Monthly Archives: July 2011


Organizational Equilibrium: Marketing is the core centrifugal force of a business

The Unicist Ontology of Marketing defines the function as the one that positions a value proposition as the first choice in the mind of the potential customer, sustaining the subjective value of the proposal and making it accessible to the market.

Unicist Ontology of MarketingThe cost of a glass is in its solid;
its value is in its hollow.
Its cost has no value.
Its value has no cost.
But both of them are within the glass…

As such, marketing is a complex adaptive system that needs to manage the bi-univocal relationships that are established with the market. The understanding of the principles of organizational equilibrium is needed to manage the structural integration of marketing in a business.

Frequently, marketing is considered a cause-effect influential system, which naturally drives towards the use of psychopathic manipulation to compensate for the lack of adaptiveness.

The use of Object driven Marketing allows making Marketing more adaptive to deal with the different segments of the market. The knowledge of the unicist price elasticity of demand defined by the price and the attributed value allows defining a marketing strategy that, besides being expansive also increases the profits.

Principles of Organizational Equilibrium

The Principles of Organizational Equilibrium are the result of a research that began in 1985 aiming at identifying the nature of organizational behavior. This set of principles that rule organizational equilibrium is what we call the Unicist Ontology of Organizational Equilibrium. This set established the laws of organizational behavior and allowed diagnosing institutions considering their equilibration.

These principles are:

1) Environmental Adaptation: Organizational existence is functional to the environment; organizations live in the environment, from it and for it.

2) Double Dialectical Change: Organizations change based on double dialectical processes.

3) Organizational Functionality: The same organizational model applied under different circumstances or at different stages is essentially different.

4) Centrifugal / Centripetal Equilibrium: When organizations have a stable equilibrium, they have a centrifugal periphery and a centripetal center.

5) Beginning and End: Organizations and their parts have a beginning and an end.

Unicist Ontology of Organizational Equilibrium 6) Integration of Costs & Benefits: There are no benefits without costs or costs without benefits.

7) Antagonistic Complementation: Organizations function based on antagonistic situations, which in fact are complementary.

8) Power of Values and Complements: The more powerful a value of an organization becomes, the more powerful its complementary counterpart becomes and the more adjacent values are generated.

9) Strengths and Weaknesses: Every value of an organization has a complementary counterpart and generates one or several adjacent values.

These nine laws represent the unicist ontological algorithm to be used when organizing or diagnosing. They are necessary to develop strategies, organizational and industrial design and marketing processes, and to analyze the business processes of organizations.

They are applicable to all kinds of organizations, profit, non-profit, governmental, private, public, entrepreneurial, etc.

About Centrifugal and Centripetal Equilibrium

When organizations have a stable equilibrium, they have a centrifugal periphery and a centripetal center.

The peripheral activities, those that deal with the environment, need to be predominantly centrifugal.

They are giving entities seeking for benefits in the environment. They tend to disregard the costs of their actions.

Centralized activities, those that deal with the interest of the organization, need to be predominantly centripetal.

The antagonism between centralized activities and peripheral activities is natural in an equilibrated organization. This is the natural conflict between the commercial and the financial roles of organizations.

Some general indicators for this principle:

  • Centrifugally organized activities tend to absorb costs and transfer benefits.
  • Centrifugal organizations end up being marginal, generating high cost added value that has a low use value.
  • Centripetally organized activities tend to implode.
  • Growth requires centrifugal dominance, which implies a transitory disequilibrium.
  • Profit improvement requires centripetal dominance, which needs to be compensated by a strong image of the organization.
  • Quality improvement generates an increase of the centrifugal force of an organization.
  • Productivity improvement generates an increase of the centripetal force of an organization.

Conclusion

Marketing is the core of the centrifugal force of a company.

Peter Belohlavek

NOTE: The Unicist Research Institute is a pioneer in complexity science research. More than 4,000 ontological researches were developed since 1976 until July 2011 in the field of individual, institutional and social evolution, including the development of ontology based and business object driven solutions for businesses.

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