Set Of Investment Projects Research Articles

The development of the national system of innovation through investment engineering

Subject. To grow steadily and successfully, any economy should improve its mechanism for managing the socio-economic development, which should rely upon scientific approaches, methods and mechanisms. Objectives. The study is an attempt to outline the concept for developing the national economic system of innovation through investment engineering. Methods. The study is based on methods of generalization and systems analysis. Results. We propose a new concept for formulating the modern national system of innovation economics, which poses an investment project as the backbone constituent, being performed by diverse entities and organizations. The system raises the probability that comprehensive investment projects will be successfully implemented, including the reliability of mutual settlements for the sake of the ultimate economic effect. Conclusions and Relevance. The investment concept herein opens new opportunities for a new progressive strategy for the national economic development. Based on investment engineering principles, the economic system will carefully protect all types of property, effectively distribute the national property among federal, regional and local entities, and position regional and local budgets as a set of investment projects or the single investment program for the development of regions and country as a whole. The findings help implement new approaches to developing the national economic system of innovation, which will enhance the performance of manufacturing enterprises and public, collective and private entities. It will contribute to the transparency of financial flows in the non-public sector of economy and considerably curb the informal sector of economy.

Assessing the synergy effect arising in a set of investment projects

Assessing the synergy effect arising in a set of investment projects

A portfolio optimization model for a large number of hydrocarbon exploration projects

Abstract Over the past few years the global oil and gas industry has been going through a severe market downturn. Despite recent signs of stabilization, oil prices have a long history marked by volatility. In this context, it is imperative for oil companies to optimize their capital allocation, as this might support risk mitigation. The purpose of this paper is to offer a tool that might support the strategic decision-making process for companies operating in the oil industry. Our model uses Markowitz’ portfolio selection theory to construct the efficient frontier for currently producing fields and a set of investment projects. These relate to oil and gas exploration projects and projects aimed at enhancing current production. The net present value is obtained for each project under a set of usersupplied scenarios. For the base-case scenario we also model oil prices through Monte Carlo simulation. We run the model for a combination of portfolio items which include both currently producing assets and new exploration projects, using data characteristics of a mature region with a high number of low-production fields. Our objective is to find the vector of weights (equity stake in each project) which minimizes portfolio risk, given a set of expected portfolio returns. The model is of particular interest for companies operating in Eastern Europe, or in any other mature region. It can also support divestment and acquisition decisions since these may place the company’s portfolio closer or farther away from the efficient frontier. The model is highly versatile and can be implemented on any software with an optimization package such as Microsoft Excel.

Developing a model of enterprise strategic potential estimation by means of mathematical programming

The aim of this study is developing a mathematical model of enterprise strategic potential estimation by means of mathematical programming. Estimation of enterprise strategic potential is considered estimation of maximum profit that can get the enterprise in the long planning period based on strategic adaptation, i. e. choosing investment strategies and program development. Proposed model allows estimate enterprise strategic potential and defining behavior principles of the enterprise (business strategy and investment program) that will realize this potential to the full. Set of alternative investment program of the enterprise is received in the input of the proposed model. Each of which corresponds to a sequence of investment projects. Optimal production program is calculated using the model for each alternative investment program. It ensures maximum profit in the long planning period. Optimal output vector is determined for this purpose in each time interval within the plan period by solving the problem of conditional optimization, which imposed restrictions on output current characteristics of enterprise resources. The dynamics of these characteristics of given enterprise resource is determined by investment projects. Set of investment projects that will be implemented in random time interval depends on the optimal output vector at this time interval.

A methodological framework to analyze stakeholder preferences and propose strategic pathways for a sustainable university

Building sustainable universities calls for participative management and collaboration among stakeholders. Combining analytic hierarchy and network processes (AHP/ANP) with statistical analysis, this research proposes a framework that can be used in higher education institutions for integrating stakeholder preferences into strategic decisions. The proposed framework is applied to a private university in Turkey as a case study through a survey of 30 participants, representing key internal stakeholder groups. The present research extends the literature by adding a statistical analysis component involving a diverse sample of stakeholders, while previous applications of AHP/ANP in higher education involve a single or a few decision makers. The survey demonstrates stakeholder priorities with respect to sustainability performance indicators and a set of investment projects as well as how they change under low, medium and high financial constraints. The study finds that, while stakeholders have varying opinions regarding sustainable development, generally their highest priority is teaching, followed closely by research. Further, although stakeholders assign a high priority to environmental initiatives when the concern is service and social responsibility, they do not consider such investments profitable. Lastly, it appears that “high visibility” projects gain priority as the level of financial constraint increases.

