ISBN 9780071068123,Business Dynamics

Business Dynamics



Tata McGraw - Hill Education

Publication Year 2010

ISBN 9780071068123

ISBN-10 0071068120


Number of Pages 1008 Pages
Language (English)


Today's leading authority on the subject is the author, MIT Standish Professor of Management and Director of the System Dynamics Group, John D. Sterman. Sterman's objective is to explain, in a true textbook format, what system dynamics is, and how it can be successfully applied to solve business and organizational problems. System dynamics is both a currently utilized approach to organizational problem-solving at the professional level, and a field of study in business, engineering, and social and physical sciences. Salient Features Incorporates a modeling approach: Modeling and models help students learn to visualize a business organization through structures and policies that create dynamics and regulate performance. Students will gain a better understanding of how an organization's performance is related to its internal structure and operating policies as well as to the operating policies of its customers, competitors, and suppliers. Offers role-playing experiential exercises: The book offers diverse modes of learning, including role-playing exercises. This active learning approach engages students, vitalizes the subject matter, and helps develop students ability to think on their feet. Utilizes case studies, depicting real companies, throughout: Case studies of successful design and implementation strategies are used to illustrate systems dynamics principles. This approach offers both realism and proof of the effectiveness of system dynamics principles when applied, in a practical fashion, to real business problems and situations. Emphasizes the use and construction of simulation models and flight simulation exercises: Simulation models and flight simulators are used to develop principles of policy design. This permits both the exploration and the understanding of such complex issues as fluctuating sales, production and earnings, market growth and stagnation, the diffusion of new technologies, the use and reliability of forecasts, and the rationality of business decision-making. TABLE OF CONTENTS Introduction Part I. Perspective And Process 1. Learning In And About Complex Systems 2. System Dynamics In Action 3. The Modeling Process4. Structure And Behavior Of Dynamic Systems Part II. Tools For Systems Thinking 5. Causal Loop Diagrams 6. Stocks And Flows 7. Dynamics Of Stocks And Flows 8. Closing The Loop: Dynamics Of Simple Structures Part III. The Dynamics Of Growth 9. S-Shaped Growth: Epidemics, Innovation Diffusion, And The Growth Of New Products 10. Path Dependence And Positive Feedback Part IV. Tools For Modeling Dynamic Systems 11. Delays 12. Co-Flows And Aging Chains 13. Modeling Human Behavior: Bounded Rationality Or Rational Expectations 14. Forecasts And Fudge Factors: Modeling Expectation Formation Part V. Instability And Oscillation 15. Supply Chains And The Origin Of Oscillations 16. Managing Supply Chains In Manufacturing 17. The Labor Supply Chain And The Origin Of Business Cycles 18. The Invisible Hand Sometimes Shakes: Commodity Cycles Validation And Model Testing Appendix A: Numerical Integration Appendix B: Noise References Index

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