Theoretical aspects of strategic diversification of agricultural enterprise activity

Abstract

In today's dynamic and turbulent business environment, diversification has become a catalyst for achieving competitive advantage and creating synergies in market operations. This is due to the fact that manufacturing companies operate in conditions of high competition, especially among firms that produce the same or similar goods. In the conditions of globalization, market consolidation, economic instability, companies must look for new ways to strengthen their market position, reduce business risks and increase profits. The formation and implementation of the strategy of enterprise diversification allows to partially solve these problems. The strategic focus of market transformations on the implementation of qualitative transformations in the agricultural sector of the economy increases the need to develop and implement organizational and economic mechanisms for the functioning of agricultural enterprises and their management for effective development. This is achieved through the expansion of activities and optimal use of available resources. The actualization of diversification of agricultural enterprises in modern conditions is intensifying given that it is an effective tool for managing economic development, taking into account the peculiarities of agriculture, including those related to its seasonality, promotes full use of resource potential, strengthening financial synergies, increasing the competitiveness of the enterprise by restructuring the existing business and improving product quality. Increasing the level of diversification of the agricultural enterprise must be carried out very carefully, in each case taking into account the specific features of production, the structure of competition in the products market. Diversification of agricultural production will allow the company to influence the market effectively, form a clear development strategy, and thus obtain high assets, avoid possible risk. Keywords: diversification of agricultural enterprises, strategy, strategic development, competitiveness.