Real options in multinational decision-making:managerial awareness and risk implications

This paper addresses the theme of real options decision-making in multinational corporations (MNCs) and stresses the role of real options attention and managerial learning in company performance. Using a sample of 278 large MNCs with categorised degrees of managerial real options awareness, we examine the risk implications of switching options in multinational operations, and explore the extent to which the real options logic can be classified as “best practice” in decision-making and risk management. Our results reveal that MNCs which have high managerial awareness about their real options are able to reduce their downside risk through multinationality, organisational slack and other firm characteristics. This finding does not apply fully to MNCs without evidence of such an awareness. Also, although real options awareness does not systematically guarantee lower downside risk from operations, supplementary results indicate that MNCs with evidence of significant investment in the acquisition of real options knowledge tend to outperform competitors that are unaware of their real options. This suggests that if real options are explored and exploited appropriately, real options decision-making can result into superior performance for MNCs in the long-term.

An integrative approach to developing an intercultural awareness strategy in a multicultural university

Universities are increasingly diverse places; in terms of staff and students, their nationality, ethnicity and religious backgrounds. HEIs need to find ways of ensuring that this diversity adds to the life of the institution and to the development of graduates as employees in a global workplace. The paper offers a case study of one way of developing an intercultural strategy at a UK university. The university concerned has a highly multicultural and multinational staff and student population. Over many years the university has worked to celebrate and embed this diversity into the culture and values of the institution; in its learning, teaching, business operations and relationships. The university wished to develop its intercultural awareness strategy in an inspirational and vibrant way, one which was informed by research and practice. The paper proposes a new integrative approach to developing an intercultural strategy, and summarises some reflections on the process of creating the intercultural awareness strategy which may be of use to other institutions. Analysis showed that in order to make the strategy effective there had to be commitment from senior management to match innovative practices at an individual level. It is also clear that such a strategy must include formal policies and procedures, as well as more informal channels to allow people to express intercultural differences and shared values. The critical role of middle management in strategy implementation is also discussed.

Partnering with governments and other institutions:driving change in diabetes care

The human and material cost of type 2 diabetes is a cause of increasing concern for health professionals, representative organisations and governments worldwide. The scale of morbidity and mortality has led the United Nations to issue a resolution on diabetes, calling for national policies for prevention, treatment and care. There is clearly an urgent need for a concerted response from all interested parties at the community, national and international level to work towards the goals of the resolution and create effective, sustainable treatment models, care systems and prevention strategies. Action requires both a 'bottom-up' approach of public awareness campaigns and pressure from healthcare professionals, coupled with a 'top-down' drive for change, via partnerships with governments, third sector (non-governmental) organisations and other institutions. In this review, we examine how existing collaborative initiatives serve as examples for those seeking to implement change in health policy and practice in the quest to alleviate the health and economic burden of diabetes. Efforts are underway to provide continuous and comprehensive care models for those who already have type 2 diabetes; in some cases, national plans extend to prevention strategies in attempts to improve overall public health. In the spirit of partnership, collaborations with governments that incorporate sustainability, long-term goals and a holistic approach continue to be a driving force for change. It is now critical to maintain this momentum and use the growing body of compelling evidence to educate, inform and deliver a long-term, lasting impact on patient and public health worldwide. © 2007 The Authors.