First, let's take a look at the positive effects of a Graduation System. The Graduation System can provide strong popularity that will last for a long time, because the group's name won't be changed even though their members will constantly change. Another is that people will always be familiar with the group and most likely be entertained other than new or rookie groups.
Now let's take a look at the negative effects that can make the group and the entertainment struggle at some point of time.
First, some people would prefer to stay with the original members of the group. We can say this as the 'first batch'. Second, admission of new members may be beneficial for the group to sustain popularity and have people check out for the new member.
Next, admission of new members may be beneficial for the group to sustain popularity and have people check out for the new member. However, this can create a period of adjustment for the other members as well as the new member.
The graduation part, wherein an old member will indefinitely leave the group can create a strong impact not only to the members but also to the fans. Let's take for example After School's Bekah. She will be the first to officially graduate from the group. Bekah is known as one of the strong rapper of the group and an original member of the first generation of After School. We know people have their own 'bias' in the group, imagine fans who are only focused on their bias, if that member leaves, the fans who are focused on that member will most likely follow the member.
The Graduation System is a complex system to be applied by a company. It can create good effects for the group's reputation and name and will establish certain place in the hearts of everyone. It can also create certain conflicts among the members of the group and to the fans as well. It is all like a weighing scale and the outcome of a group's Graduation System will always rest on the hands of the people and the group's members.

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