Organizational Case Study -- Nutri Systems Company Essay

Organizational Case Study -- Nutri Systems

Company Background - Nutrisystem is an American company that provides weightloss products and services. Originally, the company's sales and marketing model focused on Brick and Mortar stores, in-person counseling and exercise sessions, and the sale of prepackaged supplements and food products retail. In 1999, however, largely due to the number of diets on the market and exhaustive competiton, Nutrisystem began selling online with support through 800#s and email. The company expanded to QVC in 2001 and Costco since 2009 (www.nutrisystem.com).

The foundation of the organization is portion-control and a diet that has a low glycemic index. Separate plans are offered for men and women that support a 1-2#/week loss. All plans have love sugar, cholesterol and sodium and cost from $280-400/week. Users must also purchase additional fresh items locally, but 2009 clinical trials showed that persons with Type-2 diabetes consistently lost more weight and had decreased symptoms after 3 months than the control group (www.nutrisystem.com).

Open Systems Theory in Organizations - OST is an organizational diagnosis model that is used in evaluating an organization in order to determine whether change is desirable. The model considers organizations as social systems which are dependent and affected by the environment in which they exist. Open systems theory has inputs, throughputs (transformation) and outputs and has a feedback loop that connects organizational outputs to renewed inputs (Organizational and Diagnostic Models, 2008). The model is important when an organizational wants to diagnose external variables that affect the business. . The model recognizes that organizations are affected by factors within and outside the business and is used to answer whether there is need to change organizational processes and strategies. Open systems theory is used as an effective method to solve organizational problems. It is also used t develop effective leadership, communication, planning and as a means to improve organizational performance.

Open systems theory can be used in NutriSystem, Inc. To determine whether internal operations are running optimally. An open system will evaluate whether different functions, operations and parts in NutriSystem are aligned well to adapt to internal and external factors. NutriSystem operates in an environment that is highly competitive and is influenced by social, political and economic factors, the model can be used to investigate how the environment influences the company and whether there is need for change.

Diagnosis and Strategy - Organizational diagnosis investigates an organization and provides the differences between 'what is' and 'what should be'. It is therefore essential to strategy because it determines whether the current strategies are effective and can be applied in strategy development (Lowman, 2005). Findings generated from the diagnosis can be used to develop a strategic plan that will address all the issues raised. NutriSystem management can use organizational diagnosis to investigate whether current strategy is appropriate and effective. Organizational diagnosis will determine whether the company's strategy is efficient when dealing with customers and competitors. The management could use OD to analyze its strategy and create an improved strategy when necessary.

Organizational Structure- In simple terms an organizational structure is the way an organization arranges itself. An organizational structure is mainly represented graphically using a chart and most organizations have a hierarchical structure. Organizational structure provides members' duties and responsibilities. The main components of an organizational structure are operation core, strategic apex, support staff and middle line (Naqshabandi, 2011). NutriSystem is headed by the CEO, then followed by CFO, CMO and executive Vice President,…