Dynamic Business Model at Radboud Business School
Business is very dynamic. The first low-cost airline failed dramatically. Supply chains in many industries (e.g., real estate, beer distribution) face booms and busts: fluctuations in sales, inventory volumes and earnings. Many successful businesses lose their leading market position. Many promising new products cause enormous losses or even fail to reach the market. Why do many business strategies fail? Why is the success rate of most organisational change programmes low and why do many mergers fail to bring about the expected synergies? Why do some businesses fail while others succeed? One can ask many similar questions.
This course will introduce you to system dynamics methodology as a way of analysing fundamental business problems and create dynamic business models. You will learn to model the structure of businesses from a stock-flow perspective, analyse the dynamic behaviour of business operations and design policies. You will study systems with multiple feedback loops, time delays, and nonlinear responses to decisions. The principal purpose of system dynamics is to improve your understanding of how an organisation’s performance is related to its internal structure, the policies it implements and its external environment (i.e., customers, competitors, and suppliers), which is called the “strategic architecture”.
During the course, you will build various models to explore strategic issues such as diffusion of technologies or products, market growth, fluctuating inventory levels and production. You will also work with a simulation game in which you will have the opportunity to manage a company, experience long-term side effects of the decisions you implement and try to sustain the company.
After this course you are able to:
- Understand the basics of dynamic business models
- Design simple dynamics models
- Interpret and use intermediate-level dynamic models
This post also published in HRSTStudy.org. Original Post by Indri Juwita Asmara.