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FinanceTheory / principleReal options theoryWhen and how should real options theory be applied?Use real options reasoning when outcomes are uncertain, management can respond to future information, the response has material economic value and the initial decision affects whether that flexibility remains available. It is especially useful when a conventional discounted cash flow or net present value calculation treats management as passive and therefore misses the value of staged commitment.IntermediateStrategicFigures
Organisational behaviourFramework / modelBottom of the pyramidHow can bottom of the pyramid support strategic choice or positioning?Use the bottom of the pyramid (BoP) perspective when mature markets are crowded and the organisation is considering how to serve low income communities currently excluded by existing offers. Opportunity depends on designing products that are appropriate and genuinely affordable, building accessible distribution and ensuring that limited household resources are exchanged for meaningful value.AccessibleStrategicFigures
MarketingFramework / model4Ps of marketing (Kotler)How can 4ps of marketing (kotler) support strategic choice or positioning?Marketing and sales connect the customer's perspective with the organization's. Reviewing the four elements reveals how the organization currently interacts with customers, how it could serve prospective customers and how its offer is positioned in their minds. The mix is a tactical toolkit within marketing strategy, and repeated adjustment helps the organization respond to changing needs in a chosen segment while supporting corporate strategy.AccessibleStrategicFigures