The investment process from the viewpoint of systemic approach
investment process from the perspective of the systems approach
on the systemic approach. The systems approach, management of scientific knowledge and methods of social practice which is based on the discussion on the objects in the systems. It is a tool for research supporting the integrity of the object, discovered various contacts used by him and the collect throughout the complex.
The systemic approach in its essence the practical principles of dialectical materialism in mind, we can discuss the investment process in the number of operations (types of activities), is satisfied with the initial capital (Preface of the process). It increases the amount and conditions of a particular outcome (process exit). It is possible to learn the investment process of the position of the systems approach, because the investment process is an economic system, and it has a preface – the complex situation of this system (the investment environment ) and output – changes in investment coming into the economic system. The result of the investment process has come to the exit, outlines the development of the economic system in which the process is underway and there is an increase in the rate of economic growth.
Decision of the investment process. The investment process is implemented by the Court. It is discussed, such a strategy, the maximum efficiency with each type of activity, the maximum growth of the economic system are guaranteed. Judgement includes the following cycles Active:
1, the current position of the analysis of the investment process, which consists of:. The analysis of the attractiveness of investments and investment transactions, satisfaction of requirements for investment, the economic system;
requires 2 Definition of the representation of the volume of investment and the attraction investors, this volume is set; ..
3, work activities that need to offer the position of the attractiveness of the system “
4, the changes in income in the facilities of the economic system, which is caused by changes in attracting investment;.
5 Change the settings of the economic system of spending investors, who are in the price change of economic growth.
Standing completion of this cycle improves the system’s decision investment process and increases the economic system malfunction
The realization of the systems approach in the analysis of the investment process, not only in the horizontal section (the dominant theme is -. investment attractiveness – Investor – Investment operations – the volume of investment – capital goods – is subject to opinion), but also vertically (the stock of the world – Country – Region – Field – manufacturing – individual). This discussion will reduce the amount of repeated work of the decision of the investment process and returns the complex theoretical picture of the investment process.
For the preparation and implementation of policy effective investment, it is important to be clear and simple criteria for estimating investment in the country, economic fields and regions are formed;. also works for methodological apparatus is sufficient to ensure economic insignia and its subsequent use
The investment process (which is the process of realization of investment), each element of the system: It is always a theme in it (an investor), object (investment property), the connection between them (the investment in order to generate revenue) and the environment in which they exist (the investment environment). It is characterized by a specific structure and the possibility of an exact identification between the economic process other . He shows his abilities as a result of interaction with other systems, protects a particular idea and viewpoints, goals and values reflect the objective of the investment process. Subsequently, the factor of the training system because it combines all the other elements in a set (Fig. 1). The systems approach is the opportunity for a full description of the investment process is full of gasoline and basic concept.
The investment process consists of investment to locate the interaction between investment defined subject and the object to obtain an income, the impact of investments on the side of the object and governing bodies of the object. and alter the conditions of the investment environment
the investment process in the system rather than social relations. The investment process n is not even and it is always in the top-level domain, which means it is subject discussed in the approach must be involved – to discuss the system in the field of interconnections with other systems. This gives us the possibility of describing the position and role of the investment process in a separate sphere of activity and also in the system of social relations. Each issue will focus on development and require more and adding to resource and change this or that feature. The emphasis on the deficit of this supplement with their own forces, slowing economic growth due to be for fun activities to waste time and provide its resources Base on these requirements. In terms of specialization is reducing its own forces the question of finding the object, the qualities that gave him the opportunity to fill the deficit with a minimal investment. The need for investment appears when the potential of the selected object does not meet the eligibility criteria and needs some kind of outside involvement in its development. The possibility of development of investment occurs when the resource is the object and its functions in the possession of the opportunity to give effect to the object on the required properties of the object.
