Strategic functional management is the approach a functional area takes to achieve corporate- and business unit objectives and strategies by maximizing resource productivity. It is concerned with developing and nurturing a distinctive competence to provide a company or business unit with a competitive advantage (Wheelen, 2002:160). The credit function, with debtors as the largest current asset on the balance sheet, is such a functional area that should be concerned with providing the organisation with a competitive advantage. Although many generic organisational strategic models are available, there is a lack of guidelines on how to mange the credit function strategically. The objective of this research was to develop a framework, which could be used by credit managers as a management tool, to select those aspects of the credit function, which are relevant for an organisational strategic role. In order to achieve this goal, the following sub objectives have been identified in which the framework should enable credit managers to: scan the credit function's external and internal environments to keep in touch with opportunities and threats and to determine strengths and weaknesses, and to formulate, implement and evaluate credit and collection strategies that could contribute to organisational strategic goals. A literature study method was used to collect data to be incorporated in the development of this framework that will serve as basis for the alignment of strategic credit management principles with strategic organisational principles. The focus of the proposed framework was to use and adapt the four basic elements of Wheelen's organisational model (Wheelen, 2002:2) into a more specific model applicable for credit functions. It was concluded that a competitive advantage could be obtained by the use of this proposed strategic credit management framework. Credit managers should be trained on how to use this framework effectively and then ensure that it is implemented, evaluated, monitored and controlled on an ongoing basis. However, the applicability thereof in practice is reserved for future studies. / Prof. A. Boesenkool
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:6797 |
| Date | 06 May 2008 |
| Creators | Van Zijl, Carina |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
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