The System Dynamics Diagram Below Illustrates The Interactions And Activities Of The Business

769 Words Aug 23rd, 2015 4 Pages
EXPLANATION: The chosen organisation is Southside Takeaway, a small takeaway shop with approximately 5 employees. The system dynamics diagram below illustrates the interactions and activities of the business. The goal of the business is to produce fast, quality takeaway food that satisfies customer’s demands. The business has a sole trader structure but has had to rely on outside family investors for cash flow. This outside family investor arrangement means that bigger purchases can be made through consultation; each contributor has taken this opportunity to invest in the family legacy rather than receive profits. The choices of investors are deeply affected by economic fluctuations. Investors will have extra or less cash flow depending on the state of the economy at any given time and therefore will make further investment choices based on such.

Stock management and purchasing are two closely linked internal factors in the business vital to providing quality products. Purchases are reliant on stock levels and must have management approval. Factors such as quality control, availability of produce, seasonal customer preferences, supplier availability and supplier relationships all play a role in the ability for the business to create value through these internal functions. Some of these external factors can be partially controlled; for example availability of produce and quality control can be managed by ensuring supplier relationships are strong. Stock management has a…
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