Concept Of Diversification Research Articles

An exploration into the nature and extent of diversity within history classrooms in Kent

AbstractEver since the 1970s, politicised debates have raged over the teaching of history, dubbed the ‘history wars’. These debates continue to impact primary and secondary teachers' choices of history curriculum foci to this day. This research aimed to discover history teachers' understanding of how to develop diversity within their history curricula and to discuss the possible pitfalls of their decision making. We set out to answer the following questions: (1) How do history teachers and subject leads understand the concept of diversification within the history curriculum? (2) How are schools approaching the diversification of their history curriculum? We carried out this project collaboratively with 10 history teachers and subject leads from four primary and three secondary schools in Kent, South‐East England. As a result, we have developed a model of ‘school diversification’ and make several recommendations to support the development and teaching of increasingly diverse history lessons, within the confines of the current National Curriculum. This project adds to the literature by privileging the voice of teachers within classrooms and including collaboration between teachers of all phases within history education in English schools to support the development of diversity within their practice.

RELATIONSHIP BETWEEN DIVERSIFICATION AND DIVISIONALIZATION PROCESSES IN THE CONTEXT OF ENTERPRISE RENEWAL

The growth of enterprises according to the scheme of concentric and vertical diversification can result in unique competitive advantages in the process of development. However, in this case, diversification does not insure the company against industry-wide crises. It must be recognized that production diversification has a number of disadvantages in unrelated industries. Without experience and poorly oriented in the situation of a new industry, the company can easily lose its position on the market of goods or services. Opening a small business in a new industry, the company gains experience and develops connections, experiencing small losses, receiving small profits. In order to minimize the risks and losses of companies that are actively diversifying their activities, the article examines the relationship between diversification and divisionalization in the case of transformational changes in the development process in accordance with the existing type of external environment of the organization. Considering the fact that today there is no clear definition of the concept of diversification, the article considers the scientific problem of defining this concept in the context of obtaining its further development. The article defines that with increasing dynamism and complexity of the external environment, companies have a need to reduce risks and the need for innovations (technological, management, marketing, etc.) to function in the existing external environment. Innovation usually requires the creation of new divisions, which is a process of sectorization. Diversification of activity is not only a reaction to the carried out process of divisionalization, but also the original reason, caused by the need to reduce activity risks and expand the economic activity of the organization into new areas of activity. The article concludes that diversification and divisionalization are interrelated processes that exist simultaneously and contribute to the renewal of the enterprise, if the transformation process is carried out in a timely manner and in accordance with the existing type of external environment of the organization.

Диверсифікація як метод забезпечення стабільного розвитку підприємства

Diversification is considered as an effective method of stable development of enterprise in the long term, which makes it possible to timely and promptly respond to changes in the needs and market conditions by functioning in different markets, which is relevant in the current conditions of market instability, rapid decline or disappearance of demand for individual goods and services. In order to achieve the purpose of the article, i. e., clarification of the essence of the concept of «diversified enterprise», the literature sources are analyzed and the authors’ own experience of studying the activities of such enterprises is applied; the diversity and lack of a clear understanding of the very concept of diversification of production are established, which does not allow to make generalizations about the activities of the enterprise. The research in the article is carried out using the methods of generalization, abstraction, analysis, synthesis. With regard to the definition of the essence of diversification of production, and, consequently, of enterprise, the expediency of allocating the factors that characterize the causes, results, breadth of coverage of directions and spheres of activity, structural structure has been determined. This made it possible to form a definition and interpret diversified enterprises as business structures that expand existing areas of activity or create new ones, organizationally (with allcation or without separation of business units) and/or legislatively (contractual, legally formalized) independent or dependent in a pure or mixed form, ensuring the achievement of relevant goals due to current and/or strategic reasons. The presented conclusion summarizes the substantiation of a unified approach to understanding the essence of diversification of enterprise as an effective method of its stable activity in the long term, focuses on the factors characteristic of diversified enterprises, the combination of which ensures their competitive advantages. The given interpretation of the concept of «diversified enterprise» will contribute to a simpler, clearer, more effective allocation of specific universal types (kinds) of these structures.

EVALUATING THE EFFECTIVENESS OF MEASURES TO DIVERSIFY PRODUCTION AT AGRICULTURAL ENTERPRISES

The economic growth of the Republic of Kazakhstan in the agricultural sector is determined by the degree of competitiveness of enterprises engaged in agriculture in the domestic and foreign markets. In the conditions of modern competition, a significant factor in increasing the competitive advantages of agricultural organizations is the factor of diversification of development.The implementation of diversification processes in the agricultural sector involves a more balanced system of state support measures in combination with private initiatives of agricultural specialists than in other sectors of the economy, since Land is the main tool in agriculture, and production depends on natural and climatic conditions. All these issues are relevant for the agricultural sector of the economy of Kazakhstan.The article on this topic is aimed at studying and identifying potential opportunities for activating the concept of diversification in application to agro-industrial complexes in modern Kazakhstani conditions. The article examines the issues of studying the causal relationships of factors determining the processes of effective diversification of production, identifying problematic aspects of the development of the concept of diversification of agro-industrial enterprises based on the analysis of the state of development of the agricultural sector of the economy of Kazakhstan. The article also presents methods for researching the potential of improving the competitiveness of agro-industrial enterprises based on expanding and deepening the processes of diversification of agricultural production.The results of the study, in our opinion, make it possible to intensify the formation of the agricultural industry in the country, and the identified strategic priorities for the formation of diversification processes in the agricultural sector allow us to focus on the points that need to be developed in this context.

Оцінювання ефективності диверсифікування географічної структури зовнішньоекономічної діяльності в умовах євроінтеграції

An analysis and assessment of factors influencing the effectiveness of diversification of the geographical structure of foreign economic activity of "NOVA POSHTA" LLC was carried out. The essence of the concept of diversification is determined, its types and features of this strategy of de-veloping new markets are given. The prerequisites for the implementation of the strategy of geo-graphical diversification of foreign economic activity, the opportunities and threats that may arise during the expansion of activities in the EU markets are outlined. Diversification of foreign economic activity is caused by increasing the dynamism of enter-prise development, changes in demand and the emergence of new industries on the market. In such cases, the diversification makes it possible to compensate for the drop in sales in one market by in-creasing it in other markets. It also contributes to attracting foreign investments and increasing the competitiveness of the enterprise. All types of geographic diversification open up new business op-portunities for enterprises - business entities can make maximum use of resource potential and pro-duction capacity, distribute commercial risks of dependence on one market and minimize them. Nowadays, logistics as an industry has great potential and prospects. According to the fore-cast, until 2024, the world market of logistics services will grow annually by 7.5% in monetary terms. The main players on the market in Ukraine are "NOVA POSHTA" and "Ukrposhta". This is due to the fact that more and more people are switching to online shopping. As a result of the conducted research, it was determined that in modern business conditions, the strategy of diversifying the geographical structure of foreign economic activity is becoming more and more relevant, but it must be supported by empirical data coming from the marketing monitoring system. Assessing the necessity of diversifying the geographical structure of foreign economic activity in case of "NOVA POSHTA" LLC requires consideration of many factors, especially resources, fi-nancial capacity and taxation. Taking them into account the recommended directions for the imple-mentation of the GoToMarket-strategy for "NOVA POSHTA" LLC are given in the article. The stages of marketing strategy implementation considering national and international market fea-tures and service consumption models of "NOVA POSHTA" LLC in conditions of diversification of the geographical structure of foreign economic activity are outlined. Recommended business indica-tors for evaluating the effectiveness of diversifying the geographical structure of foreign economic activity of "NOVA POSHTA" LLC are identified.

Transformation in Indian health care: the Tata 1mg merger story

Learning outcomes This case study would enable students to understand the concept, process and advantages of mergers and acquisitions as a growth strategy with respect to 1mg. Also, the students would be able to use the threats, opportunities, weaknesses and strengths matrix to map 1mg’s strengths, weaknesses, opportunities and threats. Case overview/synopsis This case study analyses the transformation journey of 1mg to Tata 1mg, one of the most trusted internet pharmacies in India. This case describes a small start-up that was launched in 2013 and had made many acquisitions since then. This case revolves around Tata Digital’s purchase of 1mg. The case starts out by explaining 1mg’s financial situation and why the company was acquired. This case study focuses on how the integration helped Tata Digital and 1mg realize their respective missions. Furthermore, the case study illustrates the benefits and difficulties of this integration. Complexity academic level This case study is basically aimed at postgraduate management students; it can be used in strategic management and health-care courses. Students can understand the concept of diversification and acquisition with the help of this case study. Students can also gain an insight into the organic and inorganic diversification as a growth strategy. Supplementary materials Teaching notes are available for educators only. Subject code CSS 11: Strategy.

Diversification of entrepreneurial activities in the agricultural sector of Ukraine’s economy in the post-war period

In the context of modern development of agricultural producers, assessing the level of their activity efficiency and searching for an appropriate strategy for further development is essential. The aim of the article was to formulate a concept of sustainable development for agricultural producers based on identifying the most viable development strategy. The article’s methodological framework included the following methods of scientific inquiry: descriptive method, measurement and comparison methods, economic-mathematical modelling, induction, deduction, analysis and synthesis, system-structural analysis. The essence of diversification of activities in the agricultural sector was examined and revealed, defining their role in forming sustainable development. To achieve this, theoretical concepts of Ukrainian and foreign scholars, as well as the categories of “diversification” and “sustainable development,” were synthesized. Subsequently, an analysis and forecast of land use by agricultural enterprises were conducted. The dynamics of changes in the structure of cultivated areas from 1991 to 2021 were determined, as this period marked the implementation of agricultural reform aimed at finding effective agricultural product producers. Changes in the magnitude of costs for primary resources in farm enterprises of the Kyiv region on the eve of the war were defined, and the economic efficiency of cultivating major agricultural crops was analysed. Based on established data, a development strategy was modelled for an average farm in the Forest-Steppe zone of Ukraine, considering the concept of diversification through the implementation and development of animal husbandry. Furthermore, directions for further development of agricultural entities were substantiated by deepening the diversification of activities through optimizing cultivated areas. The research outcomes could be considered in shaping the development strategy of entrepreneurial structures and evaluating their impact on sustainable development in the post-war period.

An Analysis of Semiconductor Stocks as an Opportunity for Portfolio Diversification

Abstract The semiconductor industry is a key driver of technological progress due to essential parts that are integrated in widely used electronic devices nowadays. Given its critical importance, this industry is constantly evolving in order to adapt to market requirements led by fast-paced consumer trends. Meanwhile, the global supply chain is undergoing pressure from other conditional factors, mostly the pandemic and trade restrictions in recent times. With potential to grow due to digitalization, semiconductor companies can be an attractive option to invest in. Building an investment portfolio is a challenging process regardless of the risk preference of an investor. Based on the concept of diversification, combining low-correlated assets from various industries can lead to an overall efficient portfolio with acceptable risk levels. The aim of this study is to analyze the evolution of eight selected semiconductor stocks from 2018 to 2022 and evaluate their relative performance to the benchmark index by using descriptive statistics and risk metrics drawn from their daily returns. Having an insight on the results obtained from historical data allows us to examine whether diversifying portfolios with semiconductor stocks represents an opportunity, mainly contributing to a pre-selection of stocks to mitigate the risk and support the investment decision.

Assessment of the Level of Economies' Foreign Trade Diversification

The aim of the study is to consider the concept of diversification in the context of foreign trade, to clarify the classification of types of foreign trade diversification, ways to assess the level and to conduct a mass assessment of the level of foreign trade diversification of countries. The justification of the undertaken topic is that the national economies of the modern world do not function autonomously, they are interconnected by trade, co-production, financial and migration flows, and following international integration, these relationships are only strengthening. Therefore, the disruption of foreign trade relations of countries can cause more problems, lower the level of their foreign trade diversification. However, despite of these, today the issue of foreign trade diversification is not sufficiently deeply studied, including ways to classify foreign trade diversification and assess its level. The research methodology includes methods for calculating indicators characterizing the level of diversification. For calculations, the values of indicators characterizing the annual volume of international trade of the countries of the world are used. The results of calculation of indicators of the level of foreign trade diversification according to statistical data on the volume of imports and exports of the world are presented. Choropleth maps of the level of foreign trade diversification of the world are created. Conclusions are made on the possibility and convenience of using indicators of foreign trade diversification.

Portfolio weights concentration: optimal strategies and equilibrium implications

PurposeThe purpose of this article is to help investors build less-concentrated portfolios as well as to construct optimal return-concentration portfolios.Design/methodology/approachAn alternative portfolio objective is proposed where investors care about the level of concentration of their portfolio weights. Minimizing the concentration of portfolio weights leads to the well-known equal-weight portfolio as the optimal choice. Maximizing the trade-off between the portfolio's expected return and the weight concentration produces a novel portfolio with weights proportional to the expected return of each security.FindingsAn empirical application with 30 industry portfolios and 1,000 individual stocks finds that both proposed strategies perform well out-of-sample both in terms of the proposed concentration measure but also in terms of more traditional risk-based measures like Sharpe ratios, abnormal returns and market betas.Originality/valueThe optimal risk-concentration portfolio proposed in this paper is a novel result. The portfolio generalizes prior practitioner intuition on focusing on securities with the highest expected returns and the concept of diversification.

