Lecture 14. Investment activity of firm

Investment activity of firm. A role and a place of investment in a production activity of firm. The major factors influencing investment volume. Investment portfolio. Objects of investment.

Classification of investment. Real and financial investments. Direct and indirect investments. Short-term and long-term investments. Private, state, foreign and joint investments.

Investment project. Life cycle of the investment project. Preinvestment, investment and operational stages of projects. Management of projects.

Methods of an assessment of efficiency of the investment project. Discounting coefficient. Net current value. Profitability of the project. Payback period. Internal standard of profitability. Commercial efficiency.

Literature: 1-42.

Lecture 15. Innovation activity of firm

Innovation activity of firm. A role and a place of innovation in a production activity of firm. The major factors influencing innovation volume. Subjects and objects of innovation.

Classification of innovation. Scientific and technical, organizational and economic, welfare innovations. Innovation product; innovation process; innovation service; innovations markets. Basic; the system; the growing; pseudo-innovations. Reclaiming of initial properties; quantitative changes; adaptive changes; new option; new generation; new look; new sort. Strategic; jet (adaptive) innovations. Architectural; the revolutionary; creational; regular innovations. Main innovations; the supplementing innovations. Ascending; the descending innovations.

Innovation project. Life cycle of the innovation project. Initiation - Idea, Development - Model, Realization - Production, Distribution - Advance, Consumption – End. Management of projects.

Literature: 1-42.

7. Plan of practical classes Theme 1. Firm in the market economy

1. Firm as property complex and economic subject. Place and role of firm in economic system. Main signs of firm.

2. Classification of the enterprises for form of ownership, organizational and legal form, size, specialization and other signs.

3. Main functions of the enterprise.

4. Environment of the enterprise: structure and variable factors of the environment.

Questions for discussion:

1. Name the main tasks and functions of firm.

2. What is structure of firm?

3. What does firm represent as the independent managing subject?

Theme 2. Theories of firm: neoclassical and institutional

1. Concept of organizational structure of firm, stages of construction of system of horizontal and vertical division of labor.

2. Firm, branch and market. Competition and classification of market structures.

3. Parameters of behavior of firm. Types of behavior of firm in the market: competitive behavior, strategic behavior, the dominating behavior.

4. Main concepts of firm: neoclassical, neoinstitutional, strategic, enterprise, evolutionary.

Questions for discussion:

1. How balance of firm changes in the short-term period?

2. Describe behavior of firm in the conditions of net monopoly.

3. Name the main essence of the theory "the principal - the agent".