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Business Policy and Strategy, System Dynamics Applications to

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Complex Systems in Finance and Econometrics

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Article Outline

Glossary

Definition of the Subject

Introduction

Using System Dynamics Models in Policy and Strategy Formulation and Implementation

Theory Development – Understanding the Drivers of Business Dynamics

Applications and Case Examples

Future Directions

Bibliography

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Abbreviations

Business policy and strategy:

A firm's business strategy defines how and where it competes, and its approach to doing so. A business strategy typically specifies a firm's goals, the products and services offered and the markets served, and the basis for competing (price, service, quality, etc.). A strategy may also define the organization structure, systems and policies which implement the strategy. In addition, firm's will have systems and policies which focus on operations and functions, and are not truly “strategic” in nature. Nevertheless, these operational policies can be important in determining business performance.

Business dynamics:

Business dynamics is the study of how the structure of a business (or a part of the business), the policies it follows, and its interactions with the outside world (customers, competitors, suppliers) determine its performance over time. Business structure consists of feedback loops surrounding the stocks and flows of resources, customers, and competitive factors that cause change over time; business policies are important components of these feedback loops. Business dynamics is a means of determining the likely performance that will result from alternative business policies and strategies.

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Authors and Affiliations

  1. Worcester Polytechnic Institute, Worcester, USA

    James M. Lyneis

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  1. RAMTECH LIMITED, 122 Escalle Lane, Larkspur, CA, 94939, USA

    Robert A. Meyers Ph. D. (Editor-in-Chief) (Editor-in-Chief)

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Lyneis, J.M. (2009). Business Policy and Strategy, System Dynamics Applications to. In: Meyers, R. (eds) Complex Systems in Finance and Econometrics. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-7701-4_5

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  • DOI: https://doi.org/10.1007/978-1-4419-7701-4_5

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