MGT603: System Thinking Report: Analyzing XYZ Company's Challenges

This report provides a detailed analysis of XYZ Company's operational and inventory management challenges using a system thinking approach. The report begins with a background on system thinking and its application to business problems, followed by an overview of the issues faced by XYZ Company, including inventory shortages, excess inventory, and increasing market competition. The core of the report includes the application of system thinking tools such as CATWOE (Customers, Actors, Transformation process, World-view, Owner, and Environmental constraints), a root definition, and a rich picture to visualize the situation. The CATWOE analysis identifies key stakeholders and perspectives, while the root definition summarizes the core issue of inventory shortages and market rivalry. The rich picture provides a visual representation of the complex situation. The report concludes with recommendations for improving XYZ Company's business processes, emphasizing the need for changes in inventory management and pricing strategies to address the challenges and improve customer satisfaction. The report is a comprehensive application of system thinking to address the business problems faced by XYZ company.

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

1SYSTEM THINKING
Background of System Thinking
The main method that many organizations practices for handling matters concerning
behaviors of systems and examination which spots at the system’s basic part is known system
thinking (Monasterolo et al., 2016). The management of system thinking or analysis of
system thinking is well thought out as traditional investigation, which benefits the
organization in accepting the systems and contravening them into many other elements. The
process could be used in many kind of research area and is applied to various other fields of
studies like – economics, educational system and medicine (Roychoudhury et al., 2017)
The strengthen treating indications that surge in the system thinking, which finally
indications the system to failing. According to the system thinking process, behavior of the
system results in numerous strengthening and the equilibrium of the procedure itself (Mi,et
al., 2018). Thus, complementary process is practical, which expending the request of system
thinking as it assistances in preserving symmetry in the certain system.
Analysis of the problem faced
XYZ company have been facing various issues regarding their business conduction.
In assignment one, the main concern that have been discussed about XYZ is the problem that
they have been facing regarding their operation and regarding their inventory management.
Inventory management is classified as a part of operational management. Operation
management in the organization is classified as the analysis of the particular organization’s
efficiency regarding their business conduction, collecting of resources and the remodeling of
the business conduction process (Indahati, Fitriani & Munajat, 2017). The organization XYZ
have been facing issue regarding their inventory storage. This issue have also influenced their
effect on the various stakeholders of the organization. There also have been issues regarding
the collection of resources of the business of the organization.

2SYSTEM THINKING
XYZ Company is an organization that deals in retails of various grocery products.
They take supply from various other suppliers and provide them as end products to the
consumers. The products that are produced by the organization is reached to the consumers
by selling them at their retail stores (Hagiwara & Saito, 2016). Despite the huge venture of
XYZ organization there have been many issues that have been faced by the company.
One of the major issue that is faced by organization is the supply and storage of the
inventories. The organization have been facing challenges in the issues regarding the shortage
of the inventories that they take supply from the various other suppliers in the market. The
organization have been in existence more than 10 years (Dalkin et al., 2018). It is not
something that this kind of organization would be facing while doing business. Due to the
irregular taking of supplies of the inventories in the organization, there have been a shortage
of the acquired inventories in the organization that they have been failed to produce to their
consumers. The shortage of the supplies have led in making a bad impression upon the
organizations managing capabilities and there also have been questions regarding the
provided service of XYZ organization to their customers (Urwin, 2018).
The organization is also facing many issue regarding taking excess amount of supplies
at a time. They are taking supplies of same product in a huge amount without estimating the
needs of the customers. Thus, this have been leading to waste fop huge amount lot of the
products on large-scale basis. This would also harm the customers, as they would be getting
the same products all the time (Kusumaningrum, Sumarsono & Gunawan, 2016). The
organization would be facing crisis, as due to the availability of the same product in the retail
shop, the customers would not be getting the necessary products that they want for their day-
to-day use. Thus, this would be resulting in loosing of the customers interest and loyalty over
then organization. They have been changing their perspective regarding XYZ service and
have been thinking of changing their views over the organization.

3SYSTEM THINKING
Other issues that have been faced by the organization is the increase of competition in
the market. There have been many organizations that they have been facing in the market due
to the increase in competition in the market by producing the same amount of product but
with much lesser price. This have been a problem for the organization as the products that
they are offering are available in the market with lesser amount. Consumers are attracted to
service that would be provided to them with minimum price and maximum efficiency. These
factors are effecting the service of the XYZ organization as these competitions are making
their service lag behind the customers. There are many franchises of the organization in more
than 100 countries (Antunes, et al., 2016) Thus, each and every other franchises of the
organization have been facing these issues. Therefore, they all would be going for a change in
their business conduction process by remodeling the quality factor of the retail shops.
CATWOE
CATWOE is considered as an analyzing tool that helps in understanding the various
aspects of system thinking. CATWOE stands for – customers, actors, transformation process,
world-view, owner and environmental constraints.
Customers – Customers are considered to be one of the most important stakeholders of the
organization. Various consumers hold the key to the rise and lows of the organization. This
power is entitled the consumers as they buys the end product of the organization. If the
organizational problem is viewed from the perspective of the customers’, there are many
problems regarding the various operation management of the XYZ Company (Setianto &
Hidayat, 2017). These factors claims that there have been many disorientation in the
organization regarding the various business processes of the organization. They have been
providing the consumers’ with a service that is high in price than the rest of the organizations.

4SYSTEM THINKING
Actors – The various actor in this scenario is the various stakeholders in the organization and
the people that are directly or indirectly linked with problem that is faced in the organization.
Thus, employees and the other stakeholders are the actors in the organization.
Transformation process – The organization XYZ have to be a complete transformation in
the business conduction proves as they need to make the new assumption for the business
processes.
World-view – The world-view is considered as the element tom view the problem in a wide
manner. The organizational issues have been influencing a huge amount of effect on the
different kinds of operation of the organization.
Owner – With the help of this tool, there have to be determination of the various
stakeholders that are linked with the problem that are faced by the organization.
Environmental Constraints – This helps in understanding the budget, time constraints and
other different resources of the organization.
Root Definition
With the help of the system analyzing tool, these is the assumption that the main
i9ssye that is faced by the organization is the shortage of inventories and rivalry in the
market.
Solutions
The solution that would be recommended to the organization they should change their
business conduction process. They should be provide the service at a lower amount of price
and should change their policy regarding the supply of the inventories.

5SYSTEM THINKING
Rich Picture
(Source – Author)

6SYSTEM THINKING
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