Relevance and Implications of Chaos Theory for Strategy (Levy)


 
Chaos Theory > Forum Log in

Relevance and Implications of Chaos Theory for Strategy (Levy)
Stefka Nenkova, Student (University), Netherlands, Premium Member
Industries are complex, dynamic and nonlinear systems, in which interdependence occurs between firms, as well as between firms and other actors in the same environment such as consumers, the government, and financial institutions (Levy, 1994). Taking into account this view, Levy suggests several really important implications of chaos theory for strategic planning / strategy:
  • LONG-TERM PLANNING IS VERY DIFFICULT – the main problem is “trying to use finite measurements in an infinite world”. According to chaos theory, there is little use in trying to plan for the future based on the past since history does not repeat itself. On the contrary, it suggests that instead of putting valuable resources into forecasting, strategic planners should consider a number of possible scenarios, which would allow for more flexibility when facing change. In this train of thought, joint ventures and acquisitions could be seen ...
 

 
 


Special Interest Group Leader

Chaos Theory
Summary
Forum
Best Practices

Expert Tips

Resources



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2018 12manage - The Executive Fast Track. V14.1 - Last updated: 18-10-2018. All names ™ of their owners.