The system concept of business

Business
can be viewed as a system – comprising of inputs, transformation and outputs.
The inputs of the business system consist in part of the 6Ms of management – man, machine, material, money, management
and markets
. At production level, all input that goes into the production
system (processing) are or must be of

top quality, thus quality must be built
into the system ab initio.

A
system is a set of objects with the relationship between the objects and their
attributes well defined. A system is a set of interrelated and interdependent
variable of components that work in tandem and unison to achieve a stated
objective. A system must therefore work towards a target objective with the
synergistic capability to pull its total effort to create a force which impact
positively on the final output. Again a system can be generally described as a
complex of elements or components directly or indirectly related in a causal
network such that component is related to at least some others in a more or
less stable way within  any particular
period of life or discipline
A
system therefore operates on the principle of causality. The concept of
causality here signifies that one variable has impact on another or that the
reason why a particular behaviour is noticed in one component is as a result of
certain action of another variable which influences it positively or otherwise.
Thus there is a cause and effect relationship
in a system. A breach might cause serious disharmony to even stoppage of
functionality and hence a “system failure” might result. A continuity of action
and control of such actions or processes towards desired direction is therefore
expected to produce the desired outputs, all things being equal ceteris paribus
Hence
there are biological systems, mathematical systems, engineering or
organizational system. Knowledge of system concept avoids taking a piece meal
approach to problem solving because of the awareness that there are
interactions between parts of the system. The overall system characteristics
have synergy and are usually greater than the separate characteristics of the
individual constituents. Thus, alterations cannot be made to some parts of a
system without considering the effects on the system as a whole.

A
typical example of a business system is herein under exemplified

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