The sources of construction business for local firms have been shifted gradually to oversea market over years due to domestic economic recession. Nevertheless, the revenue seems standstill against to the growing contract amounts since the cost has been encroached on the present cost estimation procedure which based on personal instincts, experiences and simple formula that out of ability to identify the future uncertainties and frame the flexible management in advance under drastic business environment.
To enhance the managerial insight and flexibility of evaluation process for the future uncertainties, we proposed and constructed a real optional model of risk cost upon traditional cost evaluation process. As a result of experiment, the sources of uncertainties and the flexibilities for management could be observed and directed clearly to against the risk without subjective or instinctive recognization anymore.
Seveal occasions of application of real option value have been suggested in this study several important key points should be emphasized before using it: neither profit/loss nor price for accounting can be promised with the real option value; rather an expectable goal for managers to achieve. Appropriate flexible activities should be studied and approached before making decisions to acquire real option value.
Maximized overall real option value could be a powerful competition tool for any company that tries to adopt real option approach to profit estimation if the interaction and synergy of real option among individual projects could be integrated effectively. Under the support of authority and interorganization commitment, the real option process should be learned and modified evolutionary according to dynamic business environment then becomes a strategic advantage.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-1117108-091123 |
| Date | 17 November 2008 |
| Creators | Lin, Hsih-Shiu |
| Contributors | Tsuang Kuo, Hueimei Liang, Iuan-yuan Lu |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-1117108-091123 |
| Rights | not_available, Copyright information available at source archive |
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