THE STRATEGY OF THE COMPANY'S DEVELOPMENT IN SUBJECTIVE INTERPRETATION
The subjective approach treats a company as an autonomous subject trying to survive in a game with the environment. The result of such a game may be better or worse. While in the objectivist approach the analysis of a company aims to answer the question whether this company is organized in accordance with the rules or regularities of a particular economic sphere, the subjective approach enquires predominantly about the quality of the company's interaction with the environment. Possible answers to the latter questions fall within the sphere of reflection on how to improve functioning and ensure better results in the game with the environment.
Within Organisational Studies the objectivist approach looks for the rules of the proper functioning of a company, thereby consolidating the existing structures and preventing change. By contrast, the objective of a scientist adopting the subjective approach is to change the company, its structures and the way it functions, through innovations that increase the company's profitability. The former preserves the status quo, whereas the latter stimulates development.
A reflection on the evolution of a company focuses on designing its future, which is then formulated in the form of a strategy. In the subjective approach a strategy is a set of ideas intended to increase the company's profit, i.e. its level of autonomy. The company is supposed to function more effectively in consequence of the changes given in the strategy and implemented afterwards. Questions are asked about the change in the company's interaction and its internal re - organization that will introduce creative acts into the repertoire of the company's functioning. In the subjective approach the objective of the company's strategy and of designing its creative development is to design the ways of introducing incidental and intentional creativity.
- one of the first elements in a company's strategy is usually the diagnosis. This is a description of a company's current status quo. If the company exists on the market, it means that this particular way of functioning ensures it profit at a satisfactory level. There is demand for products the company manufactures. The prices of these products are accepted by clients who buy them in quantities sufficient enough to bring profit to an enterprise. The company then possesses machinery and technologies enabling it to manufacture such products. The diagnosis stage should analyse the current state of affairs and pose questions about the future. Have the possess taking place in the company so far fulfilled the basic requirements of the subjective approach? The diagnosis conclusions are suggestions aimed at improving the company's results in its game with the environment, the suggestions of how to improve the existing state of affairs, which can sometimes be done through slight alternations and low - cost actions.
A diagnosis means drawing conclusions for the future from the past and suggesting improvements to be made. Hence, these are not suggestions that fundamentally re - organise the company, but attempts at improving its current way of functioning.
- Another element of the strategy is the analysis of the competition. To keep its autonomy, each subject must achieve a positive result in its game with the environment. The first type of environment includes all that surrounds the company, but does not complete with it. In terms of competition it is therefore neutral in relation to the company. The other type of environment is constituted by subjects of the same kind, which compete with it for access to raw materials and clients.
In the neutral environment it is enough for a company to have a positive financial result, i.e. a surplus of revenue over costs, whereas in a competitive environment such a positive result is not satisfactory - in order to keep its autonomy the company must attain a level of profitability that is at least comparable to its competitor.
If the company does not fulfill the first condition and for some time its revenue is lower than its costs, it consumes the stocks it possesses and after exhausting them may go bankrupt and cease to function. There are, however, companies with positive financial results, whose profitability is lower than their competitor's. the threat then comes in a different form - a takeover by the competition. A company gaining higher profit than its competition may accumulate more funds and even spend this financial surplus on taking over weaker companies.
An insufficient level of profitability may allow a competing enterprise to collect the necessary funds derived from its financial surplus to buy out less effective companies. Having realized that they do not reach the second break - even point, the companies may adopt various strategies. Firstly, they may attempt to rise their level of profitability and become a threat themselves to other companies. Secondly, they may seek satisfactory solutions to a low level of profitability, such as selling a company to a stronger competitor or withdrawing to a niche market.
The next step of a company's strategy consists in formulating a programme of further development. Such a programme is sometimes called a strategy, however we will use the term strategy with reference to the whole procedure consisting of diagnosis, analysis of competition, strategy proper amongst others.
The objective behind formulating a proper strategy of the company's development is to make effective use of the future in which a company will be bound to function. Such a future may be a simple extension of the present time, at the processes taking place in an enterprise are recurring. The production cycle, for example, includes purchasing raw materials, processing them in the company, assembling ready - made products from parts produced and purchased and finally selling ready - made products. The funds gained in this way allow for initiating a new production cycle. Apart from the production cycle there are other financial cycles in a company, such as cycles of delivering goods, sales, cycles, etc.
A company's future is often a mere repetition of the past, of all the cycles taking place in an enterprise. Changes in a company often result from a change of conditions in the environment and from the company's response to these external circumstances. These days planning changes is one of the most significant processes determining the future of a company. It is possible to design a company's future, i.e. new ways in which cycles will be organised. The objective behind such a change is to achieve better results of management in the future as well as to increase profitability, or to invent, design and implement the creative act. Accordingly, the boards of many contemporary companies not only have to think about sustaining economic processes, but also about modifying these processes in order to achieve a higher level of profitability of the subject managed.
The purpose of working out a programme for further development is to prepare the re - organization of a company leading to increased profitability. Introducing new products into a company or initiating a new form of interpretation with the environment is inextricably linked to the need for the internal re - organisation of the company. Usually employees gain new competence and organise their work in a better way. Sometimes additional staff seem necessary. Hence the programme of a company's further development covers the change of interactions and the way in which the environment is perceived, along with the internal re - organization of the company.
An increase in profitability is achieved by inventing, designing and implementing a new form of creative activity in a company. The financial surplus achieved in this way should be consumed in the form of designing and implementing another creative change. Needless to say, the programme of further development constitutes a basic part of the company's strategy.
- the stage that follows is the design of the company's further development, which differs from the programme in that the former is only an idea, a general concept of the changes to be introduced. The re - organization of the company requires more through preparation and detailed work. Each of the ideas accepted for realisation may be prepared in the form of a separate detailed project. The design includes goals, methods of realization, work schedule, the final form the material/product takes and the financial means as well as projected effects. It also singles out the person responsible for the project and the team realizing it. Last but not least, like the development plan, the design includes the description of the change of interaction, perception of the environment and internal re - organisation of the company. The final stage of the strategy is the evaluation of risk related to the realization of the project. It is desirable that the team be aware of such risk, take full responsibility for carrying out the task and attempt to eliminate risk in order to complete this task fully and successfully.
| CHAPTER 1 | |
| BASIC CONCEPT |
| Organisation as an autonomous subject | 7 |
| The concept of an intentionally creative company | 23 |
| Passing value judgements by the autonomous subject | 33 |
| The social contract for the intentionally creative cooperation | 46 |
| CHAPTER 2 |
| THE FUNCTIONING OF A COMPANY CONSIDERED TO BE AUTONOMOUS |
| An innovative company | 65 |
| Designing the product | 94 |
| Values and the company's activity | 97 |
| CHAPTER 3 |
| STIMULATING THE COMPANY'S DEVELOPMENT |
| Prerequisites of the company's intended development | 99 |
| Introducing a change in the intentionally creative company | 101 |
| Formulating the strategy of the company's development | 103 |
| Audit - delegation of subjectivity | 120 |
| CHAPTER 4 |
| MAN IN ORGANISATION |
| Subjectivity and man in organisation | 133 |
| Course and dynamics of a training session | 150 |
| Leader as spiritual guide | 165 |
| Examination questions and topics | 169 |
| Bibliography | 171 |
