Study On Economic Analysis Process Of Production Capacity Expansion Project In Transmission Cable Industy

The Chinese government invested 4000 billion to stimulate the economy growth facing the economic recession around the world in 2009. The improvement chance is coming for communication industry based on the macro-economy situation. It is this period that 3G wireless network, High-speed rail and city metro will be established. The consumption of cable will increase in the coming several years. Based on the situation Company R would like to kick off the project to expand twice production capacity.The economic analysis made by project executor can't evaluate objectively. The character of communication industry will be listed in the thesis. Based on that, economic analysis will be carried out from macroscopic view to microscopic one. Macroscopic view of the project is qualitative evaluation according to the Potter five forces analysis frame and gain the data provided in quantitative analysis. Microscopic view draw upon Net Present Value, Internal Rate of Return, Return on Investment to evaluate the project with the data from Macro-analysis. The combination of macro-analysis with micro-analysis is the guideline for the production capacity expansion project. Study the macroscopic view to gain the data used in micro-analysis. The result of micro-analysis make the macroscopic view clearly and instruct the project operation.