IMPROVING THE COMPETITIVENESS OF AGRICULTURAL PRODUCTION UNITS THROUGH DIVERSIFICATION
Abstract
In a market economy, the importance is the question of competitive advantage, determining the level of efficiency and ability to compete. With the development of socio-economic relations, new categories and concepts, with the purpose of more fully describe states, events and processes in the economic environment. The term "competition" (with lat.conkurrentia) means competition, rivalry. As an economic category, competition - an economic struggle, the rivalry between separate manufacturers of products and services to meet their interests related to the sale of goods, works, services to the same customers. The main indicators of the level of competitiveness of the products are quality, cost and selling price. Thus, the quality indicators of products as components of competitiveness, providing producers competitive advantages and an important selection criterion for the buyer. Particular weight is acquired due to the intensity of use of biological resources, high plowed and the resulting deterioration of soil quality. Summarizing the technique to determine the competitiveness of enterprises, we proposed to use factor diversification strategy that will determine the socio-economic impact of diversification. Found that when Kdvs ≥ 1, the diversification of production activities is good if coefficient smaller units - this strategy is less feasible because it does not take into account the social aspects of the solution. The method we used was the study of the competitiveness of agricultural enterprises Kiev region. Established the need to improve production efficiency, the efficiency of natural resources and strengthen the market position of farms requires taking into account market conditions and diversifying its production and business activities. Results of the study showed that multi farms are more competitive. Factor of competitiveness of agricultural enterprises Kyiv region over the past three years has increased by 1.25 points. To determine the socio-economic impact of diversification of productive activities we have the factor diversification strategy, which takes into account the final economic result, the number of products and the number of employed workers in the manufacturing sector. The value of the coefficient for agricultural enterprises Kyiv region over the past three years has decreased by 1.6 points. The diversification of agricultural production units is also one of the areas of solving social and economic problems of the village. The development of the livestock sector stimulates the creation of new jobs. According to project estimates it will allow only one company to attract additional 27 workers. In addition, the company also optimized production structure, it is possible to use organic fertilizers that enables complex measures to improve product quality, and thus increase its market price. The coefficient diversification strategy to test the company will increase from 0.89 to 4.11, which also shows the feasibility of the project.
Downloads
Issue
Section
License
Relationship between right holders and users shall be governed by the terms of the license Creative Commons Attribution – non-commercial – Distribution On Same Conditions 4.0 international (CC BY-NC-SA 4.0):https://creativecommons.org/licenses/by-nc-sa/4.0/deed.uk
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).