Plot The Troubling Trends For OTG

Shaik Salman Assignment 1: Business Dynamics
MBA/0058/58
1. Plot the troubling trends for OTG? Which one problem among these would you choose to
focus on, if you think correcting this one would rectify others. Offer a justification based on
your understanding of counter-intuitive behaviour of social systems.
Ans: The troubling trends for OTG are:

 Botched filling of orders by the employees
 Sloppy restocking of inventory by employees
 Equipment and Facility maintenance problems
 Employee absenteeism
From the given data Employee absenteeism appears to be the main issue and its resolution
would help solve other issues as well. As there aren't enough workers, managers are
overworked and distracted which is leading to equipment and maintenance issues not being
fixed right away.
2. Why is the problem systemic?
Ans: This problem can be termed systematic as all the stores are experiencing are facing the
same issue of customer and revenue growth despite, they having different actors (employees
and managers). This is enough to say the problem is systemic.
3. What are the parts (Purpose, Element, State, Flow, Feedback Loop) in this system?
Ans:
Purpose: Find out the issues in customer and revenue growth.
Element: Food, Price of product, Purchases, Sales Number, customer satisfaction, Brand value,
Quality of product, employee satisfaction.
Stock: Revenue, Number of stores/outlets, Number of customers, Number of employees, Profit,
Expenses, Funds available.
Flow: Increase in employees, Revenue, Price of the product, salary of employee, Increase in
locations/stores.
Feedback Loop:
Increase in Sales  Increase in Revenue
Increase in Revenue  Increase in Funds
Increase in Funds  Increase in number of locations
Increase in number of locations  Increase in customer base
Increase in customer base  Increase in Sales
MBA/0058/58
Balancing Loop:
Increase in customer base increases Sales volume, increase in sales Increases revenue, increase
in revenue increase fund available, increase in fund increases number of new locations, number
of new locations increases number of new employees. If new employees increase it decreases %
of employees familiar with original policies, which increases messiness and other problem which
decreases store performance which reduces customer base.
Reinforcing loop:
Increase in customer base increases Sales volume, increase in sales Increases revenue,
increase in revenue increase fund available, increase in fund increases number of new
locations, number of new locations increases number of new employees. If new employees
Increases it decreases % of employees familiar with original policies, which increases load on
management which decreases store performance, which decreases customer base.
MBA/0058/58
4. Use the Figure above showing the Big Picture. Assign polarity for different causal-links. Copy
paste your modified causal loop diagram in the space below (scan if hand-drawn).
Ans:
Enumerate all feedback loops in the “big picture”. Give appropriate name and indicate the
polarity for each loop (R1, B1 etc.).
MBA/0058/58
5. Articulate operational details of OTG, described above, with the help of the loops. Add other
loops in case you identify any missing part.
Ans: Increased or decreased client base results in increased or decreased sales volume,
which results in increased or decreased income, which results in increased or decreased
finances available, which results in increased or decreased revenue increase, decline, or
constant number of outlets/stores
An increase in locations is followed by an increase in new hires. Increase in the number of

new employees causes a decline in the percentage of workers who are familiar with the
original policies, which causes chaos and other issues and/or increases the workload for
upper management, which causes a decline in store performance, which in turn causes a
decline in the number of customers.
6. Compare the original purpose (Q#3) and the expanded depiction of the story’s actual
outcome. Do you see the issues at Organic to Go differently than you did at first?
Ans: The goal of the company has not changed even though the company has expanded
rapidly which led to new improper trained staff, which in turn negatively impacted store
performance reduced consumer base, and decreased revenue.
7. What suggestions can you offer to OTG managers to reverse the disturbing trends? Justify
your suggestions using a modified causal loop diagram. Paste your diagram in the space
given below (scan and paste in case you have hand-drawn)
Ans: From Causal loop diagram we can conclude that fewer % of employees who are aware of
company policy and work culture is eventually causing all the problems. If the OTG managers
train the employees properly and teach them all the functions going on in original store all the
problems can be resolved.
MBA/0058/58

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Shaik Salman Assignment 1: Business Dynamics

Ans: The troubling trends for OTG are:

2. Why is the problem systemic?

An increase in locations is followed by an increase in new hires. Increase in the number of

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