Creating Value by Spawning Investment Opportunities
Eero Kasanen
Financial Management, 1993, vol. 22, issue 3
Abstract:
A central managerial concern is how to generate a "proper mix" of investment projects. Funds are needed for the strategic search for new investment opportunities as well as for the maintenance of operational business lines. Any investment, especially in strategic projects such as new technology, brand name or company image, may generate future investment opportunities (hence the use of the word "spawning"). Investment opportunities can be seen as call options on certain capabilities or assets. This paper presents new tools for analyzing the spawning structure and for managing investment opportunities over time.
Date: 1993
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