Diversification Of Enterprises Research Articles

Strategy for diversification of enterprises in the service sector: two-factor model “consumer-market”

The study aims to substantiate a methodological approach to the strategic development of the service sector in the context of global socio-economic changes. As a result, the main provisions of the proposed methodological approach to the formation and assessment of diversification strategies for enterprises in the service sector have been formed, and a two-factor model “consumer-market” has been substantiated. It is necessary to consider the increasing role of management tactics and focus on those factors that determine the current position of the enterprise in the market presence and the industry. The basic changes associated with the digitalization of key processes and skills of the main and managerial personnel are characterized since the service sector develops based on the acquisition of innovative competencies.

System of financial sustainability management of forestry enterprises of southern Ukraine

The article considers the possibility of more efficient use of forest resources of the steppe zone of Ukraine, including by improving the level of financial stability of forestry enterprises in the South of Ukraine. For this purpose, on the basis of well-known principles of process algorithmization, a conceptual model of formation of the financial stability management system of forestry enterprises of the South of Ukraine is proposed. The presented model is based on the economic, social and environmental components (subsystems) of forestry enterprises and in each of them the necessary directions (possible effects) for improving the financial condition of economic entities are identified. The main reasons of normative and organizational nature, which make it impossible to increase the economic potential of forestry enterprises in the South of Ukraine, are highlighted. The directions of cooperation of forestry enterprises with local self-government bodies are offered, in particular: conclusion of commercial agreements on reconstruction of existing and creation of new parks and squares, construction of sanatoriums, cultural and entertaining, development of water purification and water-preserving functions of forest plantations. The mechanism of realization of the system of management of financial stability of the forestry enterprises which is based on realization by the forestry enterprises of a complex of the corresponding organizational and technical and administrative actions is presented. which consists in the implementation of the relevant stages of the enterprise, in particular: capitalization of own assets, identification of sources of funding and diversification of activities. It is substantiated as one of the directions of diversification of forestry enterprises, creation of energy crops on forest lands that cannot be used for other needs, and production of pellets from them for further sale. In particular, based on the calculations, it is proved that the proposed direction of diversification of forest enterprises in the South of Ukraine will not only improve their financial condition, but also attract low-value lands that are unsuitable for growing forests and crops, eventually improving their structure and content.

PROSPECTS OF IMPLEMENTATION OF THE AGRICULTURAL ENTERPRISE DEVELOPMENT STRATEGIES IN THE BIOENERGY MARKET

The purpose of the paper is to identify and analyse strategic alternatives and conditions to create a strategy for the development of agricultural enterprises in the bioenergy market. Methodology. General scientific economic and mathematical methods as analysis, synthesis, abstraction, concretization and special methods as comparison, tabular, SWOT-analysis were used. Results of the study have shown that strategic development of agricultural enterprises will involve the development of technologies for biofuel production, using energy crops and waste from agricultural production. The factors of the external environment of the agricultural sector’s choice of growth strategy in the bioenergy market were studied: natural and climatic, technological, economic, market, marketing, political and legal, infrastructural, educational and scientific, and ecological. Four possibilities of entering the bioenergy market (diversification) of agricultural enterprises (by 4 quadrants of the Ansoff matrix) were gradually analysed to select the optimal option that would take into account the characteristics of enterprises and guarantee economic growth at the lowest cost. Practical implications. Possibilities of realization of strategies of growth and/or diversification by the conditional agrarian enterprise have been estimated. According to the results of the analysis, the basic strategy of market penetration has been chosen. However, taking into account the possibilities of processing agricultural raw materials into biofuels, it is also advisable to choose a diversification strategy. The verification of the chosen strategy was carried out with the help of SWOT-analysis tools, which confirmed the possibility of the company entering the bioenergy market. Value/originality. Given the prospects of the strategy of diversification of the conventional agricultural enterprise in the direction of bioproduction, the conceptual provisions of this strategy have been proposed, which include three stages (2022, 2023-2024, 2025-2027).

