Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of top-down approach

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 A number of management gurus have criticized it as an out-of-date style that leads to stagnation and business failure.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)
  • Valuing Start-Ups
    by Aswath Damodaran
    Although the fundamentals of valuation are straightforward, the challenges in valuing companies shift as they move through their life cycle: from the initial idea and start-up business, often privately owned, to young growth companies, either public or on the verge of going public, to mature companies with diverse products and serving different markets, and finally to companies in decline, marking time until they disappear. At each stage we may...
  • Best-Practice Working Capital Management: Techniques for Optimizing Inventories, Receivables, and Payables
    by Patrick Buchmann, Udo Jung
    Many companies still underestimate the importance of working capital management as a lever for freeing up cash from inventory, accounts receivable, and accounts payable. By effectively managing these components, companies can sharply reduce their dependence on outside funding and can use the released cash for further investments or acquisitions. This will not only lead to more financial flexibility, but also create value and have a strong impact...
top-down approach - Related Articles

  • Neil Williams

    Biographies

    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

    Best Practice

    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

More

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.

Back to top

Related

Most Viewed

Recommended

Latest

 
QFINANCE www.qfinance.com