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Definition of

top-down approach

General Management

leadership style with managers driving changes an autocratic style of leadership in which strategies and solutions are identified by senior management and then cascaded down through an organization. The top-down approach can be considered a feature of large bureaucracies. A number of management gurus have criticized it as an out-of-date style that leads to stagnation and business failure.

Related definitions of "top-down approach"

Recommended Further Reading (Term count)
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top-down approach - Related Articles
  • Neil Williams


    Neil Williams is responsible for global economic research at Hermes Fund Managers and Hermes Asset Management. He has more than 20 years’ experience of providing economic analysis and he generates investment strategy ideas for the fixed-income team. He adopts a top-down approach involving macro

  • Valuing Start-Ups

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    For those who believe that the top-down approach is too ambitious, the alternative is to start with what the young company can generate as output, given its resource constraints, and make estimates of the revenues and profits that will be generated as a consequence. This is more akin to a capital
    By Aswath Damodaran


Definitions of ’top-down approach’ and meaning of ’top-down approach’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’top-down approach’ and other financial terms with our online QFINANCE Financial Dictionary.

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