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    The Container Store

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    1. How does open systems theory apply to the Container Store?

    2. Review the (11) different OD models presented by Falletta, S. V. (2013) Organizational diagnostic models: an integrative review & synthesis. Organizational Intelligence Institute (www.oi-institute.com).
    a. Now that you've considered the background and the strengths and weaknesses of these models, which of them do you believe would be best suited to an OD analysis of The Container Store? While you do not need to cover every characteristic of your chosen model, please be very thorough and specific in your discussion and reasoning.

    3. The Nadler-Tushman Congruence Model, as presented in Nadler, D. A. & Tushman, M. L. (1980). A Model for Diagnosing Organizational Behavior. Organizational Dynamics, 9 (2), 35-51, cites four Input categories:
    a. Environment (factors external to the organization)
    b. Resources (factors internal to the organization)
    c. Organizational history (persistent traditions)
    d. Strategy (goals, objectives and strategic initiatives)

    Please discuss the Environment, Resources and Organizational History and Strategy inputs in the context of The Container Store.

    Since the Congruence Model recognizes "Outputs" as existing at the Individual, Group, and Organizational levels, please discuss the Outputs - at all three levels -of The Container Store.

    4. Please provide a definition of "organizational learning."There are many, many, differing definitions of OL - and many opinions on precisely how organizations learn (or if they can even learn at all). Some notable theorists include Chris Argyris, Peter Senge, Bente Elkjaer, James G. March, Herbert A. Simon, Mark Easterbay-Smith, and Fiol & Lyles, among innumerable others.
    a. Is there a difference between the notion of "Organizational Learning" (OL) and that of the "Learning Organization" (LO)? Are we anthropomorphizing (great word!) organizations when we say that they "learn"?
    b. Please describe the extent to which you believe The Container Store is also a "Learning Organization." If so, how does The Container Store "learn"? What has The Container Store "learned," and through what mechanism(s)?

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    Solution Preview

    In compliance with BrainMass rules, this is not a hand in ready assignment but only guidance.

    1. Open systems theory applies to the Container Store in several ways. Open systems interact with their environment in several ways. An open system regularly exchanges feedback with its environment, analyzes the feedback and adjusts internal systems as needed to achieve the system's goals. In case of The Container Store, it has received feedback from its customers from the time it was formed and has worked to improve its products, store locations, and customer service. The Container Store is an open system that has external interactions. Let us consider the employees of The Container Store. The store has a policy of employees first. It receives information about employee compensation, working conditions, and benefits from the environment and improves its treatment of its employees. It also gives out information that its employees are well cared. It attracts the best talent. The Container Store is an open system when we consider its shareholders. The company made a loss of $109.2 million in 2012. The company received strong feedback from its shareholders and its share prices plummeted. The Container Store took steps to increase its revenues and net income. In 2013 the net loss came down to $90,478 and in 2014, The Container Store earned a net income of $8.1 million. The company exchanges information, energy, and material into and out of the system boundary. At a simple level, The Container Store receives products from its suppliers. These enter into its boundaries. Next, when these products are sold they are transferred out of the system. The goods sold leave the boundary of The Container Store.

    2. After reviewing the eleven different OD models presented by Falletta, S. V. (2013) Organizational diagnostic models and considering their strengths and weaknesses of these models, I see that the model that is best suited to an OD analysis of The Container Store is The McKinsey 7S Model. This model will help understand the cross relationship of different organizational factors at The Container Store. It will also help identify and understand which organizational factors led to the financial decline of the company in the past. The 7S's of the model are strategy, structure, systems, shared values, skills, style, and staff of the company. The Container Store claims that it has a strong organizational culture. It is also known that the company has been able to attract and retain some of the best talents in the industry. The McKinsey 7S Model will help examine the alignment between the cultural elements and ...

    Solution Summary

    This solution provides an analysis of The Container Store. The references related to the answer are also included.