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(1) Natural disasters & supply chain management
(2) Lean management in the service economy
(3) Coming out of an economic crisis
The notion of 'real options' applies option pricing theory to non-financial assets. The complexity of modelling investments as options has meant that, to date, options literature has had relatively little impact on management practices. This article examines recent attempts to find an optimum methodology for evaluating real options with the plethora of alternative evaluative models that have encumbered the debate on real options, is it any wonder that management is cautious? A convergence of approaches to arrive at a 'manager-friendly' valuation method may be at hand.
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