Fundamental analysis


Market growth: Think before lowering the prices to grow

Price Elasticity of demand measures the responsiveness of demand to a change in the price of the product. Alfred Marshall first developed it. From our point of view this is one of the most believed fallacies in economic knowledge, because there is no direct dependence between these variables.

The price elasticity of demand is calculated by considering the percentage change in demand and dividing it by the percentage change in price.

But this relation is real only if there is no change in the perceived value of the product.

We consider the traditional theory an explanation of a particular situation which can not be considered a law.

Considering the Unicist Logical Approach the elasticity of demand, analyzed from the point of view of the supplier, depends on the price and the perceived value of products.

The sole fact of a product being used changes its value. Therefore it is necessary to understand that the “price elasticity of demand” depends on the price and the subjective value that sustains the price. The price elasticity occurs only within the fuzzy set described and defined by the value-price relation.

Unicist Press Committee

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
https://www.unicist.net/financials/wp-content/uploads/2016/03/turi.pdf


Costs do not influence the use value of products

The value of a product does not depend on the cost to produce it. Costs might define the limit of the feasibility of a business but the do not define the value of the product.

The following metaphor will provide the general idea.

“The cost of a glass is given by its solidity.
The value is given by its hollowness.
Costs add no value.
Values add no costs.
But both integrate the glass.”

The value of a product is what makes a business possible and drives the maximal strategy. It has no causative relation with the cost. This is self-evident in the software business. But in the construction business, there appears to be a relationship between costs and value that in fact does not exist.

The costs of products define the minimum strategy; they define the feasibility of a business. In some type of businesses these limits are more significant than in others. But understanding that the costs have no causative relationship with the value allows defining expansive and profitable business strategies.

In business activity, the preceding metaphor can be completed with the saying:

“Businessmen/women need to reduce the costs, that have no value,
and increase the value that has no costs.”

Diego Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
https://www.unicist.net/financials/wp-content/uploads/2016/01/turi-1.pdf


Pilot testing: The core of a pragmatic approach to business

Doers are natural users of pilot tests because they provide the security that what they are doing will work.

Pilot testing implies testing a functionality and requires a precise design of the tests. The “trial and error” applications are not pilot tests. Pilot tests must include both destructive and non destructive tests.

Pilot tests are the drivers of the unicist reflection processes. Pilot tests have two objectives:

  1. Destructive Testing
  2. Non-destructive Testing

1) Destructive Testing

Falsification, in the field of complex problems, implies finding the limits of the validity of a given knowledge. To do so, it is necessary to develop experiences in homologous fields until the limits of validity are found.

Two elements are homologous when they have the same “nature”. A whale and a dog (an extreme example) are homologous if they are considered as mammals. A dollar and a yen are homologous considering that they are both money.

2) Non-destructive testing

Validation implies the factual confirmation of the validity of knowledge. Validation is achieved when knowledge suffices to exert influence on a reality in a predictable way.

The validation process is homologous to a non-destructive test in the field of material research. Validation implies cause-effect relations. Therefore, validation can only be applied to a simplified field of a complex reality.

Conclusion

Pilot tests must include both non-destructive and destructive tests. The application of destructive tests requires being aware of the concepts of the realities where this test is applied.

Knowledge is secure when its validity and its limits were found. Exceptions to this rule are universal natural laws which are “universally homologous”.

Diego Belohlavek

NOTE: The Unicist Research Institute was the pioneer in complexity science research and became a private global decentralized world-class research organization in the field of human adaptive systems. http://www.unicist.org


The Factor Zero – The power of nil – Part IV

Complex adaptive systems are integrated by a conjunction of “objects”. Mathematically, this integration of objects implies a multiplication of their representative factors. If one of them is “zero”, the whole adaptive system doesn’t work.

Factor ZeroAdaptive systems cannot allow the existence of zeros. One zero suffices to destroy a system.

The Factor “Zero” is an anti-concept that destroys any adaptive system. It establishes the groundings for inaction, annulment or destruction.

The ontology of the factor “zero” describes how human inaction, annulment or destruction is sustained by a fallacious ethics.

It is the ethics of stagnant survivors that provides them a feeling of superiority based on their capacity to hinder value adding actions in their area of influence.

Factor “zero” is the integration of suspicion, doubt and unawareness in order to avoid the responsibility of an adaptive system and destroy it.

It suffices if one of these elements exists. We will use the ontological structure to define them:

The purpose of suspicion is distrust. This implies that the final objective of the factor zero is to install distrust in order to destroy what threatens the individual.

It adopts extremely subtle disguises in order to work. If not it would be noticeable and avoidable. Usually, when the factor zero is perceived it is because it already worked.

