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This is a case study paper. A major research goal of this study is to extend the existing theories of learning organization put forth in the 4I model by adding more complicated ideas to it. One minor goal of this research is to show that the first stage of organizational learning, “intuiting”, is the hardest to implement when starting a learning organization. Particular attention should be paid to this step, and with the addition of adult learning theory, the possibility of facing a negative situation should be reduced. A second less important goal is to explain how to assess organizational learning, and how the flow of single‐ and double‐loop learning takes place within a learning organization.

This study adopted a combination of qualitative and quantitative survey methods to study the effectiveness of the new mode of transformational activity practiced in Firm A.

Statistical evidence showed that the practice was successful. It solved the issue that expertise and top managers mostly protest against learning.

This paper brings a new and more adaptive perspective for building a learning organization upon existing organizational learning theories. Through this case study, the integration and transformation from tacit knowledge to explicit knowledge, intuition to institution (the 4i model), and individual level to organizational level are illustrated. The practices of single‐loop and double‐loop learning are also well depicted by this study.

This study assumes image size and location, product substitution, and product supply to be factors influencing the purchase decision. Under such assumption, shelf-space allocation and inventory theories are integrated, and operating profit and cost of the online store under the supply policy that prevent stockouts are analyzed to develop an optimal model for inventory control and product image allocation. The paper aims to discuss these issues.

The developed model takes both order cost and holding cost into account when calculating the total cost. As the model presented is an integer non-linear programming problem, this study adopts genetic algorithm to solve the problem.

Numerical examples are provided in this study to demonstrate the applicability of the model and to illustrate the search for parameters that possess greater influence over the operating profit of the store.

This study provides a mixed integer non-linear programming model for the joint optimization of graphic design and inventory control problem. Online store owners may take the results of this study as a reference for decision-making purposes.