DIVERSIFICATION OF ENTERPRISE ACTIVITY AS THE MAIN STIMULUS OF ITS ECONOMICAL GROWTH
Journal Title: The Institute of Accounting, Control, and Analysis in the Globalization Circumstances - Year 2016, Vol 1, Issue 1
Abstract
Introduction. The paper reports on research into strategy of enterprise diversification, which is based on expansion of specialization and types of activity, vertical integration, renewal of connections and new initiatives in the context of crisis, that can provide the stable results in managing. The process of searching the alternative and functional directions of enterprise activity is currently of great interest in the context of sales slowdown on basic products, both at the internal and external markets. Purpose. The aim of the study is to determine the direction of increasing the efficiency of enterprises with the help of diversification. The potential of diversification of enterprises as the basic criterion of their innovation and strategic development is highlighted in the paper. The main task of the study is formulating the theoretical and methodological principles of diversification of enterprises and intensificating its positive impact on economic results. Methods. The methods of abstraction, expert assessments, analysis and synthesis are used in the paper. Results. An attempt is made at identifying the concept of "diversification" as the economic process in the context of modern management. The basic precondition of diversification of different types and forms of enterprises as an integral element of their growth is determined in the study. Various approaches of Ukrainian and foreign scientists to its establishing were analyzed in the paper. The features of diversification, its advantages and disadvantages were defined. Discussion. The research has important implications for future research on estimation of effectiveness of economic diversification, taking into consideration the condition of the industry market the company operates in.
Authors and Affiliations
Larysa Ivchenko
Keywords
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