A critical evaluation of investment in an upstream business to supply the current production : a case study of metal shutter door productions

Abstract

This research was created on the purpose of guiding the company's direction on investment to make or do nothing is a very important. In business, the investment meaning to growth of the company especially in special business sector as Viriyalohakij, which is Business to Business product with a family owned research is not conducted often.

The method and tools that used in this study are mostly come from business point of view. That reflects on the investment cash flow and many financial components which are resources based view analysis by using VRIO tool for the process. Operation strategy will use Hill’s framework for scoping the company direction objectives and goals. While financial part will use ratio on analysis which are NPV represents for total alternative valued based on a certain period of time. IRR the international return rate that the alternative reflect in percentage, ROI represents for the percentage of return in this investment and ROI which represents for the amount of time spending before the cash flow make profit.

The author decides to suggest the company to choose alternative 2.3 investment model, which is establishing a new business on the joint venture model of investment. Based on the environment (PESTLE analysis), the current situation is highly possibly to be worst case than normal case. Alternative 2.3 still in top 3 of VRIO analysis and also make the best financial outcome in financial analysis.