Research On Construction Enterprise Development Model Based On Investment And Financing Strategies

After over 30 years'rapid development,China's economy has stepped into the New Normal since 2012 and an "L-shaped" status,which will last for a long time,since 2015.China's urbanization is speeding up since the 21st century and as labor-intensive as construction industry,rocketing cost will bring harsh challenges to its development.Meanwhile,it is infested with fierce competition as construction is one of the earliest industries carried out marketized management.Currently construction firms in China face two trends and one situation:increasingly squeezed profit and furious competition,as well as coexistence of chance and crisis.How to struggle a way out is a problem faced and to be solved by all the construction firms.With progressing of China's urbanization,conflicts between lagging development and growing demand of municipal infrastructure construction becomes escalated.After the 18th NPC,it is transition of economic structrure and investment that fuels China's growth.And PPP turns out to be a new innovation of government financing since 2014.It will facilitate construction firms winning competitive edge and high profit that government encourages social capital to flow into infrastructure construction.Besides,total contract mode of value chain innovation brings all stakeholders including customer,supplier,financing institution and the like into strategic framework of the construction firms.Through alliance of value chain,that of all stakeholders will be effectively coupled,creating more innovative and greater value.Under the circumstance of "New Normal" of China's economy and in the complex context of domestic construction enterprises' economic transformation and expansion of investment scale,how to expand enterprises' scale and improve their market share,thus to further achieve the long-term goal of sustainable development via investment and financing strategies are the main purposes and tasks of the researches of this thesis.With theories of investment and financing,economies of scale,game and competition,etc.,the author considers investment and financing as a new developling strategy,builds a development model of construction firms from selection,adaption and development of competitive strategy,and proposes countermeasures for risk management during the process.It is expected that this thesis would offer some guidance to promote development of Chinese construction firms.The whole thesis contains 8 chapters.Chapter 1 is introduction.This chapter puts forward research objective and significance,after analyzing domestic and international economic environment and status quo of construction industry in China.After summarizing the literatures on investment and and enterprise development mode,paper puts forward the main research contents and technical route.Chapter 2 is the related concepts and basic theory.This chapter defines and explains the related concepts of PPP,TOT,TOD,asset securitization and investment and financing,which are involved in this paper.The related theories and methods applied in this paper are also introduced,Such as economies of scale theory,Bertrand game competition theory,differential game theory,risk management theory,industrial chain and block chain technology and Monte Carlo algorithm.Chapter 3 is analysis of the demands of construction enterprises investment and financing market.This part starts from the 13th five-year plan and analyzes the huge demand for the construction market under current environment from the macro perspective.It analyzes architectural market opportunities and regional market opportunities in different regions.Through analysis and combing,we can see that for the construction enterprises,not only in the macro level there is a huge market demand,but also in the industry,different regions and other market areas,there is a huge market space.If construction enterprises choose the appropriate development model,they can expand the market share in the construction market,have bigger business scale,have access to economies of scale,and promote the continuous development of enterprises.Chapter 4 is about the investment and financing strategy and model of construction enterprises.By analyzing the production function and cost function of the construction industry,it is proved that there is economy of scale in the construction industry.This means that the construction enterprises must do large-scale to develop.Based on the Bertrand oligopoly competition model,the Bertrand competition game model of construction enterprises is established in paper.Paper constructs the differential strategy model of construction enterprise,in which the "small investment" is treated as a variable.Based on the feasibility analysis of the model,the paper puts forward the changing from the investment and financing model,which will lead to the reconstruction of the construction enterprise profit model.The content of this chapter is the focus and theoretical basis of this paper.Chapter 5 is the risk management of investment and financing strategy.This part deals with the construction enterprise development model based on the strategy of investment and financing risk faced by the environment,It does risk factors analysis based on "four combinations" and "one alliance" development pattern from the enterprise level,and does risk factors analysis based on the aspects of project investment and financing project;Combined with the block chain technology,it establishes the risk management framework of the construction enterprises investment and financing project,and sets up a risk protection basis for the construction enterprises to take investment and financing strategy development model.Chapter 6 Selection of development model based on investing and finacing strategy of construction enterprise.For the current environment that economic is stimulated by investment,after constructing a competitive model and risk analysis,we construct the development mode of construction enterprises under the condition of investment and financing strategy.The development model of "Four Combinations" and "One Alliance"means that construction enterprises' combination of business adjustment and investment and financing,combination of organizational adjustment and the investment and financing?combination of industrial adjustment and investment and financing and the enterprise alliance.Chapter 7 is the case study on the selection of development model based on investing and finacing strategy.Through analyzing the concrete case to support the feasibility of development model that enterprise investment and financing strategy.The first case is based on the hypothesis of assignment,to analysis and calculate Bertrand competitive model of whether the two oligarchic construction enterprises in the market to take investment and financing strategy,which proves the validity of the model;The second case through summarizing the development of construction enterprises C to prove that the new development model could promote the development of construction enterprises.Chapter 8 is summary and prospect.This chapter summarized the whole paper and make relevant suggestions to analyze the shortcomings of this article and the direction of further research.