EFFECTS OF BACKWARD INTEGRATION STRATEGY ON ORGANIZATIONAL PERFORMANCE IN MANUFACTURING INDUSTRY (A CASE STUDY OF NESTLE NIGERIA PLC)

EFFECTS OF BACKWARD INTEGRATION STRATEGY ON ORGANIZATIONAL PERFORMANCE IN MANUFACTURING INDUSTRY (A CASE STUDY OF NESTLE NIGERIA PLC)

ABSTRACT

The study focused on the effect of backward integration strategy on organization performance. Nestle Nigeria Plc was used as case study. Fifty copies of questionnaires were administered using convenience sampling techniques for the purpose of data collection and interviews were conducted to authenticate the information derived. The data obtained was analysed using frequency distribution and chi-square. The findings revealed that Backward Integration increases organization profitability. This is to say that Backward Integration strategy streamline the organization to provide better cost control by eliminating the middleman and lower cost of production for the firm to became more competitive in the market place. It was recommend among others that to justify the funds expended on this strategy, the strategy should be well validated and evaluated. While it is proper that research and development programme should be embanked upon.

TABLE OF CONTENT

                                                                Pages

Title page                                                                 i

Certification                                                             ii

Dedication                                                                        iii

Acknowledgement                                                     iv

Abstract                                                                    vi

Table of content                                                               vii

CHAPTER ONE

INTRODUCTION

1.1   Historical Background of  Nestle Nigeira  Plc    1

1.2   Statement of  research problems                               4

1.3   Objectives of the study                                    5

1.4   Statement of Research questions                              6

1.5   Statements of research hypotheses                   6

1.6   Significance of the study                                  7

1.7   Scope and Limitations of the study                   7

1.8   Operational  Definition of terms                                8

CHAPTER TWO

LITERATURE REVIEW

2.1   Introduction                                                     9

2.2   Historical background of strategy                              14

2.3   Theoretical frame work                                             15

2.3.1 The classical theory of strategy                                16

2.3.2 The evolution theory of strategy                               16

2.3.3 The proccessual  theory of strategy                  17

2.3.4 Systemic  theory of strategy                                     18

2.4   Backward integration strategy                           19

2.5   Problems of benefits of backward integration strategy23

CHAPTER THREE

RESEARCH METHODS

3.1   Introduction                                                    48

3.2   Research design                                                        48

3.3   Characteristics of population of the study         49

3.4   Sample size and sampling design                               49

3.5   Re statement of research questions                   50

3.5   Re-statement of research hypotheses                        50

3.6   Analytical tools                                                         51

3.7   Test of validity  and reliability  of research instrument52

CHAPTER FOUR

DATA ANALYSIS  AND PRESENTATION

4.1   Introduction                                                     53

4.2   Frequency table                                                        53

4.3   Chi-square                                                        67

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1   Summary of findings                                         74

5.2   Conclusion                                                               75

5.3   Recommendations                                            75

5.4   Limitations                                                               76

Bibliography                                                     77

Appendix                                                          81

CHAPTER ONE

1.1      HISTORICAL BACKGROUND OF NESTLE NIGERIA PLC

Nestle Nigeria plc is associated with the nestle group, the single largest food company in the world and it is known worldwide for its top quality products.

Nestle Nigeria plc began simple trading in 1961 and has today grown into a leading manufacturing and marketing company. It is a public quoted company listed since 1978 on the Nigeria stock exchange with about 20,500 shareholders participating.

Nestle Nigeria Plc of Switzerland owns about 43% of the company’s equity. Nestle Nigeria plc manufacturing complex is located at Agbara Industrial Estate in Ogun State.

The main products were designed in line with modern manufacturing methods which ensure efficient production of the following:

v Infant cereals – nestle golden morn.

v Instant family cereals, nestle milo – beverage drink.

v Chocomilo – chocolate sweets, maggi cubes, maggi chicken, maggi crayfish, maggi super onion spices.

DOWNLOAD  COMPLETE PROJECT MATERIAL

EFFECTS OF BACKWARD INTEGRATION STRATEGY ON ORGANIZATIONAL PERFORMANCE IN MANUFACTURING INDUSTRY (A CASE STUDY OF NESTLE NIGERIA PLC)