Cavana, R.Y. with R.D. Hughes, "Strategic Modeling for Competitive Advantage", 1995
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This paper provides an interim report of the work of the authors in developing a framework for analysing strategic and policy decisions within organizations. To explore frameworks a system dynamics model is developed which draws upon Michael Porter's approach to assessing industry profitability, Alfred Rappaport's method for measuring value creation and Oliver Williamson's approach for aligning management structures with the nature of the service being provided that promote economic efficiency. The framework is empirically tested based on the development of a dynamic simulation model of subsidiary of a large private sector company in New Zealand. A number of scenarios are provided illustrating the use of the model.