Question: Reply to Hailey licht's reply to the DQ 2 , A causal loop is a circular diagram where basically each individual variable affects the next.

Reply to Hailey licht's reply to the DQ2, "A causal loop is a circular diagram where basically each individual variable affects the next. This can be used in businesses through knowing how each variable is interconnected. For example, if a business is trying to save money and cut back on expenses the loop will start with a meeting talking about ways they can cut expenses. The next step in this loop would be putting this plan into action where workers are following the budget, allocating expenses correctly, and overtime the business will see an increase in savings. Each one of these variables affects the next! According to the system's thinkers, Causal loop diagrams can be thought of as sentences that are constructed by identifying the key variables in a system and indicating the causal relationships between them via links (Lannon, n.d.). It is crucial to distinguish between a causal loop and a sequential logic because a causal loop is much more complex and pertains to interconnected variables while a sequential loop is a linear cause and effect."

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!