Approaches to the Evaluation of Investment Attractiveness with Regard to the Life Cycle and Competitiveness of an Organization

This study aims to analyze the investment strategy of an organization and, thus evaluating its investment attractiveness and competitiveness in accordance with the stages of the organization’s life cycle.

Aim. This study is aimed at structuring and substantiating the logical correlation between the main stages in the development of an organization’s investment project and the stages of its life cycle in order to propose measures to enhance the competitiveness and investment attractiveness of the organization.

Tasks. This study determines the sequence of actions and the range of tools that the organization’s management uses at different stages of its life cycle in order to ensure financial stability and investment attractiveness and thus enhance the organization’s competitiveness.

Methods. This study uses general methods of scientific cognition to examine the specific features of the development of an organization’s investment strategy in various aspects according to the stages of its life cycle in order to ensure financial stability and investment attractiveness of the organization; identifies the mechanisms used in the process of enhancing the competitiveness of the organization; and formulates basic approaches to the evaluation of investment attractiveness with regard to the life cycle and competitiveness of the organization.

Results. An investment project can be either commercial or non-commercial. In the latter, there are wasted and gained opportunities. In case of implementation of a non-commercial project, the set objective can be achieved by selecting the optimal way to achieve the said objective, and non-financial criteria can have higher priority than financial indicators. Thus, during the evaluation of the investment attractiveness of a noncommercial project with regard to the stages of an organisation’s life cycle, one should take into account the investor’s commitment to the achievement of the main objectives at a certain stage of an investment project as well as the global objectives of the investment project and select the less costly option from a few option of comparable quality.

Conclusion. The examination of the investment strategy of an organization, its investment attractiveness and competitiveness with regard to the stages of the organization’s life cycle not only determines the specific problems in the implementation of a commercial or non-commercial project, but also substantiates the approaches to the evaluation of the investment attractiveness if a particular investment project in accordance with the stages of the organization’s life cycle. The results of this study allow determining the areas of cost planning according to the resource needs of the organization at each stage of its life cycle (in real time, taking into account the resources, anticipated deficit of funds, and preliminary formation of alternate sources of investments). 

1. Burgonov O.V., Kosheleva T.N. Metodologicheskie podkhody k mekhanizmu innovatsionnogo rosta malogo pred pri ni matel’stva v protsesse formirovaniya natsional’noy innovatsionnoy sistemy [Methodological approaches to the mechanism of growth for innovative small businesses in the process of forming a national innovation system]. Ekonomika i upravlenie, 2012, no. 2 (76), pp. 72–77.

2. Byasov K. T. Osnovnye aspekty razrabotki investitsionnoy strategii organizatsii [Main aspects of the development of the organization investment strategy]. Finansovyy menedzhment, 2003, no. 4. Available at: http://www.finman.ru/articles/2003/4/696.html.

3. Kosheleva T. N., Zastavenko E. V. Podkhody k formirovaniyu finansovoy infrastruktury malogo predprinimatel’stva [Approaches to the development of small business financial infrastructure]. Sotsial’no-ekonomicheskaya rol’ deneg v obshchestve. Mat. X Mezhdunar. nauch.-prakt. konf. [The socio-economic role of money in society. Proc. 10th Int. sci.-pract. conf.]. St. Petersburg, SPb Univ. of Manag. and Econ. Publ., 2014. 325 p.

4. Zemtsov A. V. Otsenka effektivnosti investitsionnogo proekta [Evaluating the effectiveness of the investment project]. Bankovskoe kreditovanie, 2008, no. 6. Available at: http:// www.reglament.net/bank/credit/2008_6/get_article.htm?id= 544

5. Kostin G. A., Kosheleva T. N. Analiz deyatel’nosti predpriyatiy malogo biznesa i napravleniya razvitiya innovatsionnoy sredy malogo predprinimatel’stva [Analysis of small businesses and directions of development of the innovative environment of small business]. Sotsial’no-ekonomicheskie problemy razvitiya predprinimatel’stva: regional’nyy aspekt. Mat. Mezhdunar. nauch.-prakt. konf. Smolensk, 18 marta 2015 g. [Socio-economic problems of enterprise development: Regional aspect. Proc. Int. sci.-pract. conf. Smolensk, March 18, 2015]. Smolensk, SPb Univ. of Manag. and Econ. Publ., 2015. 368 p.

6. Lakhmetkina N. I. Investitsionnaya strategiya predpriyatiya [Investment strategy of the enterprise]. Moscow, KNORUS Publ., 2014. 232 p.

7. Torgunakov E. A. Upravlenie konkurentosposobnost’yu predprinimatel’skikh struktur v usloviyakh transformatsii rynochnoy sredy. Dokt. ekon. nauk diss. Avtoref. [Management of competitiveness of enterprise structures in the conditions of transformation of the market environment. Dr. econ. sci. diss.]. St. Petersburg, SPb Acad. of Manag. and Econ. Publ., 2011. 374 p.

8. Torgunakov E. A., Sorvina T. A., Torgunakova E. V. Upravlenie konkurentosposobnost’yu predprinimatel’skikh struktur v ekonomike znaniy [Management of competitiveness of enterprise structures in the knowledge economy]. Ekonomika i upravlenie, 2010, no. 5 (55), pp. 104–107.

9. Torgunakov E. A. Problemy upravleniya konkuren to spo sobnost’yu predprinimatel’skikh struktur [Problems of management of competitiveness of enterprise structures]. In novatsionnaya ekonomika: Problemy i perspektivy razvitiya 2012. Sb. dokl. Mezhdunar. nauch.-prakt. konf. [Innovative economy: Problems and prospects 2012. Coll. pap. Int. sci.-pract. conf.]. St. Petersburg, SPb Univ. of Manag. and Econ. Publ., 2012. 242 p.