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.

Evaluation, Investments, Discounted cash flow

---

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.

Management, Innovations, Engineering services, Engineering firms, Machine-tools, Numerically controlled machine tools, Flexible manufacturing systems, Flexible assembly systems, Great Britain

---

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.

Research, Accounting and auditing, Managerial accounting

Similar abstracts:

• Abstracts: Using Motivation as a Management Tool. Changing the managerial agenda. Non-normal error patterns: how to handle them
• Abstracts: The Capital Asset Pricing Model and Strategic Planning: Response to Wernerfelt. Influence activities and strategic coordination: two distinctions of internal and external markets
• Abstracts: Applicant attraction strategies: an organizational perspective. Historical Perspective: Using the Past to Study the Present
• Abstracts: Relationship banking and competitive advantage: evidence from the U.S. and Germany. Technological pioneering and competitive advantage: the birth of the VCR industry
• Abstracts: Deregulation and liberalization in India: the managerial response. China's special economic zones: the cultural and managerial challenges

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.