top of page

Causal Loop Diagram for DOMESTIC Sales

  1. Sales: The more domestic sales of TAU's service you make, the greater your revenue.

  2. Reputation: Higher domestic sales also help in improving TAU's reputation, which in turn can increase the demand for TAU's service.

  3. Demand: The more the demand, the higher the domestic sales. However, if demand gets too high and exceeds TAU's capacity to deliver, it may negatively affect TAU's reputation (due to inability to meet demand or decreased service quality).

  4. Capacity: This represents TAU's ability to deliver their service. If demand exceeds capacity, this might lead to an investment in capacity expansion.

  5. Capacity Expansion: This can help meet higher demand, leading to higher domestic sales. However, it also requires investment which can reduce short-term profits.

In this case, we have two feedback loops. One is a positive or reinforcing loop including Sales, Reputation, and Demand. The other is a balancing or negative feedback loop which includes Demand, Capacity, Capacity Expansion, and back to Demand.

Stock and Flow Model for Internet Sales

  1. Stock: The stock in this case could be "Internet Sales Volume", which accumulates the total amount of TAU's services sold over the internet.

  2. Inflow: This could be "New Internet Sales", which increases the stock of "Internet Sales Volume".

  3. Outflow: This could be "Services Completed/Expired", which reduces the stock of "Internet Sales Volume".

  4. Variables: Other variables could be "Website Traffic", "Online Conversion Rate", "Service Completion Rate", and "Service Expiry Rate".

"Website Traffic" and "Online Conversion Rate" are factors that could increase the "New Internet Sales", while "Service Completion Rate" and "Service Expiry Rate" increase the "Services Completed/Expired".

Stock and Flow Model for Internet Sales.png
bottom of page