Gervasio, Vincenzo,"A System Dynamics Approach to Corporate Modelling", 1984
The acronym “MDS” refers to the methodology and a series of computing techniques which are suitable for the simulation of corporate processes. These “Dynamic Models for Corporate Strategies” allow the description of such processes as structures of a unified nature, into which one may insert all the necessary data (real or hypothetical) deriving from the initial and boundary conditions, to clearly define the possible future developments being studied. With respect to other, currently available, decisional aids, MDS differs both by its purely simulative approach and by its use of the basic descriptive structure capable of completely representing the dynamism of corporate phenomena. Compared to a “company microcosm” description using the now classical methods of Industrial Dynamics, MDS offers open and interactive systems also introducing several “corporate variants”. (These correspond both to certain types of sub-division of the complete system into given sub-system, and to relationships which may also be described in the same terms, such as the ‘accounts plan’, for example). The main aim of this paper is to analyse the effects of promotional activity- recently developed in Italy amongst medium and large companies- whose main objective is the introduction of MDS as an imprtant instrument in the practice of corporate planning.
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