CHARACTERISTICS OF THE PREREQUISITES AND SOCIO-ECONOMIC NECESSITY FOR DIVERSIFYING ENTERPRISES' ACTIVITY

The relevance of this study stems from the complex financial and economic challenges businesses face during wartime. The research aims to identify the factors and reasons that necessitate the diversification of enterprise activities and to elucidate its significance for society. The advantages of diversification were evaluated during the study, and potential reservations regarding its implementation were examined. The key findings included identifying factors necessitating diversification during wartime, such as the migration of regular consumers abroad, disruptions in established supply chains for resources and product sales, changing consumer needs, and damage or destruction of property.Additionally, the study highlighted diversification's main benefits to enterprises, including risk reduction, enhanced competitiveness, and improved financial health. It is emphasized that diversification plays a crucial role in stabilizing the socio-economic situation in the region by expanding job opportunities, reducing unemployment, providing essential goods and services to the population, and increasing tax revenues. The study argues that enterprises with a closed production cycle can achieve less loss-making and risky operations. Additionally, an analysis of the performance indicators of retail enterprises revealed a 25.7% decrease in sales volumes in 2022 compared to 2018. The types of activities of a retail enterprise specializing in the production and sale of cosmetic and pharmaceutical products were analyzed, and it was proposed to supplement these activities with new initiatives to enhance production self-sufficiency. An assessment of the effectiveness of each proposed new activity was conducted, leading to the formulation of an optimal diversification plan that combines two new types of activities with the lowest implementation risk.