TITLE:
Linear and Nonlinear Strategic Management: With Applications to Shipping
AUTHORS:
Alexandros M. Goulielmos
KEYWORDS:
Linear and Nonlinear Management, Strategies, Mission, Growth Shipping Strategy, Full Cartesian Diagram, Span of Management and Control, The Strat-egies of a Shipping Company, Timing, Companies Case-Studies
JOURNAL NAME:
Modern Economy,
Vol.9 No.1,
January
12,
2018
ABSTRACT: The strategies—corporate, competitive and current—and
the “effective leadership”, provided by linear management—all in all 22—were
briefly presented with an application to shipping industry, like BCG matrix,
and growth, as well as how to create and maintain a competitive advantage.
Moreover, the essential strategies/functions of a shipping company were too
presented with the prime emphasis to timing of shipping decisions. In shipping,
management, as showed, is done by distance. Nonlinear management strategies
showed next and the full Cartesian diagrams-phase spaces—of 3 companies— one in
shipping—were used to discover the level of chaos in their business activities.
A further tool has been used from nonlinear management: the “span of management”
vis-à-vis the well-known “span of control”. We have showed that both top
maritime countries and top shipping companies pursue the “growth strategy in a related industry” (with same knowhow). Some
countries did it better, like Greece and Germany. “Growth strategy” has been
accompanied by economies of scale and a lower service cost. We showed also that
a growth strategy has to be moderated
by: 1) forecasting that demand will be there, when ships are delivered; 2) that
liquidity is secured, even in a slump, where banks and stock exchanges turn
their backs to shipping, 3) the fact that prices of ships—new or 2nd hand—were indeed at rock bottom and that the 1st-best or 2nd best timing has been applied and 4) that company’s investments did not
influence total supply so that to dampen markets. A mention on generic
competitive strategies has been carried out and especially differentiation
issue of products and services, but not pursued much as shipping has
homogeneous services.