Unicist Corporate University


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


Discovery of the Nature of Decision Making

The discovery of the Concept of Decision Making opened the possibilities for increasing the accuracy of this process by introducing the essential aspects that drive decision making processes: the objective aspects, the subjective aspects, the reasonable groundings and the ethical justifications.

About Foundations

Foundations are reasonable, understandable and provable arguments. Fallacy avoidance is ensured when foundations are included in a decision making process. That is why foundations are basic in decision making.

Decision MakingFoundations avoid decisions when the end justifies the means. Foundations establish the reasonable limits of what can be decided.

There are several conditions that have to be given when making a grounded decision.

Foundations must be reasonable: that means that the nature of a reality needs to be described in a reasonable way.

Foundations must be provable: which means that they have to be able to be proven directly or through their materialistic aspects. The nature of a reality can only be proven through forecasting its materialistic evolution.

Foundations must be understandable: which means that an individual can only participate in a decision process if s/he understands the nature of the decision.

Decision Making Segments

Empiric decisions

It is the decision that is basically based on provable groundings. Empiric decision making uses all the empirical tools to sustain the validity of what is being decided (Statistics, experiences, pilot tests, etc). Empiric decisions are put into action based on economic justifications with the limits of subjective justifications.

Logical decisions

Logical decision making is based on the capacity of understanding and reasoning the arguments that sustain the decision making process.

Logical decision making processes use explicit or implicit models to analyze reality in order to make things happen. Logical decision making processes are put into action based on subjective justifications and are sustained by the economic justification of what is being decided.

Subjective decisions

Subjective decision making is based on the ethical and subjective justification of the individual who is deciding. Although the materialistic decision making is included, it is limited by the subjective boundaries of the individual.

Subjective decisions dominantly use feelings, intuition, beliefs, convictions and personal goals as drivers. Subjective decision making processes are put into action based on logical groundings and are sustained by empiric validation.

Materialistic decisions

Materialistic decision making is based on the ethical and materialistic justifications driven by the needs of deciders. Materialistic decisions have a high level of objectivity in order to build a bridge between the objective needs of the environment and the individual.

Objective decisions are based on measurable facts, objective relations between values, benefits and costs and the need to grow of all participants. They are put into action based on empirical groundings and sustained by logical validation.

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.
https://www.unicist.net/financials/wp-content/uploads/2015/11/turi.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


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


Unicist Fundamental Analysis applied to Businesses

Unicist fundamental analysis is an approach to diagnose business situations and possible evolutions. Dealing with businesses as unified fields is extremely abstract and requires defining their fundamentals based on secondary information.

There is no possibility to measure most of the fundamentals in a direct way.

The unicist business strategy scorecard

The unicist scorecard is an objective strategy validation system. Its purpose is to validate the functionality of business action plans. It is integrated by a Business Marketplace Index (BMI), a Business Credibility Index (BCI) and a Business Growth Index (BGI).

The integration of these indexes defines the possibility and probability to achieve the goals proposed in a strategy.

These indexes are built on objective information. Based on their origin, the information included can be classified in:

  1. Quantitative (hard) information
  2. Quantitative perceptions
  3. Quantified opinions

The Unicist Scorecard is a complementary concept to the Balanced Scorecard. While the Balanced Scorecard is a bottom-up tool to approach the execution of strategies, the Unicist Scorecard is a top-down tool to sustain the building of strategies.

Unicist Press Committee

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