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.
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