logo share us

Real Options

   

Definition: Real Options is a concept by Timothy Luehrman to apply financial options theory into the realm of business strategy and corporate strategy, viewing a business strategy as a series of options rather than a series of static cash flows.
RO capture the value of managerial flexibility to adapt strategic decisions to strategic risks or unexpected market developments.
A company can create shareholder value by identifying, managing and exercising RO, associated with its investment portfolio. For example, the option value in being able to delay, abandon or expand the decision about some major strategic investment.


   
   
💡

Learn more about Real Options.



More on business strategy: 3C's Model of Ohmae, Ansoff Matrix, Business Continuity Planning, Business Model, Business Model Canvas, more on business strategy...


MBA Brief provides concise yet precise definitions of organizational concepts, management methods, and business models as taught in an MBA program.

We keep it short and provide links to high-quality websites where you can learn more about your topic.


add us to your desktop

Add MBA Brief to your desktop / iPad

   

© 2024 MBA Brief - Last updated: 6-12-2024  -  Privacy   |   Terms