Upon completion of the investment, the investor makes contact with the concrete object. influence investors to change the properties of the object of investment and then changed the face of these characteristics influence the gains on investor changes its properties, including: – make up deficits. After the completion of the investment process The subject and the object to start a new life, is the investment process to increase the distribution of the object and characteristics of subjects
The dynamics of social development is defined by development. separate spheres activity. If sudden revolutionary changes are this or that sphere of activity for the invisible pulses before growth that creates a chain reaction of natural development connected, these spheres. If evolution is the development of fields activity, dynamics, most often defined by at least the skills developed. If the investments and capital gains are subject to various consistency, that is, if the different spheres of activity, they listened to different classes assets in these processes are spheres penetrating power. After that, the logic of the development dynamics of change has occurred. This causes a chain reaction of natural development of interconnected spheres. Therefore, the investment process given the opportunity and sustain a chain reaction of natural spheres of interrelated activities. These processes seem to be the attachment factor for social development.
It is the link between the basic categories of process investment will give the opportunity to develop a dependency on the volume of investments on the factors and conditions in the area of investment, which is the investment environment in the region.
The image can be formed 1.4 basic structural elements of the investment environment and links between them, which are represented in the literature.
p> The composite consists Overview
Onentas the investment process. This approach reflects the most important pages of the investment process, but does not give us the opportunity to participate in the direction of the impact of ongoing processes on the investment environment and on the contrary – the capital investment process surrounding. Therefore, we discuss the interconnection of various major components, including investment process, think
the attractiveness investment is a positive category in its context and investment risks of participation in the process of formation of these attractions. – At the other negative. Therefore, it is important that ideas in quantitative risk performance quantitative approach essentially turns the concept of investment risk while taking into account the investment risk non-commercial, as a complex factor of attractiveness for investment. We have asked such a concept (with the opposite of the concept of investment risk) “socio-economic and economic security for investors” or, in other words, the safety of investments (and thus the macro-economic, regional, field and industry level). The above exchange is the opportunity to avoid adverse effect on the cross resulting presentation – more attractive to investors in both complex factors -. The investment potential, and noncommercial risks
exactly the same way that each private factor, these concepts simultaneously generalized positive quantitative [removed] with the positive image – to determine the final amount of the investment field <-! next page -> Security) and negative (with the help of the concept “negative” watch – to determine the final amount of investment risk, non-commercial field)
The investment attractiveness of the socio -economic status (SES) is defined the position of power to invest and the amount of investment risk. . The assets consisted of the region – the actual development of the investment firm in the SES – is marked by the intensity of investment. It is again defined by the assets investments past, present and future. Investment property indicates the intensity of past installations before investing and the ability to determine its future profitability, the amount of its alleged competitors and the most profitable sector for investment capital. Investment in current assets of the system defines the level of economic development and the possibility to predict the volume of additional investment and its profitability potential, and define the position of the investors in the market of the future. Future (expected) investment funds of the Oriental for the planning process throughout the system, defining the volume of future investments in the decision, the investment environment of the ESS – to obtain the revenues necessary to the capital. Analysis of these three components, consisting of plants, offers the business client with information on the degree of competition in the market capacity of the SES and investment trends in its development and activities aimed at reducing the market .
The integrity of the attractiveness of investments and investment firms making the investment to the surrounding country, region, limited company (under preparation). Although it is also important to consider the reverse connection, the influence of the investment for a business investment. For example, sets the current position of investment ideas to investors on its activities surrounding future investment. The investment environment is improving and the current period rather than the incentive for the development of competition between investors to obtain the rights for investment. There’s also the attraction rather than competition in the market for products and services, helping the roaring prices and increasing quality of production. In parallel with the influx of investments that takes up resources, an opportunity for rational allocation and efficient use of resources are available for institutions to regional development decision. It reduces the imbalance in regional development, living conditions improved social conditions in the region, contributing to the development of infrastructure and communications, the situation changes in the surrounding investments in accordance with the requirements of the development of regional economy.Interconnection and subordination between groups participating in the investment process is represented by the diagram shown in photo. 1.5.Taking into account the peculiarities of the plant, it must not only to the use of administrative regulatory activities, but also the use of fuel-efficient models that support the need for such evidence, or that the activity.
