Browsing by Author "Kresta, Aleš"

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    Application of fuzzy numbers in binomial tree model and time complexity
    (Technická Univerzita v Liberci, 2013-08-01) Kresta, Aleš; Zmeškal, Zdeněk; Ekonomická fakulta
    Discrete binomial models are powerful tools for options valuation. For simple pay-off options they can be viewed as an approximation of famous Black-Scholes option valuation formula. By increasing the quantity of periods in binomial model (i.e. decreasing the length of the period), the results converge to the continuous model. However this approximation is very computationally costly, thus the analytical solution to the valuation is preferable. Nevertheless, the analytical solution does not exist for more complicated pay-off options. In the article we assume the valuation of project with the possibility to change the quantity of products produced. Some input parameters (concretely the volatility and initial cash-flows) are assumed to be uncertain and stated as a fuzzy numbers. Illustrative example is provided in the paper. In this example we examine the time complexity of the algorithm and the influence of the imprecision of input parameters on the appraisal imprecision. From the results it is apparent that the complexity of the model is quadratic. Thus by increasing the quantity of periods in the binomial model it becomes unreasonably time demanding.
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    Competitive strategy decision making based on the five forces analysis with AHP/ANP approach
    (Technická Univerzita v Liberci, 2013-08-01) Franek, Jiří; Kresta, Aleš; Ekonomická fakulta
    The paper deals with a strategy making process on an example of high-tech firm. The strategy making process is the key task of any organization but especially in the fast changing environment of a high-tech firms it is crucial to also look ahead be able to differentiate the strategy approach. The strategic thinking is a structured decision making process that requires an assessment and evaluation of a large number of factors, criteria and data. When dealing with innovative approaches to decision making and strategic thinking it is necessary to follow a standardized structure. Contemporary knowledge society is determined by scattered information that can be accessed by a large number of subjects. This gives a great possibility to an independent subject to gather large intelligence about the business environment and all other related issues. This large quantity of information has to be structured in a hierarchical manner with interrelations. Even with this access to extensive intelligence the decision making process is always biased by some degree of subjectivity because it is made by people even with high competency. The paper presents an approach to strategic decision making process that uses well known Porter's Five Forces Analysis amplified by application of multiple attribute decision making decomposition methods Analytic Hierarchy Process and Analytic Network Process. The aim of the paper is to present both methods and compare the results of the competitive strategy decision making process using these methods also with the traditional approach. The first part of this paper includes an introduction to the strategic decision making and five forces analysis. The next part deals with multiple attribute decision making methods especially with the AHP and ANP with short review of up to date references. Following part is concerned with the methodology and general approach. The results are presented in the final part together with discussion and further applications.