1. Figures and Tables excerpted from Business Dynamics: Systems Thinking and Modeling for a Complex World Chapter 8 John D. Sterman Massachusetts Institute of Technology Sloan School of Management
Figures and Tables excerpted from
BUSINESS DYNAMICS: SYSTEMS THINKING AND MODELING FOR A COMPLEX WORLD
John D. Sterman
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Business Dynamics

2. Figure 8-1 Growth and goal seeking: structure and behavior
Business Dynamics

3. Figure 8-2 First order, linear positive feedback system: structure and examples
Business Dynamics

4. Phase plot for the first-order, linear positive feedback system
Figure 8-3
Phase plot for the first-order, linear positive feedback system
Business Dynamics

5. Figure 8-4 Exponential growth: structure (phase plot) and behavior (time plot)
The fractional growth rate g = 0.7%/time unit. Initial state of the system = 1 unit. Points on plot show every doubling (10 time periods).
Business Dynamics

6. Figure 8-5 Exponential growth over different time horizons
The state of the system is given by the same growth rate of 0.7%/time period in all cases (doubling time = 100 time periods).
Business Dynamics

7. Figure 8-6 First-order linear negative feedback: structure and examples
Business Dynamics

8. Figure 8-7 Phase plot for exponential decay via linear negative feedback
Business Dynamics

9. Figure 8-8 Exponential decay: structure (phase plot) and behavior (time plot)
The fractional decay rate d = 5%/time unit. Initial state of the system = 100 units.
Business Dynamics

10. First-order linear negative feedback system with explicit goals
Figure 8-9
First-order linear negative feedback system with explicit goals
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11. Figure 8-10 Phase plot for first-order linear negative feedback system with explicit goal
Business Dynamics

12. Exponential approach to a goal
Figure The goal is 100 units. The upper curve begins with S(0) = 200; the lower curve begins with s(0) = 0. The adjustment time in both cases is 20 time units.
Business Dynamics

13. Figure 8-12 Relationship between time constant and the fraction of the gap remaining
Business Dynamics

14. Figure 8-13 Sketch the trajectory for the workforce and net hiring rate..
Business Dynamics

15. Figure Sketch the trajectory for the workforce and net hiring rate when the desired workforce increases linearly.
Business Dynamics

16. Figure 8-15
A linear first-order system can generate only growth, equilibrium, or decay.
Business Dynamics

17. Figure 8-16 Causal diagram for population growth in a fixed environment
Business Dynamics

18. Figure 8-17 What is the relationship between population density and the fractional growth rate?
Business Dynamics

19. Figure 8-18 Nonlinear relationship between population density and the fractional growth rate.
Business Dynamics

20. Figure 8-19 Phase plot for nonlinear population system
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21. Figure 8-20 Nonlinear population growth: time domain
Business Dynamics