John Morecroft

Strategic Modelling and Business Dynamics introduces the system dynamics approach to modelling strategic problems in business and society, based on the author’s successful MBA course at London Business School. The book covers all stages of model building (from conceptual to technical) including problem articulation, mapping, equation formulation and simulation. It includes a range of in-depth practical examples that vividly illustrate important or puzzling dynamics in business, society and everyday life (e. g. drug-related crime, perverse hotel showers, intended supply chain cyclicality, spontaneous product growth from word of mouth, managed market growth leading to premature decline, boom and bust in oil and housing, the collapse of fisheries etc). In order to bridge the experience gap for the undergraduate students the book includes gaming simulations and microworlds. The easy to use simulators expose students to the vagaries of communication and cross functional co-ordination in organizations, highlighting blindspots that unintentionally undermine strategy. These tools allow readers to roleplay in dynamically complex and loosely coordinated systems. The simulations include a baffling hotel shower, a start-up low-cost airline, an international radio broadcaster, a commercial oil producer and a fishing firm.