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Sustainability 2016, 8(4), 393; doi:10.3390/su8040393

Diversification Models of Sales Activity for Steady Development of an Enterprise

1
Department of Management and International Business Undertakings, Economics and Management Education Research Institute, National University “Lviv Polytechnic”, Metropolitan Andrey street 3, 79013 Lviv, Ukraine
2
Faculty of Economics and Management, Business and Rural Development Management Institute, Aleksandras Stulginskis University, Studentu str. 11, Akademija, 53361 Kaunas, Lithuania
*
Authors to whom correspondence should be addressed.
Academic Editor: Adam Jabłoński
Received: 10 December 2015 / Revised: 13 April 2016 / Accepted: 18 April 2016 / Published: 21 April 2016
(This article belongs to the Special Issue Sustainable Business Models)
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Abstract

The paper substantiates the importance of the optimal directionality choice of sales activity as one of the main lines of enterprise activity, the functioning of which should be complete, synchronous and complementary. Diversification is one of the powerful instruments to ensure the steady development of the sales activity of an enterprise. Three models of sales activity diversification of an enterprise are developed. The first model is based on unveiling the potential of sales channels and allows us to show the peculiarities of their use. The second model of the optimal quantitative distribution of production between sales channels is based on profit maximization. This approach not only takes into account the evaluation of the prescribed parameters of sales channels, but also provides the high profitability of each assortment item and of the whole enterprise. The third model of the optimal distribution of production between sales channels accounts for the experience of collaboration between the enterprise and sales channels during the past period and ensures the minimal risk and appropriate profitability for each sales channel. The proposed models are tested and compared to actual data of the enterprise; the advantages and peculiarities of each model are discussed. View Full-Text
Keywords: sales activity; diversification; optimal production distribution; sales channels; profitability; business risk sales activity; diversification; optimal production distribution; sales channels; profitability; business risk
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Shpak, N.; Kyrylych, T.; Greblikaitė, J. Diversification Models of Sales Activity for Steady Development of an Enterprise. Sustainability 2016, 8, 393.

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