Unit 5 Paper

Unit 4 – Project

Mapping a Business System (Causal Loop Diagram)

Mark Blank

GB500: Business Perspectives

Jill Friestad-Tate

September 21, 2011

A few years ago I use to live in Lincoln, NE and I worked as a car salesman at a very successful car dealership. I found the car sales business to be fascinating and ever since I started working there I have always wanted to open up my own car dealership one day. I already know the ins and outs of the car sales business, so I think it is a perfect industry for me to apply the causal loop diagram to. When creating the causal loop diagram I will also include a reinforcing and balancing process within it.

I have decided to create a causal loop diagram for the car sales industry and the purpose of my system will be to determine the market price for a car. The way I will figure this out is to construct my diagram with two loops that will bind together the market price of an automobile. My reinforcing process consists of the production of cars, the dealerships inventory of cars, and the market price for an automobile. The balancing process that I came up with has market price of a car and the retail car sales. Below is the causal loop diagram I created.

O

S Dealerships Inventory of Cars

R O B

Market Price

Retail Car Sales Production of Cars S O

Above I have...