This unit presents tools for valuing strategic options that exist in business entities, with the aim being to bridge the divide that often exists between corporate finance and corporate strategy. The main tools examined are game theory and real options analysis. Game theory offers a systematic, structured approach to analysing strategic decision-making when there are situations of interdependence between the firm and its competitors. Real options analysis provides an investment evaluation tool that incorporates the value of flexibility and growth opportunities in an uncertain environment where competitors can affect each other’s behaviour. -- Course Website
Instructor: [email protected]
Prerequisites: MGSM840
