Abstract: This paper examines the problem of strategic
management in highly turbulent dynamic business environmental
conditions. As shown the high complexity of the problem can be
managed with the use of System Dynamics Models and Computer
Simulation in obtaining insights, and thorough understanding of the
interdependencies between the organizational structure and the
business environmental elements, so that effective product –market
strategies can be designed. Simulation reveals the underlying forces
that hold together the structure of an organizational system in relation
to its environment. Such knowledge will contribute to the avoidance
of fundamental planning errors and enable appropriate proactive well
focused action.