ABSTRACT
Managerial innovation, rather than products or finances, is critical to business success in a given market. Whereas, the activities of single unit of traditional companies were monitored and coordinated by market mechanisms, which produced and distributed the units. Top managers, in addition to evaluating and coordinating the work of middle managers, took the place of the market in allocating resources for future production and distribution. In order to carry out functions’ thesis, the managers had to invent new practices and procedures which, in time, became standard operating methods in managing the generation and distribution. The goal is to acquire the portfolio that will produce the cash flow, which becomes higher and more stable over time, taking into account the patterns of each of the activities in this field. Using the model portfolio of activities, the manager then aims to maximize the strengths of the company, by balancing the production and use of its funds.
