2007/08/26 by Arnabi Marjit, Marjit, Arnabi, Sudipto Marjit +3
Economics, Econometrics and Finance · Physics and Astronomy · #FOS: Economics and business #FOS: Physical sciences #General Finance (q-fin.GN) #Physics and Society (physics.soc-ph) #physics.soc-ph #q-fin.GN
paper · pdf · doi:10.48550/arxiv.0708.3467
ReVTeX, 11 pages, 8 figures. Revisions have been made in the draft
arxiv created 2008/04/25 · arxiv updated 2009/12/01
In this pedagogical study, carried out by adopting standard mathematical methods of nonlinear dynamics, we have presented some simple analytical models to understand terminal behaviour in industrial growth. This issue has also been addressed from a dynamical systems perspective, with especial emphasis on the concept of the Balanced Scorecard. Our study enables us to make the general claim that although the fortunes of an industrial organization can rise with exponential rapidity on relatively short time scales, its growth will ultimately and inevitably be saturated on long time scales by various factors which are nonlinear in character. We have mathematically demonstrated the likely occurrence of this feature under various possible circumstances, including the Red Ocean and the Blue Ocean. Finally and most importantly, our arguments and their associated mathematical modelling have received remarkable support from the growth pattern indicated by empirical data gathered from a well-recognized global company like IBM.