Different perspectives on strategy development

In general, economic theory is developed in accordance with a particular perspective (a meta theory) which leads to different ways to design and implement strategies.

We can distinguish some of the most common perspectives:

a) "assembling" approach[1]

"The economy has oriented towards an assembling construction starting from certain paradoxical sentences such as water and diamond paradox formulated by A. Smith : how is explained, if we assume that the value of things resulting from their use, that really useful water has no value, and the less useful diamond has a big value?"[2] The assembled concept derives from the subjective definition of value: value-utility. It became coherent by inventing the concept of marginal utility and gain "body" through balance theory.[3]

The theory takes into account two main assemblies: the goods and the agencies which have two types of binary relations: preferably relations assemblies on goods and exchange relations for all agents. The theory has merit to define precisely the elements of economic life (property, agents, operations, balance, contrast, etc.) and provide a way to overall economic analysis. The approach limitations consist in neglecting technical and the difficulty of moving from change economy to production economy:

a. systemic approach

The economy is not a collection of individuals and goods (as in the first approach), but a system where parts have specific functions. "The economy is conceived as a kind of organism whose organs fulfill different functions rigorously ordered. The starting point is the systemic approach, therefore, analyze the main economic functions rather than individual components, as in assembly approach."[4]

Theory (developed in particular by Quesnay, Marx, Keynes) has the capacity to reveal and analyze the different functions of the components of an economy, relations between them (overdetermination relations and under determining), reproduction of economic system and causes that can occur. Lately, however, some theorists[5] have shown that the economy does not behave as a system (in all cases), the place and role of components being able to change from one situation to another.

b. behavioral approach

In accordance with Robbins's famous definition, economics is "the science that studies human behavior as a relationship between goals and rare means which have alternative uses." This definition does not exclude the controversy, but it involves recognizing that people purposes converge all while means available were all different, due to the harsh reality of labor."[6] On this basic concept, theories are diverse as far as focusing on the role of individual or collective. Behavioral theories bring a new element, important in macroeconomic foundation, but have as limit the element of subjectivity, and often the timelessness.

c. constructivist approach

(which we used) regards science as a human creation and, as such, gives macroeconomics a methodological priority foundation. Macroeconomics is analyzed as an economic perspective, addressing processes, phenomena, mechanisms which, with priority, exists throughout the economy, and can be taken as design elements of microeconomic context. So, in relation with the perspective taken into account the macroeconomic theories are the starting points specific in development of strategies.

  • [1] Poulon Frederic, (1998), Economie generale. Manuel. Paris: Duncon, ch. I.
  • [2] Ibid., 9.
  • [3] Ibid., 9.
  • [4] Ibid., 49.
  • [5] Daniel Bell is one of the theorists that demonstrated that economy (and society in general) behaves differently from one situation to another.
  • [6] ibid., 7.
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