Marc has opened a 24-Hour fitness center in a fast-growing city. Before purchasing the franchise and starting his new business, Marc looked at the one other fitness center currently operating in that area. In the same general area are video game rooms, fast food restaurants, a sports bar, a golf driving range, a sporting goods store, and a bowling alley. Marc believes that the one fitness center forms his competition. Based on your reading of open systems and “Substitutes and Complements” in the text, do you agree with Marc or disagree? Why? Based on the definition of open systems retrieved from: http://smallbusiness.chron.com/open-system-organizational-structure-432.html “When a business regularly interacts with its environment, and exchanges and processes feedback, it is an open system organizational structure.” I believe Marc is wrong in thinking the other fitness center is his only competition.
All of the surrounding businesses are in fact competition for different reasons. Obviously the other gym is his biggest and most direct competition but he can alter his prices or programs to increase his appeal over the other gym. I see the driving range, the sporting goods store and the bowling alley as other forms of direct competition as they offer similar products or services. Golfing and bowling are other forms of exercise that a customer may choose to participate in. While the sporting goods store may sell the exercise equipment that Marc’s gym has. A customer may choose to buy his own home gym instead of paying a membership fee. The fast food, bar and game room offer distractions and alternatives to going to the gym and are still a slight competition for Marc. While the sporting goods store is a substitute to the gym, it could also be a complement. A gym member may go to the sporting goods store to purchase workout clothes, a yoga mat or other items to enhance their workout routine. But if Marc also had a shop in his gym, he would be competing with the store in that area as well.
This week’s Assignment is based on the “Contemporary Approaches” section of Chapter 2 and the environments of a business, explained in Chapter 3. The contemporary approaches to management include: sociotechnical theory, quantitative management, organizational behavior, and systems theory. Regarding environments, an organization has an internal environment, a competitive environment, and a macroenvironment. After reading and reflecting on the above concepts and completing this unit’s practice Learning Activities, type a full 2-page (minimum) double spaced paper using 12 point font to: Explain how the four contemporary approaches to management are different from one another. Define “open systems” and describe the internal, competitive, and macroenvironments of an organization. Lastly, indicate whether the four contemporary approaches to management are relevant in these three environments and why or why not. You may research external sources to support your answer. Cite any external sources used. Assignment Checklist:
Explain how the approaches presented are different from one another. Define “open systems” and describe the internal, competitive, and macroenvironments of an organization. Indicate whether the approaches are relevant in the three environments and why or why not. Respond in a paper at least two double-spaced pages in length, using size 12 point font. Submit your paper to the Dropbox. Submit to the Unit 2 Assignment Dropbox.
For additional help submitting to the Dropbox, please see the Dropbox Guide under Academic Tools. This Assignment specifically addresses the following unit outcomes: Distinguish between significant contemporary management theories. Describe the business organization as an open system.
Identify the role of internal and external environmental factors in business