Diversification Challenges and Prospects

Abstract

Today the issue of diversification in planning and strategy on corporate level is extremely acute. Unsustainable condition of global economy during the pandemic stepped up the necessity of diversification both on corporate level and on smaller ones. Apart from that, global uncertainty influences economy of separate countries and concrete industries and companies, which try to stay afloat by using all the reserves prepared in advance. The issue of insufficient or excessive diversification in the company work which is studied in the article, is obvious though its roots are deep inside many companies, some of them are the biggest organizations of the world. How can the head of the organization find out whether adequate amount of money is invested in the development of alternative sources of profit or making new brands increasing the company sustainability or whether the ‘safety bag’ made up during successful period of company work will be sufficient? Perhaps, the saved reserves mean inefficiently used resources and it could have been possible to grow much faster by investing in production process. Questions put forward by decision-makers are endless. The author of the article proposes to study the problem, identify the optimum way of diversification on corporate level and to discuss experience of biggest companies, which is acute today. This topic can be interested for all entities dealing with management of their own projects, irrespective of their size, as key issues of diversification and strategic planning tend to get more complicated and can be used to settle other difficult situations.