Friday, August 24, 2007

Clauswitz's Corporate Warfare: Axioms, Principles, Definitions

AXIOMS AND PRINCIPLES

The Subjectivity Axiom: Leaders may easily misjudge or lose control of passions (subjective impulses) on their own side.

  • Their opponents have similar such uncertainties as well as wills and creativity of their own.

Entropic Principle: “Friction," stemming from corporate warfare's uncertainty, chance, suffering, confusion, exhaustion, and fear.

  • Effects of time, space, and human nature
  • Fundamental and unavoidable force
  • Events take time to unfold, with all that that implies
  • Even the wisest order is subject to loss, delay, misinterpretation, poor execution, or willful disobedience
  • Lack of good intelligence information
  • Every individual human being is a friction-producing cog in the machine of war
  • It is difficult for normal efforts to achieve even moderate results

Other Notes on Entropy of Corporate Warfare:

  • Corporate Warfare is dangerous with inherent risks, and danger (physical, moral, emotional, mental, etc.) has an impact on the behavior of the participants.

"Butterfly Effect": "a butterfly stirring the air today in Peking can transform storm systems next month in New York."

The Russian Winter Principle:

Given that the defender has enough time and resources in which to recover, the aggressor will inevitably reach a point at which he or she must take up the defense. If the business unit pushes too far, the equilibrium will shift against that unit. The aggressor, in his or her own retreat (often through devastated territory), cannot draw on the defender's usual resources, from which he or she draws strength.

TERMINOLOGY

Corporate Warfare is the utilization of one firm’s strengths, weaknesses, opportunities, and threats to exploit those of other firms.

Value: The return from sale or trade of a good or service; in priority order

1) Monetary or material worth;

2) Worth in usefulness or importance to the possessor; utility or merit;

3) A principle, standard, or quality considered worthwhile or desirable;

Marketplace Violence:

  • Force exerted for the purpose of damaging share
  • To deprive the competitor of something valuable by force
  • Intensity or severity, as in natural phenomena in the marketplace
  • Vehemence of tactic or other expression; fervor

Manage:

  • To direct or control the use of; handle; to exert control over
  • To direct the affairs or interests of:
  • To succeed in accomplishing or achieving, especially with difficulty; arrange

Therefore, the key components of managers is to maximize the value of the firm

Complexity Theory: Used in analyzing systems in which there are numerous unknown variables, such that it is used in calculating or developing algorithm (e.g. processes) to define what those variables are, or to otherwise assign “nice” boundaries, contexts, or operating parameters to.

Nonlinear Systems Theory: The theory that objects, situations, markets, industries, or other events or systems appear different when viewed from different angles or perspectives. It can also be defined as the simple departure from linear—that is, step-by-step procedures—involved in events and making decisions surrounding their further development and outcome.

Genius of Corporate Warfare

  • Hinges on willpower more so than other individual elements
  • An iron will and a powerful sense of purpose are indispensable in overcoming the forces of entropy in corporate warfare
  • To some extent the causes of this difficulty are simply inherent of any large organization

Strength: The ability to be powerfully effective

The following conditions must exist for strength to be present, in priority order:

1) Capable of exerting a high amount of force

2) In good or sound health; robust

3) Capable of the effective exercise of authority

4) Economically or financially sound or thriving

5) Having force of character, will, morality, or intelligence

6) Having or showing ability or achievement in a specified field

7) Capable of withstanding great force or wear; or excellent binding or espirit de corps

8) Not easily upset

9) Having force or rapidity of motion

10) Intense in degree or quality

Offense: The act of attacking or assaulting through the utilization of tactics and strategy

Defense: The act or method of defending or protecting against attack, danger, or loss

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