Implementation of diversification strategy on farms in the Czech Republic

Abstract

Nowadays, it is not easy to achieve prosperity and flourishing progress of an agriculture company. The owners and managers engaged in agricultural sector are thus forced to face increased challenge as for the search of new and more stable sources of income. Employing the strategy of diversification represents one of the possible ways aiming to improve the current situation. Moreover, this strategy also provides important tool for enhancing the quality of rural infrastructure and creation of job opportunities in non-traditional sectors and thus makes for the decrease in jobs in the agricultural sector. The study of secondary sources and in-depth interviews with successful diversification project managers allowed the analysis of prospective usage of the diversification strategy in agricultural companies.

Keywords

• diversification strategy
• agriculture
• risk