The law of self-preservation and the struggle for survival. Organizational and economic bases for ensuring the survival of the enterprise. On strategies and management decisions

  • 04.12.2019

The law of self-preservation contributes to the solution of the problems of the survival of organizations, which states that any organization as a socio-economic system is inherent in the desire for self-preservation (survival) through the optimal use of personnel and material resources.

It should be noted that the desire for self-preservation is inherent not only in large formations, but also in each individual person, and not

large collectives, including the family - an associative organization of small size.

The law of self-preservation serves as the basis for assessing the organization's ability to survive in changing conditions of existence. The resulting estimate is used to determine the time of existence of the organization and to predict its further development. In the course of building an assessment, it is necessary to draw up the most complete description of the factors of the internal and external environment that affect the activities of the organization, to divide these factors into two groups: positive and negative.

Positive factors refer to resources that increase the organization's ability to fight for survival. An organization is capable of survival and sustainable progressive development if the energy potential of positive (creative) factors exceeds the corresponding indicator of negative (destructive) factors.

The main difficulty in drawing up a balance of creative and destructive potential lies in the fact that, when assessing the ability of an organization to self-preservation, it is necessary to take into account not only internal factors materialized nature (presence Money, the state of the material and technical base, work technology, etc.), but also socio-psychological factors. This should include the characteristics of the professional and psychological suitability of the personnel for the performance of their duties, indicators of the general psychological atmosphere in the team (attitude towards management, conflict, ability to work in frequently changing or extreme conditions etc.).

Of particular difficulty is the determination of the organizational potential of the management link, which largely depends on many indicators of the manager's personality. Among them are initiative, professionalism, common culture, communication skills, organizational skills, the desire to use innovations in management activities etc. work experience business organizations in the making market economy shows that most often the liquidation of organizations is not associated with economic or material reasons, but is a consequence of inefficient management.

It follows from the law of self-preservation that profit cannot be main goal organizations, because profit is a purely internal problem. The first years of the formation of market relations in Russia convincingly showed how short-lived organizations that operate only on the principle of achieving maximum profit. The processes of stabilization of market relations, the development of competition, the stable division of the market into segments, and the stabilization of prices led to the self-liquidation of such organizations. At present, organizations of this type can exist only for a fairly short time and only in new market segments.

The basis of the struggle for self-preservation is the ability of a business organization not only to adapt to external environment but also be able to use the changes taking place in it to your advantage. A complete and exhaustive analysis of the external environment allows the leaders of both newly created and existing business organizations to anticipate potential threats to survival, as well as to anticipate new development opportunities. Competent forecasting allows you to develop a model of the situational behavior of the organization and avoid its death.

In the struggle for the self-preservation of the organization, the management of the company must take into account various environmental factors that pose a threat to the life of the organization.

Let us briefly characterize the factors of the external environment listed in the table that influence the activities of the organization.

international factors. These include relationships between states, tariff and trade agreements between countries, legal frameworks various countries. Large and medium-sized business organizations, as a rule, strive to reach international market. Therefore, they must monitor the policies of other governments that provide for measures to protect or expand the national market. Many measures can be not only prohibitive (setting high customs duties for certain groups of imported goods), but also of an incentive nature. For example, the French government, in order to encourage the export of light industry products, introduced a 15% discount on selling prices for goods exported individuals to other countries with the payment of compensation from the state budget. In Finland, when leaving the country, VAT is refunded at the border for goods purchased by foreigners in local stores.

political factors. This is primarily the state system, the legislative and regulatory activities of the federal government and local authorities, the level legal regulation economic activity, the state of credit policy, protectionism in customs policy.

Economic forces. Among them are the rate of inflation (deflation), tax rates, the ability to manage finances at the state level, the conditions for granting loans, the price level, the solvency of the population and enterprises, and the unemployment rate in the country.

market factors. Numerous factors of the state of the market significantly affect the work of a business organization. Analysis of supply and demand allows management to anticipate adverse situations in time, take into account the demographic situation, the level of competition, market capacity and the security of the organization within the selected market segment. Studying the behavior of competitors allows you to determine their goals and strategy in the market, which enables a business organization to be prepared for potential threats from unfriendly competitors.

