DonNTU   Masters' portal

Abstract

Содержание

Introduction

Topicality. Reaching steady economic growth is one of the most important problems of modern Ukraine. Post–crisis consequences cause the constant contradictions in social, economic, ecologic and institutional spheres of companies’ business activity. Under these conditions investments are becoming an important instrument of promotion and stabilization of qualitative and quantitative changes.

The economy investment research has always been in a focus of economic thought. The reason of this interest is a deep influence of investment on a basic business activity and on a general process of economic growth.

Management process is a component of effective investment establishing. Well–organized investment management provides proper project adaptation to the realization conditions and, what is more important, to the constant changes of the conditions, what improves current competitiveness of investment process. Management mechanisms provide the investment process with flexibility and resistance to the unfavorable phenomena of external environment.

Effective system of investment management is a basis for the business’ high development rates, reaching necessary results in its investment, operational and finance activity. So, today the research of effective investment management of a business unit is a burning issue.

Latest research and publications’ analysis. The problem of effective investment management were studied by such foreign scientists as G. Alexander, V. Berens, L.J. Gitman, M.D. Johnk, F.K. Faltsman, T.S. Khachaturov, U. Sharp.

An important contribution in solving the problem of forcing and promoting the investment processes in a business units as far as creating effective investment management instruments has been made in the works of Ukrainian economists. The research works of the following scientists were devoted to the problems of business investment: I.O. Blank, N.M. Gulyaeva, A.A. Peresada, I.V. Danylenko, O.V. Gayduts’ky, A.S. Muzychen’ko, O.K. Dragan, V.G. Fedorenko, O.M. Yastrems’ka, V.M. Khobta etc. At the same time, highly appreciating this contribution in development of investment theory we have to admit that investment management system still needs improvement to face modern challenges. There is a need in further research of investment attraction possibility under the conditions of economic instability as far as the role of investment as a factor of economic growth.

The purpose of the research is the intensification of theoretical standpoint and methodical and practical aspects of development the effective investment management system in a business unit.

According to the purpose mentioned the following tasks were developed:

Object of the researchis a set of investment processes in a business unit.

Subject of the research is a set of organizational and economic relationships that emerge in a business unit during the process of investment management.

Methods of the research. The Master Thesis is based on theoretic and methodological principles of economic theory, scientific works and methodic studies of national and foreign scientists in the field of investment management in a business unit. In order to solve the planned tasks, general scientific and applied research methods were used: dialectical method, methods of grouping and comparison — for the research and analysis of term content «investment activity», system analysis — for the influence evaluation of investment activity development in a business unit on the macroeconomic development of the state, situation analysis — for the research of approaches to define investment. Information basis of the research is legislation of Ukraine, data of Ukraine State Statistic Committee, the materials of scientific research conferences, periodical editions, the Internet.

Scientific significance of the research consists in development of methods and functions of investment management in a business unit as far as development of the ways to improve investment management effectiveness.

The structure of the research is justified by its purposes and tasks, subject and methods of investigation. The work contains introduction, three chapters with subchapters, and conclusions.

Approbation. The main scientific and practical results of the work were defended on the following scientific practical conferences: Ukrainian scientific practical conference of students and young scientists «Modern problems of investment and innovation management» (Donetsk, DonNTU, 2012, 2013), Ukrainian student scientific practical conference «Financial policy: global and national priorities of forming and realization» (Kirovograd, KNTU, 2012), International scientific theoretical conference of young scientists and students «Important problems of economic and social development of production sphere» (Donetsk, DonNTU, 2013).

Main content of work

In introduction the actuality of a subject of a master's thesis is considered, the research objective, object, a subject and research methods are given, practical value of results reveals.

1. Theoretical aspects of investment management in a business unit

In the first chapter «Theoretical aspects of investment management in a business unit» different approaches and systemized definitions of the term «investment» are given, including viewpoints of the famous scientists and economists. The Law of Ukraine «On investment activity» defines investment as «all kinds of property and intellectual values invested into the objects of entrepreneurial and other kinds of activity, resulting in creating of profit or social effect«. The essence of investment management is revealed and its features are underlined [3].

The analysis of statistical data and international position of the country indicate that Ukraine remains attractive country for international investment, the world processes don’t bypass the country and Ukraine is integrated into the world economy, and impairment of macrostability in the external markets is reflected inside the country [6].

The process of management is a component of providing investment effectiveness. Well–organized investment management provides proper project adaptation to the realization conditions and, what is more important, to the constant changes of the conditions, what improves current competitiveness of investment process. The process of investment management is a series of functions united in one cycle: planning, organizing, motivation and control [9].

The conclusion is possible, that the system of investment management in a business unit is a part of the system of business management and it contains development of activity directions of a business unit in its investment part aimed at income growth at the expense of long–term capital investment. The income growth could then be used for development, allocation, reconstruction, modernization, technical re–equipment of a business unit [10].

