The course Business Scenario for consulting represents the ideas of System Thinking through System Dynamics, which is based on modelling approach. Basically, mental models are shaped and influenced by systems-thinking interventions, with the related questions of what aspects of the systems-thinking intervention seem to make the most difference (Richardson et al., 1994a; Maxwell 1995; Huz et al., 1997; Maxwell et al., 1994). Jay Forrester, a Nebraska University graduate of electrical engineering, invented system dynamics in the 1950s (Forrester 2007). Electrical engineering was the only academic field with a thorough focus on theoretical dynamics, that knowledge along with experience in “feedback control systems” allowed Forrester to solve a problem General Electric were having, which ultimately led to the invention of System Dynamics (Forrester 2007).
This course was carried out in three session’s altogether. The team-learning-log is based on the general understanding of business and real life scenarios, which were explained and modelled during the course. This log shows the reflection of ideas and model building concepts, which were understood by group members throughout the course.
In first session, main ideas of what are business scenarios and why modelling of scenarios are important for business were discussed. Through our understanding we came across that scenario building helps us in selecting best strategic option among all available options. Furthermore, building scenarios also helps in identifying limits to growth and success. As a business consultant, one could point out and make organization aware about limits, so that they can make necessary changes in order to make appropriate decisions. Moreover, the corporate culture of a specific organization which shows rigidity or flexibility of organization is very important to understand, as this represents that whether organization is capable of adopting changes or not.
System thinking can be use appropriately to solve these organizational problems, or any other real life problem. System thinking leads us to make dynamic analysis, which will help us in building future strategies and identifying bottlenecks. Moreover, we also got the idea that strategy flexibility can be a major problem in today’s dynamic environment, mainly for large organizations which are steady and robust as compared to small organizations, for these large rigid organizations term RAPLEX (Rapid and Complex) can be used. In addition, it was noted that businesses learn strategies from economy, and business scenarios increases our ability to deal with complex economical issues by increasing our understanding towards these complex problem through model building approach.
Another issue was raised during discussion that flexibility is not enough and main challenge to strategic management is to find a balance between flexibility and stability. As high stability leads towards less manoeuvrability and low stability leads towards high manoeuvrability. In this case the example of Nokia and Kodak was given which explains that these two firms were so stable which reduced their flexibility to adopt changes easily. This example further made this point clear that there are limits to growth and success, and stable organizations are more rigid to accept changes. Moreover, firms should not only depend on financial performance but should find a balance between all its activities, moreover, the concept of virtuous cycle was introduced which explained that system cannot continue its growth forever.
In this example it was explained that, if there will be more chickens then there will be more eggs and more eggs leads to more chickens and there should be a self-balancing loop as continuous growth lead to collapse. This model was modified by adding another variable of Road crossing which shows that if there will be more chickens, there will be increase in number of