ABSTRACT
An important preliminary to the establishment of an effective system of planning and control is to define and analyse the resources available for implementing whatever plan may be adopted. A business in a free society exists to perform a service for the community in which it operates and, in so doing, to allow people working in it to earn a living. An employee cannot be forced to perform a specific task if he or she does not wish to. The environment tends to be hostile and the continued success of a business is always in jeopardy from one source or another. Any group of active people tends to fragment unless strong control is exercised from the centre. A business will, however, lose much of the enthusiasm of its executives if too many decisions are taken at the centre. The financial organization should analyse its role within the framework of the business objectives and should secure the approval of senior management.
