The Binghams and the Louisville Courier Case Study

Sally and Eleanor decided to sell part of their stake, contrary to Barry Jnr’s preference. According to systems theory, the organisation is a dynamic and interrelated set of parts in this case the departments. The Bingham collapse of the Binghams family empire was due to breakdown in some parts of the organizational system. In the Louisville Courier- Journal companies, there was lack of a feedback system. Systems approach treats the departments as essential parts with their own targets but serve to fulfill the organizational goals. The system approach considers the impact of the external environment on short and long-term organizational activities. On top of that, the approach increases adaptability as the management makes organizational decision and not departmental. It would allow the unification of individual and organizational goals to form a global economy.