Business Management Assignment: Elements Of An Open Systems
Business Management 101 Assignment
Question 1
1.1 Elements of an Open System – Case study Sky High
A business is an open system and is affected by forces within and without the business environment. The three elements of an open system are Inputs, processes and outputs and although these are interdependent functions of a business, they all need to be integrated in order for a business to function effectively.
Elements Theory Sky-High Airlines’ Example
Inputs These are all the resources required in an organisation that are brought together (Human, Capital, Natural, Entrepreneurial Resources) Wide Range of employees (Pilots & Cabin Crews, Cleaning and maintenance crews
Divisional Managers)
Processes The inputs are processed by carrying out the different management functions (Operational, Financial, HR, Logistics, Marketing • Operations Department
• HR Department
• Marketing Department
• Finance Department
• Purchasing Department
Outputs Goods or Services as a result of bringing together and processing of all resources Affordable, safe, dependable air travel
1.2 The four factors of production are:-
1) Natural
Natural resources are those that are in their purest form and are generally formed from the natural environment such a mineral deposits and farming outputs (crops). Some of these natural resources can be sustained and some cannot.
2) Human
Human resources refers to the human capital or labour that is required to carry out the various functions
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