Dynamic Business Growth

Print pagePDF pageEmail page

Dr.  John Psarouthakis, Executive Editor,
Founder and former Chairman-JP Industries Inc and JPE Inc as well as Founder and Managing Director of JP Management Center, llc.

In the world of business nothing ever stays the same. Today’s competitive advantage may be copied by competitors and rendered useless tomorrow. Developing new products and entering new markets are two ways to maintain a competitive edge. But in a fast-paced market, imitators can often quickly follow: even patented items are difficult to defend in a global market. The globalization of commerce has stimulated a shift in thinking about competitive advantage. In many industries a competitive position can come from underlined organizational abilities, in others it could come up from a strategy model of financing, acquisitions, licensing, geographic expansion, or a mathematical model that enables you to integrate several of the above components of growth.


A business can be considered as a dynamic organism that reacts or acts on its environment in accordance to preset but also changing parameters that affect performance in direct relation to the simulation and controls incorporated in it. Being a dynamic organism / system it also means that its overall performance is a multiplicative function and not a summation function as it has been considered by classical growth models. These multiplicative functional relationships will be a significant part of the content of this seminar / workshop.

Briefly the performance of a business can be express as follows:

P=F[(aA)(bB)(cC)……..(xX)],  where the letters a,b,c,………x simply refer to the importance or proportional weight factors of each function and the letters A,B,C,……………X refer to the level of performance of the company for each function in the growth plan.

Your Company:

View your company as a powerful tool used to realize your vision and objectives. But realize that it is also bound by certain natural laws such as entropy. To minimize entropy, you must develop a reliable and effective input-transformation-output (I-T-O) dynamic cycle for your company. Also you must understand that your company is a part of a dynamic network, affected by multiple layers of people, groups, organizations, societies, and global forces all interacting dynamically and, at times, unpredictably with one another.

To survive, grow, and remain profitable, your company must develop an effective business model with the relevant strategy and action plan at a specific point in time for several functions / issues, regardless of your company’s stage of development (infancy or maturity) or its market niche. And remember that the performance of the company is a multiplicative result of those functions / issues.

For an in depth treatment of this management process see the book;

“Dynamic Management of Growing Firms”

Michigan University Press



Leave a Reply

Your email address will not be published. Required fields are marked *