Investment Decision-Making Method Based On The Analysis Of The Value Chain

With the rapid development of economic globalization and networking, the operating environment which the enterprises facing have undergone profound changes. The competition in the21st century is no longer between the enterprise and enterprise, but is the competition between value chain and value chain, however, the investment decision is the key to the development of the enterprise. Therefore, this paper will be applied the value chain theory to the enterprise’s investment decision-making, to analyze the longitudinal, internal and transverse value-chain of the enterprise, and put forward the method of the investment decision-making which based on the value chain. Thus provides a new guideline for the investment decision.This article is divided into six parts, in the first part it firstly introduces the background and significance of the research topics, and then it applies to the positive role of use the value chain in the investment decision, secondly it reviews and summarizes the domestic theory of value chain, and then makes a short comment to them, finally it introduces the basic frame of the article. In the second part it is relevant theories, which introduces the main theories that used in this article. It includes the theory of the value chain, the enterprise investment decision and the industry life cycle theory. In the third part, it firstly introduces several kind of traditional decision-making methods of the enterprise, and then it analyses the disadvantages of each method, finally it introduces the necessity and feasibility of the enterprise decision with value chain model. The fourth part is the content and method of the investment decision based on the value chain, which is the method of investment decision based on the longitudinal value chain, the internal value chain and the crosswise value chain. In the fifth part, it combines with the practice of the SY company to expound how to use this method. In the sixth part, it summarizes the research achievement and deficiency, and then it expresses the expectation of its role in the future.