Scenarios, their concept, elaboration and application

Purpose – The purpose of this paper is to elucidate on specific risk mitigation approach which is known as “scenario approach”. Description of stepwise process of their elaboration, which is worth considering for managers, offers feasible tool not only for company risk management improvement but also for significant enhancement of the quality of company strategic planning. Authors also draw attention to advantages and disadvantages of investment and strategic scenario planning. Theoretical implications of using scenario approaches are exemplified both by the set of investment projects and company strategic planning process where method in question was applied. Design/methodology/approach – As for methods applied which fulfilled research strategies, it is worth mentioning following items: analysis which explores particular parts of methodology of scenario elaboration and application, the way of obtaining information, impact on strategy, working with risks and organizational support of outcomes in company environment; synthesis observing context and natural relation of problems solved which supports research hypotheses formulation; induction generalizing facts acquired from results in companies; deduction to be grounds on which conclusion of this paper was drawn up; abstraction used upon evaluation of case studies; comparison assessing consistency and inconsistency of phenomena and objects; description inevitable for characterization of companies and environment in which they operate; interview collecting information inevitable for the evaluation of the way of working with scenarios and company knowledge standards; modelling was used upon consideration about possible future development of factors observed. Findings – The paper arrived at conclusion, that scenario approach, when used appropriately, may significantly mitigate risk exposure of the company. Conclusions which have been made on selected industrial companies can be extended to other industrial branches. Practical application of scenario planning method confirmed that this approach was superior to deterministic single scenario model. Scenario technique thus compensates for deficiencies and omissions which are inherent in simplistic deterministic model. In cases where an investment scenario planning process proved to be insufficient, the paper refers to more advanced techniques like simulation methods or real options. Research limitations/implications – Over past ten years practical test of proposed stepwise process of scenarios elaboration was repeatedly tested on approx ten industrial companies during the tenure of Mr Soucek and Mr Špaček in top managerial positions. Practical implications – This paper offers flexible and feasible toll for scenario elaboration and their further development. Such an approach contributes significantly to the enhancement of company risk management process. Proceedures described were successfully tested in managerial practice by two of authors while holding CEO positions in oil prcessing and pharma business. Social implications – This paper does not have direct social implication. But scenario approach as a powerful tool of risk management process may significantly contribute to company survival and thus impact social status all stakeholders concerned. Therefore social implications should be identified rather on the background of the problem. Originality/value – Notwithstanding some general notion about scenario concept, there is still little evidence that scenario approach is applied in larger extent. It is prevalently due to lack of expertise of respective managers who are obviously puzzled with numerous outcomes to be obtained by this approach. Clearly define procedure of scenarios formation may be conducive to larger exploitation of this approach. Design of the elaboration and application of scenario approach which was proven to be functioning in the practice brings new benefits to risk management exploration.

Effectiveness of the strategy and regional risks of creating the East Siberian Oil and gas Complex

The paper gives a systematic presentation of major risks at the pioneering stage of creating the East-Siberian Oil and gas Complex (ESOGC). It also estimates probable consequences of these risks for socioeconomic development of the regions. To assess regional risks, we have used the traditional method of analyzing regional development scenarios under different corporate business strategies. The latter are presented as a set of investment projects and intentions as well as constraints and preferences of the state represented by constituent entities of the Russian Federation. Economic effects in the ESOGC regions are analyzed by growth indicators of the region’s GRP and revenues of the regional and local budgets.

Optimal Investment Selection with a Multitude of Projects

When selecting amongst a set of investment projects, the decision-maker cannot act as if her decision is made in isolation: Each investment has an impact upon subsequent cash flows and affects with future investments will be feasible and desirable. Our model provides a dynamic context in which her investment decisions can be analyzed. Our model generalizes the multi-period investment models of Gale (1965), Lippman (1970), and Cantor and Lippman (1983), by allowing an arbitrary finite number of projects. We emphasize that neither interest rates, nor net present values, nor internal rates of return are part of our model. However, all three notions arise as a consequence of our basic assumptions. In this paper we introduce a new technique for evaluating bundles of investments, the upper envelope.

Investment Justification of Flexible Manufacturing Technologies: Inferences from Field Research

The literature offers a variety of different views on the investment decision process for flexible manufacturing technologies, but there seems to be no consensus about what are really the key characteristics of the decision‐making process which guarantee successful advanced manufacturing technology projects. Describes and analyses the investment decision process for a set of investment projects, based on field research conducted in six manufacturing companies, and reveals some of these critical determinants.

INFORMATIONAL ASYMMETRIES, FINANCIAL STRUCTURE, AND FINANCIAL INTERMEDIATION

NUMEROUS MARKETS ARE characterized by informational differences between buyers and sellers. In financial markets, informational asymmetries are particularly pronounced. Borrowers typically know their collateral, industriousness, and moral rectitude better than do lenders; entrepreneurs possess "inside" information about their own projects for which they seek financing. Lenders would benefit from knowing the true characteristics of borrowers. But moral hazard hampers the direct transfer of information between market participants. Borrowers cannot be expected to be entirely straightforward about their characteristics, nor entrepreneurs about their projects, since there may be substantial rewards for exaggerating positive qualities. And verification of true characteristics by outside parties may be costly or impossible. Without information transfer, markets may perform poorly. Consider the financing of projects whose quality is highly variable. While entrepreneurs know the quality of their own projects, lenders cannot distinguish among them. Market value, therefore, must reflect average project quality. If the market were to place an average value greater than average cost on projects, the potential supply of low quality projects may be very large, since entrepreneurs could foist these upon an uninformed market (retaining little or no equity) and make a sure profit. But this argues that the average quality is likely to be low, with the consequence that even projects which are known (by the entrepreneur) to merit financing cannot be undertaken because of the high cost of capital resulting from low average project quality. Thus, where substantial information asymmetries exist and where the supply of poor projects is large relative to the supply of good projects, venture capital markets may fail to exist. For projects of good quality to be financed, information transfer must occur. We have argued that moral hazard prevents direct information transfer. Nonetheless, information on project quality may be transferred if the actions of entrepreneurs ("which speak louder than words") can be observed. One such action, observable because of disclosure rules, is the willingness of the person(s) with inside information to invest in the project or firm. This willingness to invest may serve as a signal to the lending market of the true quality of the project; lenders will place a value