How internal and external logic plays out in business competition?

At a recent interview, Singapore Prime Minister, Lee Hsien Loong mentioned about internal logic and external logic and the way it plays out in politics drawing parallels from what is happening between America and China. We can also apply the same set of logic in business strategy. 

Internal logic relates to the way of thinking that prevails inside a firm about its values, beliefs, attitudes and behaviour of the people and the vision and mission of the corporate management. This is much to do about framing the right or in some cases appropriate business policy parameters. 

Whereas, external logic is about the arena where the business plays its role which consists aspects including, but not limited to, methods of business competition, aims and ambitions of players in the market, technology presented by them and the pressure or impact competitors bring upon the market and her participants.

Two issues arise in business strategy, which are of contrarian nature: 

Internal logic applied to external relationship is one of the contentious issue that brings major disasters between and amongst business competitors. In the case of fighter aircraft manufacturing, Lockheed Martin who is an undisputed leader due to her relentless research & development look down upon any company or person challenging F-35 jet and F-22 Raptor in actual combat or in propaganda war and goes no-hold barred manner  in destroying her opponents or critics. 

External logic applied to internal relationship is once again a devil’s bargain. Pressure from the leading competitor to toe his line brings chaos not only in the corporate management but also in the line management where any sign of weakness would be interpreted as surrender and vital personnel could move out of the company. This happens mainly in hostile takeovers and mergers & acquisitions where taking over companies find really bad deal in their hand ultimately.

 

Cheers! 

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist