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Diversification Models of Sales Activity for Steady Development of an Enterprise

Author

Listed:
  • Nestor Shpak

    (Department of Management and International Business Undertakings, Economics and Management Education Research Institute, National University “Lviv Polytechnic”, Metropolitan Andrey street 3, 79013 Lviv, Ukraine)

  • Tamara Kyrylych

    (Department of Management and International Business Undertakings, Economics and Management Education Research Institute, National University “Lviv Polytechnic”, Metropolitan Andrey street 3, 79013 Lviv, Ukraine)

  • Jolita Greblikaitė

    (Faculty of Economics and Management, Business and Rural Development Management Institute, Aleksandras Stulginskis University, Studentu str. 11, Akademija, 53361 Kaunas, Lithuania)

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.

Suggested Citation

  • Nestor Shpak & Tamara Kyrylych & Jolita Greblikaitė, 2016. "Diversification Models of Sales Activity for Steady Development of an Enterprise," Sustainability, MDPI, vol. 8(4), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:4:p:393-:d:68685
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    References listed on IDEAS

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    1. Konuş, Umut & Verhoef, Peter C. & Neslin, Scott A., 2008. "Multichannel Shopper Segments and Their Covariates," Journal of Retailing, Elsevier, vol. 84(4), pages 398-413.
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    Cited by:

    1. Agata Malak-Rawlikowska & Edward Majewski & Adam Wąs & Svein Ole Borgen & Peter Csillag & Michele Donati & Richard Freeman & Viet Hoàng & Jean-Loup Lecoeur & Maria Cecilia Mancini & An Nguyen & Monia , 2019. "Measuring the Economic, Environmental, and Social Sustainability of Short Food Supply Chains," Sustainability, MDPI, vol. 11(15), pages 1-23, July.
    2. Nestor Shpak & Ihor Kulyniak & Maryana Gvozd & Yuliya Malynovska & Włodzimierz Sroka, 2020. "Estimation of the Marketing Activity of Banking Structures," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(1), pages 229-242.
    3. Nestor Shpak & Oleh Kuzmin & Olga Melnyk & Mariana Ruda & Włodzimierz Sroka, 2020. "Implementation of a Circular Economy in Ukraine: The Context of European Integration," Resources, MDPI, vol. 9(8), pages 1-15, August.
    4. Piotr Sawicki & Hanna Sawicka, 2021. "Optimisation of the Two-Tier Distribution System in Omni-Channel Environment," Energies, MDPI, vol. 14(22), pages 1-22, November.

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