Research Paper on:
Business Management and the Chaos Theory

Unformatted Sample Text from the Research Paper:
theory is that if a butterfly flaps its wings on one side of the world it can create effects that cause reactions on the other side of the world.  In other words, out of chaos comes order. This philosophical argument can also hold true in business and is being embraced more and more in the business world. Managers  believe that a seemingly insignificant event in the business world can have an effect that grows to cause results in what many feel are unrelated causes (Stilwell, 1996, 6).  CHAOS THEORY AND THE IMPACT ON MANAGEMENT According to Jason Stilwell (1996, 6) there are 5 lessons to be learned from chaos theory as they apply to management: 1.  Rely less on precise planning. Chaos theory shows that precise planning is not beneficial. 2. Be responsive. Knowing that small changes can create havoc is a good reason  for a manager to be responsive. 3. Be adaptive and flexible. Although chaos theory holds that there is an underlying order to things, large fluctuations can occur within  the bounds. 4. Keep a dynamic attitude. The fundamental reason that public managers do the activities they do is to serve the public. A dynamic attitude can help  the manager maintain a stable level of government service in an unstable environment. 5. Use chaos to your advantage. Understanding that small changes can lead to greater changes  can benefit a manager (Stilwell, 1996, 6). CHAOS THEORY AND MARKET CYCLES Nearly every business market has its cycles of growth and slowdown periods. Many businesses feel  they can predict these due to consumer interest. Some, for instance, feel that when a slowdown occurs for two years it is time for the cycle to turn upward