Page 16 - PRAGMATIC STRATEGY

HOLISM

Two elements dominate the holistic approach to corporate planning (or strategic
management), these are the internal environment and the external environment.

The Internal Environment

The organisation’s management has control over the constituent elements which
make up the organisation i.e. labour, finance, technology, systems, goals and
values etc. Management decides how and when to use these resources in pursuit
of its objectives. However, these resources are finite. Changing one will impact
on the others. If the firm increases its technology base then the result will likely
be a reduction in finance as the new technology is paid for and possibly labour as
it is replaced by technology. In other words management has control over these
resources bounded by their individual sizes which together may be seen as
overlapping with an external boundary which shifts as changes are made to the
individual elements.

Amoeba Boundary A Amoeba Boundary B

Changing one will affect the others. Anything within the amoeba boundary can be
controlled by management. But if it is not controlled by management then it is in
the external environmental area. An area however, over which management will
endeavour to try to exercise influence and control.