Research On The Application Of Value Chain In Enterprises' Investment Decision-making

As the economy develops quickly and the demands of the market changes continuously, the competition between the enterprises is more and more fierce. Investment is always the key for the enterprises'success, so the academic study about investment is carrying out all the time. This article puts the theory of the Value chain together with the theory of investment, brings forward a kind of investing method basing on the theory of the Value chain. It can make a supplement for the theory of investment. This method consists of a mathematic model, it can help the decision-maker clear about best distribution of the bankroll. What's more, this article tells the decision-maker how to use the model in the enterprise. So it is significative both for academic study and practice.This article consists of five parts. in the introduction part, it summarizes the meaning and aim of this article, and also introduces the basic frame of the article. In the following relevant theories part, it introduces the main theories used in this article. It includes the consumer's balance theory, Value chain theory and investing theory. Then in the third conventional investing methods and their disadvantages part, it firstly introduces three conventional investing methods. They are DCF method, Decision Tree Analysis method and Real Option method. Then it analyzes the advantages and disadvantages of each method. Finally, it introduces the necessity of making decision with Value chain model. In the fourth core part, it introduces the process of making decision with Value chain model, from setting the presupposition to analyzing the result of the model. In the last part, it makes a conclusion of the meaning of the Value chain model and expresses the expectation of its role in the future.