DIVERSIFICATION STRATEGY AS A WAY TO REDUCE LOSSES AND OPTIMIZE ENTERPRISE COSTS

The article discusses the diversification strategy as a way to reduce losses and optimize the costs of the enterprise. The author considers the existing definitions of diversification; the advantages, disadvantages, risks and goals of diversification of production are highlighted. It is concluded that in the absence of a generally accepted uniform definition of diversification, it is necessary to further develop approaches to the implementation of a business diversification strategy. The purpose of the study is a deep theoretical and legal understanding of the procedure for developing and implementing the diversification strategy. To do this, the author analyzed the existing approaches to understanding the essence of diversification; considered the theoretical foundations, motives and prerequisites of diversification strategy at enterprises; analyzed some common classifications of diversification strategies; considered the factors that influence the effectiveness of diversification strategy; developed a methodology for assessing the effectiveness and success of diversification strategy. The author substantiates that before making a decision on the diversification of production, it is necessary to structure diversification, highlight current problems and develop a comprehensive solution. The author also proposes an approximate procedure for implementing a strategy for diversifying the activities of an enterprise. Attention is drawn to the fact that in order to assess the effectiveness of the management system in an organization before making a decision on diversification, it is necessary to adhere to a certain sequence. The author suggests an approximate sequence (algorithm) for such an assessment. It is concluded that in the current crisis conditions, business diversification is of particular importance. With its help, enterprises can expand the scope of activities and strengthen their position in the market. The indicated positive effects are achieved due to such advantages of diversification as reduction and distribution of risks; increase in income; use of the synergy effect; expansion of competitive advantages of the enterprise.

diversification, diversification strategy, production, enterprise, logistics, costs, cost optimization, structuring, algorithm, competitiveness

Shaidullin A. K. Diversification strategy as a way to reduce losses and optimize enterprise costs. Biznes. Obrazovanie. Pravo = Business. Education. Law. 2023;3(64):92—97. DOI: 10.25683/VOLBI.2023.64.717.