An Internal and External Environmental Analysis of Palms New Guinea Arts Gallery on Its Strategic Management.

Topics: Strategic management, Management, Organization Pages: 12 (3749 words) Published: March 9, 2009
John Imbal, Madang, Papua New Guinea-essay sample-not edited to perfection!

An internal and external environmental analysis of Palms New Guinea Arts Gallery on its strategic management.


In this modern age, strategic management has become an important issue for those that manage different organisations, regardless of whether it is for profit or not-for-profit motives, and whether it is for competition or cooperation between firms. Strategic management is an important issue for the survival of any organisation. Strategies are not static, they are dynamic reflecting the state of activities of the world. This has been uttered coherently by several writers on this subject, although varying in some aspects. This paper uses Palms New Guinea Arts (PNGA), an aboriginal (meaning indigenous or native) art gallery in Sydney CBD (central business district) to enable a comparison of the theoretical aspects of strategic management to PNGA.

Case overview

Palms New Guinea Arts (PNGA) is the business arm of the Palms organisation, which is the major overseas service agency of the Catholic Church of Australia. PNGA is an aid-through-trade, not-for-profit organisation that sells aboriginal works of art from Pacific Islands, including Australia and New Zealand. It serves tourists who are interested in low-cost (touristy) items and serious art collectors and dealers from different parts of the world, including Australia. The serious collectors and dealers generate most of PNGA’s revenue and that is where its focus is. It has a manager who has to report to a managing director and board members at certain times. It has about five employed staff (including the manager) and the rest are volunteers (retired people) who come in once or twice a week for half a day. Its valuable assets are its diverse collection of authentic (meaning something that has been made by indigenous people and may represent an important aspect of their culture) pieces of art from the areas mentioned above. The manager does buying trips to Papua New Guinea once in every year.

Literature review

Henry Mintzberg, Michael Porter and Charles Hill are three names that have written comprehensively on strategy and management, not excluding others. Mintzberg (1996: 10) came up with four P’s of strategy, namely plan, ploy, pattern, position and perspective, in an effort to explain strategy. The difficulty with this is in identifying when a strategy is a plan, a ploy, a pattern, a position or a perspective. Porter (1980) when writing on business strategy identified the ‘five forces model of industry analysis’. However his (Porter’s) thoughts conveyed to the reader that strategic management in an enterprise had something to do with competition, which is not always true because not all strategies are about competition, such as a monopoly. On the other hand, both Mintzberg and Porter express that there could be no one best way to approach the issue of strategic management.

Contrasting the traditional view that strategic management (strategy) is a ‘well-written plan’ by management (especially top management) to be strictly adhered to, Viljoen and Dann (2000: xii) stated that it ‘… is not a set of “rules” to be applied in a mechanistic or ad hoc manner’. It is an ongoing process that needs to be refined as the conditions in the environment change. Another unbalanced view that authors like Porter (1980), Hubbard (2000) and South (Spring 1981) hold is that they consider strategic management is about ensuring a company’s competitive advantage. Although this world is full of competition and strategic management is a notion of that, it would be better termed as just an advantage that one organisation may have over another. A particular organisation may not have the desire to compete against another but would certainly be concerned for its own viability. Wheelan and Hunger (2000), Hill and Jones (2001) and Viljoen and Dann (2000) have avoided this notion of...
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