Study On Flexibility Strategy Decision-making Model Based On Real Option Theory

Under dynamic and complicated environment, the operational environment of enterprise has fundamentally changed, and environment uncertainty leads to layer break to corporation strategy. Technical advances with the mimicry of rival make enterprise more and more difficult to maintain core competencies and keep on persistent competitive advantage. Flexibility strategy as effectively strategy management means that the enterprise replies the challenge of dynamic competitive environment, aims to make enterprise adapt change, make use of change and create change to control future, by establishing dynamic core competencies and surpassing competition to keep on competitive advantage.Firstly, the paper carries on an overview to the research on traditional strategy management and flexibility strategy, and points out the disadvantage of traditional strategy management, also points out the disadvantage of existing study of flexibility strategy. The research direction of this paper has been made. Secondly, the paper make an analysis of characteristic of dynamic competitive environment from origin of environment uncertainty, analyzes meanings and characteristics of flexibility strategy. The paper puts forward the measurement indexes system of flexibility strategy and bringing supply flexibility into the measurement system is one of innovative points. To the static and one-sided characteristic of traditional strategy management theory, and the limitations of mainstream theory's lack of quantitative thought and method, drawn support from real option idea and method, the paper structures flexibility strategy decision-making model under uncertain environment. The other innovative point lies in that according to normal strategy management course, analyzing the applied mechanism of the flexibility strategy decision-making model. Thirdly, taking risk management for background, to match the flexibility strategy value with environment to effectively eliminate the total risks. The paper builds an analytical model to explain how flexibility strategy eliminates risks. Based on real option theory, constructing flexibility strategy decision-making models under three kinds of different market conditions is the third innovative point. This paper not only has theoretical value, but also has application value to the enterprise.