scholarly journals Designing Methods of Developing Diversification Strategies at Integrated Business Structures

Author(s):  
A. A. Biryukov

Today's market relations are constantly changing, thus it is difficult for enterprises to retain appeal of the industry taken by them. Winning new markets is a priority for many of them. In this circumstances correctly planned and organized diversification process can foster productivity of company work and its divisions. The key goals of production diversification are the following: to cut market risks, to improve enterprise sustainability and to upgrade efficiency figures. To attain this it is necessary to enter new markets and enlarge product range of goods with high added value, which could raise profitability. The article studies notions, advantages, motives, types of diversification and shows different ways of developing diversification strategy for integrated business structures. The author researched key forms of developing diversification strategy for integrated business structures.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hye-Kyung Yu ◽  
Tohyun Kim

PurposeThis paper investigates how a firm's status moderates the performance of its investment portfolio diversification strategy. We combine the investment diversification literature with the organizational status theory, arguing that status would weaken the benefits of a specialist strategy in their niche industry of investments while strengthening the positive consequences of a generalist strategy across various industries.Design/methodology/approachWe collected our data using the Securities Data Company (SDC) Platinum VentureXpert database. A fixed-effects spline regression analysis for 2,201 US venture capital firms between 1969 and 2016 was used to test for a nonlinear relationship between the level of portfolio diversification and firm performance.FindingsWe found that status differences exist in the performance of a specialist strategy but not in that of a generalist strategy. Our results indicate that portfolio specialization in fewer number of industries has little impact on low-status firms, whereas high-status firms suffer significantly lower IPO success rates. In contrast, above-median portfolio diversification was found to be beneficial to both high- and low-status firms.Originality/valueWe specifically identify the impact of status on the performance of investment diversification strategies, an area of research which has received little attention. Further, our findings provide some practical implications for managers making investment decisions between specialist and generalist investment strategies, given their status within the market. Implications for understanding the roles of firm status in portfolio diversification strategies are discussed.


2020 ◽  
Vol 7 (2) ◽  
pp. 108-122
Author(s):  
Melisa Ayu Oktariza ◽  
Nusril Nusril ◽  
Ketut Sukiyono

The purpose of this study are (1) to know the value added resulting from the processing of coffee beans into ground coffee aroma. (2) to analyze what the marketing mix strategy that prioritized to increase the sales volume of ground coffee. (3) to know what the alternative marketing strategy that right of any marketing mix. The method used is the value-added method Hayami and analytical hierarchy process (AHP). The results showed that the value added obtained in this process for regular packaging amounted to 8.065 with value added ratio of 26,52%, while the value added to the plastic foil ratio amounted to 10.035 with an added value of 27,50 %. On this criterion that the first priority is the financial condition of the company with its weight amounted to 0.334 while the subcriteria most priority is the product strategy with a weight of 0.345. Capital is a priority of the most preferred in stretegi products with a weight of 0.667. then became a priority to the alternative product is mendeversifikasikan size product with a weight of 0.262.


2013 ◽  
Vol 7 (2-3) ◽  
pp. 27-31 ◽  
Author(s):  
Vlade Zarić ◽  
Zorica Vasiljević ◽  
Nebojša Nedić ◽  
Danijela Petković

Serbian honey producers are exposed to the increased international competition of recent years. To face up to the new changes, producers are progressively using diversification strategies, such as direct sales and production diversification. The direct sales strategy allows the producers to increase the product added value, while diversification aims to offer new products to the consumers. The aim of this paper is to analyse the honey marketing strategy of Serbian honey producers. The first part of the paper analyses the structure of production costs, production performances as well as the determinants of the honey supply. In the second part of the paper, analysis is focused on the determinants of direct sales. Finally, in the third part of the paper, diversification strategies are discussed. The data for this research has been obtained on the basis of a representative sample consisting of 84 Serbian honey producers interviewed in 2011 and 2012. The results show that the Serbian honey producers operate with more or less similar production costs and with production performances that do not differ significantly. They use direct marketing for two reasons: firstly, it affords personal contact with consumers, and secondly, they aim to decrease the transaction costs, thereby keeping a higher share of the product’s final value. Offering new products to consumers is an attempt to create additional product demand.


Author(s):  
I Wayan Sugiartana ◽  

Creativity in all fields, including in the forms of the creative economy, which always comes up with unique added value, creates extraordinary new “markets”, and succeeds in absorbing labor and promising economic income. Creativity can be encouraged to grow and develop by utilizing local wisdom owned by the village, so that it will be an effective instrument in encouraging the development of the socio-cultural and economic fields of rural communities. Support the development of tourist villages. The research method used in this study is a literature review. The results in this study the development of tourism villages based on community creativity and local wisdom is an approach that offers more roles to the community through this potential, it is hoped that the community can develop, the economy increases, the community is prosperous and the poverty in the community can be reduced in number.