Diversification of defense enterprises: international experience

Diversification of defense enterprises: international experience

SCIENTIFIC AND ME TIFIC AND METHODOGICAL ASPEC THODOGICAL ASPECTS OF THE FORM S OF THE FORMATION OF AN INNO OF AN INNOVATIVE SE TIVE SET OF SER T OF SERVICES

Introduction. This article considers the methodological aspects of innovative development and research of the service sector at the current stage of economic development, scientifically based proposals and recommendations for the balanced development and diversification of service enterprises, improving the efficiency of the service sector of the economy. Methodological issues of improving the practical mechanisms of application of innovative technologies and tools in the field have been studied. Research methods. Ensuring the rapid growth of the service sector in the country, further support of entrepreneurship and the creation of new jobs for the population, as well as the balanced development and diversification of service enterprises, improving the competitiveness and quality of their services will continue ongoing reforms. In developing high-speed services, it is important to use innovative developments in various areas of the industry

Formation of motivational mechanism in strategic management of a diversified enterprise

The successful functioning of a diversified enterprise requires a well-organized team of workers and well-chosen business structures for cooperation and integration to provide balanced and effective development of its business units aimed at the maximum satisfaction of its own interests and achievement of the general goal of the enterprise functioning. The establishment and support of such relations depend significantly on the effective motivational activities both for the enterprise employees (internal ones) and its partners (external ones). At the same time, the intensity of the motivational activities for different business entities depends on the level of their possible influence on the efficiency of the corresponding business entity performance, the level of coordination and optimality of mutual relations between these business entities, and success of the strategic development of the whole diversified enterprise. That is, the motivational activities for different influence groups are different depending on the enterprise mission, the focus of its long-term goals, the chosen strategic way of the development, and others. Purpose. Consequently, the objective of this article is to elaborate theoretical and methodical recommendations regarding the formation of the complex motivational mechanism of the diversified enterprise by grounding and selection of a motivational system for each influence group attractive for it at a certain point of time (employees, consumers, opponents, and suppliers). Methodology. To achieve the set objective, the research of this work is conducted using the methods of generalization, abstraction, analysis, synthesis, and situational modeling. The calculation of the efficiency of the proposed activities of the complex motivational mechanism is conducted using the methods of factor analysis, effective competition theory, and integral method. Findings. The research conducted resulted in the definition of the structure of complex motivational mechanism of the diversified enterprise, description of the features of its external and internal constituents, and formation of the influence groups for each constituent. Possible ways of the combination of important for the enterprise influence groups are formed and of the main conditions for their use are presented depending on the selected general strategy of the enterprise development. Originality. The novelty of this article involves theoretical and practical recommendations for the formation, implementation, and realization of the activities of the complex motivational mechanism for the diversified enterprise. Practical value. The activities of the complex motivational mechanism for the JV Spheros-Electron Ltd. have been developed. The key elements of the formation and the methods of realization of the motivational systems for different influence groups of the enterprise under study have been described. The efficiency of the proposed activities has been calculated which proves their effectiveness, soundness of the development, and necessity of realization.

ВНУТРЕННИЙ КОНТРОЛЬ КАК ФАКТОР ДОСТИЖЕНИЯ ЦЕЛИ ОБОРОННО-ПРОМЫШЛЕННОГО КОМПЛЕКСА ПО ДИВЕРСИФИКАЦИИ ПРОИЗВОДСТВА

The article provides a list of current tasks of the defense industry sector, emphasizes the relevance of the problem of developing the diversification of defense enterprises, shows the importance of internal control to protect the achievement of strategic goals of enterprises in the sector, and also modeled the control procedure at the budget planning stage for compliance with the achievement of the strategic goal of the enterprise.

К диверсификации рудодобывающего комплекса как направления развития экономической системы депрессивного типа

The priorities for the development of the industrial complex are to compensate for market risks by dispersing activities into several types of business with the development of new products, the cost of which is reduced due to the use of the existing infrastructure. The prospects of mining enterprises of the North Caucasus in the implementation of production diversification are outlined. The results of substantiating the effectiveness of diversification at various volumes of ore mining in the conditions of the unprofitable Sadonsky lead-zinc plant with a graphical interpretation of economic calculations are given. The results of calculating the efficiency of involving substandard technogenic ores in the development, obtained by comparing alternative options that differ in the size of reserves, are given. An equation for the balance of values is proposed, which establishes the relationship between the volume of production and the completeness of extraction of reserves of deposits during the development of reserves of substandard ores and wastes. To assess the effectiveness of actions during diversification, an integral indicator of flexibility is proposed and the method of marginal analysis is used to reduce the uncertainty of situations. A graph of the relationship between the volume of ore production, economic indicators and the break-even point is shown. Okha-characterized the mineral resource base of diversified enterprises and diversification products for consumption by related industries. It is shown that the diversification of the ore mining complex is still a little used reserve for the development of the economic system of the depressive type.

