Business Dynamics and Problem Solving
15 Pages4294 Words147 Views
Added on 2020-06-05
Business Dynamics and Problem Solving
Added on 2020-06-05
ShareRelated Documents
BUSINESS DYNAMICS ANDPROBLEM SOLVING
Table of ContentsINTRODUCTION...........................................................................................................................1ECA PART 1...................................................................................................................................11 (a). Advantage and disadvantage of business dynamics..........................................................11 (b). Development and use of Excel models to simulate business dynamics............................12 (a). Role of supply chain and inventory management..............................................................22 (b). Use of economic order quantity model and production quantity model...........................3ECA PART 2...................................................................................................................................3Cause and relationship between linked variables........................................................................3Polarity of causal link..................................................................................................................4Calculations for each variable.....................................................................................................6Production ratio VI parameter.....................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONIn the modern era companies are facing huge competition. In such environment it hasbecome essential for organizations that to identify their business problems and take support ofnumber of approaches in order to solve these issues (Cavana and et.al, 2014). Present report isbased on case study of glass, there are more than 80 firms those which are engaging inmanufacturing of automotive glasses. Initially glass wind-shield was popular but later on it wasreplaced with laminated glass. Glass manufacturing process includes malten glass, tin, floatchamber, annealing lehr and rollers. Many stakeholders are associated in the glass and windshield process, these are employees, managers, technical staff, customers, suppliers etc.Integration of all these stakeholders make the process effective. Current study will discussadvantage and disadvantage of business dynamics. Furthermore, it will describe use of economicorder quantity model and production quantity model. Study will evaluate cause and relationshipbetween variables involved in case study of glass. ECA PART 11 (a). Advantage and disadvantage of business dynamicsCausal loop diagram (CLD) can be defined as causal diagram which helps in analysinginterrelationship between different variables. There are presence of nodes and edges. Variablesare represented by nodes and edges determines link between various variables. Solid arrowshows direct relationship whereas dashed arrow indicates inverse relationship (Using causalloop diagram to achieve a better understanding of e-business models, 2009.). It is the methodwhich shows relationship or link among information, action and consequences. AdvantageIt is very useful method if an individual develop and create it with extra care. It can showthe positive and negative relationship between two variables which supports in identifying thebusiness issues. The CLD method provide insight detail of the business and individual cancapture structure of business easily (Are causal loop diagrams useful?, 2017). The mainadvantage of this method is quick capturing of hypotheses an effectively communicates theessential feedback regarding responsible problems.DisadvantageCLD method also has some limitation, though it helps in quick capturing of the businessproblems but there is required to give extra care so that casual loop diagram can be developed1
properly (Sarriot and et.al, 2015). It may create complex situation if manager tries to simulatedynamics of complex CLD. Causal loop diagram does not show the behaviour of variousvariables and does not disclose the situation. 1 (b). Development and use of Excel models to simulate business dynamicsExcel model is considered as effective business dynamic model which emphasised moreon numerical inputs and outputs. This helps in developing logical relationship between variables.Feedback loop model can be defined as system structure that makes positive changes in thesystem so that problems can be resolved (Naim and et.al, 2017). Excel modelling can be considered as useful tool for accounting of tasks and creatingsimple projection. Manager of the company can add row and columns for each workingactivities. With the assistance of this model individual can directly specify duration ofsimulation. For example cost of the company is increasing which is the business problem. It isbecause number of produced units are low. In order to resolve this problems company can useexcel model on the bases of feedback loop model. Entity can buy raw material in bulk in order toget discount (Nguyen, Nguyen and Bosch, 2016). This will help in reducing cost of per unit andearning more profit. Buying raw material cost200total produced units10Unit cost20Improvement through feedback loop modelBulk buying to get 10% discount1000100total produced 102
End of preview
Want to access all the pages? Upload your documents or become a member.