DISCUSSION 5 1
Competitive Approach, Competitive Scope, and Decision Models
School of Business, Liberty University
BUSI 770 Business Valuation
Author Note
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to
DISCUSSION 5 2
Discussion 5: Competitive Approach, Competitive Scope, and Decision Models
Introduction
Organizations are now given more options in choosing what is best for the company. Choosing a
type of organizational structure is important to a company’s management. When making a
strategy without knowing the process, it could be detrimental to the company. Competing against
competitors is a process. The market is constantly changing and becoming more competitive.
Organizations must find different ways to keep up with the increasing competitive pressures.
Decision makers must investigate all opportunities for brand new ideas. According to Gamble et
al., (2021) The goal of signaling challengers that strong retaliation is likely in the event of an
attack is either to dissuade challengers from attacking or to divert them to fewer threatening
options (Gamble et al., 2021). In business, competition could become a negative or positive
influence depending on the business goal.
Process: Deciding on a Competitive Approach
Competition in business is important and essential that organizations learn how to handle it.
Competition in business encourages innovation and motivates companies to create products, it
makes sense to make products that are affordable. First organizations learn who's their
competition, to face them, the best practice is facing competition. The Competitive approach is
important, and we must take the necessary steps to remain as competitive as possible. There are
different approaches that firms use to set strategy (Gamble, et al., 2021). Approaches to
diversifying the business lineup and build the business. According to Pless et al. (2012)
Leadership is important and can help link corporate social responsibility and performance to
actions on the part of policy makers and leaders. Responsible leadership is the pathway to the
future in business. The authors highlight the leaders' roles to strengthen the bonds with society,
the lack of leadership may affect the organization (Pless et al. 2012). A competitive strategy is
DISCUSSION 5 3
a set of policies and procedures that a business uses to gain a competitive advantage in the
market. It's the process of identifying and executing actions that allow a business to improve its
competitive position. For organizations to succeed and thrive, leaders have a responsibility to
make sure that the appropriate approach fits with the demands of the firm. Deciding how to
decide relies on the organization's budget (Gamble, et al., 2021). How to choose and execute the
right strategies when in business is a process also.
Strategic Thinking: Deciding on Competitive Scope
Deciding on competitive scope is important. According to Gamble, et al., (2021) choosing the
basis for competitive attacks, a company's strong points should be aimed at exploiting
competitors' weakness. Timing a company's offensive and defensive strategic moves is crucial as
what moves to make (Gamble, et al., 2021). The competitive scope can be broad scope and
narrow scope. Choosing the competitive scope depends on the goal in the organization. Porter's
generic strategies describe how a company pursues competitive advantage Links to an external
site. across its chosen market scope. When implementing strategies, the company should be
aware of the nature first mover with advantages and disadvantages (Gamble, et al., 2021). Often
companies fail from being consistent, lack leadership or there is no real strategy. Gamble, et al.,
2021 deciding on a competitive approach to not only stay one step ahead of its competitors, but
also to help the company stay in business, a competitive approach is required by the organization
(Gamble, et al., 2021). Farida & Setiawan (2022) the era of business competition has become
businesspeople must continuously find ways and strategies to overcome competition in their
respective fields, the company must maximize all components of resources (Farida & Setiawan
(2022).
Geographic Scope. Production / Distribution Scope
DISCUSSION 5 4
This section is the scope of the firm, it is opening the door for opportunities and increasing
revenues by expanding. The scope of business involves all the activities being performed by the
business, activities to secure revenue. Expanding from multiple countries and distributing
products or services depends on the type of product and the business. Distributing products with
minimal waste, in a timely manner, with the possibility of making revenue is key. Gamble et al.
(2021) mentions the geographic scope influences the company strategy. Organizations use
defensive strategies to protect a company's market position and competitive advantage, all firms
are subject to offensive challenges from rivals (Gamble, et al., 2021). Understanding the actions
and reactions of competitors and customers is essential to developing an effective strategy, which
includes assessing both the positive and negative consequences of those actions and
reactions. Think global act local approach to strategy making (Gamble, et al., 2021). Good
strategies require great execution especially for competing in developing country markets.
Ensuring a strong commitment to business ethics in companies is essential. When building a
business strategy, an organization should understand economies of scope. Having a business
then selling a product extends the use of resources to make more products to be sold to your
same target market, helping you continue to drive costs down (Gamble, et al., 2021). Creating
products and services that are different from competitors allows certain businesses to stand out
against their competitors. International marketing and global expansion, great strategy for
company growth in revenue. Distributing the best quality products to the right target audience, at
the right location, at the right time is imperative in business, but often organizations struggle with
this concept.
