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Traditional methods of marketing evaluation may underestimate the true benefits from brand marketing, unless opportunities for brand extension are included in the evaluation. However, valuing brand extension opportunities is not without difficulties. Traditional discounted cash flow (DCF) analysis may underestimate the value of brand extension, in particular the value of flexibility, such as the ability to increase or decrease brand extension investment depending on future circumstances. An approach based on real options theory is recommended and it is demonstrated how this can be used both formally, to evaluate the contribution of marketing to the success of a brand extension, and informally, to influence the thinking of brand managers.

Retail properties are a perfect example of a property class where revenues determine the rent for the property owners. Estimating the value of new retail developments is challenging, as the initial revenues can have a significant variance from the long-term revenue levels. Owners and tenants try to manage this problem by introducing different kind of options, such as overage rent and extension rights, to the lease contracts. The purpose of this paper is to value these options through time for different types of retailers, using real-life data with a method that can be easily applied in practice.

This paper builds upon the existing papers on real option studies but has a strong practical focus, which has been identified as a challenge in the field. The paper presents simple mathematical equations for valuing overage rent and extension options. The equations capture the value related to uncertainty (volatility) that is missed by standard valuation practices.

The results indicate that overage and extension options can represent a significant proportion of retail lease contract’s value and their value is heavily time-dependent. The option values differ greatly between tenants, as the volatilities can have a large spread across tenants. The paper suggests that the applicability of option pricing theory and calculus should not be considered as an insurmountable barrier any more, rather a greater challenge for the practical adaptability of the method can be the availability of real-life data that is a common problem in real option analysis.

The value of extension and overage options varies greatly between tenants. In general, the property owner can try balance the positive effects from the overage rents to the negative effects of tenant extensions. However, this study tries to highlight that, as usual, using the “law of averages” can result into poor valuation in this context as well. Even the data used in this study provide valuable findings for the property owner as an analytical deduction can be made that certain types of tenants have higher volatilities and this should be acknowledged when valuing options within lease contracts.

Previous literature in this topic often takes the input data for the option valuation as granted rather than trying to identify the real-life data available for the calculation. This is a common problem in real options valuation and it seems to be one of the reasons why option valuation has not been used widely in practice. This study has used real-life data to assess the problem and more importantly assessed the data across different types of tenants. The volatility spread between different types of tenants has not been discussed previously, even though it has a significant importance when using option pricing in practice.

There has been a long controversy in the literature on assessing the value of human capital – a long-sought but elusive and challenging task. The ability to quantify flexible human capital (FHC) has been a shortcoming in extant literature. We make a meaningful contribution by showing how real options (RO) methodology can be used to quantify FHC and we provide complementary case study evidence from Fortune 500 “best companies to work for” that the value of employee career development is higher in more volatile sectors in line with real options theory (ROT).

This article provides a prescriptive RO methodology for adopting a more flexible, staged SHRM organizational perspective suitable for uncertain environments, and explores its theoretical and empirical implications through the dual use of RO methodological modelling and multi-case study data involving ten Fortune 500 companies. The case study approach is aimed at creating managerially relevant knowledge. The relevance of our approach to managerial practice is shown through guidelines on how a company like Google might use the RO methodology to estimate the career development option value so as to inform its internal development program for employees to create and capture value.

Our focus is on the staging flexibility in HR as exemplified by the internal career development process. This process can be viewed as a multi-stage (compound) option involving various types of HC uncertainty, HC options, and HR practices. We model staging HR deployment via the option to promote staff employees to middle-level management, itself embedding the option to rise to the top management. To empirically validate our valuation approach, we present case study research that enables quantifying the option value of a career development program and allows assessing how much a mismatch exists in a sample of ten public U.S. companies.

The overall staging quantification idea is important as it offers guidance as to how to value HR as a sequential investment process under uncertain demand or skill conditions. The analysis is limited to the extent that staged career development might interact with other types of human capital (e.g. switch and learning) options and HR practices (e.g. training). Human resources may also interact with other organizational intangibles, such as brand equity. Our analysis also does not account for psychological considerations from the employees' perspective, such organizational commitment facilitating trust to enable reciprocal commitments, which remains a fruitful subject for future extensions.

ROT can provide useful guidance and tools for HR scholars and managers. By keeping tabs on HR-based flexibility value and focusing on the key input variables driving HR flexibility, HR managers can determine the flexibility value unleashed from staging the deployment of HC resources in the face of unanticipated demand and skills shifts.

This is the first paper that attempts to quantify the value of staged career development flexibility using the RO methodology. This article will be cited for its innovativeness in being the first to quantify the value of human capital's contribution to corporate value creation and provide objective evaluation in the context of organizational career-development programs. Besides providing useful insights to scholars, the article also demonstrates how the RO methodology can apply to actual companies and inform managerial practice offering guidelines of relevance to HR practitioners on how to quantify the value of staged HC development in an uncertain environment.

The objective of this paper is to analyze the effect that a brand extension strategy has on brand image. Specifically, the paper analyzes how variables related to the parent brand and the extension influence brand image after the extension. From a sample of 389 consumers the paper demonstrates that the extension strategy dilutes the brand image. Through a regression analysis it is shown that the perceived quality of the brand and consumers’ attitudes towards the extension positively influence both the general brand image (GBI) and the product brand image (PBI) after the extension. While familiarity with the products of the brand only affect the GBI, the perceived degree of fit affects the PBI.

The main purpose of this article is to present a research study of brand extension with developing an innovative product in a new product category.

