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Diversification refers to the business strategy of an enterprise operating two or more industries at the same time, also known as "diversification".Enterprises that adopt diversified business strategies participate in the production and sales of a variety of goods and services.When enterprises adopt diversified operation, they first need to choose the direction of diversification, that is, under what conditions, which diversification is more effective.Diversification not only limits the expansion of product varieties, but also includes the expansion of production and market scope.The purpose is to spread risks, avoid the impact of changes in market conditions of certain products on earnings, and make full use of production potential and market sales potential.
Chinese name
Diversification
Alias
Diversified operation
Nature
The enterprise operates two or more business strategies at the same time
Purpose
Diversify risks and avoid changes in business conditions in the product market
Diversification refers toenterpriseThe production activities oftransverse、portraitandLateralAnd other fields.Originallycapitalistic enterpriseA mode of operation.When it is extended to agricultural economy and geographical research, it generally refers to the combination of leading departments and auxiliary departments.Different regions and agricultural production units have different modes, projects and production structures of diversified business due to different natural, socio-economic and resource conditions.For example, in China's vast agricultural areas, rice or wheat production is the main production, supplemented by pigs, poultry and aquaculture;In the pastoral areaAnimal HusbandryAs the main body, it also operates agriculture and other sidelines.At present, China's vast rural areas are diversified, often in the form of rural industry, household sidelines and courtyard economy, and gradually develop towards the commercial production direction of multi sector, multi-level and deep processing.
Advantages of diversified economy: ① it is conducive to the full use of labor, land and other natural resources; ②It is conducive to giving full play to the interdependence and mutual promotion of various departments within agriculture, rationalizing the production layout and production system, and giving full play to the comprehensive and overall benefits of regional agriculture; ③It is conducive to easing the seasonal differences in the use of labor, means of production and capital in agricultural production, increasing farmers' income and meeting market needs;It is conducive to the accumulation of agricultural production funds and the expansion of reproduction, and enlivens the rural economy.The indicator to measure diversified business is the diversified business rate, that is, the proportion of diversified business income in total income: diversified business rate (%)=(diversified business income ÷ total income) × 100%.When the main business operation is relatively stable, the faster the diversified operation rate increases, the faster the total income and output value increase, and the better the operation effect,labour productivityThe higher the labor utilization rate, labor time utilization rate, land utilization rate and land productivity are also correspondingly improved.
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Diversification refers to the organic combination of main business and auxiliary industry. The comprehensive and effective utilization of various resources, including human, financial and material resources, can make the main industry achieve stable income, while creating more profits and increasing income. The idle resources with market potential can be fully tapped, packaged, and the existing resources can be used again to carry out diversified operations.
