Casual Loop

Topics: Management, Indirect effect, Customer service Pages: 4 (920 words) Published: April 7, 2013
Title: Systemic analysis of ‘Wraps on the Run’

Problem definition:

‘Wraps on the run’ earned success once it was first established. However, the business was expanding at a speed much faster than it supposed to be. With the number of new stores increases, the increasing numbers of new employees puts a lot of pressure on store management and lower the work efficiency. As a result, the decrease in customers serving quality turned many customers off and the business struggles.

Reference Model

At time T0, the first ‘Wraps on the Run’ store was established. After that, as time goes, the new concept of the store was accepted by the people and then more and more customers come to the store. The revenue of store increased faster and faster in the period of time.

At time T1, the business was starting to expand. At the first stage of the business expanding, the revenue was still booming. With the number of new stores increasing, problems occurred. Then the revenue increased in a slower speed and finally started to decrease. Thus, if the problems remained unsolved, the revenue would be decreasing faster and faster to zero or even negative.

Causal Map

As we can see in the map above, there are four loops. Three of them are balancing loops. The other one is reinforcing loop.

Loop 1: Direct impact on customer dissatisfaction during business expanding.


The loop1 is a balancing loop mainly shows us about the circumstance when lots of new employees flow into new stores. The loop demonstrates that the increase in revenue motivates business expanding and creates more stores. Establishing new stores will attract more applicants wanting jobs. Therefore, it’s not a hard thing for the new store to hire more new staff. As there are more new employees come to the store and they know little about the business, more employees in new stores need to learn the job....
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