Modelling all possible life cycles of a company in a highly competitive economic environment gives a significant advantage to the owner in his business investment activities. This article proposes and analyses a dynamic model of a company's life cycle with known action costs and transition probabilities, that can be affected by an outside influence. For this task, the Markov model was utilized. The proposed model is illustrated on a task of determining an advertising policy for a car dealership, that would increase the stock equity of a company. The result demonstrates the usefulness of a model for use in determining future actions of a company. We also review multiple models of the influence of outside factors on a company's total capitalization.

Original languageEnglish
Title of host publicationInternational Conference on Numerical Analysis and Applied Mathematics, ICNAAM 2019
EditorsTheodore E. Simos, Charalambos Tsitouras
PublisherAmerican Institute of Physics
ISBN (Electronic)9780735440258
Publication statusPublished - 24 Nov 2020
EventInternational Conference on Numerical Analysis and Applied Mathematics 2019, ICNAAM 2019 - Rhodes
Duration: 23 Sep 201928 Sep 2019

Publication series

NameAIP Conference Proceedings
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616


ConferenceInternational Conference on Numerical Analysis and Applied Mathematics 2019, ICNAAM 2019

Scopus subject areas

  • Physics and Astronomy(all)

Fingerprint Dive into the research topics of 'Company life cycle model: The influence of interior and exterior factors'. Together they form a unique fingerprint.

Cite this