The Company: Open or Closed System?

How can the environment influence our business trends?

THE COMPANY AS A SYSTEM

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F38F (Italy) is a photographic studio in Milan put together by three professionals, who are active in different fields of photography and in different cultural events.

The concept of company as a system has been accepted for some time. Human existence is characterized by the continual presence of subjective states of necessity or dissatisfaction called needs. The needs determine the desire to obtain goods and services which could eliminate, mitigate or prevent a state of discomfort. The products and services can only be obtained through a production process. Consumption is the appropriate act to meet the need.

PRODUCTION AND CONSUMPTION
Production and consumption are two phases of economic activity. The fundamental characteristics of modern companies are:

  1. The stable organization (every company is established to last for a long time);
  2. The resources (people and goods).

COMPANY SYSTEM

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Pini Swiss Enrgineers (Switzerland), at AlpTransit, Sigirino. Alp Transit San Gottardo SA is the client commissioning the new alpine railway on the route of San Gottardo, a level ground railway crossing the Alps. Pini Swiss Engineers is one of the main planning companies.

The assumption from which this Creative Talk develops is based on the observation of the company as if it were a system with relations between elements and various types of aggregates. The reports are based on conditional variables and/or constants, reports and changes.

DIFFERENCE BETWEEN SET AND SYSTEM!

Definition of Set: group of elements that do not interact or whose relationships are weak. Definition of System: group of elements that interact.

THE EXPERIMENTS

If we accept that a business is a system made of a set of elements (to simplify: the various directions it may take) that dialogues with given external variables (the market) and unexpected ones (changes such as a recession), the set theory teaches us how an open organization accustomed to constant change is more solid within a medium-term perspective than a closed organization that is vulnerable to internal and external critical factors.