepreneurship to explore new markets and drive

innovation.

Greengates Group delivers unparalleled quality and unmatched value to her clients by leveraging on

our vision, mission and a synergy of a formidable team and distinguished Board.

Our Vision: To be an innovative global company leading better than the best in the industry.

Our Mission: To create a sustainable value-added system for the optimum growth of our

stakeholders.

At Greengates, we believe that;

• Our company must run absolutely on sound ethical industry practice.

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 • Honesty, Equity and Fairness must be the basis for all our company's dealings with all people

concerned and our environment.

8.1 SWOT Analysis

SWOT analysis enables Greengates Group to strategically leverage internal strengths, like

diversified operations in real estate and logistics, to seize external opportunities and address

vulnerabilities. The company should mitigate weaknesses, such as outdated technology or over-

reliance on specific markets, by exploring new regions and adopting sustainable practices aligned

with global trends.

8.2 PESTEL Analysis

Using PESTEL analysis, Greengates can assess macro-environmental impacts comprehensively.

Politically, favorable government policies can support expansion, though regulatory shifts present

challenges. Economically, factors like inflation and exchange rate volatility affect profitability.

Social trends towards urbanization and sustainability offer opportunities for eco-friendly real estate

initiatives. Technologically, investments in automation and analytics are crucial for streamlined

logistics. Compliance with environmental regulations and legal frameworks around property rights

and labour laws will safeguard business continuity.

8.3 Resource-Based Theory

The Resource-Based View emphasizes leveraging Greengates’ unique internal resources—strong

brand reputation, skilled workforce, and proprietary technologies—to achieve sustainable

competitive advantage. Ensuring these resources remain protected, rare, and effectively utilized

through talent development and intellectual property protection will support long-term

differentiation and profitability.

8.4 Dynamic Capabilities Theory

Dynamic Capabilities Theory highlights Greengates’ need to proactively sense market shifts, seize

opportunities swiftly, and adapt resources effectively. Examples include adopting logistics

26
automation for e-commerce growth and pivoting toward sustainable real estate practices. The

COVID-19 pandemic underscored the importance of agility, emphasizing continuous investment in

innovation and flexibility for sustained market competitiveness.

8.5 Survival Theory

Survival Theory underscores Greengates’ strategic adaptability to withstand environmental

disruptions. Diversification across real estate, manufacturing, and logistics reduces vulnerability by

spreading risk. By continually refining its operational efficiency, technological innovation, and

strategic partnerships, Greengates ensures resilience and long-term viability in evolving competitive

landscapes.

8.6 Porter’s Five Forces

Applying Porter’s Five Forces helps Greengates understand industry competition comprehensively.

Intense rivalry in logistics and real estate necessitates differentiation through quality and innovation.

Mitigating threats from new entrants in logistics involves strengthening technological capabilities

and brand reputation. Counteracting substitutes, such as digital platforms in real estate, requires

continuous innovation. Managing buyer and supplier bargaining power through strong relationships

and loyalty programs helps Greengates effectively maintain its market position.

9.0 Recommendations for Greengates Group: Strategic Growth, Market Expansion, and

Sustainability

For Greengates Group to sustain its competitive advantage and drive long-term growth, a strategic

approach to business operations, market expansion, and resource optimization is essential. The

applied theories and frameworks were selected based on their alignment with Greengates' core

strategic needs - market positioning, resource-based competitive advantage, adaptability, and

international growth. While other theories offer valuable perspectives, they were not directly applied

as they did not align with the company’s immediate strategic focus. This targeted approach ensures

that Greengates can effectively navigate its complex business environment while sustaining long-

27
term success.

9.1 Leveraging Contingency Theory for Strategic Flexibility

In an increasingly unpredictable business environment, Greengates Group should adopt a

contingency-based strategic approach to remain agile. This means tailoring its strategic decisions to

the specific conditions of each market and industry in which it operates.

• In stable and mature markets, Greengates should focus on efficiency-driven strategies, such

as cost leadership and process optimization, to enhance profitability.

• In dynamic or emerging markets, the company should emphasize innovation, adaptability,

and decentralized decision-making to seize new opportunities and mitigate risks.

By maintaining a dual approach—structured strategy for stable environments and flexible leadership

for volatile markets—Greengates can enhance resilience while maximizing growth opportunities

across different sectors.

9.2 Applying CAGE Theory for International Market Expansion

Greengates Group’s ambition to expand internationally requires a structured market entry strategy.

The CAGE Distance Framework (Cultural, Administrative, Geographic, and Economic distances)

provides a valuable tool for identifying and mitigating the challenges associated with global

expansion.

