Using System Dynamics to Model The Tomorrow's Company Concept

摘要

This paper proposes that paying more attention to the relationships which companies have with their stakeholders, e.g. customers, employees, suppliers, community etc. is to the financial benefit of firms. A model is proposed, which will be able to be used by companies allowing them to simulate the effect on profit when changing spending on stakeholders. Stakeholder theory is examined and the relationship between company spending on customers, customer satisfaction and profit is outlined. The paper concludes by summarising the system dynamics model, which was built to allow companies to simulate different spending strategies in order to maximise profit. Initial results using the model show that profit is increased when paying more attention to stakeholders.