Substantiation of Investment Strategy at “Vivas-M” Limited Liability Company
Students Name: Rylchuk Vadym Mykolaiovych
Qualification Level: magister
Speciality: Management of Organizations and Administration (by economic activities)
Institute: Institute of Economics and Management
Mode of Study: part
Academic Year: 2021-2022 н.р.
Language of Defence: ukrainian
Abstract: In an unstable economy, the formation of the investment strategy of the enterprise is important for its effective activity. The formation of strategic goals of investment activities must meet certain requirements, the main of which are highlighted in the works of domestic scientists [1, 2, 3]. A company development strategy is a long-term action plan based on a detailed analysis of the enterprise environment, which requires increasing the competitiveness of products and enterprises [2]. The formation of the enterprise investment strategy is a rather difficult creative process that requires highly qualified performers. The initial prerequisite for the formation of investment strategy is the overall strategy of enterprise economic development. In relation to it, the investment strategy is subordinate and must coincide with it in terms of objectives and stages of implementation. The investment strategy is considered as one of the main factors in ensuring the effective development of the enterprise, depending on the chosen overall economic strategy [2]. The characteristics of the main methods of financing investment programs and projects [5], as well as the criteria for evaluating the developed investment strategy of the enterprise, are highlighted [3, 4]. The organization’s strategy should be focused on achieving its goals, as well as be flexible when necessary to make adjustments that will increase efficiency [4]. In the second section, the general characteristics of " Vivas-M " LLC are presented, the results of its financial and economic activities and its financial condition are analyzed. A retrospective analysis of the investment activity of the researched enterprise was also carried out. " Vivas-M " LLC is an enterprise for bottling natural mineral water and has been operating on the market for only four years. The results of the analysis show that during the analyzed period the company was unprofitable, although its net income grew every year. In the third section, management decisions on the implementation of the investment strategy of " Vivas-M " LLC are presented and substantiated. The SWOT analysis of the enterprise and the assessment of the main competitors were carried out, which allowed to determine the strategic priorities and set the development goals of " Vivas-M " LLC. The main task of the organization is to increase production and sales, which will increase its share in the domestic market. To increase exports and enter new foreign markets, it is necessary to improve product quality, which can be achieved through the implementation of an investment project to install a water treatment system. This project, together with effective marketing activities, will gain the necessary competitive advantage. The calculated indicators of economic efficiency proved the feasibility of the proposed investment project. The object of the study is the investment activity of "Vivas-M" LLC. The subject of the research is methodological and practical issues of developing the investment strategy of "Vivas-M" LLC. The purpose of the master’s qualification work is to form an investment strategy of LLC " Vivas-M " which is aimed at achieving the goals of the organization and is based on the capabilities of a competitive market environment. The tasks set in the work were solved using the following methods: statistical analysis - to study, group, compare, evaluate and interpret factual data; method of comparative analysis - to compare existing approaches to interpreting the essence of development strategy; graphic - for a visual representation of the stated provisions; economic and mathematical - for the economic evaluation of recommended measures. The financial statements of the company for 2018-2020 and primary information obtained from personal contacts with the management of Vivas-M LLC were used in the work. Keywords: investment strategy, strategic goals, competitive advantages, economic efficiency of an investment project. List of used literature sources 1. Karyy O. (2006) Strategic planning of city development / O. Karyy. Lviv: SPOLOM. 287 p. 2. Kara N.I. (2016) Types of strategies and assessment of the impact of environmental factors on the activities of the enterprise, Problems of Economics and Management: Bulletin of Lviv Polytechnic National University, Issue 3, Number 847 (4), p. 97-102, Lviv. 3. Petrovych Y.M., Prosovych O.P. (2005). Improving methods for assessing the economic efficiency of investment, Bulletin of the Lviv Polytechnic National University, Series: Problems of Economics and Management, 533, p. 67–72, Lviv. 4. Petrovych Y., Prokopyshyn-Rashkevych L. (2020). Modern aspects of management of production potential of industrial enterprises, Bulletin of the Lviv Polytechnic National University, Series: Problems of Economics and Management, 1, p.188-194, Lviv. 5. Protsak K.V., Galaz L.V. (2015). Financial support of innovative activity of domestic enterprises in the conditions of European integration, VIII International Business Forum, p. 192-194, Kyiv.