IMPACT OF CORPORATE STRATEGY ON INVESTMENT DECISION IN NIGERIA
Abstract
The research work investigates the impact of corporate strategy on investment decision in Nigeria. Effective corporate strategy plays a critical role in defining the businesses in which a company will compete, preferably in a way that focuses resources on how to convert distinctive competence into competitive advantages. The broad objective of the study is to investigate whether Cadbury Nigeria plc strategic pattern affects the company’s expansion investment decision and also to investigate how strategic pattern shows the growth and profitability of a firm that is increase in sales and market value. The primary source of data collection was used where stratified questionnaires were distributed to respondents. The simple random sampling technique was used to select a sample size of 50 personnel. The chi-square statistical tool was used to test the stated hypotheses and the findings revealed that the Net profit margin, measures the overall firm’s ability to turn each naira sales into profit. The study concludes that corporate strategy affects expansion investment decisions of organizations, i.e. strategic pattern affects the company’s expansion investment decision. The study recommends among others that management should reinforce the need for a strategic framework for problem solving under complexities and the relevance of strategic considerations in investment planning.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
It is glaring that investment decisions without a sound corporate strategy is like a ship without a rudder and a waste of time no wonder said that allowing resources to investment without a sound concepts to divisional aid corporate strategy is a lot like throwing darts in a darkroom. Investment decision which involves a firm’s decision to invest its current fund most efficiently in the long-term assets in anticipation of an expected flow of benefit over a series of years include: expansion acquisition, modernization and replacement of the long term assets, sales of a division or business (divestment), change in the method of sales distribution advertisement campaign, research and development programme etc needs a well formulated strategy. A well formulated strategy help to marshal and allocate an organization resources into a unique and viable posture based on its relative interval competences and short comings anticipated changes in the environment and the contingent moves by intelligent opponent.
