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
2.5Â Â 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 Â 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
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CHAPTER ONE
1.1Â Â Â Â Â Â 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.
