Suchergebnisse

The authors develop a dynamic model of organization decision making that is motivated by the decision-making process at a multinational chemical firm, given the pseudonym Chemco, that they visited shortly after the Union Carbide explosion in Bhopal, India, and again six years later. Two major decisions were taken by Chemco that could be attributed in large part to the Bhopal disaster: the divestiture of one of its plants and the sale of a business. An analysis of those actions by Chemco underscores the importance of reference points and constraints in influencing organizational choices.

The real options approach is frequently advocated as an approach that offers a positive and radical reassessment of the value of risk and exploration. We examine a recent case where Merck used the real options approach to justify an investment in an R&D project. This case is used to highlight some of the problems associated with using real options. We note that the assumptions incorporated in most standard option valuation models can conflict with the conclusions reached by strategic analysis. As a result, users of real options models should understand the quantitative aspects of these models, and may often need to create a customized model for each situation. The difficulty of developing customized models may explain, in part, the limited use of the real options approach in strategic analysis.

The UN Secretariat has many international operations for which it must provide total or partial logistic support. Arrangements and provision must be made for about 500 conferences each year in various parts of the world. Support must be provided for the numerous offices of the Technical Assistance Board. The 35 information centers and the regional offices of the Economic and Social Council all place regular demands for support on the Secretariat. Support has been required for the many special political and peace-keeping missions—to mention a few, the UN Relief and Works Agency for Palestine Refugees, the Korean Reconstruction Agency, the UN Truce Supervisory Organization in Palestine, the UN Military Observer Group in India and Pakistan, and visiting missions to trust territories.