HS Company Research On Project Financial Decision Method And Case

As the decision to build an innovation-oriented country and the internal demandfor enterprise sustainable health development come along, technological innovation willcertainly become the important driving force of social economic development. A lotenterprises that hold technological innovation as their core competitiveness will play animportant role in today’s society. In order to reduce the cost, cultivate new markets,research and development, innovative companies will invest a lot of money each year innew technology, new product development research. For example, Huawei Corporation,China’s national enterprises, invests no less than20%of the income from its sales onR&D, its research and development personnel accounts for nearly half of the companystaff. In2010its patent applications ranked NO.1in the world. Every year there are tensof thousands of research projects going on at the same time, however, the projects thatcan bring real benefits are less than one third, enterprise research failed to achievemarket success.We need to set up a scientific and complete theory system and operational methodto monitor links from project establishment, development to its fruits from a financialperspective to support decision making, monitoring and evaluation. The studies onproject investment, financial management in China are mainly from a theoreticalperspective, those on mature cases with the practical situation of the enterprise itself aremuch less.It is hoped that through the analysis in this aspect, the theory with the enterpriseactual situation, can find a targeted, scientific method, and locate a series of evaluationindicators, thus provides relatively objective and efficient evaluation for the investmentprojects that enterprises have every year, and ultimately improve the efficiency of R&Dinput, making limited resources bring more benefit. Evaluation of project investmentdecision-making is a complicated system, a scientific and reasonable evaluation methodshould be based on the theoretical knowledge and a comprehensive grasp and profoundunderstanding of the enterprise’s specific business activities. The author has built asuitable HS project financial decision-making model based on the theory and the enterprise’s specific business process, combined the actual cases of the enterprise fromthe forecast of basic data to the output of the financial decision-making index evaluation,made a comprehensive analysis on the HS company’s project evaluation from afinancial decision-making perspective.The paper consists of six chapters.First of all, it describes the research background, the significance and relativemethods. Secondly, it introduces the theory and methods for project decision making.Then, it introduces the HS company project research and development of the IPDprocess and methods, and proposes finance decision-making model suitable for HSCompany, and gives detailed explanation on the data forecast and financial conclusions.Finally, it uses the practical HS company cases to analyze the practical problemsencountered when using financial decision-making model, and proposes the propersolutions.