What are organizational economics?

'What are organisational economics?' by Tony de Bree

What are organizational economics?

There is a knowledge domain in economics and organisational design that many people do not know yet. This knowledge domain is the domain of organizational economics.

Organizational economics analyse organisational actions as outcomes of strategic, tactical and operational interplay using transactions and interactions among individuals inside and outside a formal organization as they respond to incentives or otherwise pursue their own interests.

Organizational economics thus look inside the traditional “black box” of a corporate company or large public authority organization, a startup, a scaleup and an SME by examining the task of organising and especially motivating and coordinating human activity in a micro-economic context

As the online platform economy is developing and  online & offline markets become more efficient the organisational form (with its complexity) of the traditional large company becomes uneconomic, since companies can only exist and survive to the extend that they can create more customer value & avoid or reduce unnecessary costs more effectively than others, like successfull startups and scaleups that use the organisational design of the virtual organisation.

The traditional large company becomes uneconomic.

There for a clear corporate survival strategy is needed to right size the company using ICT….and fast.

What is a ‘Corporate Survival Strategy’?

Corporate survival strategy means defining and excuting a corporate ICT and Business strategy to focus on your best customers, cut unnessecary fixed and variable costs fast, laying off the right executives, managers and teammembers, tightening profit margins and saving cash, in stark contrast to growth mode, during which corporates reinvests profits, expands operations and define new digital growth strategies with long-term payoffs.

Especially now, defining and executing an effective Corporate Survival Strategy in the online platform economy including the best digital strategy using digital strategy mapping is an important part of a successful Corporate Survival Strategy. If yiu want to survive the Covid-19 crisis that is….

Contact me today.

If you have any question or requests on how to define the best corporate survival strategy for your company and how to redesign your corporate company using ICT fast, please do not hesitate to call me on Skype on tony.de.bree, on 06-34387806 or email me here.

Kind regards,
Tony de Bree

p.s.
Let’s connect on LinkedIn.

About the Author: tonydebree

Tony de Bree worked in Financial Services including in corporate venturing and e-commerce for 26 years and he made the transition from banker to entrepreneur working from home and making money online with his own "online plan b" with digital products as side-hustles in 2000 and as hybrid business owner since 2011. Since the beginning of the Covid-19 pandemic, he helps corporates, small business owners, startups & scaleups to define and implement the best digital survival strategy and he helps managers and employees to become a successful entrepreneur with a personal digital-right skilling plan.

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