WGU D459|D372 WMM1 TASK 1: APPLIES SYSTEMS THINKING BASICS|NEW UPDATE WITH COMPLETE SOLUTION

WGU D459|D372 WMM1 TASK 1: APPLIES SYSTEMS
THINKING BASICS|NEW UPDATE WITH COMPLETE
SOLUTION




Examining the First Case Study G G G G




1. Analysis Highlights from the Iceberg Tool
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Key Events: G




1. The organic food for business, Wilde's Bramble, was founded by Alder and Calla Wilde.
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2. Local farmer's markets, businesses, and restaurants serve as customers.
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3. The escalation in demand requires an expansion in acreage, the gain for more equipment, and
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G the construction of a new barn.
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4. Credit card debt arises as a result of the heap of manufacturing expenses.
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5. A mortgage was acquired on agricultural property in order to effectively handle outstanding
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G financial debts. G




6. Calla provides employment outside of the agricultural setting in order to enhance the inflow of
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G financial resources. G




Patterns:
1. Growth-Based Demand: As the client base saw growth, there was an accompanying rise in the
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demand for production, leading to a heightened need for more personnel and equipment. The surge
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in demand has also led Bramble to make an investment in a new barn in order to support the higher
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levels of output. Furthermore, the accrual of credit card debt resulting from production expenses
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compelled the choice to get a mortgage for the agricultural property, guaranteeing more effective
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handling of the financial obligation.
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2. Financial Stress: The use of credit cards, loans, and mortgages as a means to maintain economic
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expansion resulted in a recurring pattern of indebtedness and financial strain. The recurring pattern
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of indebtedness and financial distress imposed a burden on Calla's capacity to efficiently oversee
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the agricultural operations. To mitigate the economic strain, Calla made the decision to investigate
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, new avenues of revenue generation by seeking supplementary employment opportunities outside
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her agricultural pursuits.
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3. Issues with Cash Flow: Calla's decision to seek more employment outside was driven by the
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need to acquire urgent funds to effectively cover production expenses.
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4. Fixes for the short term: The use of debt as a quick resolution to meet urgent liquidity concerns
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further aggravated the overarching financial predicament.
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5. Effects on the Long Term: The persistent dependence on borrowing and the insufficient
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capacity to create enough revenue for expenditure led to an escalating accumulation of interest
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obligations and an increasing incapacity to fulfill debt repayment obligations.
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6. The presence of restricted growth opportunities: Calla's capacity to invest in company
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expansion was impeded by the financial burden, so limiting its potential for development and
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profitability.
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Underlying Structure: G G




The present scenario is characterized by a positive feedback loop whereby the growth in consumer
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demand stimulates the development of production, resulting in escalated expenses and financial
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hardship (Mattioli, et al., 2020). The use of credit cards and loans provides a temporary solution to
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cash flow challenges but concurrently adds to the enduring financial strain. Moreover, the
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perpetuation of debt engenders external remedies such as seeking employment outside of
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agricultural activities. This choice exacerbates the financial burden by redirecting resources and
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focusing away from the agricultural enterprise, so compounding the difficulty in addressing the
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fundamental financial obstacles. In addition, the pursuit of external employment may result in a
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decline in productivity and efficiency within the agricultural setting, so impeding its capacity to
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create enough revenue and overcome the burden of indebtedness.
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2. Chosen Behavior Over Time Graph:
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