Technological factors. A change in the technological environment can put a competitive organization in a hopeless position. When analyzing the technological environment, it is important not to miss the moment when innovations appear in it. For the current stage of development business relations Russia is characterized rapid change in the field of technology work. This is mainly due to the fact that last years the possibilities of using the latest achievements of the advanced countries of the world have expanded. These are not only technical innovations, but also modern Information Technology, new technologies for managing organizations, financial flows etc.

social factors. These factors are most closely related to what they prefer. large groups population. In conditions of economic instability, they can pose a significant threat to the survival of the organization. At present, Russia is characterized by a noticeable influence of such factors as heightened national feelings (buy only domestic goods, do not buy goods from people of certain nationalities, etc.), an ambiguous attitude towards entrepreneurship, a change in social values, and the development of a movement to protect consumer rights etc. Compilation of a list of potential threats to the existence of the organization, analysis of these threats and preliminary development of scenarios for behavior in extreme situations significantly increase the chances of survival of a business organization striving for self-preservation in a highly competitive environment, which, as the experience of reputable business organizations shows, is quite feasible.

Cheat sheet on the theory of organization Efimova Svetlana Alexandrovna

THE LAW OF SELF-PRESERVATION AND THE STRUGGLE FOR SURVIVAL

A business organization is a kind of self-existing system, similar to a living organism that is born, grows, develops, improves, gets sick, ages and dies. Organizations have an inherent desire for self-preservation. In the life of many organizations, there have been situations when they were on the verge of liquidation or entered into bankruptcy proceedings. Some of them were liquidated, while others, having reorganized the enterprise, managed to find resources and survived.

The solution to the problems of organizations' survival is facilitated by the law of self-preservation, which states that any organization as a socio-economic system is inherent in the desire for self-preservation (survival) through the minimal use of human and material resources. The law of self-preservation serves as the basis for assessing the organization's ability to survive in changing conditions of existence. The resulting estimate is used to determine the time of existence of the organization and to predict its further development. In the course of building an assessment, it is necessary to draw up the most complete description of the factors of the internal and external environment that affect the activities of the organization, to divide these factors into two groups: positive and negative.

Positive factors refer to resources that increase the organization's ability to fight for survival. An organization is capable of survival and sustainable progressive development if the energy potential of positive (creative) factors exceeds the corresponding indicator of negative (destructive) factors.

The main difficulty in drawing up a balance of creative and destructive potential lies in the fact that, when assessing the ability of an organization to self-preserve, it is necessary to take into account not only internal factors of a materialized nature (availability of funds, the state of the material and technical base, work technology, etc.), but also socio-psychological factors. It follows from the law of self-preservation that profit cannot be the main goal of the organization, because profit is a purely internal problem.

The basis of the struggle for self-preservation is the ability of a business organization not only to adapt to the external environment, but also to be able to use the changes taking place in it in their own interests. A complete and exhaustive analysis of the external environment allows the leaders of both newly created and existing business organizations to anticipate potential threats to survival, as well as to anticipate new development opportunities. Competent forecasting allows you to develop a model of the situational behavior of the organization and avoid its death.

From the book Ultimate Weapon. How to kill the competition: capture and hold the market by Lele Milind

Surviving Commoditization What to do if your monopoly is over? Basically, you have two options. First, together with a few competitors, you can create a "country club for the elite" and nobly fight for your market share. Wherein

From the book Family Business in Russian author Shnurovozova Tatyana Vladimirovna

9.2. Ways to deal with stress Business is always an additional factor in the occurrence of stress, this is due to its specifics, actions in a state of uncertainty and increased risk. At the same time, the image of a successful businessman and the head of the family does not allow

From the Sony book. Made in Japan by Morita Akio

TECHNOLOGY Fight for survival

From the book Creating an enterprise that would work written by Michael Gerber

Adolescent Survival The most tragic opportunity for an adolescent business is to survive! You have a strong will, you are a tenacious and purposeful person, and you never give up. You survive. You bite and kick, hurt your employees and your customers, yell at your family and

