The corporate asset strategy determines whether assets should be enhanced by capital investment, maintained to maintain their position or disposed of. Thus, the corporate asset strategy connects corporate objectives to the available production technology, and consequently, the production asset base has to be developed so as to support the company's objectives. Even though it is evident that physical assets are key elements in bringing the corporate strategy into action, many asset owners still do not connect asset management with corporate strategy. This paper examines the influence of the market demand and competitive situation to asset management decisions, especially operative investment decisions in the capital-intensive manufacturing industry. It proposes a practical semi-quantitative approach to support business-driven asset strategy decisions. The empirical research was carried out in cooperation between researchers and companies. The results indicate that a systematic strategy-oriented analysis can be successfully combined with the corporate asset management decisions.
|Journal||International Journal of Strategic Engineering Asset Management|
|Publication status||Published - 2015|
|MoE publication type||A1 Journal article-refereed|
- asset management
- investment option
- market demand
- competitive situation