Диверсификация как основной механизм обеспечения экономической безопасности предприятий оборонно-промышленного комплекса России и ее нормативно-правовое обеспечение

The relevance of the research topic is due to the task set by the President
 of the Russian Federation to increase the share of civilian and dual-use products, due to the need to increase the capacity utilization of defense enterprises
 in the context of a decrease in the share of the state defense order. The article presents forecasts of options for the production of civil and military products for the medium-term period in terms of the development of the defense
 industry, proves the need to develop diversification to ensure the economic
 security of defense enterprises, reveals the specifics of the diversification of
 defense enterprises, and also considers the issues of making changes to the
 resolutions Of the government of the Russian Federation, necessary to intensify work on the diversification of defense enterprises.

CONCEPT OF IMPROVING MANAGEMENT OF MOTOR TRANSPORT ENTERPRISES COMPETITIVENESS

This article considers the development of the concept of improving management of motor transport enterprises competitiveness.The main purpose of the study is to determine the problems of managing the competitiveness of motor transport enterprises and to make up the hypotheses for their solution in modern conditions. At the same time, the processes of designing and ensuring the functioning of management, development of new and improvement of existing methods of realizing the functions of management of motor transport enterprises competitiveness and services are accepted as the object of the research. Business owners; senior management, line managers of operational units and heads of functional services of enterprises; state management structures are accepted as the subjects of management.The relevance of the study is primarily related to the role that management plays in the competition to achieve competitive advantage. The changes in the methodology of strategic management of enterprises - the introduction of a resource approach to strategy development on a fundamentally different basis, should be added to this.The article considers the problems associated with the improvement of the market approach to the development of a strategy for the operation of diversified enterprises in a competitive environment, as well as the problems in the implementation of the resource approach. They are primarily related to another source of competitive advantage, the formation of enterprise strategy is not top-down, as in the market approach, it is bottom-up.The listed shortcomings of the market approach in working out the strategy of development of the diversified enterprises, and new approaches in developing the strategy by resource methods will allow to form the list of problems of improving management of motor transport enterprises competitiveness and determine the hypotheses for their solution.

Social function of taxes as a toolkit for income differentiation reduction among population of the depressed republics of the North Caucasus Federal District

In the conditions of a difficult political situation, economic uncertainty and increasing unemployment in the land-poor manpower-surplus, depressive republics of the North Caucasus Federal District, the need to implement the entrepreneurial opportunities of the population is clearly manifested. It seems that small business can manifest itself in these conditions as a separate element of the economy decentralized sector. Of course, the success of small business in a depressed region depends on the state position to a large extent. And this is natural, because only the state is capable of creating the necessary conditions in market relations and various preference provision for the development of entrepreneurship, especially in the mountainous territories of the country. It should be noted that the next economic crisis and pandemic (coronavirus) not only led to the depletion of the state budget, but also collapsed the production activity of small diversified enterprises in the region. Most of the entrepreneurs of the North Caucasus Federal District declare that they are not able to independently solve the complex of this phenomenon negative consequences.

Social function of taxes as a toolkit for income differentiation reduction among population of the depressed republics of the North Caucasus Federal District

In the conditions of a difficult political situation, economic uncertainty and increasing unemployment in the land-poor manpower-surplus, depressive republics of the North Caucasus Federal District, the need to implement the entrepreneurial opportunities of the population is clearly manifested. It seems that small business can manifest itself in these conditions as a separate element of the economy decentralized sector. Of course, the success of small business in a depressed region depends on the state position to a large extent. And this is natural, because only the state is capable of creating the necessary conditions in market relations and various preference provision for the development of entrepreneurship, especially in the mountainous territories of the country. It should be noted that the next economic crisis and pandemic (coronavirus) not only led to the depletion of the state budget, but also collapsed the production activity of small diversified enterprises in the region. Most of the entrepreneurs of the North Caucasus Federal District declare that they are not able to independently solve the complex of this phenomenon negative consequences.

Parent-subsidiary Companies Institutional Distances, Independent Directors' Nature and Earnings Management

Enterprise collectivization has been the development trend of listed companies, the development of collectivization increases the geographical diversification of enterprises, and the institutional differences between parent and subsidiary companies increase accordingly. This paper studies the influence of the parent-subsidiary system distance on earnings management of listed manufacturing companies in China, and explores the role of independent directors in the management of companies, extending the research perspective of earnings management to the distribution of parent-subsidiary companies. Based on the parent-subsidiary data of manufacturing A-share listed companies from 2008 to 2016, the empirical research results tells us as follows. Firstly, the greater the institutional distance between parent and subsidiary companies is, the greater the accrual earnings management and the real earnings management of enterprises will be. Secondly, further research shows that independent directors' related natures, such as educational background and political background, play a negative moderating role in the relationship between parent-subsidiary company distance and earnings management, and a good independent directors' nature is helpful to enterprise management.

