Real Option Valuation in Service Industries by Jürgen Müller

By Jürgen Müller

Uncertainty is the best threat administration faces, however it additionally offers huge, immense possibilities for price construction. Basing strategic judgements on theoretically rigorous research is for that reason very important to long term company luck in an doubtful and altering market. the genuine alternative strategy is the software to combine the values of flexibleness and uncertainty into capital budgeting. Jürgen Müller applies the genuine choice method of provider industries, for this reason to retail banking; he offers empirical aid for the procedure and simplifies the applicability of actual alternative recommendations in company perform. in keeping with a case examine of the Polish retail banking marketplace, the writer develops and illustrates a simplified method of genuine choice valuation in accordance with the binomial choice pricing model.

Show description

Read Online or Download Real Option Valuation in Service Industries PDF

Best management science books

Managementwissen: Know-How für Berufseinstieg und Existenzgründung

Für Erfolg im Beruf sind neben Fachwissen auch betriebswirtschaftliche Grundkenntnisse und Managementfähigkeiten entscheidend. Das Buch führt auf verständliche Weise in die Begriffswelt der Betriebswirtschaftslehre ein, erklärt für Absolventen in den ersten Berufsjahren und für Existenzgründer in der Startphase die Abläufe in Unternehmen und gibt konkrete Handlungsempfehlungen.

The Triple M of Organizations: Man, Management and Myth

What has administration to do with myths? and the way does gender input the degree? This booklet identifies usually used key arguments in gender discussions on administration and corporations and may unmask them as myths. Be it that administration is rational, be it that corporations are gender-neutral, be it that girls will swap expertise, can be proven to be a collection of superficial declarations no longer withstanding serious scrutiny.

A New Institutional Economics Perspective on Industry Self-Regulation

The belief of self-regulation as an tool in a position to mitigating socially bad practices in industries - corresponding to corruption, environmental degradation, or the violation of human rights - is receiving mammoth attention in thought and perform. by means of coming near near this phenomenon with the speculation of the recent Institutional Economics, Jan Sammeck develops an analytical process that issues out the serious mechanisms which make a decision in regards to the effectiveness of this tool.

The International Manager: A Guide for Communicating, Cooperating, and Negotiating with Worldwide Colleagues

At present, across the world dispersed groups are general between worldwide businesses. Managers are frequently conscious conceptually of different dimensions of tradition, but fight to translate those strategies into their day-by-day actions. This e-book provides managers perception into particular options they could use to higher deal with their intercultural groups and take care of companions, providers, and shoppers from different international locations.

Additional resources for Real Option Valuation in Service Industries

Example text

967). 43 For the prerequisites to set up a bank, several laws need to be considered (Baue, Grabowski, Raczko (1995), p. 170). The minimum capital requirements are the equivalent of USD 2 million for a Polish entity and USD 6 million for a foreign entity, compared to ECU 5 million as EU standard (Belka, Pruski, Raczko (1995), p. 239) 2. Retail bankinginanemerging market: The case of Poland 19 Western companies. Exceptions are consumer finance banks such as Ford Bank and GE Capital or Citibank, which has launched a retail credit card.

After a general discussion of recent economic developments in Poland, the institutional framework for the banking industry is explored. A discussion of the current competitive Iandscape in Polish retail banking follows. The real options approach to capital budgeting, which represents the general framework of analysis for this thesis, is introduced in chapter 3. Starting from the current capital budgeting paradigm - the discounted cash flow analysis - the real options approach is presented as a theoretically consistent extension of the traditional approach.

Foreign competition In regard to future EU membership, Poland has agreed to fully open its financial markets to foreign entry by 1999. This will facilitate the granting of a banking license or the acquisition of a Polish bank. " Taking Portugal and Spain as reference points, lower barriers to foreign entry are likely to increase competition and the trend towards consolidation in the industry. " 50 Kern (1996), p. 77 51 Price Waterhouse (1997); OECD (1995), pp. 128-129 51 See, for example, the investments by Allied Irish Bank and ING in the context of the twinning program.

Download PDF sample

Rated 4.02 of 5 – based on 42 votes