While taking any decision for a company it is of utmost priority that the current status in terms of the figures, projections and the achievement is analyzed. The actual vs. targets need to be analyzed. We may also say that we should need the quantitative data in order to find out the level of achievement by the company. This will help us in making the exact recommendations on the figures that the company can achieve in the near future. Unless the management knows the capacity, ability and the level of performance of its enterprise, how can they make the recommendations for expansion in long run? Castle Nursing Home started expanding unless realizing and analyzing the existing performance of the organization. Above all System approach helps in solving the problems well. It analyzes even the smaller components of the system. It is understood from the roots or the bottom line on how the company is performing. It not only helps in finding out the ways of improving the performance but also lineate the system towards the mission and vision that the organization has set for it. Castle Nursing Home would be able to manage and lineate its operations well through the system’s approach of analysis and solution (Gustafson et al, 1999).