Competitiveness of the enterprise from the investor's point of view based on the utility function

Abstract

The quality of the services and goods produced is the primary factor affecting the competitiveness of the enterprise. Product quality management allows you to improve the consumer characteristics of the properties of goods and services. The higher the usefulness of the products produced by the enterprise for the buyer, the more the buyer is inclined to purchase these products, and therefore this enterprise has a higher competitiveness. At the same time, the potential investor of the enterprise evaluates the enterprise as a potential object for investment from the point of view of the competitiveness of this enterprise. The higher the value of the competitiveness of the enterprise, the higher its investment attractiveness, due to the fact that investors are primarily interested in the ability of the enterprise to produce competitive products, which means to profit from its sale. At the same time, investors have different attitudes to risk. With the same utility function for a more conservative investor, the value of profitability and risk R will be less than the value of risk propensity for a more risk-prone investor. Thus, a more conservative investor perceives an investment in this enterprise as more profitable than a riskier investor. In addition, taking into account it can be concluded that if the utility functions coincide, then the competitiveness of the enterprise seems to be higher to a conservative investor than it would seem to a riskier investor. Competitiveness, from the investor's point of view, is a subjective indicator that depends on the investor's investment preferences.