Abstract for: Strategic Decision Support for Startup Company Using System Dynamics: an online startup company’s case
Startup companies need to decide when, what, and how to utilize their resources in particular business activities. The necessity of these kinds of decisions is similar to that of long-standing companies. However, there is a significant difference; most startup companies have very limited resources including money, compared to long standing companies. Therefore, they cannot use their resources for multiple activities simultaneously. This naturally causes a situation in which startup companies choose only one choice that they really do. This strategic decision is not easy even if companies’ owners and staff are well experienced in another company. Besides, startup companies are often likely to fail as a result of one inappropriate decision, compared to longstanding companies. In this situation, a computer simulation reflecting each individual company is valuable. Examining simulation results can be helpful to real company owners and managers. This paper explains a process of introducing system dynamics simulation into startup businesses and shows a case of a startup company selling original cosmetics online.