Update with Complete Solution
Task 2
A1. By using the Iceberg Tool, we can summarize this Case Study analysis and identify
the following:
Events
• Company gains popularity – Alder and Calla Wilde start their company, Wilde’s
Bramble, and they grow and sell high-quality organic food products. Local shops and
restaurants show interest and start selling the company’s organic products.
• Increase in production – The increase in customer sales leads to the Wildes having to
buy more farmland, equipment, power, and a new barn to scale up their food
production.
• Financial issues – The owners acquired a credit card to keep up with costs. They took
out a mortgage on the farm, and Calla had to find another job to help with cash flow.
Key Patterns
• Product popularity affecting cost – As Wilde’s high-quality organic food products
gained popularity, demand soared, which caused production costs to increase.
• Expansion causing debt – Owners Alder and Calla expanded their business, resulting
in debt. They took out a mortgage on the farm, putting them in more debt.
• Using stopgaps, not addressing the main issue – The Wildes used temporary measures
to address the financial problems, such as using credit cards for increased production
costs. Calla had to find another job to supplement their decreased business cash flow.
The Underlying Structure
• Business approach – Wilde’s Bramble’s rapid expansion rate caused the owners to
scale up production to keep up with demand.
• Dependence on debt – Because of their business approach, the Wildes had to rely on
credit cards to cover increased production and expansion costs.