Application of physical science analysis to strategic management monitoring and control systems Online publication date: Fri, 25-Jan-2008
by Dave Valliere, Steven A. Gedeon
International Journal of Business Environment (IJBE), Vol. 2, No. 1, 2008
Abstract: This article illustrates the potential for using mathematical reasoning and analogy from physical sciences to conceptualise and explore the effect of dynamic external forces on the response of a company. An example of a generalised second-order linear differential model is applied to study the dynamic response of a company or industry to an exogenous shock. In most systems, significantly over-damped or under-damped response characteristics are expected. However, strategic management monitoring and control systems can scan for external shocks in order to apply dynamic adaptive controls to optimise the company's response. Mathematical tools are used to predict conditions under which an efficient response to external shocks is expected. It is shown that active strategic management can provide superior response characteristics. Additional complementary mathematical modelling approaches are outlined to show how the model may be expanded to address inter-firm linkages, supply chain dynamics, and the propagation of shocks through an industry.
Online publication date: Fri, 25-Jan-2008
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Environment (IJBE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email firstname.lastname@example.org