Decision Model
Strategies for better decision making and the power of decision models are useful and opens new
pathways for improving performance. Models are useful in guidance. According to Krogerus &
DISCUSSION 5 5
Tschäppeler (2018) the consequences model in introduced, we often defer decisions because we
have doubts. But not planning is a decision. If you delay a resolution, it is often an unconscious
decision, one that you do not communicate. This leads to uncertainty in the team. So, if you want
to decide later, be sure to communicate this clearly (Krogerus & Tschäppeler, 2018). When I
think about the consequences the first thing that comes to mind is the consequences businesses
suffer against rivals. Competiton is not always negative in business it could also force an
organization to become a better business, competition is known to breed excellence. This allows
organizations to be protected and business flourish. Great journal article Mattera et al. 2021
mentions sustainable business models helped firms overcome COVID when facing a global
crisis. Implementation of sustainable business models contributes to improving a firm’s
performance during a global crisis, such as the one caused by COVID-19 through solid corporate
social responsibility strategies (Mattera et al. 2021). Considering firms’ creating sustainable
business models should generate a positive cycle and contribute to a long-term growth (Mattera
et al. 2021). The management model is known to contribute to overcoming hardships while
building on the 3Ps’ balance. Sustainable business models and transparency can provide the
optimal tools to ensure value creation and corporate sustainable development (Mattera et
al. 2021). Decision making in uncertainty, leaders learn to make the best decisions in that
situation. Leaders know that making good, fast decisions is challenging under the best of
circumstances. Covid 19 has had the biggest impact in business and more organizations are
offering more remote work options, there is a future in remote work.
Conclusion
The purpose of this research was to identify effective strategies that organizations must learn to
adapt to the complexity of their environment for survival. Organizations are making the
necessary changes that fit into a market that is constantly changing and becoming more
DISCUSSION 5 6
competitive. Organizations must find different ways to keep up with the increasing competitive
pressures. Decision makers must investigate all opportunities for brand new ideas and use
defensive strategies to protect a company from rivals. There will always be fear of the unknown
when making decisions because situations are unpredictable. Despite the risk, businesses must be
willing to take a chance in making the best decisions for the organization. In the future, crafting
new strategic moves to improve the overall corporate performance is important for the
improvement in business.
DISCUSSION 5 7
Annotated Bibliography:1
Farida, I., & Setiawan, D. (2022). Business strategies and competitive advantage: The role of
performance and innovation. Journal of Open Innovation, 8(3),
163. https://doi.org/10.3390/joitmc8030163 Links to an external site.
Key Points Summary
According to Farida & Setiawan (2022) this article highlights competition in business and
describes competition as being tougher and businesses continuously finding ways and strategies
to overcome competition in their respective fields. Both authors create various competitive
advantage factors that are needed in business. Competitive advantage stems from a company’s
strategic choices to seize market opportunities. Business strategies should integrate various
functional activities to achieve divisional goals.
Evaluation of the Publication's Quality
Business Strategies and Competitive Advantage: The Role of Performance and
Innovation. Scholarly Journal J. Open Innov. Technol. Mark. Complex. 2022, 8(3),
163; https://doi.org/10.3390/joitmc8030163 Links to an external site. Received: 11 August
2022 / Revised: 31 August 2022 / Accepted: 2 September 2022 / Published: 13 September 2022.
Evaluation of the Author's Quality
Ida Farida Links to an external site. is an academic researcher from the State University of
Malang. Ida Farida's Publications136, 3 research works with 31 citations and 477 reads,
including: Distribution and Assessment of Fe and Mn in the Coastal Sediments of Sendang Biru,
East Java, Indonesia.
Doddy Setiawan. Universitas Sebelas Maret | UNS · Department of Accounting Links to an
external site. Professor. 148 Publications, 69,645 Reads, 711 Citations.
Where this fits into the discussion
DISCUSSION 5 8
Farida & Setiawan journal article fits into this week's discussion on the understanding of real
competition that occurs daily in business. The article provides us with different options for the
organization to implement when making the best decisions for the company. The market is
constantly changing and becoming more competitive. Competing against the competition is a
process and organizations must find different ways to keep up with the increasing competitive
pressures.
Annotated Bibliography:2
Mattera, M., Alba Ruiz-Morales, C., Gava, L., & Soto, F. (2021). Sustainable business models to
create sustainable competitive advantages: Strategic approach to overcoming COVID-19 crisis
and improve financial performance. Competitiveness Review: An International Business
Journal, 32(3), 455–474. https://doi.org/10.1108/cr-03-2021-0035 Links to an external site.
Key Points Summary
Mattera et al. (2021) sheds light on COVID-19 crisis and describes the disease as the greatest in
modern times that took place. This became the biggest crisis firms had to face and a major
influence on the economy. There were different tactics the government implemented to control
the spread of the virus. Firms are learning to adapt to the changes to consolidate their position in
the market. The firms evaluated throughout this study show having long-term sustainable
strategies can positively impact long-term financial performance, lowering the negative impact
during a crisis such as COVID-19.
Evaluation of the Publication's Quality
The scholarly publication was published 24 December 2021. Issue publication date: 21 April
2022. Competitiveness Review. Links to an external site. Volume 32 Issue 3 Links to an external
site.