Suspicion is driven by the fear an individual feels in a situation and the guilt of being unable to deal with it. The active function of the factor “zero” is given by the doubt individuals have when dealing with adaptive systems.

Doubt is basically driven by the individuals’ super-ego and operationally by their superiority complexes, the counterpart of inferiority complexes, and their unwillingness to make trade-offs with the reality they work in.

The energy conservation function of the factor “zero” is given by the unawareness individuals have of the situation they are living in.

Unawareness requires learning avoidance in order to exist. The learning capacity is sustained by the energy conservation principle given by the inferiority complexes of individuals. Operationally, learning avoidance and inferiority complexes define unawareness.

At an operational level the factor “zero” can be considered as the consequence of integrating doubt, unawareness, human complexes and price paying avoidance.

Diego Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm. https://www.unicist.net/financials/wp-content/uploads/2015/04/turi.pdf


Unicist Innovations in Corporate Finance

Financial aspects are “consequences” seen from the point of view of a company but “causes” when they are seen from the point of view of shareholders. The innovation introduced by the use of unicist ontology based and object driven technologies allowed developing a framework to manage maximal and minimum strategies to ensure results where causes and consequences are integrated.

Fundamental analysis, which is based on the unicist ontology, is what provides the understanding of actions and technical analytical information sustains the energy conservation in a company. The following description will give the basics of the innovation.

The activities of the Unicist Confederation are expanding based on the introduction of the unicist ontology and business objects driven technologies.

The Object Driven Organization of the adaptive aspects of businesses is the technology included in all the “solutions” for business optimization.

The Confederation itself also uses business objects for its growth. These objects ensure the critical mass of the solutions it provides to the market. Business solutions require the use of driving, catalyzing and gravitational business objects.

1) The business objects are the drivers of the activity providing the solutions that generate significant energy savings and optimization of results to their users.

2) The unicist approach, including diagnoses, strategies and architectures of the solutions is the catalyst of the Confederation’s proposals.

3) The emulation of nature in business is the gravitational object that sustains the activities of the Confederation.

This approach segments the market. Basically, it can be said that the object driven approach is necessary for business expansion and convenient for business administration.

NOTE: The Unicist Research Institute was the pioneer in complexity science research and became a global decentralized world-class research organization in the field of human adaptive systems. https://www.unicist.net/financials/wp-content/uploads/2015/02/turi.pdf


Unicist Logical Approach: Survival guerrilla confrontation

The survival guerrilla confrontation happens between most of the small organizations, entrepreneurs and professionals who have not developed a brand or a stable space in a market.

Survival Guerrilla ConfrontationThe survival guerrilla confrontation occurs beyond the ethics of a market. Materialistic survival is all what counts in this strategy.

The survival guerrilla confrontation occurs beyond the ethics of a market. Materialistic survival is all what counts in this strategy.

Since what counts are only material things, to be able to survive is the most important feature in this confrontation.

In this case, the marginal participants have two different ways to survive:

  1. Attacking innovators
  2. Attacking “retarded” competitors

There are no rules in these confrontations and they are common in the marginal small business segment.  Those who are able to survive having a competitive product or service become competitors of the market.

In underdeveloped countries, survival guerrilla confrontations prevail in the market and they legitimate market uncertainty. In developed countries they represent the marginal sectors of the economy.

The losers of this survival guerrilla confrontation disappear.

Unicist Press Committee

NOTE: The Unicist Research Institute was the pioneer in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. http://www.unicist.org


Every strategy has an ideology defined by the strategist

The Unicist Logical Approach defines that an ideology is a belief that uses a defined technology to sustain a specific interest. As there are no strategies but strategists, individuals project their ideology on any strategy they might be building. This ideology is basically influenced by their strategic intelligence and their type of logical thought while its purpose is implicit in the ethical intelligence they are using.

Strategic IdelologyThere are four ontological segments within the strategic ideology:

  • Creators
  • Conservatives
  • Security Seekers
  • Freedom Seekers

Creators

Their understanding of reality is based on their understanding of facts.

There are two kinds of creators, those based on an operational approach to reality and those based on a conceptual approach.

They transcend through their deeds, and apprehend reality based on personal immersion.

Operation driven creators use analogical approaches and concept driven creators use analogical and homological approaches.

Conservatives

They are idea-driven strategists with a strong analytical and/or systemic approach to problem solving.

There are thematic driven conservatives and systemic driven conservatives. They both seek for security while tending to focus on thematic or systemic solutions.

They transcend through their ideas.

They have a top-down / theory-practice approach to reality. They approach reality based on thematic homologies and factual analogies.

Security seekers

Security seekers are individuals that influence reality with frontal or flank proactive actions.

Flank actions are usually focused on exposing the implicit weaknesses that are present within the strengths of competitors.

Frontal actions seek for influencing through superiority. They use to confront with competitors strengths.

