Diversification Strategies and Performance of Manufacturing Firms in Jinja.
Loading...
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Diversification has been a key strategy employed by firms in an attempt to improve their financial performance. In the manufacturing sector, diversification boosts the financial performance as it helps in initiating actions which leverage in the existing internal as well as external resources which in turn support other venture hence complement the overall financial performance of the firm. This research therefore sought to find the effect of diversification strategies on the manufacturing firms’ financial performance in Jinja. The study specific objectives were to determine the effect of product diversification strategies, to determine the effect of market diversification strategies and finally, to determine the effect of internal growth diversification strategies on the financial performance of manufacturing firms in Jinja. The study population was the 66 manufacturing firms in Jinja. Both primary and secondary data were used. Primary data was collected through questionnaires from the managerial staff. The data was coded, tabulated and analyzed using Statistical Package for Social Science (SPSS) software. Descriptive statistics like frequencies, percentages, means and standard deviation were used to analyze the data. Inferential statistics which included linear regression and ANOVA were also carried out. The study established that related product diversification is highly employed as a product diversification strategy. Further, addition of new product features to the existing product (pricing) and branding /rebranded most of the existing products and re-launching them into the market are key marketing strategies manufacturing firms in Jinja can use to enhance their financial performance. Additionally, using retained earnings for the firm expansions, use of information technology and customer satisfaction are significant internal growth diversification strategy. Results further indicated that the independent variables studied explain 57.7% of the effects of diversification strategies on the financial performance of manufacturing firms in Jinja. The results reported indicated that the regression model was significant. Among the three variables studied, the strongest relationship was exhibited between firm financial performance and internal growth diversification strategies. The study recommends application of the diversification strategies highlighted in expanding the scope of markets and operations of their entities in a bid to ensure sustainable competitive advantage in the manufacturing sector.
Description
A Dissertation Submitted to Makerere University Business School (Faculty of Graduate Studies and Research) in Partial Fulfilment of the Requirements for the Award of Degree of Master of Business Administration of Makerere University. (PLAN A).
Keywords
Citation
Muhammad, S (2023) Diversification Strategies and Performance of Manufacturing Firms in Jinja. Unpublished Masters Dissertation Makerere University Business School. Kampala, Uganda.