Study On The Solution Of Company Z’s Overseas Investment Project’s Dilemma

Since 2018,affected by the downward trend of the international project contracting market,a lot of Chinese state-owned enterprises,whose main business is traditional international project contracting in Africa,have begun to actively expand overseas investment business to improve their competitiveness,and look for their most suitable overseas investment road in the face of difficulties one after another.This thesis takes Company Z,a state-owned enterprise of Province X,as the model,deeply studies the dilemma of its tobacco project invested in Country G and explores solutions.Due to the outbreak of COVID-19,two consecutive years of natural disasters in Country G and poor internal management,the progress and benefits of project fell short of expectations.In 2022,it was completely stalled and stuck in dilemma.The body part of the case firstly sort out the background and implementation of project.Based on the international direct investment theory and international investment risk theory,the internal and external causes of dilemma are deeply analyzed and three feasible solutions,"additional investment,implementation of’market first,factory later’ strategy","project suspension,maintenance of the status quo" and "exit investment,project company liquidation ",are formulated.Then these three solutions are qualitatively and quantitatively evaluated based on the decision theory,expected value and marginal analysis method.Finally,according to the analysis results,the optimal solution "additional investment,implementation of’market first,factory later’ strategy" is selected through the expert scoring method and safeguard measures such as “improve the internal management level” and “strengthen prevention of political,security and economic risks” are formulated,which provides the solution of the project’s dilemma and reference for risk management and dilemma response of similar enterprises.