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The subject of this paper is the use of simulation as a tool to assist managers develop strategy in the business firm. The paper refers to a simulation model of a hypothetical business firm's profit and loss account and balance sheet statement. The simulation model comprises accounting identities and behavioural statements represented as a set of difference equations. The model is parsimonious in that as few equations as possible are used while still reasonably representing a business firm. The paper examines how simulation can be used to assist strategy makers in formulating strategy. This work is part of the author's PhD research and represents ongoing rather than completed work. Please do not quote without prior permission.