Strategy is not the formulation of a plan. It is emergent from a process of exploration and discovery. Austrian economics is the best guide for entrepreneurial firms to put in place the methods and organization that unleash the power of emergence. Matt McCaffrey joins Economics For Business for a detailed exposition of the Austrian approach to Business Strategy.
Strategic planning is taught in business schools as a data-rich, analysis-based, resource-allocating top down mechanism for business efficiency. Austrian economics prescribes the opposite approach.
Firms that can unlock the deep secrets of subjective value can unleash powerful, long-lasting value streams. When these flow in a confluence with well-identified market drivers, revenue and profit growth can be greatly accelerated.
Entrepreneurs seek to provide markets with new value through innovation wherever they can identify an opportunity. Their vision is broad enough to include free market institutions such as contracting, where they identify new and better ways to expand the mutuality of value and better relationship models than those in the traditional legal approach.
The Chinese Communist Party professes socialism with Chinese characteristics, which is, essentially, capitalism. USA’s Big Tech companies appear to be practicing capitalism with Chinese characteristics.
The future of work is portrayed as technology substituting for people. It’s more likely that people will become firms, with all the access to resources that that entails.