scholarly journals A Portfolio Management Approach in Accounts Receivable Management

2008 ◽  
Vol 3 (2) ◽  
Author(s):  
Grzegorz Michalski
Keyword(s):  
Portfolio Management ◽  
Management Approach ◽  
Accounts Receivable

scholarly journals Operational risk in current assets investment decisions: Portfolio management approach in accounts receivable

2008 ◽  
Vol 54 (No. 1) ◽  
pp. 12-19 ◽  
Author(s):  
G. Michalski
Keyword(s):  
Portfolio Management ◽  
Asset Management ◽  
Financial Management ◽  
Firm Value ◽  
Trade Credit ◽  
Profit Maximization ◽  
Potential Effect ◽  
Management Approach ◽  
Accounts Receivable ◽  
Enterprise Value

The basic financial purpose of an enterprise is maximization of its value. Trade credit management should also contribute to the realization of this fundamental aim. Many of the current asset management models that are found in the financial management literature assume book profit maximization as the basic financial purpose. These book profit-based models could be lacking in what relates to another aim (i.e., maximization of the enterprise value). The enterprise value maximization strategy is executed with a focus on risk and uncertainty. This article presents the consequences that can result from operating risk that is related to purchasers using payment postponement for goods and/or services. The present article offers a method that uses the portfolio management theory to determine the level of accounts receivable in a firm. An increase in the level of accounts receivables in a firm increases both net working capital and the costs of holding and managing accounts receivables. Both of these decrease the value of the firm, but a liberal policy in accounts receivable coupled with the portfolio management approach could increase the value. Efforts to assign ways to manage these risks were also undertaken; among them, a special attention was paid to adapting the assumptions from the portfolio theory as well as gauging the potential effect on the firm value.

scholarly journals Portfolio management approach in trade credit decision making

2007 ◽  
Vol 59 (4) ◽  
pp. 546-559 ◽  
Author(s):  
Grzegorz Michalski
Keyword(s):  
Portfolio Management ◽  
Asset Management ◽  
Financial Management ◽  
Trade Credit ◽  
Profit Maximization ◽  
Management Approach ◽  
Accounts Receivable ◽  
Enterprise Value ◽  
Value Maximization ◽  
Current Asset

The basic financial purpose of an enterprise is maximization of its value Trade credit management should also contribute to realization of this fundamental aim. Many of the current asset management models that are found in financial management literature assume book profit maximization as the basic financial purpose. These book profit-based models could be lacking in what relates to maximization of enterprise value. The enterprise value maximization strategy is executed with a focus on risk and uncertainty. This article presents the consequences that can result from operating risk that is related to purchasers using payment postponement for goods and/or services. The present article offers a method that uses portfolio management theory to determine the level of accounts receivable in a firm.

scholarly journals Trade Credit Decision Making Based on Portfolio Management Approach

Ekonomika ◽  
2007 ◽  
Vol 80 ◽  
Author(s):  
Grzegorz Michalski
Keyword(s):  
Portfolio Management ◽  
Asset Management ◽  
Financial Management ◽  
Trade Credit ◽  
Profit Maximization ◽  
Management Approach ◽  
Accounts Receivable ◽  
Enterprise Value ◽  
Value Maximization ◽  
Current Asset

The basic financial purpose of an enterprise is maximization of its value. Trade credit management should also contribute to realization of this fundamental aim. Many of the current asset management models that are found in financial management literature assume book profit maximization as the basic financial purpose. These book profit-based models could be lacking in what relates to maximization of enterprise value. The enterprise value maximization strategy is executed with a focus on risk and uncertainty. This article presents the consequences that can result from operating risk related to purchasers using payment postponement for goods and I or services. The present article offers a method that uses portfolio management theory to determine the level of accounts receivable in a firm. An increase in the level of accounts receivables in a firm increases both the net working capital and the costs of holding and managing accounts receivables.

A business process and portfolio management approach for Industry 4.0 transformation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sophie Richard ◽  
Robert Pellerin ◽  
Jocelyn Bellemare ◽  
Nathalie Perrier
Keyword(s):  
Business Process ◽  
Portfolio Management ◽  
Research Methodology ◽  
Industry 4.0 ◽  
Process Analysis ◽  
Management Approach ◽  
Project Portfolio ◽  
Manufacturing Companies ◽  
Project Portfolio Management ◽  
Content Type

PurposeThe purpose of this paper is to address the difficulties faced by manufacturing enterprises by providing a project portfolio management approach supporting the selection and prioritization of various Industry 4.0 projects where business process analysis is used to ensure the strategic alignment and value of the project portfolio.Design/methodology/approachThe design research methodology, a mixed applied research methodology, was used to develop and test the proposed approach.FindingsDespite the growing interest of the scientific and industrial communities in I4.0, it seems that there is no method by which manufacturing companies can select a large number of improvement projects. Moreover, studies tend to focus on the evaluation and implementation of a single technology, while the transformation of an intelligent plant requires the consolidation and coordination of many initiatives to achieve a global objective.Originality/valueThe proposed project portfolio management model offers support to enterprises during their digital transformation and improves their processes by integrating technology levers through consistent and achievable selection of I4.0 initiatives while meeting strategic goals and objectives.

Demand Management as a Success Factor in Project Portfolio Management

2017 ◽  
pp. 202-219
Author(s):  
Luca Romano ◽  
Roberta Grimaldi ◽  
Francesco Saverio Colasuonno
Keyword(s):  
Portfolio Management ◽  
Demand Management ◽  
Value Added ◽  
Management Approach ◽  
Success Factor ◽  
General Strategy ◽  
Strategic Objectives ◽  
Market Situation ◽  
New Ideas ◽  
Continuous Demand

Demand Management is the process an organization puts in place to internally collect new ideas, projects and needs during the creation of a Portfolio (from now on PTF). This collection is done internally but should also consider the external market situation and the general Strategy of the Organization. Demand contains two main actions: initiatives Collection and Assessment (following the Strategic Objectives definition) and preceding the start of the Portfolio budgeting, prioritization and selection phases. What is possible to do to better manage Demand and maximize the value added to Portfolio Management? The first opportunity is that Demand can represent a connection with the business and the entire Organization. A second opportunity is that a continuous Demand Management approach can simplify the portfolio collection, prioritization and selection. For Demand Management to be a real opportunity in Portfolio Management should be organized and planned respecting the interpretation of the matter and the maturity of the Organisation and should be also treated as a specific matter.

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