Diversified Sustainable Resource Availability by Optimizing Economic Environmental and Supply Risk factors in Malaysia's Power Generation Mix.

Population growth and economic development contribute to the rise in the demand for electricity. To meet the demand, electricity generation has been relying on fossil fuels. This practice has three major drawbacks: inevitable resource depletion, environmental concerns, and supply risk. Renewable fuels are touted to be the future of sustainable power generation. However, there is a need to assess and optimize the use of the available resource in an effective and efficient manner. In order to accomplish the desired objectives, this study adopted the multi-perspective approach for efficient utilization of resources, both in terms of cost and diversification, and also aimed to propose the optimum combination of technologies for electricity generation in Malaysia. In this regard, first, the potential of the resources was identified from the Malaysian prospective compliance with the five fuel energy action plan 2020. All the five fuels were examined in terms of economic, environmental and security parameters, and evaluated in the terms of cost to measure the total exposure in monetary units. For the economic analysis, the LCOE cost quantification method was used. Similarly for the restriction of carbon emission, a carbon-tax policy was proposed and a novel technique was designed for the quantification of excessive cost of security in the electricity generation industry. This study applied the simulation mathematical modelling and the graphical evaluation approach to optimize the power generation mix in terms of cost and diversity index. Hence, this study will assist the policy-makers in making efficient long-term policies considering the impact of various factors on total generation cost while adopting the concept of diversification for an efficient and uninterrupted power generation process.

Optimal portfolio of an investor in a financial market

An investor seeks to diversify assets and optimal portfolio, which provide the maximum expected returns at a given level of risk. Optimal portfolio problems of an investor with logarithmic utility have been studied. However, there is scarce information on other utility functions, such as power utility function, which captures the concept of diversification of portfolios. This study was therefore designed to consider the general expected utility of an investor in the financial market. Ito’s integral where extended by the lofty properties of forward integral to diversify the investor’s portfolio. A filtration was built and used as a set of information for the investor. A semimartingale was used to enlarge the investor’s information. Matlab Mathematical software was used to compute the investors varying rates of return.

Diversification Benefits from Leveraged Loans? Trends in Cross-Asset Correlations

The concept of diversification is well understood by both academics and investment professionals. In forming a mean-variance efficient portfolio, investment managers look for low-correlated assets in order to maximize diversification benefits. This article investigates the potential of European and US leveraged loans to serve as diversifiers in a multi-asset portfolio. By calculating correlations between leveraged loans and other asset classes over the sample period from 2002 to 2020, the authors are not only able to demonstrate increasing correlations in highly volatile markets (i.e., financial crises), but also long-term, crisis-independent positive trends in asset correlations. In particular, leveraged loans and their correlations with stocks and high-yield bonds present significantly positive long-term trends and hence diminishing diversification benefits. The authors state that instead of short-term market volatility, increasing market integration could be the driving force behind this effect. The results also indicate that diversification benefits from leveraged loans are lower in the US than in the European market. TOPICS:Fixed income and structured finance, developed markets, portfolio construction, performance measurement Key Findings ▪ The empirical analysis shows generally stable and low correlations of leveraged loans with most asset classes in European and US markets. Stocks and high-yield bonds are an exception, showing a pattern with rising long-term correlation coefficients. ▪ The correlation of leveraged loans with high-yield bonds is higher than those with other asset classes due to their comparable characteristics. Correlations between those asset classes have risen, especially since the global financial crisis in 2008. ▪ Due to higher market volumes and integration advantages in the US, the correlations of leveraged loans with other assets are higher in the US market, leading to lower diversification benefits compared to Europe.

A novel backtesting methodology for clustering in mean–variance portfolio optimization

The decisions of asset selection and allocation lie at the heart of financial portfolio management. For these challenging tasks, the mathematical programming model of the mean–variance optimization problem proposes to use the concept of diversification. The novel methodology in this article is a representation of the accumulated knowledge of this model from the modern portfolio theory. It is a practical application for portfolio managers to help synthesize the available historical data and to infer rational decisions. The state-of-the-art backtesting methodology integrates the unsupervised machine learning method of clustering analysis into the mean–variance portfolio optimization model. The test results from the proposed novel methodology show that clustering with Euclidean distance measures outperform the results of the benchmark and other specified clustering methods for different datasets, backtesting periods, and temporal scales of major stock indices.

