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Feb 20, 2024

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Task 1 Case Study 1 Iceberg Tool 1. Explain what happened in this case study. - Wilde’s Bramble started selling organic products to a small customer base, but due to popularity they quickly expanded the number of customers. To keep up with increased demand they grew their operation; causing them to go into debt. They are now in a vicious cycle. 2. Explain how people reacted/responded to what happened. - Alder and Calla Wilde responded to the increased pressure to produce by heavily investing in their business and going into debt to keep up with the increased costs. 3. Comparing the beginning of the case and the end, explain what changed and what continues the same. - In this case study the only thing I found that stayed the same was that the Wilde’s Bramble continued to produce high quality organic products. - In this case study, there were quite a few changes: the rapidly increasing sales and debt, as well as their profits which started low, peaked, and then went back down. 4. Given the case study, what would you anticipate will happen next? How could the involved parties plan or prepare for that? - I anticipate that due to the Wilde’s increasing debt, they will not be able to keep up with it and will eventually go bankrupt. I think that the main thing that would help them is to lower costs to produce and increase prices of their products so that they can start to pay off their debt. After doing so, they should reduce the number of customers, and therefore the pressure to produce. 5. Explain the patterns you see in this case study, why they exist, and how they affect the system. - The pattern I see throughout this case study is centered around Wilde’s Bramble’s pressure to produce. As their pressure to produce has gone up they have made purchases to be able to produce more products. As they make these production purchases their debt goes up which causes their profit to go down. When profit goes down, they feel an increased pressure to produce, which drives them to make more sales, and that in turn also increases the pressure to produce. There was also very low delay between these steps in the cycle, which caused even more debt to accrue. - This pattern exists because the Wildes invested too heavily in their business too quickly, and it has created a system that reinforces the process of creating more debt and increasing the pressure to produce.

6. Explain how you could design or create a solution to transform this system and address the problem? - I believe that the Wildes invested in their business too heavily and too quickly. They should have made a sustainable number of sales and saved their money. Then they could take the saved money and safely reinvest it in their business to increase production and gain more customers. It would have been a much slower growth, but it would have created a process that reinforced their profits and a growing business rather than growing debt.

Behavior Over Time Graph Discuss why the chosen Behavior Over Time graph best represents the patterns present in the chosen case study. - The second behavior over time graph for case study 1 is the most accurate because it shows that their sales rapidly increase, their debt increases, and their profits decrease. This is because Wilde’s Bramble makes more sales, so they spend money they don’t have to keep up with production and end up going into debt. Ultimately, they are making more money, but their debt nulls their profits. In conclusion, Alder and Calla Wilde invested too much money in Wilde’s Bramble before they were ready. As is shown throughout the Iceberg Tool and Behavior Over time graph their sales went up more than they could keep up with. So, the Wildes relied on a credit card which caused them to go into increasing debt that their profits could not keep up with. This created a pattern of borrowing money to keep up with their debts which caused their profits to decline further.

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