Abstract
An innovative orientation is a highly desirable characteristic of senior-middle and top management teams in business organizations. The formalized expression of such entrepreneurial flair may be developed in the form of action plans. Such plans consist of five elements, of which one, namely the financial component, is of prime importance. Three categories of action plans are distinguished and the evaluation of the anticipated financial impact of action plans within each category discussed. Finally, the integration of the anticipated financial results of action plans in the formal long- and short-term plans of an organization is described.
Highlights
In recent years several management theorists 123 have emphasized the importance of innovative entrepreneurial action thinking in any organiz.ation
Action plans in this category normally require a relatively small operating expenditure with the objective of achieving some level of cost savings and/or some increase in revenue in the remaining portion of the financial year
Category A action plans are developed on a recurring basis with the objective of improving the anticipated financial results of the current accounting period
Summary
In recent years several management theorists 123 have emphasized the importance of innovative entrepreneurial action thinking in any organiz.ation. The financial analysis required is a simple accounting calculation of the incremental increase/decrease in cash inflow and the incremental increase/decrease in cash outflow resulting from the successful implementation of the action programme during the remainder of the financial year Action plans in this category normally require a relatively small operating expenditure with the objective of achieving some level of cost savings and/or some increase in revenue in the remaining portion of the financial year. The extent of financial analysis required for the approval decision is limited Action plans in this category normally require relatively large operating expenditures with the objective of a~~eving c_ost savings and/or increases in revenue in the remammg portion of the financial year as well as in succeeding financial years
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