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Applied Chaos Report

In normal cases, the word chaos is usually used in relation to disorder and confusion. However, in scientific view, there is more than the literal meaning of chaos. It should be emphasized that chaos affects people’s ability to make future predictions of their actions. Moreover, it affects the sequence of actions. In addition, although chaos happens randomly, it determine the outcomes of a particular situation. For example, the trajectory results after releasing a pinball are highly sensitive to slight variations in the initial words. Therefore, it means that the desirable trajectory can only be achieved apparently on random occasions. The situation seems rather chaotic because a slight variation in the previous release will produce completely different results. On the other hand, chaos occurs in the atmosphere, human brain, and the heart. Chaos also forms crucial part in the industrial processes. For instance, chaos in the atmosphere leads to results similar to the wings of the butterfly. However, the results spread between the lobes without crossing the same path twice. Secondly, the industrial processes occur in a chaotic system but they are naturally deterministic in an underlying order. This makes it possible to control processes in electrical and mechanical systems. However, because of chaos, there is a kind of instability in these processes, which makes it impossible to build two systems that produce similar output. In the human body, the rhythmic movements of the heart can be considered chaotic. For instance, a sudden stimulus would over drive the heart beat even though it is external. This paper aims to show how different principles of chaos can be applied in a business environment.

Principles of Chaos Applicable in Business Situation


In the same way that it is difficult to sufficiently establish all the initial conditions in a system, the case is the same that it too difficult to predict the results of the system. The occurrence of slight errors in the initial conditions will lead to variations in the predictions (Mobus & Kalton, 2015). In a business environment, there occurs chaos resulting from the complexities and unpredictability of supply chains. It is challenging to manage supply chains successfully to facilitate remarkable achievements. Chaos is inevitable in the supply chain because the process depends on efforts of several key players. In this case, a problem from one of the players will cause results that were not predicted in earlier orders (Kouzes & Posner, 2012). For instance, if the manufacturer faces issues of a machine breakdown, it is likely that the delivery time will be delayed. As a consequence, the buyers may lose confidence in the company, which may involve cancellation of that order (Williams & Arrigo, 2002). Secondly, the warehouse may make purchasing order relying on history of a similar product. However, the rise of factors such as demand, consumer preferences, and availability of similar products will affect the sales performance. This shows that any disruptions in the supply chain may affect the company negatively in terms of profitability (Williams & Arrigo, 2002).

The Butterfly Effect

This is one of the principles of chaos that can be applied in business. It seems a simple gesture when the butterfly flaps its wings. In the same manner, simple actions can be applied to help the business to achieve great rewards (Mobus & Kalton, 2015). For example, displaying the right attitude and personality towards the employees and customers can increase the performance of the business more than monetary investments. Moreover, it is much more worth to take time to build solid and trustworthy relationship with customers. There are efforts to enhance the productivity of marketing and advertising strategies. On the other hand, the butterfly effect puts an emphasis on the need to avoid ill-treatments of the employees (Williams & Arrigo, 2002). Often, some managers focus on treating their customers in the right manner, but they overlook the needs of their employees. As a consequence, an employee who is treated badly at the workplace lacks the sense of belonging. Therefore, he or she is likely to treat potential customers in the same manner (Mobus & Kalton, 2015). The effects of unfair treatment run from top to bottom; that is, the customers will be affected too. Eventually, these employees and customers may shift their interests to another company. In this case, the performance of the affected company is compromised by loss of customers and employee turn-over (Kouzes & Posner, 2012).

Interestingly, there is an idea that a butterfly flapping its wings in Mexico can cause a hurricane throughout the Republic of China. This means that initial actions that do not seem significant may cause harmful effects on a large scale (Mobus & Kalton, 2015). Similarly, in a business situation, this is a golden rule that demands that all key players should be treated in a friendly and professional manner. For instance, when a customer is treated as he or she desired, it is possible that customer will spread the positive experience to others. As a result, a channel is created by the customers talking about the same experience (Kouzes & Posner, 2012). The channel helps in building the reputation of the business which also plays a role in establishing a customer base.


The feedback principle of chaos provides the business with concepts to balance between customer service and complaint resolutions. A business owner, who uses the feedback from consumers to increase his opportunities for growth, is liable to have happy customers (Williams & Arrigo, 2002). On the contrary, if a business owner bends backwards to integrating the feedback with the organizational goals, he or she may end drifting away from positive outcomes. Similarly, it is crucial to the stockholders as an integral part of business performance. Any business cannot afford to antagonize people who have invested their money to facilitate its growth. These people are stockholders and they should be treated as valuable resources that run the company (Kouzes & Posner, 2012). Their feedback on market issues and performance should be given significant consideration when formulating the organizational policies. In this way, the business has the backup power to navigate through a crisis. However, an entrepreneur who ignores the value of the stockholders and their feedback is at the risk of failure (Williams & Arrigo, 2002). Additionally, the feedback principle of chaos applies that the business owner should value the responses from all players, including the vendors, business partners, and community leaders.


This is a principle that implies that chaos creates a continuous pattern. These patterns are created by repeating simple processes over again, which represents the dynamism of systems. When applied in a business situation, it means that the owners and management should repeat some practices over to get the desired outcome (Kouzes & Posner, 2012). For instance, most of businesses will conduct promotional advertisements every time they launch a new product. It is a way to ensure that the business will inform both the loyal and potential customers about the existence of a new product. Consequently, if the product meets the preferences of the consumers, then it is possible that there will be remarkable sales performances (Mobus & Kalton, 2015). Secondly, in many businesses there are reward systems that are meant to reward the employees based on their performances. It is usually conducted on annual basis as a way to motivate the employees to improve on their performance and increase productivity. Therefore, every year, the company will repeat the same process to reward the employees with the best performance record (Williams & Arrigo, 2002).


In this principle, there is the idea that two similar processes in a system may end in very different positions. For example, a group of balloons launched together will not land in the same position (Mobus & Kalton, 2015). Similarly, mixing occurs in aspects of business organizations. For instance, a company may launch a product but use different marketing strategies to target different groups. In other words, the producer should develop a product with features that will ensure that different users can benefit from a single product (Williams & Arrigo, 2002). With the principle of mixing, the business owners are required to extensive research to find out what the customers want and identify their shopping habits. In this way, it becomes manageable to produce an item at a price that represents value to the target groups (Kouzes & Posner, 2012). On the other hand, if the owner goes wrong on one aspect of mixing, the outcome can be disastrous. Illustratively, producing an item without analyzing the market forces of supply and demand can lead to cases of over stocking or under stocking in the warehouse (Kouzes & Posner, 2012).


In conclusion, although the word chaos is literally used to refer to confusion and disorderliness, there are other meanings in the scientific and real life situations. Although it may affect people’s ability to make future predictions, it affects the sequence of the outcome. Remarkably, a slight change in the initial conditions leads to outcomes that are completely different from what could be predicted. On the other hand, understanding the principles of chaos is important in application to businesses. For instance, it is crucial to understand how to integrate the feedback from all the key holders to boost the productivity of the business. Similarly, it is beneficial to understand the application of butterfly effect in business environment. These are small actions that can cause adverse effects on the business if not handled carefully.

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