FACTORS AFFECTING DIVERSIFICATION STRATEGY EFFECTIVENESS IN NIGERIAN FIRMS: A STUDY OF SELECTED FIRMS IN THE BEVERAGE INDUSTRY IN LAGOS STAT
2nd Biennial Conference
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Abstract
Diversification strategy has been a contentious issue in strategic management literature in the last decade.
Several researches have been conducted and results suggest that diversification may be incentive, substitute, risk
reduction technique or for profit maximization. Despite the efforts put into diversification strategy research, few
studies have been identified on the factors affecting diversification strategy effectiveness in three beverage firms
in Lagos. Survey method was considered appropriate and the respondents were purposively selected with the use
of questionnaire. The data generated were analysed using correlation and regression analysis techniques. The
findings show that management style, organizational structure and poor personnel impeded diversification
strategy effectiveness. The study suggests that better management style, good organizational and flexible structure
be introduced and well experienced and knowledgeable personnel should be involved if organisations are to
achieved diversification strategy effectiveness. This study suggests that further future researches could be carried
out on the other factors identified in the body of the work to ascertain whether they constitute factors affecting
diversification strategy effectiveness or otherwise.
Keywords
Diversification Strategy, Management Style, Organisation Structure
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