Problems of Creating Demand for the Products of the Russian Defense Industry in the Context of Macroeconomic Instability and New Challenges

The presented study examines the problems of creating demand for the civilian products of the Russian defense industry in the current context of macroeconomic instability and new challenges.Aim. The study aims to identify the problems of creating demand for the civilian and dual-use products of Russian defense enterprises in the current context and to analyze foreign and Russian experience in solving these problems.Tasks. The authors examine priority directions for the “civilian” diversification of Russian defense enterprises, the goals and objectives to achieve them, analyze problems at the current stage of diversification, explore the international experience of diversification, offer directions for the improvement of the process of creating demand for the products of the Russian defense industry in the face of new challenges, particularly the coronavirus pandemic.Methods. The methodological basis of this study includes the systems and institutional approaches, methods of analysis and synthesis, comparison and analogy.Results. It is shown that at this stage of “civilian” diversification of Russian defense enterprises, not all branches and enterprises of the Russian defense industry have reached their goals, reoriented production, produced competitive products and sold them. Under modern conditions, the main problem of expanding the output of civilian and dual-use products by domestic defense enterprises is the complexity of the output and leadership of civilian products of the Russian defense industry. The authors prove that enhancing the competitiveness of the dual-use and civilian products of defense enterprises through the implementation of innovative potential in domestic practice and its leadership in both domestic and foreign markets is becoming a prerequisite for efficient diversification in the context of new challenges.Conclusions. The study substantiates that “civilian” diversification in domestic practice under modern conditions requires a differentiated approach to the enterprises and branches of the Russian defense industry as regards creating demand for civilian and dual-use products from the government and business, with allowance for foreign experience and new challenges.

Promising integrated farming system crops + Horticulture + Dairy + Poultry developed and demonstrated at farmer’s for doubling tribal farmers income in high altitude tribal area of Andhra Pradesh

Farming systems approach introduces a change in farming techniques for attaining food and nutritional security and for maximizing farm income through optimal utilization of resources by a judicious mix of allied enterprises like dairy, small ruminants like goat and sheep, poultry, piggery, fishery, sericulture etc., with crops suitable for the existing agro-climatic conditions and socio-economic status of the farmers. On farm research was conducted in 36 small tribal farmers fields o in high altitude and tribal area of Srikakulam district of Andhra Pradesh state in East Coast Plain and Hills Agro-climatic zone East coast plains, hot, sub humid to semi arid eco region (S7 Cd 2-5). Agro-ecological region with 915 mm rainfall distribution in 55 rainy days. By diversification in all enterprises farmers realized Rs. 83,630, 96,830, 1,04,720 and 1,12,960 gross returns and Rs.57435, 68600, 65080 and 81240 net returns was than the bench mark Rs. 53110 and Rs. 35430 at the additional cost of interventions of Rs. 8515 than the bench mark cost of cultivation Rs. 17680 in 2012-13, 2013-14, 2014-15 and 2015-16, respectively. Net returns are getting doubled from the third year of interventions onwards. The increase income is attributed to increase in income from intervention in paddy crop and cashew crop, introduction of YMV tolerant green gram variety, feeding of supplement feed to the cattle and also the introduction of Vanaraja and Rajshri back yard poultry birds. In addition to this not only due to diversification of existing enterprises, but also introduction of Azolla and nutritional kithen garden, helped the farmer nutritional food, besides reduction in cost of maintenance helped in increase in net returns recorded. By introduction of interventions the cost of cultivation is increased by 63.73 per cent with increase of gross returns by 87.42 per cent and net returns of 99.23 per cent with 13.33 per cent increase in B:C ratio was observed. The area share was allocated 44 per cent to crops, 43 per cent horticultural crops, 1-2 per cent area for other components, these various components the net income was maximum in livestock (44.93%), closely followed by horticulture (37.93 %) and crops (16.14%). Additionally 54 man days were created on an average during four years of introduction of IFS approach due to diversification of enterprises and introduction of few enterprise.

