Project Materials

ASSESSMENT OF DIVERSIFICATION AS A SURVIVAL AND GROWTH STRATEGY:

ABSTRACT

The competitive nature of the economy has caused many products and services to lose their distinctiveness, while competitors’ lower prices and deteriorating public perception of business organisations have prompted the development of strategies and public relations in consumer goods marketing. The principle of diversification strategy is to keep the organization’s eggs in several baskets in order to lessen the danger of bankruptcy. This study investigated the substantial influence of diversification on the Nigerian Bottling Company. The study’s aims were to examine the success of the Diversification strategy for the organisation, as well as to assess the challenges associated with the plan. The approach included Survey Design to collect primary data from the 60 questionnaires used in the study, Percentage to present and analyse the data, and Chi-Square to test the null hypotheses. The study’s main findings were that the diversification strategy has a significant impact on the survival and growth of the Nigerian Bottling Company. The diversification adopted by the organisation is said to be effective and efficient, but it has not reached its peak due to a lack of attention paid to some aspects of diversification, such as horizontal and vertical integration. Some recommendations were that the management of the company should improve more on their core competencies so as to vibrant competitive strength, the company should carry out the review of performance of its various sales of new products at different points in time in order to detect weakness with a view to take corrective measures, the company should embark on comprehensive public relations to build a good public image, and the company should be socially responsible.

Chapter one

INTRODUCTION

1.1 Background of the Study

The global economy is gradually integrating into one as a result of rapid technological innovation, particularly in information and communication technologies. This has reduced trade obstacles across nations and increased competition.

Furthermore, the economic downturn, which most often affects the financial system led by the banking sector, necessitates that banks ensure that their investment portfolio mix is managed strategically so that non-banking operations can contribute meaningfully to the banks’ survival.

The micro finance sub-sector is one of the most severely impacted by any banking sector crises. Microfinance banks, which are critical to every nation’s economic growth, must seek operational models that will allow them to survive in the face of industry challenges.

This necessitates that microfinance banks devise techniques to generate profit centres outside of their traditional banking operations. Again, in order