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Economic Analysis: Theory and Practice
 

Adaptation of the investment attractiveness evaluation model for implementing the corporate regionalization strategy to industrial company operations

Vol. 16, Iss. 2, FEBRUARY 2017

PDF  Article PDF Version

Received: 26 October 2016

Received in revised form: 16 November 2016

Accepted: 15 December 2016

Available online: 27 February 2017

Subject Heading: INVESTMENT ANALYSIS

JEL Classification: D24, F36, G32, L25

Pages: 315-327

https://doi.org/10.24891/ea.16.2.315

Bolodurina M.P. Orenburg State University, Orenburg, Russian Federation
bolodurina@inbox.ru

Gorbatenko E.V. Saint-Petersburg State University of Economics, St. Petersburg, Russian Federation
katevg94@gmail.com

Importance The article addresses the assessment of investment attractiveness of expansion into new markets strategy implementation of the industrial company.
Objectives The study aims to underpin the choice of a target geographical market to implement the growth strategy of the industrial company, and to perform practical testing of a model for assessment of investment attractiveness of corporate regionalization strategy for electrical machinery and equipment manufacturers operating in the Orenburg oblast.
Methods The study rests on review of fundamental and applied works of foreign and domestic authors in the field of corporate strategy development. We employ methods of economic and financial analysis, synthesis, comparison, system and situational analysis, analogies, and expert estimation.
Results We propose using a model of investment appeal evaluation of the corporate regionalization strategy to perform a preliminary assessment of practicability of expansion into new markets. Using the proposed model in the development of industrial company's growth strategy will enable to justify the choice of areas of investment activity that ensures growth of business value with maximum possible use of company's potential.
Conclusion and Relevance Practical testing of the model helped estimate the available capacity of industrial companies based on five key parameters (distance, product, finance, personnel, organizational structure) and offer recommendations on interpretation of obtained results.

Keywords: corporate regionalization, growth strategy, investment attraction, regional markets

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