Advantages and disadvantages of Dynamic Systems Analysis

1. Dynamic Systems Analysis (60 point)
   Write a short essay (6–8 pages) about the advantages and disadvantages of Dynamic
   Systems Analysis (Business Dynamics) compared to more traditional methods of doing
   Strategic Management. Discuss, among other things, the problems caused by (the
   structure and behavior of) complex systems, time horizons, and the modeling process.
2. Etsy (40 points)
   Read the article “Inside the Revolution at Etsy” by David Gelles, published in the “New
   York Times” on November 26th, 2017. (Available online from:
   https://www.nytimes.com/2017/11/25/business/etsy-josh-silverman.html.)
   Describe Etsy and its current situation. Afterwards, analyze Etsy’s problems and possible
   solutions. For this, also use System Dynamics tools that you know, e. g.:
   • Draw the relevant feedback loops.
   • Explain those feedback loops and their relevance for decision-making in detail (2
   pages).