Entrepreneurial Finance: Strategy, Valuation, and Deal Structure
Chapter 4. New Venture Strategy and Real Options
Learning Objectives
After reading this chapter you should:
• Understand what makes a decision strategic
• Understand the interrelationships between financing decisions and other aspects of new venture strategy
• Be able to explain how strategic decisions are related to the entrepreneur’s objective of value- maximization
• Recognize the real options reflected in strategic alternatives
• Understand how to use decision trees to identify and evaluate real options
• Understand how to use game trees when strategic choices depend on rival reactions
• Understand how the business plan is related to strategic planning and strategy implementation