Strategy Dynamics

STRATEGY DYNAMICS

The videos explains and analyze the challenges and behavior of strategy dynamics, especially how this is use in the companies to predict the behavior of the resources. It also explains how to improve a system in a company, with three questions that every company should ask to themselves.

The videos start enplaning that strategy Dynamics are a very useful tool for the creation of strategies, because it studies how performance organization change over time or how things change after some event. In other words it shows how a company behaves. Also explains that the levels of a strategy in a company are related it to the dynamics challenges in a company. The challenges are: cutting staff turnover, recovering sales, raising quality, improving cash flow, cutting new-product lead-time, growing company profits. All of this have three things in common they have history, they could be worst and the can improve. Then from this we obtain three important questions: Why we got here?, How to improve it? And where will go in the future?. This question will help us to get a conclusion, of that would have two purposes (approached for an overall plan and for a specific issue), at two levels (whole organization and a team function or department).

The second videos said that strategy is all about managing and improving the performance over time, and explains that performance comes from the resources. It also shows that there are different related to profits, costs and revenues for a company, ad gives the example of a manufacturing company. This factors are computed as a causal diagram representing a dynamic system and shows the relationship between them. The factor interact which each other in different ways in order to reach the objective. The objective is not always the same, there are cases in which the goal is to reduce the problems per customer improving the performance of the system through the time and suggest strategies for the levels and purposes. Also in the video explains how is the correct way that incoming should be measured and how the companies are doing it wrong. It also explains how strategy dynamics improve this, by knowing the interaction of each factor in order to know which the real situation of the company is.

In the third video explains how the resources changes over time, which will answer the third question about the future, also shows the behavior of them and how should they be used. The video explain that the normal behavior of the resources through time is that they accumulate, just like an inventory. In order to predict the amount to produce is necessary to have history and with this strategies to increase the profit could be made. It’s important to system dynamic to know the real information of the company.

The fourth video, both parts, explains how all the elements are join because it use the rate flow to reach the stablish goals of the company. The rate flows determines the

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