РАЗРАБОТКА ЦИФРОВОЙ ОПТИМИЗАЦИОННОЙ БИЗНЕС-МОДЕЛИ СЕЛЬСКОХОЗЯЙСТВЕННОГО ПРЕДПРИЯТИЯ РЕГИОНА

The purpose of the study is to digitalize the business processes of a regional enterprise basing on the elaborated production structure optimization model and taking into account the influence of the enterprise development factors. Statistical and economic, monographic, abstract-logical, computational-constructive and modeling methods of economic research were used in preparation of the article. The current state of the region’s development shows the need and readiness for digitalization of the agricultural enterprises. When using economic and mathematical methods to develop a digital business model in research, the problem of optimizing the production structure to maximize the financial result under given production conditions was solved. The main variables of the model are the area under crops and the number of farm animals. The constraints express the conditions for the use of resources; they are imposed on most variables and are written as inequalities. The solution to the problem was carried out to maximize the financial result from the products sale. The resulting optimal combination of production sectors of the organization will improve the production and financial performance of the enterprise as a whole. As the object of the study the agricultural leader of the region and an exemplary diversified enterprise was chosen - JSC “PZ Meliorator”, Marksovsky district, Saratov region. The digital optimization business model, taking into account the influence of organizational development factors, is not static and can be applied to any economy in the region.

METHODOLOGICAL AND PRACTICAL ASPECTS OF IDENTIFYING DEVELOPMENT POLES AND GROWTH POINTS IN THE REGIONAL ECONOMY

Criteria of allocation of development poles and growth points in the regional economy have been proved. Technique of allocation of potential development poles and growth points based on the account of multiplicative effect in vertically diversified enterprises has been developed. It has been revealed and quantitatively estimated that the higher attractiveness of the development poles in the regional economy is due to the synergetic effect, which is manifested in the diversification and modernization of production in the compactly located territory of the region. A map of poles and growth points in Sughd region of the Republic of Tajikistan has been compiled and it has been proved that a development pole has been formed in the region, located in the North of Khujand and in adjacent to it B. Gafurovsky and J. Rasulovsky districts. It is called the “North development pole” and is at the stage of maturity of the life cycle, as it fully characterizes the market relations that function in the development pole. The results of the study can be used in the development of investment rating and typology of the country’s regions, social policy and state regulation of spatial development.

Some issues of diversification of defense enterprises

Some issues of diversification of defense enterprises

How Managers Use Information Systems for Strategy Implementation in Agritourism SMEs

Agritourism is long established and the interest in diversification of agricultural enterprises into tourism has increased. However, many challenges have emerged regarding the lack of appropriate skills, strategic planning, Information Systems (IS), as well as increased costs in production processes. In Greece, the contribution of agritourism to economic growth has increased in the last decade, but the relationship between the agricultural sector and agritourism is a reason for certain people having largely taken advantage from the development of tourism in a specific area. Greek businesses operating in the agritourism sector are seeking long-term sustainability. However, they lack strategic planning and effective use of IS. As the strategic implementation of Information Technology (IT) in Small Medium Enterprises (SMEs) in the agritourism sector is under-researched, this paper aims to investigate how the process of Strategic Information Systems Planning (SISP) affects the success of Greek SMEs in the agritourism industry. IS executives completed the survey and ANOVA analysis was used for data analysis. The findings of the paper indicate that IS executives do not focus on the analysis of the external environment and the evaluation of opportunities for IS development. In addition, the lack of formulation of the IT strategy creates inefficient and unsuccessful IT projects.

Strategies of innovation and investment activity of agrarian business entities and development models

Introduction. The development of innovative activities ensures the adaptability of agricultural enterprises to chang-es in the economic environment. The introduction of diversification ensures an appropriate level of competitiveness and financial stability of agricultural enterprises. The lack of focus of the enterprise management system on the development of innovative technologies leads to the risk of financial losses and weakening of the market position of the entity. The purpose of the research is to develop strategies for innovation and investment activities of agricultural business-es and models of their development. Results. It is established that innovative, scientific and technological activities ensure the transformation of agricul-tural enterprises at the national level and ensure their entry into the world economic space. Manifestations and essence of innovative activity of domestic subjects of agrarian business are characterized. Possibilities and difficulties in the process of simultaneous introduction of innovative and diversification activities in the practice of domestic agricultural enterprises are outlined. Changes in the introduction process of the diversification strategy of the agricultural enterprise in the conditions of crises of the economic environment are characterized. The expediency of technical re-equipment of enterprises of the agri-cultural sector as innovations during the economic crisis is substantiated. External systems for implementing strategies to diversify the activities of agricultural enterprises are identified as a precautionary measure to prevent their internal crises. The main problems that hinder the development of full-fledged diversification and innovation activities of agricultural enterprises are outlined, and measures to intensify diversification strategies are proposed. Conclusions. It is expedient to carry out strategic development of agrarian business entities with the introduction of diversification strategies into innovation activities at the micro and macro levels. This will ensure the maintenance of com-petitiveness and adaptability of agricultural enterprises in an unstable economic environment. Keywords: strategy, diversification, innovations, innovative activity, investment activity, agrarian enterprise.