1.6. Subject – Question of the investment and its main steps
Having said the foregoing, the investment process of the succession of phases, movements and operations of the investment firm is regulation. The specific sequence of this process depends on the object placement. Therefore, the sharing of investment in the stages of the type of investment is induced. We are clearly talking about the real and financial investments
The investment process consists of two main phases;. They are (1) to make decisions on investments and (2) implementation and use of investments. It was adopted at the first step in several distinct phases (species), which characterize the real and financial investments. The amount of these phases can vary, but three of them are the most typical: an accent) on the investment objectives, b) the definition of investment guidelines, and c) the selection of the specific subject Investment
<. p> objectives and guidelines of the investment. in the process of obtaining defined decision on investments have different objectives and are taken into account. The crescent, the formal objectives that are used in the future as the criteria for selecting investments. The official goals of the strategic strength of the investment comes.
The development of the strategic direction of the investment firm is related to the definition of equality of these or any form of investment on the concrete phase of the exercise and also the definition the orientation of investment activity, including its branch is a party. The selection of priority investments in a particular stage of the investor is caused by a number of internal and external factors.The functional orientation of the most important internal factors, which are the basic types of investor (preparation, organization) activities. For example, the basic direction of investments for institutional investors, companies investing in securities. The manufacturer of the real sector of the economy, led by industrial activities, mainly in the rule of investment in tangible and intangible.The financial investment in general as made by the producer “(as the same time, are partners) involved in the decision to purchase securities or approved as a temporary free sources of money for speculative purposes.From other internal factors have an important role in choosing the direction of investment through the strategic direction of operational activity, the size of the production game (the organization), the stage of investor and other life cycle.From the producers and the organizations of the real sector of the economy, the growth of financial assets in the enterprise features available to control large, the more opportunities, sources of money in investment and manufacturers who are on the scene of what is called the “maturity”. more advanced form of investments in early stages, investment in tangible and intangible.Among the external factors that have a significant influence on the selection may contribute to forms of investment in inflation in the main and percentages are on the financial market is
The official goals of the quest increase profits, enlargement of scale in production (activity), receives power and prestige in society. the solution of socio-ecological, posture, and increase employment and so on
These are the goals. are often not clearly defined and not based on priorities or not it is reviewing the state of their coordinated implementation. Therefore it is necessary to emphasize that the real purpose of the program objectives through formal creation are thinking ideas more concrete. For example, the formal goal – increasing profits – should be in a range of plays in which the definition of quality of service will be expanded to be more precise, it may just amount of profits for several years and the presentation of net income or other shows, from earned income. to characterize the investment.
formal easier to hit target of investment, the decision of the difficulty to define investment guidelines. interdependence, independent and alternative (international only) investments may also be among them.
main phases <=”" p=”">1 Selection of the investment policy;
2 analyzes the investment market,
3 to regain control of the portfolio of securities,
4 Estimates of effectiveness of investments
In the first phase, they define the investment objectives and volume .. resources for its implementation and the quality of risk management and profitability for any financial instrument. selected financial assets at the potential species that may be included in the portfolio responds to this point.
implement the second phase, the rate of the value of cash securities “separated on the basis of marketing activities formed when concrete and predicting the rate of stock” the momentum of the concrete. This type of The approach is technical analysis. Based on the data they have received basic behavior analysis. Its essence is the analysis of the value applied to all cash flows that is provided by the owner of financial assets .Third stage of investment, the selection of specific assets includes, for investors, are also defining the optimal ratio of assets within the limits of capital investment. Foundations for selection in the operations and diversification of risk by the profile of.The fourth step concerns the regular assessment of the current portfolio in accordance with the changing objectives of the investor and its deviation from the optimal portfolio after selling a portion of the securities purchased and purchase of new possibilities
In the last phase, they provide a regular assessment of the actual earnings and the level of risk and <.. – .. Next Page -> its comparison with existing standards
Key participants in the investment process and its features in the circle of the main participants in the investment include: state, regional and local products, and private individuals: they can participate in the investment side of demand and supply
Under the conditions of market economy the circle of participants in the investment process is important to expand the network of banks, credit and commercial organizations have .. mutual fund companies and insurance companies seemed to make independent investment decisions. But still, defining the state institutions and national, regional and local authorities to participate in the investment process. It is a competitive investment, the selection and confirmation of investment projects, represented by licensing and quoting the production, and also by determining the amount and rate of taxation. The financial activities of the State, the institutions of regional and local authorities to require, so that the influences of supply mainly on the behavior of financial markets and institutions.
