How a business interacts with the environment is important as it helps establish a clear structure using which this same business sustains its operations. Open systems have open or porous confinements, which necessitate an easy form of exchange from inside and outside the organization. The controllers of the business in an open system tend to pay much attention to not only the external environment but also to the needs and reactions of their customers (Kew & Stredwik, 2005). In this regard, businesses tend to link their attention with employees, suppliers, and customers. At the time of closure of the Freeman-Brown Private Schools, the benefits associated with an open system at the closure of the business can be seen in the niche of effective problem solving. All this happened in the space of clarifying the bigger picture which were demographic- related factors as had earlier been stated by the principal, and not issues pertaining to financial problems. The management saw it fit, owing to the low turnout of students, whose counterparts had since relocated to the independently run public schools, to bring business to an end, leaving out only two- campuses, which were left operational in the region. For these reasons, it can be argued that, at the time of their closure, Freeman-Brown was very effective as an open system.
The external environment of the organization is stated to compromise of all the outside factors of the environment that affect growth and survival. With this reality on the table, a business can be seen to have no control of what happens in the environment but to only closely monitor and adapt to the changes through proactive and reactive response. As such, the best that such like a business can do to remain relevant is to develop complex systems by which it could adapt to changes in its external environment (Kew & Stredwik, 2005). In this light, Freeman-Brown private schools cannot prove to have been effectively adapting to the changes in the external environment at the time of their closure. Coupled with the help and support that affiliated staff and parents were willing to provide, the organization sought to stay adamant towards change. Faced by the problems of low turn-out due to their lack of competitiveness, and financial mismanagement, the administration saw it fit to close the schools rather than retain them in operation.
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Reference
Kew, J. & Stredwick, J. (2005) Business Environment: Managing in a Strategic Context . CIPD Publishing
