Applying Systems Approach: American Dream Holdings, Ltd.

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Case Study

The case study under consideration is a business scenario in which the systems approach can be used rather beneficially. The major point to support the use of the systems approach is the fact that the case allows taking the steps typical; of this approach, i. e. characterizing the system as a whole, describing its minor elements, understanding the function of each of them in the whole system, and their interrelations and conflicts within the system (TSI, 2009).

Drawing from this, the major system considered in the case study is the American Dream Holdings, Ltd. (ADHL). It is the major system because it controls plenty of other, smaller, systems in the market. These smaller systems, i. e. 88 business corporations controlled by the ADHL, are the subsystems of ADHL. Other subsystems include the businesses in which ADHL owners, Mr. Major and Mr. Minor, have 20 to 50% of participation and the so-called affiliates, i. e. businesses owned by Mr. Major and Mr. Minor but not related to ADHL. Thus, the system of ADHL has numerous subsystems that are related to ADHL as parts of the whole because ADHL owners control those subsystems either completely or partially.

Needless to say, in such a large system as ADHL, there are numerous groups of people and organizations whose interests are opposite and often contradicting each other. Such a situation results in conflicts appearing in ADHL. Defined by ALS (2009) as “a disagreement through which the parties involved perceive a threat to their needs, interests or concerns”, conflict is observed in ADHL first of all in the relations between Mr. Major and Mr. Minor. The former owning 80% of ADHL and the latter owning only 20%, these people are concerned about their influence in the company, which leads to their being concerned about their interests in which they often disagree. This results in the competing conflict of interests of Mr. Major and Mr. Minor.

As well, there is a conflict between ADHL and its largest subsidiary corporation EFC Corp., which are controlled mainly by Mr. Major and Mr. Minor respectively, as EFC Corp. is reluctant to submit financial reports and pay fees for legal and administrative services ADHL provides to all its subsidiaries including EFC Corp. Finally, there is a conflict between the COO of ADHL Ms. Iwon, and Mr. Toolate, the COO of the EFC Corp. Both being the protégés of Mr. Major and Mr. Minor respectively compete for the influence in ADHL and this results in their disagreement on basic organizational questions.

Accordingly, the conflicts listed above prove the organization of the ADHL as a system to be competitive rather than avoidant or collaborative. The main factors that evidence the point include the presence of the two major stakeholders of the company, Mr. Major and Mr. Minor, and their attempts to increase their influence in the company. The fact that Mr. Minor controls EFC Corp., the largest of the subsidiary ADHL corporations, makes EFC into a so-called internal competitor to ADHL. As a result of the main conflict between Mr. Major and Mr. Minor, as well as smaller conflicts between ADHL and EFC, Ms. Iwon, and Mr. Toolate, the competitive organizational structure of the system considered loses its positions. If external competition is sure to facilitate the company’s development, the internal competition observed inside ADHL is set to undermine its solidity and market influence.

Works Cited

ALS. “About Conflict.” 2009. Academic Leadership Support. Web.

TSI. “Systems Approach.” 2009. Technology Strategies International. Web.

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Applying Systems Approach: American Dream Holdings, Ltd.

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