Optimization of diversification management production at the enterprises of the defense-industrial complex

The currently used methods of optimizing the management of diversification activities are insufficiently theoretically substantiated. The available tools for this optimization do not allow quantitatively taking into account many factors affecting this process in today's difficult economic conditions, which gives rise to many problems. Among them, an important and still unsolved problem is a scientifically grounded quantitative assessment of risks for the implementation of diversification measures. It is especially relevant now for the enterprises of the military-industrial complex. The authors propose an approach to the study of the theoretical foundations of optimization of production diversification management as a form of systemic transformation of enterprises and a new toolkit for solving the problem under consideration based on the use of the expert assessment method and economic and mathematical modeling of risk analysis of diversification measures. Significance of the research is determined by the need to optimize the management of production diversification at the enterprises of the military-industrial complex.

About the project approach to diversification management of defense industry enterprises

The diversified growth strategy is one of four reference strategies that have been actively pursued by companies operating in open markets since the middle of the last century. Today, this task at the state level has been set for defense enterprises, where the production process is fundamentally different from civilian production. The article discusses the directions of the defense industry diversification. The author's approach to the classification of strategies for diversified growth in relation to the defense industry enterprises is proposed. A review of regulatory legal acts on the use of the term "Defense industry enterprises diversification" is carried out; the author's interpretation of the definition is given. Current problems of the production of high-tech civilian and dual-use products by enterprises of the Sverdlovsk region are considered; the project approach to diversification management is proposed.

Аlgorithm of diversification management of the enterprise activity

The algorithm of management of diversification of the enterprise which is based on unity of three main spheres of activity, namely: operational, investment and financial is offered. This combination allows to take into account the comprehensive support of diversification programs and eliminate imbalances and imbalances in the development of enterprises that may arise during the diversification of production. The analysis and generalization of theoretical preconditions of formation of programs of diversification is carried out, the review of sources in the field of management of production programs at the enterprise level, diversification of production, balanced development is carried out. The research methods are comparative analysis and synthesis, reproductive method, modeling. As an indicator of the feasibility of diversification used the excess of future return on capital of the enterprise over its value. A diversification program should be adopted when such a ratio is the maximum of the alternatives for a given development option, and should be rejected if it is not supported in different diversification options. It is revealed that diversification of production activity is one of the ways of development, which affects the investment, financial, operational spheres, leading to sustainable qualitative and quantitative changes of the enterprise. This method of development, acting as a way to reduce risks, helps to increase the financial stability of the enterprise, and hence increase its potential. The created algorithm allows to carry out management of diversification of activity of the enterprise taking into account such important components as cost of the capital and its profitability. The use of the proposed algorithm article is only one of the ways to manage diversification, which should be combined with budgeting, economic and mathematical modeling, methods of expert evaluation, the creation of simulation models and more. Today there is a need to develop indicators of the effectiveness of diversification programs, assess the feasibility of their implementation and develop models that take into account the peculiarities of the functioning of enterprises in different sectors of the economy.

Risks of Banking Services’ Digitalization: The Practice of Diversification and Sustainable Development Goals

The study aims to investigate threats that might occur in diversification management, operational risks of banking services in the process of digitalization, as well as the impact on customers and banks. The right choice of a risk management model for a bank plays an important role in the sustainable development of competitiveness and the transformation of banking activities in the future. This work assesses bank risks and determines information risks in relation to the total capital of Santander Bank of Spain. The authors adapted an operational risk management (ORM) model to minimize the risks of the bank’s digitalization and upcoming operational risks. The ratio of the total operational risk to the total bank’s capital was 0.65%, which is below the permissible minimum value and is acceptable. Based on this indicator, diversification of business risks can be applied. As a result of the study, the total value of operational risks was calculated and the acceptability of this indicator to the capital of Santander Bank was assessed, which allowed the authors to assess whether the value was critical. In addition, it was also revealed that the main external risk of Santander Bank in 2018 was fraud in the use of online payments. The results might help to more effectively evaluate insurance payments for identified operational risks and effectively make decisions and optimize reporting documents of banks.

Diversification Management Information System Integrated Structures of the Military-Industrial Complex

The development of diversification of integrated structures of the military–industrial complex, as well as the need for their modernization in order to accelerate innovative development, necessitate the improvement of their management efficiency. The most important direction for solving this problem is the creation of information systems for managing diversification activities. The relevance of the study, the results of which are presented in the article, is determined by the urgent need to improve the theory and tools of managing information support in modern conditions. Previous studies by various scientists of the process under consideration were focused on the economic conditions for the development of integrated structures, which are fundamentally different from modern ones. The article presents the methodological foundations of the development of rational solutions governing the information support of the diversification of integrated structures based on optimization models for the management tasks that are being solved. The results of the study allow us to develop certain aspects of the theory of strategic management, the theory of financial management, the theory of economic and mathematical modeling. Their practical application provides an increase in the quality of management of the diversification process of integrated structures and an increase in the efficiency of their activities.

Marketing support of decision-making at the forest enterprise: A case study on roundwood assortments portfolio

This paper focuses on the marketing support of decision-making at the forest enterprise on the example of forestry products, concretely, of roundwood assortments on the chosen state forest enterprise in the Slovak Republic. The most used marketing decision-making models as SWOT, BCG, and GE matrices with support of ABC analysis were used for chosen research purpose. Additionally, these models were compared to confirm their reliability and expressing power for marketing management of forest enterprise. The conclusions confirm that the use of these models build a strong framework for the decision-making support of forest enterprise management. The outcomes of models contribute to each other and they do not contradict. However, it is necessary to have a strong base of forestry practice knowledge due to the correct interpretation of these models. In contrast to other industrial companies, forest sector is a very specific regarding the long rotation and payback period. The main pillar of the product portfolio and forest enterprise either are assortments of the III. qualitative class and broadleaf pulpwood with the 86% share on total revenues. Concerning the prevalence of threats and company strengths, it is necessary to choose diversification management approach for the product portfolio.