How can open systems theory be used to understand an organization?

Question

This is a question from my BUS599 course (MBA)

Answer 1

It allows us to look into the uniqueness of the organization. The cultural, legal, economic, and educational environment of a region may effect its functionality. We can use open systems theory to understand the choices made in the organization to allow for it to perform at its maximum proficiency. One example may be that the organization chose not to develop a new headquarters for its company in a rural area, as the majority of the population there is not educated in the necessary fields, therefore it would be difficult to staff. However, the same company may install a distribution center, as most in the area may be manual laborers, and the competition to employ said laborers at a lower pay rate and with lesser benefits would be moot. I could be drastically wrong on this, it is just my interpretation of it after a quick five minute read. I would like to know this answer myself, as it will soon be approaching for me, and the it is quite vague.