System which can be described as elements or units that interact for common purposes can either be open or closed. Elements and units that make these systems can varied and may include computers, people or production factors among other things depending on the kind of a system that is under scrutiny. Therefore a system can be simple or complex depending on its composing elements or units. Systems can be used to describe various productions process, social interactions or organizations. In open systems the composing elements or units free interact with their surrounding environment and other systems .whereas the elements that make up closed systems do not interact with other systems or their surrounding environment. They therefore operate as independent systems devoid of external influences. This implies that when considering closed systems external influences are not considered or are considered to have no impact on the system being considered .Therefore a closed system is far much easier to deal with since one only considered the internal influences resulting from the interactions of the elements that make up the system.
Since systems can be used to analyze production or manufacturing process and in a closed system external influences are considered to be non existent .in the reality however in a manufacturing process there are bound to be external influences such as taxation levels, availability of raw materials, competition, demand and supply forces for the products being manufactured among other factors that can influence production. If then a manufacturing process was to be assumed to be closed in order to analyze the process if there is low competition or little influence of the other external factors .Then such a system can give the ideal conditions when analyzing how a system should work. On the other hand if the competition is high in a manufacturing process and the marketing orientation is under scrutiny then the process will yield realistic results when it is considered as an open system. This is because competition can influence not only the output of the products but also the marketing strategies. Since the higher the competition the more aggressive the marketing methodology should be in order to stay ahead of the competition.