Daniel Nkansah System Thinking TASK1

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Western Governors University *

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D268

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Management

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Feb 20, 2024

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docx

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3

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1 Nkansah Daniel Nkansah Professor Jessica Scott Introduction to System Thinking October 24, 2023 We experience events on a daily basis, according to Kim (4). The main event in this case study is the rise in demand for Wilde's Bramble organic food items, which compelled the Wilde’s to lease more farms, buy more machinery, and incur debt in order to cover expenditures. Calla soon encountered financial difficulties because of the rise in output and reliance on credit card debt, necessitating her search for employment away from the farm to aid with cash flow. The memories of "events" are patterns (Kim 4). The urge to grow and extend the firm to fulfill rising demand is the underlying structure that drives these occurrences and patterns. This pressure may prompt the use of temporary solutions like leaning on credit card debt and getting a mortgage, might make long-term financial problems worse. In addition to the deeper underlying structure (push to develop and expand) that underlies the surface-level occurrences and patterns (increasing demand, leasing additional acreage, taking on debt), the iceberg tool also shows these patterns and events. Finding alternate solutions that consider both immediate requirements and long-term sustainability may be achieved by comprehending the underlying structure. 2. The Behavior Over Time graph below is the one that most accurately depicts the trends you found, and it is accurate since the Wilde’s profit declined as their debt increased along with their sales. The use of a credit card increased for Alder and Calla. As credit card payments increased and charges were accrued. They took out a mortgage on the property and Calla got a job away from the farm to help with cash flow as the debt grew and the finance costs mounted. 3. The Iceberg Tool and Behavior Over Time graph shed light on Wilde's Bramble's issues as well as the links between significant occurrences, trends, and the system's underlying structure. The graph of behavior over time demonstrates that as sales soared, debt increased, and earnings
2 Nkansah dropped. This pattern implies that the business struggled to successfully handle the rise in product demand. This ultimately caused financial issues, which the business attempted to fix by depending on credit card debt and taking out a mortgage on the property. However, these acts merely increased the debt, adding to the wider financial crisis. The Iceberg Tool aids in showing the system's underlying structure and demonstrates how the company's actions were intertwined and contributed to the issue. For instance, the Wilde’s choice to boost output in order to fulfill demand necessitated more acreage, machinery, and electricity, all of which required money. This, together with the reliance on credit card debt, led to a vicious cycle where debt accumulated, resulting in increased financial stress and decreased profit. Additionally, Calla's choice to take a job away from the farm had repercussions since it left her with less time and money to run the property, which created new difficulties. Additionally, the Iceberg Tool suggests that the Wilde’s might have lack the expertise and abilities required to operate the company successfully, which may have contributed to the financial issues they had. Overall, the Iceberg Tool and Behavior Over Time graph show the intricacy of the issues that Wilde's Bramble had to deal with as well as the links between significant occurrences, patterns, and the system's fundamental structure. The business may need to take a more comprehensive approach to solving these problems, considering all the elements that contribute to the issue, such as management, funding, and production.
3 Nkansah References Kim, D. (1999). Introduction to systems thinking . Pegasus Communications, Inc. https://thesystemsthinker.com/introduction-to-systems-thinking/
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