Investment planning as the basis of the investment management mechanism
Investment planning is to make forecasts for the most effective investment of financial resources in land plots, production equipment, buildings, product development, securities and other assets.
The main objectives of investment planning:
- determination of the need for investment resources;
- identification of possible sources of financing and consideration of related issues, interactions with investors;
- estimate the fee for this source;
- preparation of a financial calculation of the effectiveness of investments taking into account the return of borrowed funds;
- Development of a detailed project business plan for presentation to a potential investor.Investment Planning is the process of developing a system of plans and planned (normative) indicators for ensuring the development of the enterprise with the necessary investment resources and increasing the efficiency of its investment activities in the forthcoming period.
There are three systems of investment planning:
- strategic planning of investment activities;
- current planning of investment activity;
- operational planning of investment activity.
strategic planning refers to actions
and the decisions of the organization's management, which cover the selection and attraction of possible sources of financing investment projects to achieve the strategic goals set. Strategic investment planning is developed for a long-term period of time and provides for the formation and implementation of strategic tasks that facilitate the company's transition to a qualitatively new state. Strategic planning is the basis for planning investment activities in the company.
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The evaluation of the effectiveness of the developed investment strategy is based on the following criteria :
- consistency with the overall strategy of enterprise development;
- the internal balance of objectives, directions and sequence of implementation of investment policy;
- consistency with the external environment;
- feasibility taking into account available resources;
- acceptability of the level of investment risks;
- financial, production and social performance.
Current investment planning is carried out in support of strategic planning and covers the selection and attraction of the most effective sources of investment projects financing to achieve the set tactical tasks. Current planning is developed for the medium term and includes a set of measures that will ensure the implementation of the company's tactical goals and development objectives in the investment sphere. Current investment planning includes:
- the plan of the total amount of investment activity;
- the plan of incomes and expenses of investment activity;
- a plan for the receipt and expenditure of funds in the investment process;
- balance plan.
Timely and complete implementation of the tasks of the current planning is largely ensured by operational planning. Operational investment planning is considered as a set of measures for the effective allocation of financial resources among alternative investment options and includes the development of the company's investment budget. Operative investment planning is carried out for a short period. A special form of operational planning is the payment calendar. It is developed both for the enterprise as a whole and for individual types of cash flow (tax payment calendar for investment activities, payment calendar according to calculations with suppliers, etc.).
The aggregate and interconnectedness of strategic, current and operational planning form the system of investment planning in the company, which is the basis for ensuring its effectiveness.
One of the methods of investment management is investment control, which is divided into internal and external by the subjects of its organization and conduct.
Internal investment control is a process that is organized by the company to verify the implementation and ensure the implementation of all management decisions in the field of investment activities in order to implement the investment strategy.
In recent years, a new progressive internal control system has been widely used in economic practice, organized in companies and firms called "controlling" (deviation management).
The principle of this concept is an operative comparison of the main planned (normative) and actual indicators with the purpose of revealing deviations between them and determining the relationship of these deviations in the enterprise with the aim of influencing the key factors of the normalization of activity.
In the general controlling system, one of its central blocks - investment controlling is allocated.
Investment controlling is a controlling system that ensures the concentration of control actions in the most priority areas of the company's investment activities, timely detection of deviations of its actual results from those envisaged and the adoption of operational management decisions that ensure its normalization.
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It's important to remember
In contrast to internal control, investment controlling provides more rapid detection of deviations in the course of investment activities, their adjustment and contributes to improving the efficiency of the investment process in the company.
Highlight the functions of investment controlling:
- monitoring the implementation of investment targets and targets;
- measurement of the degree of deviation of the actual results of investment activities from those envisaged;
- diagnosis of the size of deviations of serious deterioration in the investment position of the enterprise;
- development of operational management decisions to normalize the investment activity of the enterprise;
- Adjustment, if necessary, of individual goals and indicators of investment activity due to changes in the external investment environment, investment market conditions and internal conditions.
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