Managerial flexibility

Managerial flexibility

Flexibility in the timing and scale of investment provided by a real investment option.

Managerial Flexibility

The ability of the management of a company or fund to make investment decisions and other decisions based on current or projected market conditions, as opposed to any preconceived notions.
References in periodicals archive ?
However, this technique does not take into account the value of managerial flexibility in these types of projects (Helland & Torgersen, 2014).
KEYWORDS: managerial flexibility, company reorganization, business database, innovation services, organizational flexibility, quality of service, strategic management, information technology, project management.
In this paper, various impacts of managerial flexibility and the fit of required flexibility over customer satisfaction have been investigated at three levels: functional, structural and strategic.
In a context where precarity is increasing, workers' struggles to limit managerial flexibility is crucial.
The value of this managerial flexibility in an uncertain environment is not captured by the traditional methods of evaluating investments , such as Discounted Cash Flow (DCF ) , as flexibilities requires a system with optional features.
Valuing Managerial Flexibility in Technology R&D, Proceedings of the 16th Annual International Real Options Conference, London, 26 pages
Real options could be used as a beneficial tool for valuing managerial flexibility to adapt decisions in response to unexpected market developments and changes.
The frequency with which these provisions appear in warrant agreements underscores the value of managerial flexibility in growth companies.
On the other hand, inventory managerial flexibility is not visible to customers because it is buffered by the firm's purchasing, sourcing, and operations management process.
However, many scholars have recognized that the traditional discounted cash flow (DCF) model fails to account for the value of such managerial flexibility.