We emphasise demand, cost, and market structure analyses. We also examine the economics of pricing practices and the role incentives play in markets that supply our clients operations and markets into which they sell their products and services.
Economic tools of supply and demand are used to analyse current economic and social issues. This provides a wider context to the financial cash flow appraisal of projects.
Lytton Advisory helps clients understand how their investment in business capital or infrastructure to service their customers generates financial outcomes.
Our approach is attuned to early-stage analysis:
- Using NPV/DCF to appraise value.
- Identifying financial decisions that help accomplish organisational goals.
- Applying financial valuation methods.
- Examining project risk against portfolio risk.
- Applying Capital Asset Pricing methods.
- Explaining and applying capital budgeting, estimating cash flow.
We support this analysis and advise clients through application of economic principles, including:
- Identifying supply and demand.
- Using elasticity concepts for managerial analysis and action.
- Establishing relationships between price, price elasticity, and changes in revenue.
- Distinguishing between returns to a variable factor, returns to scale, and returns to scope.
- Distinguishing between commercial opportunity costs and accounting costs.
- Benchmarking market structures, identifying monopoly, monopolistic competition, and oligopoly.
- Using game theory and real options analysis to develop competitive strategies.
