Implications

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This section asks “So What?”.  What does this approach to looking at companies and organisation tell us about the governance, strategy and regulation of organisations, for what we should expect of them, and for the responsibilities of those who work in them?

The Escondido Framework has implications for the way that we look at the ownership of companies and their duties towards those that deal with them,  for the purpose of organisations and their strategies for development and survival,  for what we should expect from organisations as outsiders – touching on issues such as corporate social responsibility, and for what it means to be on the inside of a company particularly in relation to ones own personal values.

Further questions are suggested by looking at organisations through this framework.  If the boundaries of all organisations are defined by their relationships with a series of external markets in the way that the model, what does this mean for the way in which managers within organisations should operate, and in particular for our understanding of corporate strategy?  If the size and scope of organisations is a function of the relative efficiency of their own internal processing of information compared to the ways in which information flows shape market transactions outside organisations, what does the apparently unstoppable progress of information technology have for the shape of organisations?  If most organisations conform to this organisational model, does this mean that some of the suspicions created by different forms of ownership and governance can be removed?  And if this model was to become accepted as a paradigm, how would it change the way the we look the organisations that we deal with and the people that manage them – and how we approach their regulation?