Diversification Strategy of Entrepreneurial Activity in Conditions of European Integration
Oksana Zghurska1, Tetiana Somkina2, Ruslan Dymenko3, Tetiana Kapelyushna4
1Oksana Zghurska*, Associate Professor of Department of Enterprise, Trade and Exchange Activities State University of Telecommunications, Solomenska, Kyiv, Ukraine
2Tetiana Somkina, Professor, Doctor of Economic Sciences, Department of Enterprise, Trade and Exchange Activities; State University of Telecommunications, 03680, Solomenska, Kyiv, Ukraine.
3Ruslan Dymenko, Associate Professor Without Tenure, Head of the Department, PhD in Economic Sciences, Department of Enterprise, Trade and Exchange Activities; State University of Telecommunications, Solomenska, Kyiv, Ukraine.
4Tetiana Kapelyushna, Associate Professor of Department of Enterprise, Trade and Exchange Activities State University of Telecommunications, Solomenska, Kyiv, Ukraine.
Manuscript received on October 16, 2019. | Revised Manuscript received on 27 October, 2019. | Manuscript published on November 10, 2019. | PP: 4809-4815 | Volume-9 Issue-1, November 2019. | Retrieval Number: J94430881019/2019©BEIESP | DOI: 10.35940/ijitee.J9443.119119
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The article defines the concept of «entrepreneurial risk» as a key element of effective entrepreneurial activity and an important component of management theory and practice. The mechanism of calculating the losses of entrepreneurial activity is determined and the causal-consequential connection of the degree of influence of business risks to the results of economic activity of the enterprise is reflected. The influence degree of various business risks on the results of economic activity of management subject is indicated. The concept of «diversification» as one of the of economic types process is substantiated. The identified diversification as one of the strategic alternatives to the development of the enterprise is emphasized, which allows obtaining additional economic benefits in the conditions of a complex market situation. The essence of the diversification process and the disadvantages inherent in the strategy of diversification are determined. Mechanisms of diversification strategy formation are substantiated. The main forms that are used in the risk management process based on the strategy of diversification are highlighted. The urgent questions of diversification strategy application by the countries of the European Union are emphasized. The efficiency of diversification strategy application on the example of activity of the largest corporations according to sales volumes on the world pharmaceutical market is considered. The dynamics of sales growth volumes of the world pharmaceutical market is shown. The significant synergistic effect of two or more enterprises is emphasized, which helps to save resources by reducing costs, combining complementary resources, growing market weight as priority areas for investment and the conquest of new markets. The experience of world leaders in implementing the diversification strategy as the driving force of the unceasing development of the world pharmaceutical industry has been analyzed. Taking into account the experience of foreign countries, the main directions of diversification strategy application by national enterprises of the pharmaceutical industry are analyzed. The importance of cooperation with foreign partners as the main strategic reference point in the development of national entrepreneurship is determined. The proposed conceptual knowledge-resource-market integration portfolio of diversification strategy of business activity, the advantage of which is to combine individual knowledge, resource potential and entrepreneurial capabilities to make an effective economic decision in order to profit and strengthen competitive advantages in the national and foreign markets. It is emphasized on the importance of quality conformity of national products to European quality standards, as well as effective integrated approach to production activity, perspective recommendations on the diversification strategy for national entrepreneurship in the conditions of Eurointegration.
Keywords: Entrepreneurial Risk, Diversification; Diversification Process, Diversification Strategy; Integration.
Scope of the Article: System Integration