Uman NUH | today: 07/12/2020

Diversification in the context of multi-strategy for agricultural enterprises

Author(s) Bohachyk P.P., postgraduate, , Uman National University of Horticulture, Ukraine
Category Economics
year 2018 issue Випуск №92. Частина 2
pages 116-126 index UDK 332.154: 631.11:339.1
Abstract Agricultural enterprises should pursue many goals for achieving multiple targets and economic growth in competitive conditions of agricultural markets. Commercial farms should pay attention to achievement of financial resources for supporting high level of liquidity. In this respect author proposes the author suggests usage of a multi-strategy, which will be based on a strategy of diversification. This strategy will include sub-strategies: product diversification, markets diversification and diversification by business activities (including provision of services). Besides, special attention should be given to the usage of the speculative strategy, which will be directed to the allocation of enterprise funds for carry out the trading activities to obtain stable additional profits, which can be reinvested in agricultural production or processing of agricultural products. The important issue is the constant financial injections into the enterprise accounts through trade activities, which will provide additional competitive advantages and increasing the liquidity of agricultural enterprises in the Vinnitsa region. The benefits of agricultural tourism will allow achieving additional employment and reducing the influence of seasonal fluctuation. Provision of agricultural services with the available machinery for small farms and households can facilitate intensive usage of physical facilities and its efficient operations. Agricultural enterprises can utilize some web-based platforms which will allow to achieve profitability thanks to the establishment of links with foreign clients and receiving higher prices of commodities.
Key words diversification, multi-strategies, sale activities, agricultural enterprises
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