Business Growth


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The Unicist Theory of Business Growth

Growth is the most complex problem to face in the business world. The objective of the Unicist Theory of Business Growth is to establish the rules that need to be considered when developing growth programs.

The research that led to the development of this theory was conducted by Peter Belohlavek at The Unicist Research Institute.

Unicist Theory of Business GrowthAccording to this research, there are two simultaneous actions that need to be developed to make a business grow:

  • Conjunctural actions to take advantage of opportunities.
  • Structural actions to develop the structural growth of a business.

The theory defines the conditions to develop both conjunctural and structural growth in business.

The process is approached considering:

  1. The context for growth
  2. The critical mass for growth
  3. The operation for growth

The Structure of Business Growth

Business growth requires the integration of the context, the necessary critical mass and the operation. Considering its conceptual structure, it can be said that the establishment of an adequate context is the final goal to be achieved, the operational structure for growth allows producing it and the critical mass allows saving energy in the process.

The context for business growth needs to be diagnosed because the changes of a context happen very slowly and if the context is not adequate, the project cannot be implemented.

What defines the Context for Business Growth?

A growth context implies extending the boundaries of the present actions, which means that the products’ concepts need to be consolidated or expanded. In both cases it implies a change.

This means necessarily the generation and management of complementation conflicts to increase the value proposed to the market. And this can only happen if there is an expansive work environment.

Unicist Theory of Business Growth

What defines the Critical Mass for Business Growth?

The business concept and the institutionalization of the business define the critical mass of such business. Institutionalization needs to be considered at a conceptual level that allows generating an active action within and outside the organization, and at an operational level that generates the internal conditions to produce critical mass.

The critical mass establishes the limits of the possibilities for operational business growth.

Unicist Theory of Business Growth

What defines the Operation for Business Growth?

The operation is the active function for business growth. That is why it can be easily influenced and at the same time it is the driver for the expansion of the critical mass and the consolidation of the growth context.

It implies the integration of an expansive strategy, expansive marketing actions and expansive organization processes in order to generate more added values to the market and earn more value for the organization.

Unicist Theory of Business Growth

The Unicist Standard for Business Growth defines the aspects that need to be considered when defining the possibilities for growth and, when they are given, it sustains the development of the strategy and action plans to make this growth happen.

The Unicist Theory of Economic Growth

Economic growth is based on an action principle which is defined by the technological driver and an energy conservation principle based on the avoidance of scarcity.

Unicist Theory of Business GrowthIf we describe the concept of economic growth, its ontology or fundamentals, we can say that economic growth is based on technology, monetary circulation, competitiveness and scarcity.

Considering the active principle, that sustains the maximal strategy, technology is the purpose that must be achieved in order to make an economy grow.

This purpose is put into action by a consumer’s monetary circulation and sustained by value competitiveness.

The active principle of economic growth requires:

  • Technology: technology implies an improvement of the generation of added value with less energy consumption and less energy losses. Thus the economy grows in terms of increasing the available added value that can be traded in the community.
  • Consumer’s monetary circulation: is the necessary credit available to access goods for the mass population.
  • Value competitiveness: is the capacity to compete providing superior value and not based on cost advantages.

The energy conservation principle requires the integration of a need to avoid scarcity, productive monetary circulation to finance the production of goods and services and price competitiveness in order to win markets based on price advantages.

There are different levels of growth attitudes:

unicist-theory-business-growth5(Stage 1) Reactive Growth

Reactive growth is the growth driven by scarcity and sustained by productive monetary circulation. It is the first level of a crisis recovery. It is very unstable because the conditions of monetary circulation for consumers are not given.

(Stage 2) Administrated Growth

This is the growth fostered by state or government driven economies. This growth is basically based on price advantages and implies the second level of a crisis recovery. Structural crisis recovery implies necessarily the participation of governments. If the participation happens before the first stage has been achieved, it works as a palliative of the crisis without producing its solution.

(Stage 3) Supply driven Growth

It is the growth produced by the creativity of industry finding new ways to improve the added value delivered. This produces a change of the attitude of the market if the creative solutions fit into the unfulfilled needs of the population. It requires the existence of consumer monetary circulation or substitutes (counter-trade). The fulfillment of stage 2 is necessary.

(Stage 4) Demand driven Growth

This is the final stage when the demand responds developing a growing attitude in order to improve wellbeing. This implies the existence of a fluid financial system to provide the necessary monetary circulation to foster individuals’ consumption. The participation of the state is unnecessary. In order to prevent a new crisis the state needs to administrate the ethic of the market (justice).

Conclusion

Growth will happen when technology provides the necessary shift to productivity and the market accesses new added value with lower costs.

The substitution of technologies has basically no added value to market growth. This requires the existence of a perception of scarcity in order to sustain the minimum strategy for growth.