THE ALGORITHM IMPLEMENTATION OF THE DIVERSIFICATION STRATEGY IN SMALL AND MEDIUM-SIZED ENTERPRISES (FOR EXAMPLE, THE HOSPITALITY INDUSTRY)

Abstract

Diversification in small businesses in the general sense is an extension of business activities to new areas of business (expanding the range of products, types of services provided, etc.). Application of the strategy of diversification in the small and medium business is justified in cases where the industry does not give us opportunities for further growth or when growth opportunities outside the industry more attractive. To determine whether diversification overdue and justified, the entrepreneur must clearly define the algorithm for their actions.Purpose: To determine the algorithm implementation of the strategy of diversification.Methodology: Desk research.Results: The developed algorithm.Practical implications: Management.DOI: http://dx.doi.org/10.12731/2218-7405-2013-9-19

Keywords

• diversification strategy, small and medium business, sequence of actions, the selection criteria, a bank of possible destinations