Using a viable system model as a diagnostic tool for small-sized companies Online publication date: Tue, 22-Mar-2005
by Saud G. Al-Mutairi, Neil D. Burns, Chris J. Backhouse
International Journal of Services and Operations Management (IJSOM), Vol. 1, No. 3, 2005
Abstract: With international trade now being more accessible and communication easier, international marketing strategies are increasingly important as managers deal in the global marketplace where the ability to survive depends on effective competition. Resting on a one-person decision, together with limited resources, means that international involvement for most small companies is riskier than for larger companies (Beaver and Prince, 2004; Goodman, 1999; Lloyd-Reason and Mughan, 2002). This paper investigates small-sized companies and clusters them into clearly defined groups, with the forms of uncertainty they face during international involvement being used to differentiate between them. The Viable System Model (Beer, 1979; 1981; 1985; Yolles, 2004) is then used as a diagnostic tool to provide a picture of the possible international markets that such companies might enter. Finally, an example of the Viable System Model for one type of small-sized company is outlined with a view to generalising evaluation procedures.
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