Evaluation of the Author's Quality
DISCUSSION 5 9
Marina Mattera, European University of Madrid. Links to an external site. Publications35 h-
index Links to an external site. 7 Citations204. Highly Influential Citations9ollow Author.
Carmen Alba Ruiz-Morales, Links to an external site. European University of Madrid |
UEM. Links to an external site. Villaviciosa de Odon, Spain. 3 Publications 3 Reads 54 Citations
Luana Gava. European University of Madrid Links to an external site.
Federico Soto Links to an external site.
Where this fits into the discussion
Mattera et al. (2021) journal article fits into this week's discussion with firms learning to adapt to
the changes to consolidate their position in the market. COVID-19 was the biggest crisis that
ever happened in 2020 which had a major influence on the economy. Companies were learning
to adapt to the changes that were needed to stay relevant against other competitors. Companies
had learned that their decisions would either control or continue to spread the Covid 19 virus.
The impact and the changes necessary to succeed in business.
Annotated Bibliography:3
Pless, N. M., Maak, T., & Waldman, D. A. (2012). Different approaches toward doing the right
thing: Mapping the responsibility orientations of leaders. Academy of Management Perspectives,
26(4), 51-65. https://doi.org/10.5465/amp.2012.0028 Links to an external site.
Key Points Summary
According to Pless et al. (2012) Leadership is important and can help link corporate social
responsibility and performance to actions on the part of policy makers and leaders. Responsible
Leadership is the pathway to the future in business. The authors highlight the leaders' roles to
strengthen the bonds with society. Leadership is essential in business with decision making and
the lack of leadership may affect the organization.
Evaluation of the Publication's Quality
DISCUSSION 5 10
The scholarly publication was published November 1, 2012. Journal of the Academy of
Management Perspectives. Vol 26, issue 4.
Evaluation of the Author's Quality
Nicola M. Pless, Links to an external site. University of South Australia, Adelaide, Australia.
PhD. 82 Publications. 74,914 Reads 3,833 Citations. Professor Nicola M. Pless, listed
by Stanford University among the top 2% scientists in the world, is a former Vice President
Leadership Development, holds the Chair of Positive Business at the University of South
Australia.
Thomas Maak. Links to an external site. Publications 83. Links to an external site. 67,932
Reads.4,120 Citations. He is a Professor of Leadership and Director of the Centre for Workplace
Leadership at the University of Melbourne. A graduate from the University of St Gallen, he held
appointments at St Gallen, INSEAD, ESADE Business School and was formerly Head, School
of Management and founding Director of the Centre for Business Ethics and Responsible
Leadership at the University of South Australia. Thomas is a leading scholar in the field of
responsible leadership and uses a multi-level lens to research leadership at the individual, group
and organizational level, linking ethical theory, political philosophy, relational thinking and
stakeholder theory. Thomas has extensive experience in leadership development.
David A. Waldman, Links to an external site. Professor. h-index. 13275 Citations. 56 h-
index. Professor, M anagement and Entrepreneurship. Links to an external
site. Professor, Business, W. P. Carey School of (WPC). Links to an external
site. Professor, Global Management, Thunderbird School of (TSGM). Links to an external
site. Professor, Geographical Sciences and Urban Planning, School of (SGSUP). Links to an
external site. Professor, Technology Transfer, Global Center for (GCTT). Links to an external
site. Professor, Global Discovery and Conservation Science, Center for Links to an external site.
Where this fits into the discussion
DISCUSSION 5 11
The authors do a great job with fitting this article into this week's discussion with implementing
the best strategies in decision making. The different approaches that are used are important when
competition against competitors and staying relevant in business. Making the right decisions will
make or break the business. The author does a great job of highlighting the importance of rivals
in business learning to adapt and still succeed in business.
DISCUSSION 5 12
References
Farida, I., & Setiawan, D. (2022). Business strategies and competitive advantage: The role of
performance and innovation. Journal of Open Innovation, 8(3),
163. https://doi.org/10.3390/joitmc8030163 Links to an external site.
Gamble, J., Peteraf, M. A., & Thompson, A. A. (2021). Essentials of strategic management: The
quest for competitive advantage. McGraw Hill LLC.
Krogerus, M., & Tschäppeler, R. (2018). The decision book: 50 models for strategic thinking.
W.W. Norton & Co. (Revised ed.), New York, NY. ISBN: 9780393652376.
Mattera, M., Alba Ruiz-Morales, C., Gava, L., & Soto, F. (2021). Sustainable business models to
create sustainable competitive advantages: Strategic approach to overcoming COVID-19
crisis and improve financial performance. Competitiveness Review: An International
Business Journal, 32(3), 455–474. https://doi.org/10.1108/cr-03-2021-0035 Links to an
external site.
Pless, N. M., Maak, T., & Waldman, D. A. (2012). Different approaches toward doing the right
thing: Mapping the responsibility orientations of leaders. Academy of Management
Perspectives, 26(4), 51-65. https://doi.org/10.5465/amp.2012.0028
