For example, a power plant, whose main product is a certain type of color TV, is in the growth period of its economic life, and it will be guaranteed to sell well in a few years. However, some existing production equipment is relatively backward and needs to be scrapped and updated, or the existing production capacity is too low to meet the market demand and achieve economies of scale. Therefore, enterprises may choose to invest in the transformation or expansion of some production equipment (such as introducing a production line with the same content). At this time, the investment direction of the enterprise is consistent with its original production direction.
2. While retaining the original production and operation contents, increase investment in new production and operation contents of this industry.
This is a common investment direction. Let's take the power plant mentioned above as an example. Assuming that the production capacity of its existing color TV products can be fully absorbed by the market, the market demand trend of some new color TV sets or other similar household appliances (such as electronic game machines) with other functions is optimistic and the profit prospect is considerable, and the enterprise has the conditions to develop, and its investment may focus on the development of such promising new products and the formation of their production capacity. At this time, the investment direction of the enterprise is different from its original production direction, but it is still limited to the industry.
3. Investment to realize the complete transformation of industrial production.
This usually happens when the existing production content technology of the enterprise is seriously backward and cannot meet the consumption demand, or the production cost of the existing products is too high, the supply of raw materials can not be guaranteed, the income level is very low or even serious losses. In this context, the existing production content of enterprises has no reason to continue. Although this investment direction is still limited to this industry, its influence is quite extensive and significant, which will comprehensively involve the adjustment and transfer of enterprise assets, and it is necessary to solve a series of problems such as the disposal and utilization of existing machinery and equipment, the reconfiguration and combination of labor force, and the cleaning and reconstruction of various external cooperation relations.
4. In order to achieve the goal of getting out of the original industry and engaging in production and business activities.
There are two main situations for this kind of investment:
One is to make cross-industry investment under the condition of completely or partially retaining the original production and operation direction of the enterprise. For example, in an electrolytic aluminum plant, in view of the fact that it is difficult for the power sector to ensure its production power consumption, and sufficient power supply is a necessary condition for the plant to be fully put into operation, it can independently build an affiliated power plant with its own funds, or jointly invest with the power sector to build a power plant. In addition, through investment projects in other industries, enterprises' equity participation or merger with other enterprises is also one of the forms of such investment. For example, the above-mentioned power plants may continue to produce color TV sets and use part of their profit income to buy shares in the newly-built joint-stock cigarette factory to obtain greater profits. This situation mostly occurs in enterprises with good operating conditions and abundant funds.
Another situation is to completely terminate the investment activities under the background of the production and operation activities of its existing content, that is, comprehensive cross-industry investment. However, this situation is limited by various conditions, especially by the existing stock of various resources, so it rarely happens in large-scale enterprises, and generally only happens in small-scale enterprises with low production capacity and labor-intensive production methods, such as township enterprises.