Loop Diagrams Article Example | Topics and Well Written Essays - 750 words

Loop Diagrams - Article Example This is to mean, if there is a decrease in the node where the link starts, the other node decreases as well. Similarly if there is an increase in the node where the link starts, the other node increases as well. A negative causal link shows the two nodes changing towards opposite directions (Richardson 1986). This is to mean, the increase of the node in which the link starts decreases the other node and the decrease of the node in which the link starts increases the other node. This diagram has two feedback loops. R represents the positive reinforcement loop. It indicates that the word of mouth is one of the factors that have been used to reinforce the price of the Nokia mobile phone. The more praises the Nokia mobile phone receives from its customers; the higher the demand of the product regardless of its price. The more people refer to the mobile phone and demonstrate its effectiveness, the positive feedback tend to generate growing sales of the mobile phone (Sterman 2000). The next feedback loop B, which is on the left is negative reinforcement. It can also be referred to as balancing. It is obvious that the Nokia mobile phone will not be praised forever. Once customers get used to the Nokia mobile phone, they will look for newer different products. At this point, the growth of the product is likely to decline. The manufacturers of this particular mobile phone brand will have to lower its price so as to continue selling the phone (Sterman 2000). Feedbac k loops act concurrently, but at some point they portray different strengths. Thus, the price of mobile phone is likely to remain high in the initial years and decline in the later years when people get used to it. The causal loop diagram above is a good example of a reinforcement loop; it is referred to as reinforcement loop because the feedback increases the effect of change (Sterman 2000). As more investment is imposed on the Nokia mobile phone, the manufacturer can regulate