REAL OPTIONS THEORY AND STRATEGIC CAPABILITIES DEVELOPMENT

The paper discusses the choice of stochastic process in real options valuation of strategic investments and the main useful tests and theoretical considerations to give support to this task. Also the review of the relevant research literature is given. Development of an organisational system can be described with logic of evolutionary process. It is comprised of variation, selection and retention. In organisational systems, making different decisions acts as a part of variation. Success in correct orientation, which is a consequence of correct decisions, selects the environment of the system. In case of business and production systems this is the market.