Category: Corporate Strategy
M&A: When two plus two is five or three or …
Mergers & Acquisitions (M&A) is a way for companies to expand rapidly and much faster than organic growth would have allowed.
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You only live once
It can be shown that the ensemble average always will overestimate the growth and thus can falsely lead to wrong conclusions.
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The probability distribution of the bioethanol crush margin
In the following we will illustrate some of the risks the bioethanol producer is facing using corn as feedstock. However, these risks will persist regardless of the feedstock and production process chosen.
Planning under Uncertainty
Let’s say that the board have sketched a future desired state (value of equity) of the company and that you are left to find if it is possible to get there and if so – the road to take.
Uncertainty modeling
We know that forecasts based on average values are on average wrong. In addition will deterministic models miss the important uncertainty dimension that gives both the different risks facing the company and the opportunities they bring forth.
Stochastic Balance Simulation
We know that forecasts based on average values are on average wrong. In addition deterministic models will miss the important dimension of uncertainty – that gives both the different risks facing the company and the opportunities they produce.
A short presentation of S@R
Most companies have some sort of model describing the company’s operations – but…
Selecting Strategy
When there is no uncertainty the maximum return criterion can be used to rank strategies. With uncertainty we have to look for the strategy that maximizes the firms expected utility.