From the book Start life again. 4 steps to a new reality author

Explain that you are getting out of the fight So, you need to explain to yourself that this person is no longer YOUR ENEMY. YOU WILL NO LONGER STRIKE TO MAKE IT BETTER. You accept it as it is, in all its imperfections. And even ask

From the book Breakthrough in Business! 14 Best Master Classes for Executives author Parabellum Andrey Alekseevich

From the book 100 ways to make money in difficult times author Popov Alexander

Competitive Strategies Attack a competitor's weak spots Attack a weak spot multiple times in a row Sacrifice less for more Make agreements with non-competitors Make temporary agreements with competitors Compromise and seek

From the book The Impossible is Possible author Sviyash Alexander Grigorievich

Examples of objects of struggle How might it look like? You will unconsciously create situations for yourself that will irritate you from time to time. For example, you are very unhappy with your loneliness - it will haunt you. Condemn the weak (cashless, helpless)

From the book Spiral Dynamics [Managing Values, Leadership, and Change in the 21st Century] author Beck Don

From the book Elementary Laws of Abundance by Joel Klaus J

An example of a master struggling to survive How can anything beautiful be done by a person who is constantly struggling to survive? This struggle leaves its mark on everything we do. She gets everywhere. Let's say I'm laying tiles and barely making ends meet.

From the book The Right to Write. Invitation and introduction to the writing life author Cameron Julia

From the book Negotiations with Pleasure. Sadomasochism in business and personal life author Kichaev Alexander Alexandrovich

From the book Willpower. Self Management Guide by Winner Kelly

open system, it can ultimately survive only if it satisfies some need outside of itself. To earn the profit it needs to survive, a firm must pay attention to the environment in which it operates. Therefore, it is in environment management is looking for common goal organizations. To select the appropriate mission, management must answer two questions Who are our customers and What needs of our customers can we meet? A customer in this context would be anyone who uses performance results organizations. Clients non-profit organization there will be those who use its services and provide it with resources.


OPERATIONS. Critical to the long-term survival of a firm is continuous analysis operations management(in the narrow sense of production - Approx. Teach, ed.). And some key questions to be answered in a strengths and weaknesses survey control functions operations.

However, the desire of any leaders to achieve goals other than long-term profit maximization, limited to certain limits. Shareholders or Board of Directors can remove them and transfer the firm to new management. In any case, firms that are not closely involved profit maximization have little chance of survival. Firms that survive in specific industries give long-term profit maximization one of the top priorities.

These strategies usually involve taking remedial action to stop decline in profits. Under these conditions, efforts should be concentrated on those activities and areas in which the company has the greatest work experience or clear market success. Savings strategies are based on the firm's survival assumption. Proper cost estimation involves analysis of financial historical data because they are the best Starting point to predict future expenses.

Opportunities to overcome weak sides organizations. In order to determine them, it is necessary to find out whether the weaknesses of the organization are essential for the firm's survival. Do they affect key success factors Can the firm counter weaknesses such strategies like creation joint ventures or alliances with organizations that show strength where the firm finds weaknesses, or can solve its problems through technological innovation, improved control, improved communications, and so on.

The problem of evaluation and choice the best options using economic criteria has become more important due to the development innovation processes in all areas activities of enterprises and the need to plan innovation activities. forward planning innovation is seen as a means of existence and survival of the firm in an increasingly competitive environment. forward planning covers areas such as manufacturing program firms, scope of application products, sales markets, production process, etc.

The continued existence of the company. The enterprise can be redundant power, observed intense competition in the market, demand has changed and consumer preferences. In such cases, in order to continue production, to liquidate stocks, prices are often reduced. In this case, the profit loses its value. As long as the price covers at least the variables and part fixed costs, production can continue. However, the question of the firm's survival can be seen as a short-term goal.

With the right approach, variable (direct) costs should be the limit below which no manufacturer will evaluate their products. In any case, the true cost function is to set lower limit for the initial price of the product, while the value of this product to the consumer is determined by the highest limit pricing on him. On practice variable costs may in certain conditions when there are large unloaded capacities and there is a question about the survival of the company, to act lower limit prices.

