Management of Diversificataion System in Aerospace Industry

Yury Vlasov and Alexander Chursin
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Yury Vlasov: United rocket and space corporation
Alexander Chursin: Institute of Space Technologies of Peoples' Friendship University of Russia

Economy of region, 2016, vol. 1, issue 4, 1205 - 1217

Abstract: The article is devoted to the development of approaches to improve the efficiency of Russian aerospace industry enterprises in terms of industry reforming given the influence of economic risks and financial instability. The article discusses the policy of the diversification of production as one of the key factors of increasing the competitiveness of domestic aerospace industry enterprises. The authors analyze the experience of domestic and foreign corporations in the sphere of diversification and conclude that Russian space enterprises and corporations lag behind the development of international companies in carrying out diversification. The interconnection between enterprise economic stability and the diversification of its production is established. The authors have developed a mathematical model for calculating the optimal structure of primary and diversified products and its impact on enterprise financial stability in the conditions of limited financial resources. The advantage of this approach is that it can be integrated in a common methodology of the diversification of industrial enterprises production. The authors have also developed the algorithm of multi-criteria evaluation and optimal distribution of the volume of resources to manufacture diversified products. The algorithm is based on dynamic programming models. The scientific results of the article can be applied to create a system to manage the diversification of production. The main functions of this system are to identify current and emerging technologies that can provide significant competitive advantage for enterprises in the potential markets of high-tech products, as well as to identify and eliminate unproductive or constraining regulations, methods and management practices that are inappropriate to diversification policy. Thus, it becomes possible to implement the monitoring of the process of the diversification of production at all its stages.

Keywords: diversification; aerospace industry; industry reforming; economic risks; performance efficiency; economic stability; mathematical modelling; system for managing diversification; competitiveness; high-tech products (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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