Complexity Theory Article Example | Topics and Well Written Essays - 750 words

Complexity Theory - Article Example The chaos approach involves consideration of an overall state of being within the organization, with the state of chaos facilitating the need for change in the business environment or becoming the desired state of an organization to bring about much needed change. Both approaches are considered within the healthcare setting, as well as in the global business expansion realm. Examples of the types of change required for each situation apply the different approaches of chaos and the continuum. Defining Complexity Theory Complexity theory is based on the principle that various processes within a business production unit are comprised of tasks, with varying levels or degrees of difficulty. Complex systems are fractal in nature, comprised of complex patterns with similarities, though they may possess varying degrees of complexity (Lindberg et al, 1998). Though Lindberg applies the theory to the healthcare industry, it can easily be adapted to nearly industry or organization with outputs o r processes of production. A comparison of patient management and organizational management is used to explain the theory’s application to healthcare. The complication of treating interacting health care issues is compared to the challenge of administering healthcare in a cost effective manner. Views on Complexity Theory Early supporters of complexity theory explain the phenomenon as a mechanical process that follows a specific cause and effect pattern, such as in disease processes. However, opposing perspectives suggest that the processes are made up of a combination of complex activities and the combination of various facets is what makes a system complex. In such a view, healthcare is a complex system in itself, made up of challenges in addressing patient health issues, challenges in the administration of healthcare and challenges in preparing healthcare providers to care for an increasingly diverse population. It is the degree of challenge or difficulty in addressing each of these areas of the industry that drives innovation, or new ways of delivery within the system. The Continuum Approach Complexity is explained as existing on a continuum between chaos and stability. All complex systems go through change, which, at times, pushes those systems toward the brink of chaos and away from stability. This explanation is applicable to many industries and types of businesses struggling to find their way in a global environment. To do so often requires change, or adapting new ways of looking at the business environment. Often change disrupts the methods and current strategies used by an organization. However, when an organization faces change or develops a change strategy, a means of greater contribution from each member of the organization is created. In the more stable environment, there is less contribution, as everyone exists in more of a state of complacency. Complexity and Change If complexity theory relates to change, then it makes sense to assume tha t the more change is needed within the organization, the more complex the system becomes. Greater contributions from a variety of sources make the change process inherently more complex. In the health care setting, just as in any other business environment, some problems or issues do not require complexity. A patient having a mole removed expects little, in terms of the unknown. The procedure and results

Consumer Behaviour and Segmentation Essay Example | Topics and Well Written Essays - 2750 words

Consumer Behaviour and Segmentation - Essay Example The researcher states that the goal of market segmentation is to identify distinct consumer groups that have homogeneous needs. Tailoring the marketing mix for particular segments leads to better planning and more effective use of marketing resources. Coles and Culley, for example, illustrate how DuPont segmented its market for Kevlar, an aramid fiber that is lighter yet stronger than steel. The company focused the unique needs of consumers in three different segments. Potential fishing boat owners: Kevlar's lightness promised fuel savings, increased speed, and the ability to carry more fish weight. Aircraft designers: Kevlar has a high strength-to-weight ratio. Industrial plant managers: Kevlar could replace the asbestos used for packing pumps. The market segmentation design, based on product benefits, is widely recognized as the state of the art and superior to traditional segmentation schemes based on industry type or consumer size, sustaining a segmentation strategy based on benefits alone is often difficult for the product market. Eventually, in a competitive market, competitors are able to offer equivalent products and the abnormal profits start to deteriorate. This situation is especially prevalent for industrial raw materials and supplies that are difficult to differentiate by functions and features alone. As the product market turns a commodity, price and service become important buying criteria for some consumers.... In this paper the consumer buying behaviour model has been generally applied to segment consumers which can be used by many large industrial companies. In addition, it will be appreciated how segmentation analysis can be used proactively to influence consumers' movements to segments that are mutually beneficial to the seller and buyer. In contrast, previous application work (Moriarty and Reibstein 1986) attempted to uncover existing segments as a way to position products strategically. Consumer Buying Behaviour Model & Market Segmentation The consumer buying behaviour model is derived largely from economic theory of consumer demand and the normative concepts of economic man and rational behaviour. The assumptions of consumer demand specify that buyers, at the point of purchase, possess perfect information about products and prices, are certain of their own stable tastes and preferences, are capable of perfectly processing information, and can express preferences between goods and bundles of goods without cost (Schwartz 1986). The model for the consumer decision process is based on assumptions about the behaviour of economic man who chooses a good for its primary function. The rational decision maker adheres to the tenets of Herbert Simon's three-step model in which one (1) identifies the problem, (2) gathers information, and (3) makes a choice based on the information (Simon 1957). In spite of contemporary consumer behaviour texts resting heavily on the tenets of psychology and sociology to explain attitudes, motivati ons, and behaviour, the discipline holds fast to economic theory. Research on market segmentation offers several bases for segmenting consumers (Frank, Massy, and Wind 1972), including: demographic descriptors such