Studies on expansion decisions for chain stores with switch options approach

• Main Authors: Ying-Ru Tai, 戴英如
• Other Authors: Tyrone Lin
• Format: Others
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/09737612454971683298

碩士 === 國立東華大學 === 國際企業學系 === 101 === This paper aims to introduce switch options approach with managerial flexibility for evaluating the investment project on branches’ extension of chain stores. Under consumer spending behavior is uncertain, and follows geometric Brownian motion, there are two alternative options can be switched immediately; the programⅠ: expand scale of the original branch; the programⅡ: create new service location. With different movements of consumption’s variation and different switch cost so as to construct dynamic investment decision-making model by using switch options for assessing the firm value of chain store branches, also provide the managers with a more flexible policy thinking mode in response to the uncertain environment for the branches’ extension project on chain stores.