MGT611 System Thinking For Lack of Diversified Portfolio

Answer:

Introduction

Globalization has provided the organizations with an opportunity of expanding in diverse markets. The proper functioning of the processes is dependent on the approaches that are undertaken by the management while assessing the external environment that is faced by the same. As per the case, Wesfarmers are facing different issues that have restricted the growth of the organization in certain markets. The purpose of the research is to identify the different issues that are faced by the organization, Wesfarmers. The research will also exemplify the manner in which application of Systems approach in the organizational structure will be helping the same in resolving the issues of the firm.

Issues faced by Wesfarmers

Growth of the retail markets over the years has resulted to rising competition in the same. The issues that are faced by the organization, Wesfarmers, is being exemplified in this section of the analysis.

Lack of diversified portfolio

The lack of diversified portfolio of products and services has affected the competitive edge of the business as per the objectives of the same. Lack of diversified portfolio of products has affected the capability of the organization to sustain in the markets. The new entrants in the retail market offer wide array of products, which has helped them in maintaining their sustenance and perpetual growth. The lack of diversified portfolio of products and services has minimized the number of target customers and thereby affected the market share held by the same. On the other hand, the lack of suitable involvement of the key stakeholders in the change processes has also affected the innovation capability of the business.  Kwamie,   van Dijk  and Agyepong (2014) stated that the diversity in the product offerings assists organizations in coping up with the diverse needs of the customers. Therefore, the lack of a wide range of product and service has restricted the growth of the business in the diverse markets.

Inability to undertake advanced technology

Lack of suitable implementation of advanced technology like the automated billing systems and automated delivery systems has affected the organizational performance in the highly competitive markets. The technological developments that are undertaken by the competitors have levied threats to the concerned organization’s performance. Moreover, the different technological advancements undertaken by the competitors have affected Wesfarmers’ potential to cope up with the different changes in the systems. Reynolds (2014) stated that the lack of technological growth in the organizational context affects the competitive advantage of the same while operating in the diverse international markets. Moreover, lack of systematic approach in the business processes has affected the implementation of the advanced technologies in the business context.    

Implementation of the Systems approach tools to mitigate the issues

The systems thinking approach focuses on the identification of the different constituent parts of the systems and the manner in which they can be integrated in order to identify the issues that are affecting the different processes that are undertaken by the business. System thinking is a holistic approach that operates in a traditional manner by breaking down the systems in separate elements. Loosemore  & Cheung (2015) stated that the application of the systems thinking approach assists businesses in undertaking frequent research on the different aspects that affected  the smooth operation of the firm. 

As per the case of Wesfarmers, the issues that are faced by the systems are related to the lack of coordination between the relevant stakeholders. Implementation of the CATWOE will be helping the organization in understanding the customer demands, the chief stakeholders, the transformation process, world environment, and the owners (Reynolds,  2014). Active involvement of the stakeholders in the business processes would have helped the concerned organization in undertaking the smooth functioning of the same as per the objectives of sustainability. However, the lack of active involvement of the stakeholders in the processes has affected the innovative capabilities of the firm. The future perspectives of the organizational innovation are dependent on the suitable planning (Kwamie,   van Dijk  & Agyepong,  2014). The implementation of the systems thinking approach in the organizational model will be helping the business in planning the activities as per the needs of the same. Moreover, identification of different measures that are required to be undertaken by the organization for facilitating the technological innovation will be helping the business in maintaining its competitive advantage over the other players.  It will be helping the organization in identifying the relevant inputs that might be utilized by the business in order to facilitate the change in the processes. The implementation of the change processes on the organizational framework will be helping the business in restructuring the systems and thereby mitigate the issues proficiently.  

Conclusion

Therefore, the implementation of the systems thinking approach will be helping Wesfarmers in identifying the issues and thereby mitigate the same through thorough research of the systems that are undertaken by the business. The identification of the micro constituents in the systems that affect the proper functioning of the business operations will be helping the firms in maintaining their efficacy as per the objectives.

Critique on the post

The post that was created at the first part is holistic in nature, which is noted through the interconnectedness of the different factors relating to customer expectations, the capabilities of the firm and the external ever- changing environment. The post exemplified different factors that might be considered by the concerned organization in order to identify the issues in the systems that are faced by the organization and thereby resolve the same. The interconnectedness of the different factors that are identified in the posts creates a situation of explicable union, which clearly states of the holistic approach of the systems thinking process (Sheffield,  Sankaran  & Haslett,  2012). However, the post lacks in explaining the different external environmental factors that affects the functioning of the business systems. On the other hand, the post also lacks in owner’s behavior towards the firm’s functioning, which has affected the understanding of the corporate culture that is adhered by the business.   Corporate culture followed by the businesses affects the systems and the involvement of the stakeholders likely (Pisano,  2012). Therefore, the lack of proper understanding of the corporate culture followed in the organization has resulted to an incomplete understanding of the issues in the post. The post also lacks in identifying the degree to which the organization lacks in the stakeholder engagement, which has again affected the study of the organizational systems through incomplete research.

  The actions that might be undertaken by the concerned organization resulted to different consequences. The consequences have been rightly identified in the post which refers to the proper understanding of the needs of the organization to bring forth changes in the different systems. The proper identification of the consequences will be helping the organization in maintaining the degree to which changes are to be implemented by the firm. The utilization of the Systems Thinking tool, CATWOE, in this context has helped the organization in forging the desired changes in order to optimize the operations. The utilization of CATWOE in this context has helped the organization in identifying the different factors that are affecting the systems. Moreover, the utilization of the Systems Thinking tool has helped the organization in identifying the problem that is faced by the business and thereby assisted the same in undertaking the smooth functioning of the business systems.  

References

Domegan, C., McHugh, P., Devaney, M., Duane, S., Hogan, M., Broome, B. J., ... & Piwowarczyk, J. (2016). Systems-thinking social marketing: conceptual extensions and empirical investigations. Journal of Marketing Management, 32(11-12), 1123-1144.

Kwamie, A., van Dijk, H., & Agyepong, I. A. (2014). Advancing the application of systems thinking in health: realist evaluation of the Leadership Development Programme for district manager decision-making in Ghana. Health research policy and systems, 12(1), 29.

Loosemore, M., & Cheung, E. (2015). Implementing systems thinking to manage risk in public private partnership projects. International Journal of Project Management, 33(6), 1325-1334.

Pisano, U. (2012). Resilience and Sustainable Development: Theory of resilience, systems thinking. European Sustainable Development Network (ESDN), 26, 50.

Reynolds, M. (2014). Equity-focused developmental evaluation using critical systems thinking. Evaluation, 20(1), 75-95.

Sheffield, J., Sankaran, S., & Haslett, T. (2012). Systems thinking: Taming complexity in project management. On the Horizon, 20(2), 126-136.