The main task in this case is to form a solid foundation for the enterprise in order to maintain its position under the negative influence of external factors. Among the secondary plans for achieving the goals, one can single out such as increasing the recognition of the company and increasing revenues.
Risk diversification
This strategy involves minimizing the risks of total loss of capital by distributing it in various areas of activity. With this model, areas with the lowest risks of loss of financial assets are selected for investment.
It is important to correlate the level of profitability of the industries selected for investment, since sources with a low level of risk generally do not imply high profits. To reduce the risk, unrelated assets can also be used.
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Diversification of the economy
The strategy under consideration is applied not only in small, medium and large businesses, but also at the level of the state economy. This helps the country to develop actively and not depend on the foreign economic situation.
The raw materials orientation of the Russian economy leads to the fact that it is directly dependent on oil and gas prices. This situation has changed little in recent years, despite constant attempts to diversify the domestic system.
Most developed countries in the world are characterized by economies in which the main industrial sectors are evenly developed.
Diversification of investment portfolio
This process involves distributing financial resources in such a way as to minimize the risks of investing. In order to ensure sustainable profit growth, the overall risks must be significantly lower than for each individual type of investment.
Diversification of investment portfolio
Money can be invested in:
securities;
foreign currency;
real estate;
gold and other precious metals.
Any investment opportunity must be assessed by three parameters: level of profitability, degree of risk and correlation with other financial investments.
Price diversification
This tactic involves increasing sales volumes using a flexible pricing system without the need to restructure or change the production cycle. This model is based on constant study of demand and target audience, detailed development of marketing and advertising strategy, and development of product offerings for different categories of buyers.
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Diversification of capital
This strategy involves the development of manufacturing and service industries that are not related to each other. It may affect different industrial areas and economic sectors.
The most common use of this model is to invest part of the capital in shares of enterprises and distribute funds equally between several banking organizations. This approach significantly minimizes the risks of losing the company's financial assets.
Diversification of enterprise activities
The main objective of such a diversification direction is to expand the organization's sphere of influence and completely change the current corporate development plans. That is, the company stops producing one product and re-profiles itself to produce several categories of goods at once.
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Strategic Analysis of Diversification
If a company decides to apply a diversification strategy for its development, its top management faces three fundamental questions:
What is the attractiveness of the chosen direction and to what extent is it likely to change in the short and long term?
What will the company achieve in 2-3 years?
What steps need to be taken to achieve the set goals?
It is possible to obtain precise answers to these questions using strategic diversification analysis. Let us consider each step in detail.
Mistakes in a business plan
Analysis of the current position of the company and its strategic actions. Includes a study of the following components:
the current level of diversification (i.e. determining the share of sales of a new direction in the total volume for the entire enterprise);
type of diversification applied (related, unrelated, mixed);
type of production operations (focus on one country, several countries or the whole world);
vector of actions being implemented (formation of new business sectors or support of current areas of activity);
the company's tactics for expanding its investment portfolio and entering new markets, as well as the company's efforts to cut unprofitable sectors and divisions;
the degree to which a firm's competitive advantages are enhanced as a result of applying a diversification strategy;
the share of each individual area of the organization's activity in the overall investment portfolio.
Matrix analysis of a diversified corporate portfolio . Based on such indicators as industry-wide growth rates, market share, competitiveness level, degree of attractiveness of the enterprise for long-term investments, etc.
Industry Attractiveness Research:
All in all;
compared to other economic sectors.
After calculating the level of attractiveness of each individual direction, the areas are ranked and the most promising for development are selected.
Study of the current situation of all production units. Includes assessment of the following parameters:
the market share occupied by the enterprise (the larger it is, the stronger the company's position in relation to competitors);
the competitiveness of the company in terms of product quality and cost;
availability of resources for the creation of new goods and services;
the level of qualification of the organization's employees and the degree of its compliance with the basic success factors;
profit compared to competing companies;
correct definition of the target audience and a deep understanding of the industry in which the company operates;
availability of opportunities for expansion and re-profiling of the production cycle;
marketing and advertising strategy;
brand recognition among potential customers;
model of organizational management.
Comparison of the production areas of the enterprise with each other through such indicators as the rate of profit growth, the rate of increase in the volume of production, the size of the financial flow of the division, investment profitability, the share of each individual economic sector of the company in the income of the entire company.
Comparison of production areas of the enterprise
Assessing the degree to which each area of the company's activity corresponds to its overall strategic development prospects . At this stage, the extent to which the new industry corresponds to the company's current production cycles and how well it can complement the overall corporate strategy is studied.
Ranking of business areas by degree of attractiveness for investment and allocation of priority divisions into which capital will be directed. At this stage, strategic goals and objectives are defined for each new industry.
Creation of a corporate diversification strategy based on an assessment of the company's investment portfolio and individual areas of activity.
Strategic diversification analysis helps to answer the following basic questions:
which divisions operate in the most promising economic areas;
which areas of the company's activities are in the final stages of the production life cycle;
what investment sources does the company have;
whether the core business area is capable of providing stable profit and profitability;
how vulnerable is the enterprise's business portfolio to crises and seasonal fluctuations in demand;
which corporate divisions are not promising in terms of development;
what is the position of the firm in relation to competing firms in the market.
Where to get money for development
There are several sources for diversifying list of indonesia cell phone numbers business opportunities. Let's take a closer look at each of them.
Personal savings. This option allows you to save on interest payments on bank loans, but significantly limits the amount of capital and slows down the process of implementing a diversification strategy.
Third-party investors. Searching for external investors is advisable if there is maximum confidence in the success of the idea. But even in this case, the negotiation process can be very long, which will inevitably affect all other stages of diversification implementation.
Government funds. A detailed business plan can help in obtaining a subsidy or grant. However, even in this case, the time for preparing the necessary documentation and participating in the competitive selection can significantly slow down the implementation of the project.
Crowdfunding . This method opens up the possibility of raising funds all over the world. However, it cannot be done without active promotion and huge expenses on advertising campaigns. In addition, if the planned diversification is cancelled, all the money raised will have to be returned to investors.
Banking organizations. Despite the additional costs in the form of interest payments on loans, this source of financing has significant advantages: prompt terms for receiving monetary assets, no obligation to share the profit received with investors, the ability to use monthly payment installments in the event of unforeseen circumstances.
