Business Dynamics in Information Technology by Petter Gottschalk

By Petter Gottschalk

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It would have stringent quality controls. As part of it’s offering, it would probably supply the client with some cash as a loan or accept some of the client’s cash for investment (Chatzkel, 2002). Or, the bank can be a value network, which is basically the logic of the marketplace. The bank would define its role as a conduit between people who do not have money and those people who do have money. What the bank does is arrange the flow of cash between them. The bank will attract people with money to make deposits and investments.

Stocks characterize the state of the system and provide the basis for actions. Copyright © 2007, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited. Organizational Business Dynamics 39 After turning the causal loop diagram into a stock and flow map, a simulation model is formulated. Formulation of the simulation model consists of specifying structure and decision rules, estimating parameters, behavioral relationships, and initial conditions, and testing for consistency with the purpose and boundary.

20 Gottschalk tive advantage for the firm. We have already mentioned Barney’s (2001) attributes of value, rareness, inimitability, nonsubstitutability, combination, and exploration. In addition, an important seventh attribute is immobility. Once a firm establishes a competitive advantage through the strategic use of resources, competitors will likely attempt to amass comparable resources in order to share in the advantage. A primary source of resources is factor markets. If firms are able to acquire the resources necessary to imitate a rival’s advantage, the rival’s advantage will be short-lived.

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