Practice Option Is Applied Research, Strategic Investment Decisions

Along with the step of the world economy globalization speeding up, if the enterprises want to survive and develop for a long time in the intensely competitive and complex and changeable market environment, it must strengthen the validity of the strategic investment decision-making and enhance the competitive ability and its own value. Therefore, it has the important theory value and the practical significance to seek strategic investment decision-making methods that suit China national condition and the economical movement condition.Option pricing theory is one of the greatest discoveries of finance in twenty century. ts principle, method and conclusion can be widely used in analyzing managerial issues and making decision in macro-economics. When option pricing theory is applied in field of investment, it turns into real option theory. Real option is one of new developments of option pricing theory. It not only enriched the connotation of the theory, but also provides a wholly new way of risky investment decision for companies and individuals.This paper attempts to introduce real option theory into strategy investment decision-making. According to characters of the strategic investment, it proves that the strategic investment has the characteristic of real option, and expounds the serviceability of real option theory in the strategic investment decision-making appraisal. This paper makes the flexibility of the strategic investment decision-making become one scientific and reasonable analysis method. In this foundation, an analysis program of appraisal strategy investment decision-making in real option method has constructed. The strategic investment decision-making appraisal system based on real option theory has established. Finally, the strategic investment decision-making appraisal system is explained by a case.Any investment decision-making always involves two aspects: the qualitative cognition and the quantitative analysis. This paper introduces the Black-Scholes pricing model and the binomial tree pricing model in the quantitative analysis aspect, and it gives real option quantitative analysis.Because of the complexity of strategic investment decision-making under the indefinite environment and real option itself, the method in this article is impossible to be a fixed pattern to solve the strategic investment decision-making, but it only can provide one kind of analysis mentality and method. Further endeavor is needed in order to consummate the research of real option pricing method and serve the strategic investment decision-making.This paper will be helpful to apply real option theory in the strategic investment decision-making. It will improve strategy investment decision-making appraisal method in China and perfect strategic investment standard and method system. Thus the company policy-maker can accurately appraise value and the strategic prospect of the strategic investment project and enhance the efficiency of the strategic investment decision-making. It can improve the present development situation of strategy investment on the microscopic movement mechanism aspect.