What is open systems theory?

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BUS599 MOD01 Retake Discussion Open Systems Theory


The topics are broad, and we are looking for you to take the discussion in directions that are useful and meaningful.
For this initial module we will discuss open systems theory.
WEEK 1: 
Answer the below questions thoroughly:
1. What is open systems theory? 
2. How can open systems theory be used to understand an organization? 
Please include valid URLs that go directly to the body of work being referenced. 
Please use clear and proper grammar and sentence structure.


The Integrative Case Project (which you learn more about in the Case) focuses mainly on using Organizational Diagnosis (OD) models to analyze Whole Foods Market. For purposes of the Case studies, you will assume the role of a consultant for the Excellent Consulting Group. You will need to study Whole Foods Market and prepare reports for your boss, Art Epance, who is the Senior Project Manager at the Excellent Consulting Group. Essentially, the ABC Company has determined that it will require an outside review of Whole Foods Market to assist the company in determining how to proceed relative to integrating Whole Foods Market into ABC Company.

Each Case will be a separate analysis task in which you will prepare a report. The details of these assignments are explained in the Case assignments in each module.

The four cases in this course include the following:

  • Case 1 - Strategic Review of Whole Foods Market.
  • Case 2 - An analysis of Organizational Diagnostic models and identifying a model to use for diagnosing Whole Foods Market.
  • Case 3 - Diagnosing the Inputs and fit with the strategy of Whole Foods Market, as well as the Outputs and Performance of Whole Foods Market.
  • Case 4- Analyzing critical feedback loops and the opportunities for organizational learning at Whole Foods Market.

The SLP for this course involves participating in a simulation exercise. Unlike cases, which are static, simulations are interactive and you can see the results of your decisions. Additionally, you can repeat the simulation to improve the quality of your decisions.


The 4-module SLP sequence for BUS599 requires that you run a simulation over an 18-year period, and that you analyze the outcome of the decisions you make at each decision point.

In this course, we will be using the MIT Solar Power Pricing Simulation.

The Industry Evolution Management Flight Simulator portrays the growth and competition of firms as an industry evolves. Playing the role of chief executive for one of the firms in the industry, you make key decisions involving pricing, investment and marketing in order to succeed in the marketplace.

This version of the simulator has been customized to portray the solar power industry, specifically SunPower and other manufacturers of photovoltaic panels (PVs). While historically the cost of electricity from PV panels has limited them to niche applications, there is massive potential for growth in the market if solar power could become a viable alternative to traditional sources of electricity.

In the simulator, your job is to maximize SunPower`s cumulative profit over a period of eighteen years. To do this, you make pricing and investment decisions each simulated time period.

As a young company with a new innovation, you will start the game with a technology that you hope stays proprietary. In theory you can reap the benefits of technological advancements from the rest of the industry while spreading your advancements to them.

In addition, you (or your administrator) have the option of setting several other competitive and market scenarios, including the sources and rates of learning, the strength of knowledge spillovers, entry of new competitors, and external incentives that help to drive consumers towards using solar power.

You will receive periodic reports including your income statement and industry data. You need to select your strategies based on those reports, your understanding of the underlying industry structure, and your best judgment about how your competitor and customers may respond.

Though the model has been carefully calibrated and tested, it is not designed to predict the future or exactly match the history and special circumstances of SunPower. Rather, it is used to illustrate competitive dynamics important not only in the photovoltaic panel industry but in other contexts you may face. Instead of merely "beating the game," focus on understanding the underlying industry structure so you can develop robust, successful strategies.


Open Systems Theory





What is open systems theory?

Open systems theory is a concept in management that emphasizes on the notion that there is a keen correlation between the workings or operations of an organization, and its environment (Mele, Pels & Polese,2010). Just as its name suggests, the th


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