A hands-on approach to teaching the financial concept of diversification

ABSTRACT In this article we apply R, a free software, and recent stock-price data to illustrate the portfolio diversification concept, a corner stone of modern finance theory. Currently, recent stock-price data are available on the internet at no cost to users. By using current market data to construct realistic and authentic examples, student engagement can be improved in classroom discussions. However, to focus on learning the finance concepts, the process of accessing the data and applying the statistical software must be user friendly and learner centered. In this article we demonstrate that this can be achieved. We use Shiny – an R package – to provide a user-friendly dashboard that could make the process interactive and easy to use. The proposed tool, when used as a supplement to existing resources, could promote self-discovery and sustain student interest. We also provide the computer code we used for obtaining the results discussed in the article.

ТИПОЛОГИЯ ВИДОВ И ФОРМ ДИВЕРСИФИКАЦИИ ПРОИЗВОДСТВА

The article analyzes various definitions of the concept of diversification. The author defines the term diversification of production. The essence of the main types and forms of diversification of production is disclosed. A typology of types and forms of diversification of production has been developed.

Risk and diversification of nonprofit revenue portfolios: Applying modern portfolio theory to nonprofit revenue management

AbstractThis study uses modern portfolio theory (MPT) to estimate the risk of nonprofit revenue portfolios and examines to what degree the revenue concentration measure based on Herfindahl–Hirschman Index is associated with the portfolio risk measure based on MPT. The findings suggest that nonprofits with greater revenue concentration have lower revenue portfolio risk in the whole sample analysis. However, it is plausible that this result is dominated by organizations reliant on commercial income, which comprise over half of the sample. In fact, when examined separately, the relationship varies by an organization's primary funding structure. While higher revenue concentration is positively associated with portfolio risk for organizations relying on donations or those without a consistent primary funding source, it appears to associate with a lower portfolio risk for commercial organizations and those relying on government grants. This study reflects on the concept of diversification derived from portfolio theory and calls attention to a more nuanced approach to nonprofit revenue strategy.

Gaining Competitive Advantage at Sea: An Overview of Shipping Lines’ Strategic Decisions

The liner shipping sector has significantly changed in recent years. Largest shipping lines have expanded their business scope becoming global carriers and a recent wave of industry consolidation has profoundly modified the market structure and, consequently, the business models followed by liners. This, coupled with weak market fundamentals, generally poor balance sheets, and ordering of increasingly larger container vessels, has led each shipping line to follow a specific dominant strategy aimed at increasing market shares, margins and creating value for costumers. This article proposes an overview of the main market strategies pursued by the largest shipping lines. Through an analysis of major container lines strategies, the study aims at identifying what are the preferred strategies to gain competitive advantage. Particularly, the concept of diversification (product and geographical diversification), modes of diversification (internal and external), differentiation and concentration are comprehensively discussed and applied to the liner shipping industry. Furthermore, it tries explaining what are the most significant similarities and differences in market strategies in relation to the size of each shipping line. The review of our analysis suggests that 1) all shipping lines follow a hybrid strategic model with more than one individual strategy pursued 2) larger shipping lines prefer to diversify or differentiate 2) mid-sized shipping and smaller lines tend to pursue market concentration.

Technological diversification and Smart Specialisation: the role of cooperation

ABSTRACTSmart Specialisation is closely associated with the concept of diversification. For a better understanding of Smart Specialisation, this paper examines one little-explored explanatory factor of technological diversification: cooperation within and between regions. Using Organisation for Economic Co-operation and Development (OECD) REGPAT data on co-applications for patents, the empirical analysis investigates the role of cooperation between organizations on technological diversification in 226 European regions over 10 five-year periods, 2000–13. Cooperation within and between regions emerges as an important determinant of regional diversification, but both forms of cooperation should evolve hand in hand – singly, each form may prove ineffective at boosting regional diversification.

Foreign Policy Diversification and Intercontinental Transport Corridors: The Case of Kazakhstan’s Railways Diplomacy

Building on recent scholarship, this essay contributes to further developing a conceptual understanding of multivector foreign policy, a term that, despite its frequent use, is still in need of additional refinement. I use the two-pronged concept of diversification as hinging, first, on simultaneous co-alignment with multiple major power providers and, second, as resulting from the interaction of variables at both system and unit levels. The essay then models a causal mechanism to explain Kazakhstan’s approach to international infrastructure connectivity, an oft neglected issue-area of interstate collaboration.