MGT603 System Thinking: Analysis of XYZ Organization's Issues

This report delves into the application of system thinking principles to address operational challenges faced by XYZ organization, a retail business dealing with grocery products. The analysis begins by identifying problems related to inventory management and supply chain disruptions, including shortages and inefficiencies. The report utilizes the CATWOE framework (Customers, Actors, Transformation, Worldview, Owner, Environment) to comprehensively examine the situation from multiple stakeholder perspectives. A rich picture is included to visually represent the complex interactions within the system. Furthermore, the report defines the root causes of the problems and proposes potential solutions, such as process changes, pricing adjustments, and inventory strategy revisions. The report provides a thorough examination of the organizational issues and suggests practical recommendations for improving the efficiency of the business.

Running head - SYSTEM THINKING
System thinking
Name of the student
Name of the university
Author’s note

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Background of System Thinking
Many organization have been using concept of organizational practices and also as the
main method as for handling the matters that are concerning for the examination and behavior
of system. This basic system that spots the system’s basic part is known as system thinking.
The management of the process of system thinking or analyzing the system thinking is
considered to be an investigation of traditional manner that would be benefiting the
organizational acceptance of systems and by also contravening them into various other
elements (Antunes et al. 2016). The process of system thinking could be used of many
purposes like research area and also could be used for many fields of studies like medicine
and economics.
It also have been treating as the indication of the surge that would be introduced in
system thinking. This surge would be finally provide the insight about the failing of the
system. With essence to the process of system thinking, the behavior of the results of system
have been strengthening numerous procedures and equilibrium of the process itself too
(Dalkin et al. 2018). Therefore, practical have become complementary process, which would
be expending the very request of system thinking as being the assistance at the preserving
symmetry of certain kind of systems.
Analysis of the problem and the challenges
The organization XYZ have been seeing many problems with their modes of business
conduction. In the previous assignment, the main thing that have been identified is the
various kind of issues that XYZ have been practically being facing regarding the operation
conduction and management of inventory that is being scheduled at the organization. It could
also further be described that the management of the inventories is the part of operation
management that is conducted at the organization. The result of operational management in

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the organization is somewhat described to be the analysis of the certain organizational
efficiency that would be regarding the conduction of business and collection of the resources
and remodeling the process of business conduction (Hagiwara & Saito, 2016). In the
organization XYZ, they have been facing problem regarding the storage of the inventories of
their procreated products. Therefore, this issue have been influenced by the various kind of
effects that would be affecting also the various kind of stakeholders that are the part of the
organization. The organization have also been facing many issues regarding the collection of
resources that would be used by them for supporting the business.
The organization XYZ has been dealing with retails of various kind that are mostly
grocery products. They have been supplying from various kind products that they have been
gathering from other suppliers. The organization acts as a distributor of the supplied grocery
products that they have been collecting from various other suppliers of grocery products. The
products are reached to the customers by the selling them to the customers (Indahati, Fitriani
& Munajat, 2017). However, in this process of supply chain and management, the
organization have been facing many problems.
A major issue is being faced by the organization that have been taken all the attention
to that particular point. The problem have been raised at the supply chain of the organization
and the inventory management. The organization recently have been seeing some shortage of
inventories that they would be supplying to the customers. Thus, it have been a challenge for
the organization that have been making certain kinds of failure in generating proper amount
of revenue. These kind of issues are not be faced by such huge organizations. For the
irregular form of supplies that the organization have been taking, there have been a shortage
of inventories that would be helping the organization for supplying the products. Thus, they
have been failing to satisfy the needs of the customers. Due to the shortage of the inventories
for supplying, there have been creating a bad brand image for managing the resources among

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the customers. Therefore, the organization is facing an issue regarding the availability of the
products that they would be handling for supplying to the customers. They would be needing
to change the perspective of the customers regarding the organization
In the organization, there have been many cases where they have been collecting lot
of supplies at a particular time. As they have been taking huge amount of supplies at a same
time, it was being hard for estimating the distribution safety factor that would be dealing with
the needs of the customers. Thus, this was leading them into wasting the huge amount of
products on a large scale (Kusumaningrum, Sumarsono & Gunawan, 2016). This have been
effecting the needs of the customers as well as the generating revenues by selling the
products. As the customers have been dealing with having the same product all the time, it
was not really very helpful for the organization for using the system thinking approach.
CATWOE
The tool CATWOE is considered to be a analyzing tool that would be helping in
providing various kind of approaches and the different aspects of system thinking (Mi et al.
2018). The tool CATWOE stands for – customers, actors, transformation, process, world-
view, owner and environmental constraints.
Customers – In this factor, customers are considered it be one of the most deliberate and
important stakeholders to be part of any kind of organization. Many types of organization
have been hold the key for the rise and the fall of the organization. As customers are the one
that is supposed to have the power for having to buy the end product that is being
manufactured by the organization, they are entitled for the rise and fall. However, if the
problem of the organization is viewed from the perspective of customers, it would be easy to
point out various problems regarding. These factor is used claims that due to many

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disorientation among the organizational process of business conduction, it would be hard for
them to change the factors.
Actors – The factor helps in understanding the various actors that are involved in the
scenario. They would be including the stakeholders that are a part of the organization, the
people that are linked with the organization, either directly or indirectly.
Transformation process – The organization have to undertake a whole new process of
business conduction for gathering the fate of the customers again.
World-view – The world-view is the factor that is considered to be the element for viewing
the issues or the problem in a wide manner. The problem have also been effecting other
aspects of organization.
Owner – By using the too, and particularly this factor, it would be more easy for the
organization to identify the various stakeholders.
Environmental Constraints – The factor would be helping in understanding the time
constraints and the budget of the organization.
Root Definition
By using the analyzing tool of system variation, there would be many assumption
which is faced by the organization for the shortage of inventories and for using in rivalry
markets (Mi et al. 2018).
Solutions
After analyzing the problem that is faced by the organization, the solution that could
be recommended that they should be changing the process in which they would using for
further business conduction. They should also be using the service with lower price and also
should be changing the policies and storage strategy for the inventories.

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Rich Picture
(Source – Author)

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References
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