Ukrainian enterprises’ strategy for attracting foreign investments (LLC "UKRAGRO“ taken as an example) by Ievheniy Lutsyk Scientific supervisor: D. in Ec. Serhii V. Kuzminov

The structure of the diploma paper CHAPTER 1.THEORETICAL AND METHODOLOGICAL ASPECTS OF FOREIGN DIRECT INVESTMENT CHAPTER 2. THE ANALYSIS OF TRENDS AND THE EFFECTIVENESS OF INVESTMENT IN AGRICULTURAL ENTERPRISE CHAPTER 3. DEVELOPMENT OF STRATEGY FOR ATTRACTING FOREIGN INVESTMENTS INTO LLC "UKRAGRO"

The objective of the research : the analysis of Ukrainian companies’ strategy in attracting foreign investments into agriculture. Research tasks: to determine the economic essence of foreign direct investment (FDI), its types, forms and peculiarities of effect; to analyze the modern scientific methodological approaches to determining the efficiency of FDI; to consider international practice of using FDI in agriculture; to analyze the state of foreign direct investment in agriculture of Ukraine; to make a general characteristic of the enterprise; to evaluate the financial state of the enterprise; to analyze the investment attractiveness of the enterprise; to justify organizational form of foreign investments attraction; to make up an investment project; to evaluate the economic efficiency of the project. The research object: the LLC agricultural firm "Ukragro". Subject of research: is the attraction of foreign investments in agriculture of Ukraine.

The findings obtained in the theoretical section Foreign direct investment is an investment in which an investor resident in one country (donor country) places its assets in another country (the host country), subject to receipt (conservation) of control over these assets. Foreign investors when investing direct capital in another country, have the right of ownership to the enterprise invested and, accordingly, the right of control over its production activities and distribution of products. Analysis of foreign direct investment in agriculture of Ukraine testifies to their small volume. According to specialists, the investment required for this sector of the economy is about 7 billion USD. The small volume of FDI in agricultural production of Ukraine is explained, first of all, by the peculiarities of the investment process in this field. Agriculture is too risky sector for investments, because it is influenced by a variety of exogenous factors that man is hardly able to control (natural disasters, epidemics, pests and diseases of agricultural plants and animals).

Dynamics of LLC "Ukragro" production in Grain Flour Beef Vegetables Pork Sausage Honey thousand UAH

Factor Optimal value Deviation (+,-) 2012/ / / 2011 The absolute liquidity ratio 0,25-0,30,0180,0090,055-0,0090,0020,046 The quick ratio 0,8-1,00,4640,3570,452-0,1070,0320,095 The ratio of total liquidity 20,9450,8530,834-0,092-0,006-0,019 The share of inventories in the amount of short-term liabilities 0,4550,4840,2770,0290,010-0,207 Analysis of investment attractiveness of LLC "UKRAGRO"

The ratio of the General profitability The profitability of fixed capital POC The profitability of current assets Return on fixed assets and other non-current assets The profitability of the company (total capital) Return on sales

The strategy of attracting foreign investments for LLC "Ukragro" in a short period presupposes measures in three main areas the investment in technological subsystem to increase efficiency of the enterprise’s activities; the investment in the social and labour subsystem; the investment in the business subsystems. Investor - Polish company Globusmax. The total investment is UAH.

Short-term indicators of LLC "Ukragro“ investment project efficiency №IndicatorLegendValue 1.Net present valueNPV186,72 2.The internal rate of returnIRR4,87 3.The profitability indexРІ1,71 4.Payback periodPBP7,66

Forecast Return on sales The profitability of the company (total capital) Return on fixed assets and other non-current assets The profitability of current assets ROE The profitability of permanent capital The ratio of the General profitability The ratio of the General profitability Polynomial Comparison of the profitability ratios of forecast values according to the results of strategy implementation

Forecast calculations of cost reduction from the reconstruction of vegetable-processing plant of LLC "UKRAGRO" till 2019 Name Amount of savings per year, UAH Total The rates of economy growth to the level of 2014,% 123,4146,7165,3189,9

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