| dc.description.abstract | A company starts a business with the aim of making a profit from the amount of capital that has been issued by the owner. Generally, a company only operates in one line of business or it can also be called a single business and only serves certain and limited markets. In order to be sustainable and going concern, companies will need a strategic choice, namely a diversification strategy. This study aims to determine the company's business diversification strategy process carried out by PT. Putro Utomo and to determine the effect of the applied diversification strategy on financial performance. The research design in this research uses a qualitative research approach. Data was collected by interview and document analysis. The results of the study concluded that the process of diversification strategy at PT Putro Utomo did not fully follow the steps of strategic management, the company tends to decide on a strategy because of spontaneity and lack of planning, the main trigger for the company's spontaneity is external conditions that affect the company's business activities, and the company's internal conditions are getting worse. pressured by declining sales figures and the unavailability of mining locations for raw materials to produce and sell. The diversification strategy at PT Putro Utomo does not affect the company's financial performance, this can be seen from the results of the calculation of liquidity, solvency and profitability, but the company's diversification strategy is recognized as saving the company from the crisis because the new products sold are able to increase the company's income. | en_US |
