Marketing specialists at Napanee Beer Co. developed a new advertising campaign for summer sales. The ads were particularly aimed at sports events where Napanee Beer sold kegs of beer on tap. The marketing group worked for months with a top advertising firm on the campaign. Their effort was successful in terms of significantly higher demand for Napanee Beer's keg beer at sports stadiums. However, the production department had not been notified of the marketing campaign and was not prepared for the increased demand. The company was forced to buy empty kegs at a premium price. It also had to brew some of the lower-priced keg beer in vats that would have been used for higherpriced specialty beer. The result was that Napanee Beer sold more of the lower-priced keg beer and less of the higher-priced products that summer. Moreover, the company could not initially fill consumer demand for the keg beer, resulting in customer dissatisfaction. Use open system perspective to explain what has occurred at Napanee Beer Co.
This incident mainly relates to the open systems perspective that organizations consist of many interdependent parts. In larger organizations, subsystem interdependence is so complex that an event in one department may ripple through the organization and affect other subsystems In this case, the marketing group's advertising campaign had unintended implications for the production group. Marketing's campaign increased demand for keg beer, which forced production to brew more of the lower-priced product rather than the higher-priced specialty beer. It was also necessary to keep up with demand by paying premium prices for empty kegs.
Students may argue that marketing employees did not notify the production group about its plans. This may be a valid argument in this incident. However, we must keep in mind that employees engage in many activities that have repercussions for others that we would never expect. Moreover, it is possible that production employees...
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