A case study is presented by one of the leading Slovenian brands in the market of fast moving consumer goods. More specifically, the paper deals with the market of chicken pariser sausages products and the brand called Poli. Poli is the first chicken pariser sausage on the European market and the best‐selling sausage in its category. The challenge that the Perutnina Ptuj d.d. company faced, as the owner of the abovementioned brand, was how to fully utilize the strength of the Poli brand. The article concentrates on the results of the quantitative research in a sample of n=800 chicken products consumers in Slovenia.

Results show the positive influence of the parent brand on the brand extension to the new product category. With launching a new product brand Poli is entered into a new category, namely the group pate.

The article shows that a combination of steps with the competition analysis, brand analysis, analysis of the purchase decision‐making process and analysis of brand perception represents an efficient tool for the brand extension.

This paper aims to identify the imbedded option value in price of auctioned land in Hong Kong, and to propose a more accurate valuation method in predicting land price.

Based on records of land auctions and property transactions during two periods of very different market conditions, land prices are estimated using the traditional hedonic pricing method as well as the option model modified from Quigg. The results are compared to deduce whether there is any imbedded option value, thus concluding whether the option model facilitates a more accurate valuation of land prices.

This study concludes that land auction prices have embedded option value in waiting to develop land. Option premiums increase with implied volatilities, which go up during market downturns, suggesting that developers place higher value on the option to develop during recessions.

The accuracy of the analysis may have been compromised by the limited number of land auctions conducted and the difficulties in inferring the value of multi‐ownership residential buildings from sample transactions of their constituent individual units. Future research will benefit from a larger sample of transactions.

This paper illustrates that real option models provide the property industry with a valuation tool that addresses the concern arising from the irreversibility of investment decisions.

The study finds out the option premiums of vacant land in Hong Kong, lending empirical support to the application of option‐based models for more accurate land valuation under different market conditions.

Traditional return on investment analysis techniques like discounted cash flow (DCF) and net present value (NPV) fall short of providing adequate decision support in today’s turbulent environment. New techniques, grouped under the concept called “business value analysis” (BVA), show promise. These techniques include intellectual capital, real options valuation, business model dynamics, and synthetic markets. They extend DCF to include intangibles and other factors common to the digital economy. These techniques are just now emerging from research, and they are undergoing further development, refinement, and testing on the way to becoming widespread in practice. It’s unlikely any of these techniques will be a “silver bullet” that makes investments a sure thing, but they can improve business performance and the chances of success.

The paper aims to identify adoption criteria for “revolutionary” business techniques; based on case material, it invites further research.

Building on the idea of scientific revolution, three cases from sub-disciplines of business administration are chosen to illicit adoption criteria for business techniques.

The analysis shows that a logical response to a problem, the availability of a controllable procedure, the software and the means to apply the procedure easily, and the hardware, jointly seem to explain the adoption of “revolutionary” business technologies.

In case analysis in general, the results do not lead to induction. More research might identify additional success criteria. Furthermore, it might lead to determining adoption probabilities of techniques.

Managers being introduced to new techniques in business administration might use the criteria outlined here for their evaluation.

The author believes that the paper sheds new light on the development of business technologies and that this light might guide developers of technologies to come up with more potentially successful technologies.

This exercise exposes students to complex lease transactions, requiring research in the FASB Accounting Standards Codification, archived standards, and future standards (exposure drafts (ED)).

Case study/exercise/assignment.

Students analyze how a retail establishment examines lease transactions to ensure its practices are in line with its mission. Students gain experience researching archived, current, and future standards. Student feedback suggests that students feel the exercise is valuable because it reinforces what they learned in earlier courses and it requires them to understand all aspects related to capital and operating leases. Furthermore, direct assessment data based on grading rubrics indicates that most students meet instructor expectations and indirect assessment data based on student perceptions indicates students are meeting the exercise learning outcomes.

This learning exercise fosters critical thinking skills; emulating professional practice issues and enhancing written and communication skills. It reinforces graduate students’ undergraduate learning related to leases.

The farmers used several information sources to gather information about the climatic variability and modern agricultural practices to cope with climate change. The choice of adaptation strategies and the successful implication of adaptation strategies depend on accurate, timely information on the climate variability and precise technical details of adaptation strategies. By keeping the importance of climate information and agricultural extension information in the center, this study aims to conduct a micro-level evaluation of farmers’ choice of climate information, agriculture extension services and agricultural credit sources. This study’s primary objective is to understand how the different sources of climate information and agricultural extension influence farm household adaptation decisions.

This study has been conducted in three subs agro-climatic zone of the Middle Gangetic Plain region, which falls in India’s Bihar state. This paper has randomly selected seven districts from these three subs agro-climatic zone to collect the data. The analysis of this study is based on survey data collected from 700 farm households. This study has used descriptive statistics and a logistic regression model to assess the sources of climate information, agricultural extension and credit sources and how these sources influence farm households’ adaptation decisions.

The result of this study shows farmers are using different traditional (sharing experience, newspaper and radio), information and communication technology (mobile and TV) and institutional arrangements (agricultural officer and meteorological department) in the study area. The study’s finding identifies different farm households’ different sources and how these options farming farmers’ adaptation decisions. The study further revealed that institutional factors such as extension services and access to information on climate change increase the probability of adopting knowledge-intensive adaptation strategies such as soil conservation, water conservation, crop insurance and planting horticulture and vegetables.

The study has conducted a micro-level assessment of adaptation behavior at the local level to understand the factor influencing the adaptation decision. This study’s finding is useful in designing the appropriate policy framework for the farm household’s capacity building to enhance their technical skills and awareness toward the institutional arrangements.

This paper’s finding pointed out institutional arrangements’ requirement to improve adaptive capacity to make long-term strategic decisions to cope with climate change.