2. Methodical approaches to organizing the system of investment management

The second chapter is devoted to defining the methods of investment resources’ forming. The realization of any investment project is impossible without available financial resources. Finding the sources of investment is one of the most important tasks for successful operation of the business unit and implementation of investment projects [7].

In market economy, a business unit has some alternative methods of investment resources’ attraction, given in figure 1.

Investment methods

Figure 1 - Investment methods

The decision–making concerning investment is the most complex and important management task, so there is a necessity of integration all the participants’ actions in the business unit, which is only possible via effective planning system of investment within the modern organizational system of business management [5].

Nowadays the real state of investment planning in business units does not meet the modern conditions because of the following: lack of qualified staff in planning departments; lack of knowledge and will of executives to organize the development and implementation of a qualitative investment plan; absence of access to market information; high value of consulting services to help small business units in planning.

Thus the implementation of investment planning improvement directions, suggested in a Master Thesis, will help to shorten the time of investment planning in a business unit and to increase the quality of planned investment decisions. Moreover, it will help to minimize, or even avoid negative impact of external environment, to use all market opportunities that are opening to the business unit.

After fulfilling the function of investment planning it is necessary to justify the investment project, which aims at giving the company management full picture on the state of business unit and its growth opportunities. Moreover, thorough justification of the project reassures potential investors about the reliability of their investment and, what is no less important, invokes trust to the company management.

3. Recommendations concerning effectiveness’ increasing of investment management

The third chapter «Recommendations concerning effectiveness’ increasing of investment management» is planned to launch investment innovation project and to develop investment strategy for the company generating electric power. Effectiveness’ analysis and development of financial plan of investment project will promote effectiveness’ increasing of investment management in a business unit.

Conclusion

Based on the conducted research, the work contains theoretical generalization and offers solutions to topical scientific and practical questions of investment management in a business unit.

Investment support, based on investment programs implementation, plays an important role in effective operation and development of a business unit.

A deep decrease in investment sphere, exceeding the fall of production volumes, is determined by the fact that industrial investments do not provide reproduction of capital. Investment activity in a business unit has to be observed as unity of the resource investment processes and gaining income taking place in different time sequence. The socio–economic investment mechanism in transformation economy has qualitatively changed: the economic content of the term «investment» is filled with the new forms of resources’ attraction and movement and relationship between investment process’ participants.

The main purpose of investment management in a business unit is getting maximum possible income not only in the current period, but in the perspective. This requires development of such management tasks which provide implementation of the main purposes of investment activity including the following: sufficient investment support of necessary development rates of current company activity; the balance between maximum profitability and acceptable risk levels; investment liquidity; opportunities for quick capital reinvestment in the case of change external or internal factors; opportunities for implementation personnel social development programs [11].

One of the important directions in strategic investment management is development of the strategy aimed at occupation of strong market position and working out approaches of its successful implementation in uncertain conditions of external environment, strong competition and internal problems. Development of such strategy has to be based on system approach principles, recognizing general basic company development strategy and strategy of company social development.

References

  1. Гриньова В.М. Проблеми розвитку інвестиційної діяльності / В.М. Гриньова, В.О. Коюда, Т.І. Лепейко, О.П. Коюда. — Харків: ВД «ІНЖЕК», 2002. — 464 с.
  2. Гаврилюк О.В. Інвестиційний імідж та інвестиційна привабливість України // Фінанси України. — 2008. — №2 (147). — С. 68–81.
  3. Закон України «Про інвестиційну діяльність» від 18.09.1991 р. // ВВС УРСР. — 1991. — №47. — Ст. 1, 2.
  4. Мельник О.О. Інвестиційний клімат в Україні // Фінанси України. — 2010. — №8. — С. 35–39.
  5. Мойсеєнко І. Інвестування: Навчальний посібник / Ірина Мойсеєнко. — К.: Знання, 2006. — 490 с.
  6. Официальный сайт Государственного комитета статистики Украины [Электронный ресурс]. — Режим доступа: http://www.ukrstat.gov.ua
  7. Пересада А.А. та ін. Інвестування: навчально–методичний посібник. — К.: КНЕУ, 2001. — 251 с.
  8. Сазонець І.Л. Інвестування: міжнародний аспект / І.Л. Сазонець, В.А. Федорова; М–во освіти і науки України. — К.: Центр учбової літератури, 2007. — 270 с.
  9. Хобта В.М.,Попова О.Ю., Мєшков А.В. // Активізація і підвищення інвестиційних процесів на підприємствах. Монографія // НАН України. Інститут економіки промисловості. МОН України. ДонНТУ, Донецьк. — 2005. — 343 с.
  10. Хобта В.М. Управління інвестиціями: навчальний посібник. Видання 2–ге, перероблене та доповнене. — Донецьк: ДВНЗ «ДонНТУ», 2009. — 448 с.
  11. Ястремська О.М. Інвестиційна діяльність промислових підприємств: методологічні та методичні засади. / Ястремська О.М. — 2–ге видання. — Х.: ВД «ІНЖЕК», 2010. — 488 с.