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Organizational Behaviour Assignment 1

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1) 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 higher priced 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 systems theory to explain what occurred at Napanee Beer Co. Begin with a brief description of open systems theory. Use your own words (paraphrase) and remember to cite all sources using APA style.

Open systems theory is a theory that states that organizations take resources from the environment and use those resources to affect that same environment through the organizations output (McShane & Steen, 2009).
In regards to the case of Napanee Beer Co., the marketing group did not inform the production department that there was a new marketing campaign, therefore, they were not prepared to produce higher priced specialty beer for the high demand. This relates back to the organizational efficiency, where the amount of output is directly related to the number of inputs (McShane & Steen, 2009). Inputs are basically raw materials, human resources, information, financial resources, and equipment. The input that was lacking in

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