Company knowledge of its competitors and adequate assessment of own competitiveness is often critical value not just for the success of the business, but for the survival of the firm in general. An initial formal check can be done in a very simple way, where the company enters "yes" or "no" in questionnaires such as the one below.

Note that top managers often deal with the paradox strategic management. On the one hand, the duty of top managers is to ensure the efficiency of the enterprise and the expected profit. On the other hand, they must be able to carry out a quick maneuver under external threats and opportunities. Unfortunately, many managers who have succeeded in ensuring the effective functioning of the enterprise turn out to be more passive and less prepared for changes in the external environment. On the contrary, managers who have achieved the flexibility and adaptability of their firms to external environment, do not guarantee the firm's survival in competition if they ignore performance issues. For successful leadership, these two aspects must be balanced.

Because the organization is open system, it can survive, ultimately, only if it satisfies some need that is outside itself. To earn the profit it needs to survive, a firm must pay attention to the environment in which it operates. Therefore, it is in environment management is looking for common goal organizations. The need to choose a mission has been recognized by eminent leaders

Profit is a completely internal problem of the enterprise. Because the organization is open system, it can ultimately survive only if it satisfies some need outside of itself. To earn the profit it needs to survive, a firm must pay attention to the environment in which it operates. Therefore, it is in environment management is looking for common goal organizations. To select the appropriate mission, management must answer the two questions "Who are our customers" and "What needs of our customers can we meet?".

Fifth option. Only the component of the crisis period of life is taken into account, that is, there is only a goal related to the survival of the company. In this case, there is a complete restructuring internal structures of all departments with the maximum simplification of the external structure, that is, most of the departments associated with the development are cut off new products, technologies. The company is moving into a new quality.

First of all, they define marketing goals pricing strategy. They can be maximizing current or prospective profits, gaining more market share, gaining leadership in quality indicators goods, the task of the firm's survival, etc. Then the basic price level is calculated.

The agitation phase is the creation of a sense of strategic discomfort among the staff associated with the realization that the personal fate of employees depends on the survival of the company, due to radical changes in management strategies image formation reliable and influential leader, establishing bilateral channels organizational communications between the anti-crisis manager and the staff of the enterprise. The agitation factor can be used to a large extent when using the possibilities of PR.

Innovation. Ability to develop and offer new goods- the main condition for the survival of the firm in competition. The firm's ability to continually innovate and effective management these processes are the basis of its business activity.

The second alternative comes down to valuation discounted cash flows only in the scenario in which the firm remains operating enterprise, and then to using the probability that the firm will operating enterprise with this value. Chapter 12 contains a couple of approaches to help exploit this probability, including statistical breaks and Monte Carlo simulation models. If we estimate the firm's survival probability as operating enterprise, then its value can be determined as follows

Here it is assumed that profits will quickly return to normal levels, and little will be lost if immediate achieving results. For individual firms, however, negative or low earnings may reflect factors that are not likely to disappear soon. There are at least three groups of firms for which negative earnings are likely to be a long-term phenomenon that may even threaten the firm's survival.

Is firm survival likely?

Until recently, most Russian firms was based only on obtaining momentary benefits, without focusing on the future. It is no secret that a huge number of companies were created only to implement some kind of short term goal, without striving to maintain its presence in this market in the future. However, due to the transition of business to a more civilized framework of activity and relative economic stabilization, companies are forced to move to strategic management. One of the urgent needs of this is the need for a formal description of certain landmarks, directions organization activities, moreover, this is the destiny of both newly created firms and those already operating in the market. This is due not only to the problem of the firm's survival under conditions competitive environment, but also the need to unite the employees of the company on the way to achieve certain results, i.e. create corporate culture. In this case, we are talking about such concepts as the mission and purpose of the company. Mission - concise definition of direction the work of the organization, its goal orientation, the location of the organization to the processes inside and outside it, which motivate employees. Goal - Desirable