The distribution of money in the financial market is the population because there are many more makes the investment process, takes time. Of course, it does not mean the institutions and the government running product type.The research of foreign scholars and Sharpe, G . G. Alexander and Bailey shows that the state completely and products are net consumers of the sources of the money they use multiple sources and then. More specifically, many large companies have called for the achievement of its objectives long enormous sums of money to build factories, buy furniture, development of new products and so on. In addition, through the implementation of active strategies and hard masses of cash to power, they seem more important to buyer titles. In such a situation on the side of governmental institutions at national, regional and local governments have established in connection with their investments and provide ongoing expenses.The bodies of the executive branch of government to address the inadequacy of funding sources by creating debt commitments and obligations, and undertaken by production shares and other securities.
The factors that determine the consistency of the project participants to investment and functionality. The consistency of the participants in the investment project, and assuming they are provided, as defined by the following factors:
- the characteristics of the investment project, its volume, hardness technology and so on
- compatibility features of the participants of the investment project for the project
- the client’s financial ratios, which increases or decreases the influxing structures financing for the project investment;
- provides the customer with the best material, building materials, technology, furniture and so on
- Select the type of decision .. investment project (traditional or progressive)
Participants
basic project in the decision of investment projects in the traditional manner, they differ in their following operators Background: developers, builders, furniture retailer, an adviser to the insurers, legal advisers, counsel for tax and financial sector, creditors and others ..
Let’s Talk about them in details
In a broader guarantees of a promoter, a finance person or entity holding an economic project, or the registration of social activities. In addition, a client, the organizer of a major project or promoter arranger that the structure non-commercial business is.
As a sponsor, the participant an investment process that we call a potential buyer, the organizers, then connects the activities of different participants in a project organized, discussion, proposals for business analysis of the designer of the financial structure or distributors, marketing research implemented and selection of financial partners. On several occasions, for the performance of these engineering functions building, an engineering, project design and calculation of analytical work, preparation of techno-economic justification, organizational and decision-making recommendations in the field of production implementation. reduce the amount of participants investment process.Project and construction organizations or individuals, the role of a builder who is the provider of job. The manufacturer may produce others in the process of command execution, the Sub-tenants and tenants by the manufacturer in general. It seems to be the importance of meeting the design contract and the buyer is responsible for the entire complex of activities under agreements.
furniture sales is the child, the promotion of companies or other businesses that have in the distribution of furniture and services signed. When building a record contract with a buyer for a complex distribution of materials, construction techniques and furnishings of many companies, he became the general agent and the response of all distribution.
The insurance consultant to display the insurance risk assessment and project quality, safety, and keeping the corresponding Recommendations invited. juris-consults in the preparation of tenders for the legal documentation surrounding the project, discussed all agreements and contracts.
Councillor branch tax issues analyzed the situation in the imposition, by country for the project and the tax obligations of each party to give recommendations to minimize taxes.
Financial Advisor offers a range of financial, credit and the calculation conditions by combining the other alternative for the project. influxing In the case of foreign investors in the project, it will be the agent of international standards exist to make. This is easily the status of potential investors and creditors.
The, as participants in the process of loan investment, money different conditions. In these circumstances, the creditor has the right to require the debtor to return the credit or to fulfill other obligations. A state bank, manufacturing or individual investment funds and Others may be the creditor.
A classic form of investment decision in the time leading client itself the functions of the decision, has several flaws. The first is that it is not the most adequate Much of the buyer jurisdiction in any matter related to the project. It is the level of risk as always, the decision the decision that gave rise to a number of questions. The second is that the decision of success after experience, wants to systematic participation leader in the investment process, because the customer is not always able to do so. And third, such a project decision by the comparative dispersion of the phases and stages as marked in time, the organization said. All this gives rise to additional problems in providing the approval of the s’ of all its participants.overcome the above defect occurs during the transition to the progressive form of the investment project presented. Its essence is that the leader (director) of the project, the base figure in the organization and Decision investment company. This can be prepared in a building or construction organizations projection specialists particularly skilled and experienced leader. He / she is executive director of the project including finance, human resources and civil works.
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