Real options managerial flexibility and strategy
In the s and the s, developments in the valuation of capital-investment opportunities based on options pricing revolutionized capital budgeting.
Managerial flexibility to adapt and revise future decisions in order to capitalize on favorable future opportunities or to limit losses has proven vital to long-term corporate success in an uncertain and changing marketplace. In this book Lenos Trigeorgis, who has helped shape the field of real options, brings together a wealth of previously scattered knowledge and research on the new flexibility in corporate resource allocation and in the evaluation of investment alternatives brought about by the shift from static cash-flow approaches to the more dynamic paradigm of real options -- an approach that incorporates decisions on whether to defer, expand, contract, abandon, switch use, or otherwise alter a capital investment.
Comprehensive in scope, Real Options reviews current techniques of capital budgeting and details an approach based on the pricing of options that provides a means of quantifying the elusive elements of managerial flexibility in the face of unexpected changes in the market. Real options managerial flexibility and strategy discussed are the strategic value of new technology, project interdependence, and competitive reuters india forex rates. The ability to value real options has so dramatically altered the way in which corporate resources are allocated that future textbooks on capital budgeting will bear little resemblance to those of even the recent past.
Real Options is a pioneer in this area, coupling a coherent picture of how option theory is used with practical insights in into real-world applications. Managerial flexibility to adapt and revise future decisions in order to capitalize on favorable future opportunities or to limit losses has proven vital Version papier du livre.
Real Option
Managerial Flexibility and Strategy in Resource Allocation. OptionPricing Theory and FinancialOptions. A Conceptual Options Framework for Capital Budgeting.
Interactions among Multiple Real Options. Strategic Planning and Control.
Real Options Theory
The power of modularity","authors": It argues that the industry has experienced previously unimaginable The power of modularity Carliss Young BaldwinKim B. Roger MillerDonald R. Managerial Flexibility and Strategy in Resource Allocation Lenos Trigeorgis MIT Press- pages 0 Avis In the s and the s, developments in the valuation of capital-investment opportunities based on options pricing revolutionized capital budgeting.
The Strategic Management of Large Engineering Projects: