A Conceptual Approach to Modelling Strategic Issues to improve the performance and competitiveness of manufacturing
Business and Public Management
The utility of the model for policy making is discussed. The business environment in which manufacturing operates has become increasingly dynamic and complex. Consequently, there is an increasing need for manufacturing companies to develop business policies that are able to respond to changing environmental conditions. Before an effective policy can be designed, developed and implemented, management should understand how various inputs and outputs of the manufacturing environment influence a company's business policy. Hence there is an increasing need to model business policy so as to support managerial and operational decision making. Managers entrusted with strategic decision making in manufacturing companies should be able take a holistic view of their business so that they can acquire an understanding of how various elements of the manufacturing environment interact with each other. This paper describes and demonstrates how system dynamics can be used to develop a conceptual model of the strategic issues, such as quality, investment and government policy and how it influences the performance and competitiveness of manufacturing.