Use the FIU Library site to download the academic paper referred to below.
Suppose your company is thinking about venturing into new unchartered territory. Write a memo to your CEO using the above reference to convince him whether or not to invest in that venture. The new ‘territory’ may be expanding the current product line into a foreign country or a completely new product/service in your existing location.
Tony W Tong and Jeffrey J Reuer, Real options in multinational corporations: organizational challenges and risk implications,
Tony W Tong: School of Management, State University of New York at Buffalo, Buffalo, NY, USA
Jeffrey J Reuer: Kenan-Flagler Business School, University of North Carolina, Chapel Hill, NC, USA Journal of International Business Studies, 2007, vol. 38, issue 2, pages 215-230
- You will need to perform to following steps in your memo:Describe the venture.
- Describe the pros and cons of undertaking the venture using techniques from the above paper.
- Describe using Real Option Analysis how the company may undertake a course of action that alters the present value of the cash-flows from a real physical asset (creativity is encouraged).