Frontals understand the ideas of their opponents and are effective when they are objectively superior.

They are democratic in the fields in which they are talented and autocratic in the fields in which they are not.

Freedom seekers

They are individuals that influence reality based on innovative actions and/or focused solutions. Therefore, there are two kinds of freedom seekers: innovators and focused solution builders.

Innovative action builders seek for the occupation of empty spaces and the expansion of business possibilities.

Actions of “Focused solution builders” are based on the introduction of alternative paradigms.

They are natural innovators, artisans and artists.

Peter Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
https://www.unicist.net/financials/wp-content/uploads/2014/09/turi.pdf


Managing Businesses as Adaptive Systems

Businesses are, by definition, adaptive systems that need to evolve in an adapted way in an environment. Therefore, knowledge is essential to manage businesses. Knowledge implies having the necessary information to make decisions and implementing them in order to generate a business.

Reliable knowledge can be achieved when the fundamental knowledge and the technical analytical knowledge have been acquired.

Fundamental analysis is the approach that defines the limits of the possibilities of the evolution of a given reality. Fundamentals define the boundaries implicit in the functionality of such reality.

Technical analysis deals with the cause-effect relation between “variables” that have been identified making a systemic compromise.

The discovery of the unicist theory of evolution and the structure of concepts that regulate the evolution of living beings and their deeds established the structure for fundamental analysis integrating it with technical analysis in order to develop reliable knowledge.

While technical analytical knowledge uses predominantly a dualistic logic, Fundamentals knowledge is based on the use of integrative logic.

Press Committee

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
http://www.unicist.org/repo/#Unicist


Unicist Fundamental Technologies to Influence Markets

Fundamental technologies allow designing actions to influence the value of stocks. The fundamental structure and technical analytical information must be managed.

The unicist fundamental technology is ontology based and object driven to transform the knowledge of the unicist ontology, ontogenetic map and ontogenetic algorithm of an adaptive system into object driven actions to produce predefined results.

As adaptive systems evolve according to the rules of the ontogenetic intelligence of nature, several compromises need to transform principle driven definitions with no cause-effect relationships into results producing actions.

The generic approach:

1)      Human adaptive systems are in permanent motion. To establish a fixed point based on their oneness the ontological structure needs to be discovered. This definition includes limiting the boundaries of the system.

2)      A taxonomic-genetic compromise needs to be done to transform the oneness into the elements that integrate its ontogenetic structure.

3)      A genetic compromise is needed to deal with the sub-ontologies or objects included in the ontogenetic structure.

4)      A naturalist compromise is necessary to divide the objects of the ontogenetic structure into the double dialectical elements and make the consequent inferences on their behavior.

5)      A categorical compromise needs to be done to define the ontological categories at an operational level.

6)      A motion compromise has to be done to define the actions that allow influencing the adaptive system.

This approach implies transforming a human complex adaptive system into a manageable system making the necessary compromises to transform its oneness into operational actions to generate results.

The knowledge of an ontological structure of a unified field defines the existence of the possibility to exert influence on it.

Mathematically, a possibility exists or not ( 1 or 0 ). The success of influential actions belongs to the field of probabilities because of the multiple compromises that have been done.

Diana Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm.
http://www.unicist.org/repo/#Unicist


Context for Business Virus Multiplication – Part V

Anticoncept of the Object Driven Organization

The objective of viruses is to multiply in order to facilitate the achievement of the personal goals. Virus multiplication needs a context.

The context of virus multiplication is the existence of all or some aspects of the anti-concept of object driven organization.

It implies that there has to be an organization with a weak immune system.

Organizations with weak immune systems have the following characteristics:

  1. They are task driven
  2. They have analogical and common sense procedures
  3. They have verbal and subjective action guides
  4. They are based on experience driven activities

The Anti-concept of the Unicist Object Driven Organization

There are people who need to approach reality based on their subjective experience. The object driven organization cannot be used when the minimum strategy of the users is based on experience based intuitive common sense procedures and subjective (personal) action guides.

In this case processes are based on task orientation which is guided by the previously mentioned subjective experience.

In the following lines you will find a short description of the organizations in which the object driven organization cannot work.

Goodwill dependant

The object driven organization is a threat when the goodwill of the members of an organization is the driver for work.

Directive dependant

The object driven organization exceeds the acceptable responsibility level when people prefer to follow personal instructions instead assuming the responsibility of processes.

Leadership dependant

The object driven organization diminishes the image of leaders when those who lead need to exert power within the organization.

Benchmarks dependant

The object driven organization is a utopia when the members of organizations are used to “copying and pasting” the organizational processes of others.

Diego Belohlavek

NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm. https://www.unicist.net/financials/wp-content/uploads/2013/11/turi-1.pdf