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Academic Journal of Business & Management, 2024, 6(5); doi: 10.25236/AJBM.2024.060514.

NK Model and the Construction of Enterprise Management Strategy

Author(s)

Ge Zhang

Corresponding Author:
Ge Zhang
Affiliation(s)

Qinghai Minzu University, Xining, Qinghai, 810007, China

Abstract

The complexity of enterprise operations is increasing, especially in supply chain management and strategic planning. This study explores the NK model and its application in the construction of enterprise management strategies. By comparing the performance of the NK model with the traditional Keynesian model in three key indicators of enterprise management efficiency, market share, and profit margin, this article aims to reveal the advantages of the NK model in simulating complex market environments and enterprise decision-making. This article first constructs an NK model, selects appropriate parameters, and sets the model structure. Subsequently, through simulation experiments, this article compared the operational performance of the NK model and the traditional Keynesian model in different market environments. The experiment designed simulated markets with various economic conditions, including economic prosperity, recession, intensified competition, or changes in market demand, and designed 18 enterprises with different characteristics for these simulated markets. By simulating the management of these enterprises, this article records and observes the enterprise response and its impact on key indicators guided by two models. The research results indicate that companies managed under the NK model outperform those managed under the traditional Keynesian model in terms of management efficiency, market share, and profit margin. Under the NK model, the maximum management efficiency of enterprises can reach 97.5%, while under the traditional Keynesian model; the maximum management efficiency of enterprises is only 77.2%. In addition, under the NK model, the maximum market share of enterprises reached 9.5%, while under the traditional model, the maximum market share of enterprises was much lower. In terms of profit margin, the highest profit margin for enterprises managed by the NK model reached 28%, while the highest profit margin for enterprises under the traditional model was only 12.7%. The application of the NK model in the construction of enterprise management strategies has shown significant advantages, especially in improving the adaptability and competitiveness of enterprises to market changes.

Keywords

NK Model, Enterprise Management Strategy, Management Efficiency, Market Share

Cite This Paper

Ge Zhang. NK Model and the Construction of Enterprise Management Strategy. Academic Journal of Business & Management (2024) Vol. 6, Issue 5: 95-101. https://doi.org/10.25236/AJBM.2024.060514.

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