Increasing the number of business relationships as a way to overcome the modern entropy of environmental barriers

Author:

Danilov Dmitry

Abstract

For efficient business functioning, the organisation's management needs to adopt and approve the organisation's strategy based on the ability to reduce or completely bypass possible risks associated with the influence of the external environment. The development of technology has facilitated the emergence of completely new business models that have seriously simplified the consumption process by reducing the time it takes to transfer goods from multiple sellers to the customer. But from the point of view of organisations specialising in a narrow segment of goods the situation can be more complex, because with the simplification of communication there are many competitors within one site, the strategic behaviour of a limited number of competitors can be calculated with the help of existing mathematical models or with the help of game theory, but when there are so many competitors that we cannot identify them all, one of the most difficult types of uncertainty appears - the uncertainty of ignorance. The solution to this problem is to increase the interconnectedness in the different fields of action of the organisation. By increasing the interconnections, namely their number, firstly, there is an opportunity to expand the activities of the organisation in several subsystems, thus allowing diversification of risks, and secondly, we acquire a large number of stakeholders in different subsystems, who will be interested in the long-term retention of the organisation at a sufficient level of efficiency. It is the increased interconnectedness that contributes to the necessary sustainability in the strategic perspective, as well as compensating and distributing the growing external uncertainty between the activities in the different subsystems.

Publisher

EDP Sciences

Subject

General Medicine

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