Student name: Farah Ahmed
Student ID: 3262523
Course name: Organizational Behaviour
Course number: ORGB 364
Assignment 1
Part A
1. Marketing specialists at Napanee Beer Co. developed a new advertising campaign for summer sales. The ads were particularly aimed at sports events where Napanee Beer sold kegs of beer on tap. The marketing group worked for months with a top advertising firm on the campaign. Their effort was successful in terms of significantly higher demand for Napanee Beer's keg beer at sports stadiums. However, the production department had not been notified of the marketing campaign and was not prepared for the increased demand.
The company was forced to buy empty kegs at a premium price. It also had to brew some of the lower priced keg beer in vats that would have been used for higher priced specialty beer. The result was that Napanee Beer sold more of the lower priced keg beer and less of the higher priced products that summer. Moreover, the company could not initially fill consumer demand for the keg beer, resulting in customer dissatisfaction.
Begin with a comprehensive description of open systems theory as it applies to both external and internal environments. Then apply the open systems theory to explain what occurred at Napanee Beer Co.
The open systems theory states that organizations are a living part of external environment, which affect and also get affected by external environment. They depend on external environments for resources, such as raw materials, information, job applicants, financial resources and equipment. These resources become input for organizations. Some of which are transformed into outputs such as products, services, profits/losses, waste/pollution; after going through different internal subsystem processes. Others form part of their internal subsystems like production, accounting, human resource and marketing departments.