Answer to Question #230410 in Management for Chimey

Question

Using the quote '' Every business is better viewed as an open system'' . Using practical examples how can you evaluate this assertion in the light of generally defined environmental elements.

Answer 1

A business is an open system and is influenced by forces in and outside the business environment. The three elements in an open system are inputs, processes and outputs and, while they are interdependent functions of a company, they all need integration to make a company work. An open system is where a company operates, but because of its growing relationship with its environment, is becoming increasingly mixed and complex. An organization needs to manage the resources that flow into the company and to the environment for an effective open system.