Tag: scenario analysis

  • Tools for Enhancing a Firm’s Strategic Flexibility Capability

    To cope with today’s uncertain, turbulent, and unpredictable business environment, strategic flexibility (SF) has surfaced as an indispensable capability and a measure of success that firms should possess to generate and sustain competitive advantage and achieve superior business performance. Strategic flexibility is considered an important capability for a firm to respond quickly to a turbulent…

  • Role of Artificial Intelligence (AI) in Enriching Firms Strategic Management Capability

    Artificial Intelligence (AI) technologies which use complex computer systems and machine learning are emerging as powerful tools that enhance the capabilities of human intelligence to help in solving complex business problems and making effective strategic decisions where human intelligence has limitations. AI is not a business strategy but can be regarded as a functional strategy…

  • Combining Scenarios and Real Options to Address Uncertainty in Strategy Formulation

    The 21st century business environment has even become more turbulent and uncertain, and therefore unpredictable. Every firm deals with uncertainty in its lifecycle. Uncertainty impedes the ability of management to make strategic decisions. There are many sources of uncertainty, but the most important ones are related to the firm’s external environment and black swan events.…

  • Effective Performance Measures of Corporate Control

    The primary purpose of strategic management is to maximize the firm’s performance in the long-run. In financial terms, this means maximizing the enterprise value of the firm by maximizing the net present value of the stream of profits (cash flows) over the long-run. Enterprise value is equal to shareholder value plus the value of the…