Valuing tactical and strategic flexibility
Article Abstract:
The traditional discounting procedure for evaluating investments is not appropriate for many complicated projects. The conventional discounted cash flow (DCF) is based on the view that operating decisions are fixed in advance, thereby generating the base case set of incremental cash flows. This static perspective does reflect a business world in which the ability of investments to change tactical and strategic direction in response to changes in the environment can add value. Such flexibility should be taken into account when evaluating investments. It is proposed that an ideal investment appraisal technique for valuing tactical and strategic flexibility is one that combines based case DCF and an option valuation routine.
Publication Name: Journal of General Management
Subject: Business, general
ISSN: 0306-3070
Year: 1997
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Small firms, advanced manufacturing technology, and flexibility
Article Abstract:
A 1983 survey of 40 small English engineering firms studied investment in and use of computer numerical control (CNC) machine tools, and the relationship between CNC and employment levels. Interviewees included: 37 managing or Board directors, 18 engineers or managers, and 129 CNC machine operators. Identified advantages of CNC include: allowance for complex and accurate machining, quicker design of jigs and fixtures, and optimization of tool feeds and speeds. Twenty-seven of the responding companies identified remaining competitive as the main reason for CNC purchase, but other reasons included improving production times, impressing contractors, and cutting costs.
Publication Name: Journal of General Management
Subject: Business, general
ISSN: 0306-3070
Year: 1987
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Management accounting for the new manufacturing environment
Article Abstract:
The old accounting practices developed in the time of mass production stable technologies and labor intensity are ineffective in today's flexible, immediate manufacturing. Research reviews the inadequacies in cost accounting and reviews the proposed alternatives to overcome the problems. A multi-professional approach may be needed to compensate for the industrial changes.
Publication Name: Journal of General Management
Subject: Business, general
ISSN: 0306-3070
Year: 1988
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