What is an investment scenario?

Investment scenario is a term used to describe the projection of merit and shortcomings of potential investment opportunities. The investment scenario can be used for a potential investment, or may be applied retroactively to the existing scope of investment to analyze the short and long -term profitability of these investments. In words, the investment scenario is used to obtain a well -rounded view of the investment. The investment scenario can be applied to the market, industry or other parameters for calculating the proprietary investment.

For example, a company that seeks to diversify the opening of subsidiaries in other countries can use the principles of investment scenario to analyze different countries in order to achieve the best alternatives from available options. This company could find out potential countries to determine the best country for investment by considering many factors, including the type of product that the company forIt is or the type of service it offers with the intention of finding out whether there is a market in this country. Assuming that the company is a fast food restaurant, it will analyze the potential for consumers in the country to sponsor its fast food products, which can be achieved through a comprehensive market research. Other factors that will be included in the scenario analysis for this particular company will include the type of infrastructure available in the country, ease of obtaining the necessary raw materials and tax regime. At the end of the investment scenarios analysis, the company will be able to determine a specific country that offers the best investment opportunity.

Another method for using an investment scenario analysis is to explore the industry in which the company seeks to invest. For example, the investor could analyze the tourism industry in a particular area to see how progressive this industry is before he decides to buy shares at the hotel. Those who already have a number of investments in the form of items, jaKO are shares and bonds, they can also use an investment scenario to find out how their investments are carried out.