Chaos Theory and Its Application to Management (Essay Sample)

This paper evaluates the application and implications of chaos theory in management. Chaos Theory is defined by a conceptual framework for reconciling the uncertainties of markets with the emergence of distinctive consumers' trends. The theory highlights the complex interactions and nonlinear relationships, which change over time. it focuses on characterizing economic, social, ecological, and physical systems. The theory was first conceived in the context of physical sciences. Lorenz conceived it in 1963 while analyzing the dynamics of turbulent flow in liquids. Scientists represent chaotic systems using differential equations that are impossible to solve, making it hard to predict the state of the system at a particular time in the future. Thus, chaotic systems can get random at some point. Nevertheless, chaos theory's capacity to demonstrate the mechanisms by which deterministic relationships can generate predictable patterns but unpredictable results represent one of its major accomplishments. this makes the theory applicable by managers since they can apply it to cushion their companies against the shockwaves of unprecedented changes . Chaos theory suggests that managers should anticipate dramatic changes in their industry. They should prepare for such changes by having backup strategies and funds to cushion the company against any changes.