Objective need and trends of development of production diversification of modern Ukrainian companies
Journal Title: Менеджмент та підприємництво: тренди розвитку - Year 2018, Vol 1, Issue 3
Abstract
Purpose. The paper purpose is to study the issues of diversification of production of modern Ukrainian enterprises in the conditions of high competition of commodity producers in the national market, the volatility of the currency and the overall economic situation. Design/methodology/approach. The basic principles of the research are systematic and comparative methods, institutional and structural-functional approaches have been used. Findings. The subject of the study is the theoretical, methodological aspects and practical applications of the formation and implementation of the strategy of diversification of production at the enterprise. The relevance of the research is determined by the urgent need to find effective means for the effective development of domestic business, maintaining its position in the market, obtaining the market recognition and conquering new sectors of the market. Considering the fact that diversification, as well as specialization and concentration, is one of the social forms of organization of production, which means the enterprises’ penetration into new fields of activity, it can be argued that process under research makes them turn into multi-sectoral complexes with entirely new forms of activities, not related to the main production. Therefore, in the current conditions diversification in the broad sense acquires a deeper meaning and can be defined as the diversification of the activities of the enterprise in the production, financial and marketing spheres. It is also worth noting that diversification of production is appropriate only at a certain stage of the enterprise's development, and if applied in the wrong time, it may, on the contrary, cause damage and losses. Research limitations/implications. The paper clearly provides direction for strategic development of enterprises in the context of application of the strategy of diversification of production in the Ukrainian entrepreneurial sector. Originality/value. Such knowledge will contribute to the development of domestic business and the competitiveness of the Ukrainian economy
Authors and Affiliations
Oksana Onyshchenko, Vladislav Petryk
Keywords
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