Question $3$: Causal links and feedback loops $(40$ points$-10$ points each question$)$

Identifying the Feedback Structure of Growth and its Limits$-$ Starbucks Company

Starbucks coffee has grown dramatically over the past two decades. However, according to market analysts, its market growth has come to a saturation point. To open up an opportunity to capture a larger share of the market, Starbucks has introduced the Starbucks reserve concept, to capture the high$-$end market.

C$1.$ Identify the positive feedback loops responsible for the exponential growth of Starbucks in general in the past two decades $($see figure above$).$ Develop a causal loop diagram capturing the positive feedback that you identify. Provide a very short explanation of the meaning or operation of each loop.

C$2.$ No real quantity can grow forever. Identify some negative feedback that might eventually stop and slow down the growth. Add them to your causal diagram. Limit yourself to $3$ negative feedback loops. Provide a concise explanation of the meaning or operation of each loop.

C$3.$ Now, given the base conceptual model you built, what could happen to the growth of Starbucks, given the Starbucks reserve concept? Specifically, what patterns of development are likely $($optimistic and pessimistic scenarios$)?$ Draw a graph showing possible trajectories for the number of stores or market share. Select an appropriate time horizon, and explain your choice briefly.

C$4.$ Starbucks is planning to phase out its disposable cups by $2025$:

https:$//$www$.$cun.com$/2022/03/15/$business$-$food$/$starbucks$-$cupsustainability$/$index$.$html

The plan is to use reusable cups, bring your mug, or pay a deposit on store mugs to be more environmentally friendly. From a system dynamics point af view, how does this company's policy affect long$-$term sales and growth? $10$:${33}^{\text{'}}pm$