Study Of Real Option Approach By Stages At X Program Management Of Interior Company A

Along with the slowing down economy development and satured auto-mobile market,how to find the best investment decision and competition strategy is more valued by enterprises strategically.The discounted cashflow approach is still popular domestically,which is relying on constant cashflow condition but more deviating from the real performance after launch.Contrastly,the real option approach is more valuing on the flexible management mechanism with brighter market feedback gradually,which is more effectively supporting the decision-making under the fluctuating environment.The paper has clearly stated the comparison of discounted cashflow approach versus real option approach and illustrated the factors,models and status of real option development,refering to the existing studies of both theories,including characteristics and categories.With the background introductions of market and program,the paper has indicated the misuse of value assessment happening currently in company A.Thru the modeling of discounted cashflow approach and real option approach along with the launch path of X program,within the real value estimation,the paper has measured the value of flexible management and also pointed out the highlighted priorities of the factors according to their individual impact efficiency on program value change per GESKE.With above research upon influential mechanism of investment in interior industry,the paper has highlighted the factors impacting the value estimation and its strength on decision-tunning,which is a new exploration and extension of real option approach.In a view forward,besides of the variants analysis and calculation polishment,the compound value analysis of real options under compound market situation will be more focused along with the value research of flexible manufacturing configuration and platform product design in company A.