Abstract
This paper explores the various strategies that the managerial team can adopt under varying market situations especially with rising cost of inputs and changing demand and elasticity. The conflicts arising in taking strategic decisions regarding long term investment to expand the firm’s operation to expand market horizon and enhance market power, are discussed based on literature survey. The situations where the convergence of interests of stockholders and managers can take place have also been discussed referring to the evidences from several empirical studies conducted in the past. The issue of the relevance of government regulation has been delved ...