Research On The Investment Problems And Countermeasures Of K Company In Zhejiang Province

The resolutions of the 14 th five year plan and the outline of the long-term goals for 2035 adopted by the Fifth Plenary Session of the 19 th CPC Central Committee and the fourth session of the 13 th National People’s Congress all point out that we should vigorously develop the market economy and activate the vitality of market players.For any enterprise,investment strategy undoubtedly belongs to the core content of its strategic composition.It will not only profoundly affect the economic benefits of the enterprise,but also have important significance for the future development direction of the enterprise.However,in reality,many enterprises,especially private enterprises,generally have investment problems.With the increasing proportion of private economy in China,the steady development of economic development and the comprehensive background of COVID-19’s abuse,how to properly resolve the related difficulties faced by enterprise investment will directly affect its dual role in providing large numbers of jobs and pulling local economic benefits.The key to overcome the dilemma of enterprise investment is to design a set of scientific,reasonable,targeted and operable enterprise investment countermeasures.In view of this,this paper selects K Company in Zhejiang Province as the research object,analyzes the outstanding problems of the company from the perspective of investment,and puts forward corresponding suggestions for improvement.In addition to the introduction and conclusion,this paper mainly includes the following four parts.The first part will discuss the basic theory related to enterprise investment in detail.This chapter involves four aspects of theory,namely the basic theory of investment strategy,capital use efficiency and related theories,the main measurement methods of capital use efficiency,and the theory of environmental analysis and PESTEL analysis.The second part will introduce the basic situation and external environment of K company.This chapter mainly involves the following contents: first,it expounds the development status of K Company from the aspects of operating status,asset structure and long-term and short-term debt structure;The second is to analyze the macro environment of K Company(investment)based on PESTEL model,and further discuss the investment opportunities and challenges faced by the company.The third part will focus on the analysis of K company’s investment problems.Based on a brief analysis of the basic situation of K company’s investment and EVA index,this chapter explores the practical difficulties faced by K Company from five aspects,namely,speculation in pursuit of short-term interests,inefficient use of project funds,irrational blind investment and planning,weak internal financing ability and imperfect incentive system of management.The fourth part will focus on the investment and development strategy of K company.This chapter combines the existing investment problems of K company,This paper puts forward some suggestions to improve the company’s investment from five aspects,which are "establishing the investment idea based on value investment","improving the budget system to improve the efficiency of capital use","implementing different investment strategies according to the nature of the project","improving the ability and proportion of endogenous capital acquisition" and "strengthening the executive compensation incentive and equity incentive".