2021 ◽  
Vol 20 (1) ◽  
pp. 116-127
Author(s):  
Violetta Bella D. Glasius ◽  
Marini Purwanto

The emergence of the Asean Economic Community (AEC) has an impact on the wider openness of trade between countries so that competition between companies increases. Companies are looking for ways to improve its financial performance so that it can compete among the other competitors. Diversification strategies and managerial ownership can be applied by companies in improving the company's financial performance. Diversification strategy is a strategy that can be used to develop a business, expand market share, and increase competitiveness. Managerial ownership can be used to motivate managerial performance in improving financial performance. This study aims to analyze the effect of diversification strategies and managerial ownership on financial performance. The object this research is using manufacturing companies listed in Indonesia Stock Exchange (IDX) in 2016-2019. This research is a quantitative research with hypothesis testing. The sample used this study were 103 manufacturing companies selected using purposive sampling technique and using multiple linear regression analysis techniques. The results of this study prove that diversification strategy and managerial ownership has no effect on financial performance. The contribution of this research is as additional information regarding the effect of diversification strategies and managerial ownership on financial performance. Limitations of this study is the researchers only collected samples from the official website of the IDX and only use the research object manufacturing company. It is expected that further research can collect data not only on the IDX website but from the company's website and further research is expected to develop a research object.


Author(s):  
V. N. Kabanov

The process methodology of an estimation of level of reliability of the industrial organization in modern market conditions of managing is considered. The theory of formation of level of reliability and competitive advantages of modern business structures on the basis of fundamental scientifically-practical aspects of system of market relations is stated. The economic-mathematical model of an estimation of level of reliability of production of the industrial organization as fundamental basis of construction of cybernetic models of diagnostics of economic system in the mathematician is presented.


2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Tri Nurhayati ◽  
Risal Rinofah

The purpose of this study was to determine the effect of diversification strategies on company financial performance with profitability as an intervening variable. This research was conducted at manufacturing sector companies listed on the Indonesia Stock Exchange 2015-2019. The type of data used is secondary data, while the sample selection method uses purposive sampling, obtained 40 sample companies. The analysis technique used is path analysis using the SPSS application program. The results of this study indicate that the diversification strategy has a positive effect on the company's financial performance, and profitability mediates the effect of the diversification strategy on the company's financial performance. Keywords : Diversification Strategy; Profitability; Corporate’s Financial Performance


Author(s):  
Michele Di Sivo ◽  
Cristiana Cellucci

Time, uncertainty, flexibility and resilience are the four sides of the same square around which this paper revolves. Hallmark of all complex systems is uncertainty, seen as the lack of full knowledge of current or future evolution of a system. There are various types and sources of uncertainty, but notably the incorrect knowledge of the environment in which a system operates determines the technological obsolescence and functionality of the system. Systems that have the longest life span are able to cope with the unpredictability of their contexts, while rigid and unchanging systems have a shorter lifespan. Uncertainty, traditionally seen as a negative aspect of a system, must therefore be regarded as an opportunity, an incentive to design flexible systems able to absorb changes in the environment in which they operate, in order to create added value for users. The development of “advanced” systems able to prevent that uncertainty generates diseases, commonly referred to as “risks”. This is not new; the selection process of species of Darwin, or the reflections on the life of capital goods of Terborgh, have shown that there are living organisms, human artifacts or resilient complex systems that are better equipped to adapt to changing environments, compared to the rigid systems incapable of reacting to change. In other words, flexibility reduces the exposure of a project uncertainty, provides a solution to mitigate market risks, and also mitigates risks associated with technological obsolescence. Flexibility makes the system resilient, able to absorb shocks and/or disturbances without undergoing major alterations in its functional organization, structure, or identity characteristics. In this paper flexibility is seen as a fundamental property for designing a generally complex system.


2020 ◽  
Vol 23 (2) ◽  
pp. 91-106
Author(s):  
Diana Benito-Osorio ◽  
Alberto Colino ◽  
Luis Ángel Guerras-Martín ◽  
José Ángel Zúñiga-Vicente

This study explores both the individual impact of geographical diversification and its effect combined with product diversification on small and medium-sized enterprises’ (SMEs) performance. Unlike most prior studies, this study distinguishes between related and unrelated product diversification. The research setting is a sample of manufacturing SMEs (1994–2014). By using dynamic panel data models, the results provide statistical support for the existence of a horizontal S-shaped relationship between geographical diversification and performance. The findings also indicate that while related product diversification positively enhances the performance of those SMEs engaged in geographical diversification (albeit not indefinitely), unrelated product diversification may significantly impair it, especially for SMEs opting for low and high levels of international diversification. Our study reveals that product and international diversification strategies in the case of SMEs are complementary or substitutive strategies depending on the specific type of product diversification strategy and the level of geographical diversification adopted. JEL CLASSIFICATION: F23; L25; M16


2019 ◽  
Vol 134 ◽  
pp. 03012
Author(s):  
Dmytro Voronets ◽  
Olga Garafonova ◽  
Irina Verezomska ◽  
Oksana Oliinyk

The aim of this study is to examine the relationship between diversification strategies implementation and sustainable development goals of mining companies of Eurasian mining region in modern conditions. Today Eurasia is very rich region with minerals-driven sustainable development goals and challenges. In this case it is important to improve strategies of mining companies of Eurasia and to listen to the biggest companies` experience. Diversification strategy is one of the most progressive way to develop mining companies wherein Global Sustainable Development Goals must be considered. Diversification of the enterprise could be realized in such ways: as the extension of its business activities to new areas or as the capital diversification — diversification of assets in company’s investment portfolio. Over the past two years, from 2017 to the beginning of 2019, the number of diversified companies in the TOP 30 Mining companies of the world, according to the PWC consulting company and the Mining[dot]com resource, increased from 8 to 13. Thus, it is important to study the possibilities and features of implementing diversification strategies for mining enterprises of Eurasian mining region. In research it is presented the algorithm of the model, compiled on the basis of the development as applied to solving the problem of diversification of a mining enterprise.


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