• Cultural Distance: When expanding into new regions, Greengates should tailor its branding,

customer engagement, and operational practices to align with local preferences and business

cultures.

• Administrative Distance: Navigating foreign regulations, legal frameworks, and trade

policies is essential. Partnering with local businesses or regulatory consultants can ease entry

into new markets.

• Geographic Distance: Efficient logistics and supply chain management will be critical for

international success. Greengates should invest in regional distribution centers and strategic

alliances to optimize cross-border operations.

28
 • Economic Distance: Pricing strategies should reflect the purchasing power of target

markets. In price-sensitive economies, Greengates could explore cost-effective production

techniques or local sourcing to enhance affordability.

By carefully analyzing these dimensions, Greengates can identify the most favorable markets for

expansion while mitigating potential risks, ensuring a smoother and more profitable international

entry.

9.3 Full Implementation of the Value Chain for Operational Excellence

To remain competitive across its diverse business sectors, Greengates should optimize its value

chain, ensuring that every stage of its operations—from procurement to customer service—adds

maximum value while minimizing costs.

• Inbound Logistics: Greengates should establish strategic partnerships with suppliers to

reduce costs and enhance supply chain efficiency.

• Operations: Investing in automation and digital transformation can improve productivity,

reduce waste, and enhance overall business performance.

• Outbound Logistics: Enhancing distribution networks and adopting real-time tracking

technologies will ensure faster, more efficient delivery of goods and services.

• Marketing & Sales: A data-driven marketing strategy will help Greengates better target

customers and personalize their offerings. The company should also explore digital sales

channels to reach broader audiences.

• Customer Service: Implementing Customer Relationship Management (CRM) systems will

enhance service quality and foster long-term customer loyalty.

Additionally, strengthening support activities such as human resource management, technological

innovation, and procurement strategies will create a more agile and efficient organization, leading

to long-term competitive advantage.

9.4 Deepening Stakeholder Engagement for Sustainable Growth

Stakeholder engagement is crucial for Greengates’ long-term success. While the company already

29
adheres to ethical business practices, it should further integrate Stakeholder Theory into its corporate

strategy to strengthen relationships with key stakeholders.

• Employees: Investing in training and professional development programs will enhance

workforce productivity and retention.

• Customers: Actively gathering and integrating customer feedback into business decisions

will improve service delivery and customer satisfaction.

• Suppliers: Establishing long-term partnerships with suppliers based on transparency and

sustainability will enhance supply chain resilience.

• Communities: Expanding corporate social responsibility (CSR) initiatives will reinforce

Greengates’ brand reputation and strengthen ties with local communities.

By prioritizing stakeholder engagement, Greengates can build trust, enhance brand loyalty, and

foster a positive corporate image, all of which contribute to long-term business sustainability.

9.5 Utilizing the VRIO Model for Competitive Advantage

The VRIO framework (Value, Rarity, Inimitability, and Organization) should guide Greengates in

identifying and leveraging its unique strengths to sustain competitive advantage.

• Value: The company should continuously evaluate whether its resources—such as

proprietary technology, financial strength, and skilled workforce—are providing sustained

market value.

• Rarity: Greengates should protect its unique capabilities and intellectual property, ensuring

competitors cannot easily replicate them.

• Inimitability: Developing strong corporate culture, brand equity, and exclusive partnerships

will create differentiation that competitors cannot easily imitate.

• Organization: To maximize the impact of its competitive advantages, Greengates should

ensure its internal processes and leadership structures are effectively aligned with its strategic

goals.

By systematically applying the VRIO model, Greengates will reinforce its strategic positioning,

ensuring that its most valuable assets drive long-term market leadership.
30
 10.0 Conclusion

Greengates Group is at a critical juncture where strategic innovation, market expansion, and

operational efficiency will determine its future growth. By implementing Contingency Theory, the

company can maintain flexibility in decision-making, adapting strategies to suit different market

environments. The CAGE Distance Framework will facilitate targeted international expansion,

ensuring smooth entry into new markets while mitigating risks.

The adoption of Value Chain Optimization will enhance operational efficiency and cost

management, while a strong focus on stakeholder engagement will build long-term trust and

corporate reputation. Finally, applying the VRIO model will ensure Greengates leverages its unique

resources effectively, maintaining a sustainable competitive edge.

By integrating these strategic frameworks into its core operations, Greengates Group will strengthen

its market position, drive sustainable growth, and remain resilient in an ever-evolving global

economy. As the business environment continues to evolve, Greengates must commit to continuous

learning, strategic flexibility, and proactive adaptation to thrive in the dynamic global economy.

31
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