EFFECTS OF BACKWARD INTEGRATION STRATEGY ON ORGANIZATIONAL PERFORMANCE IN MANUFACTURING INDUSTRY

TABLE OF CONTENTS

Abstract

CHAPTER ONE

1.0    Introduction

1.1   Background of Study

1.2   Statement of Problems

1.3   Research Objectives

1.4   Research Question

1.5   Research Hypothesis   

1.6   Scope of Study

1.7   Significance of study

1.8   Limitation of study

1.9   Definition of terms

CHAPTER TWO

2.0   Literature Review

CHAPTER THREE

3.0   Research methodology

3.1   Research Design

3.2   Population of study

3.3   Sampling Design and Procedure

3.4   Data Collection Instrument

3.5   Administration of Data Collection Instrument

3.6   Methods of data analysis

CHAPTER FOUR

4.0   Data Presentation and Analysis

4.1   Data Presentation  

4.2   Test of Hypothesis 

CHAPTER FIVE

5.0   Summary, Conclusion and Recommendation

5.1   Summary

5.2   Conclusion

5.3    Recommendation

References

Questionnaire

CHAPTER ONE

INTRODUCTION

1.1      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.

Nestle Nigeria plc obtains most of its agricultural raw materials locally from contract farmers and out growers in partnering agreement that enables the benefits from the technical advice and assistance of the company’s agricultural services department and at the same time, guarantee to the company continuous supply of raw materials that meet their high quality standards.

The company pursue the use of backward integration strategy by pursuing its sustainable agricultural initiative(SAI) where she involve herself with collaborative research with the university of agriculture, Abeokuta(UAAB) of popularisation of soya beans which brought into being the a selection of soya beans varieties with improved seed colour, seed size, and seed yield.

The company’s objective is to satisfy the requirements of the consumers with high quality food products with long shelf life adapted to the taste and food habits of the consumers and as a result, she has continuously invested in Nigeria by building and commissioning in 1991 at agbara, ogun state a fully integrated plant producing concentrated sorghum malt extract from locally malted sorghum, and in June 1995, Nestle Nigeria plc commissioned another plant at agbara which produces enzymatic hydrolyzed plant protein mix.(EHPPM).

The investments represent successful and significant effort at replacing imported raw materials in the manufacture of milo food drink and the maggi range seasonings.

The company being conscious of her social responsibility is committed to environmental policies, programmes, and practices into each business as an element of management in all functions. She always thrives to minimize the impact of her environment through the utilization of packaging and manufacturing process that are internationally recognized to have a minimum impact on the environment.

With her historical root in nutrition, wide product portfolio, strong brands, research and development competence, skilled and motivated professionals, and efficient management, the company is positioned to committed to the progress, prosperity, economic development, and industrial growth of Nigeria.

Through the use of vertical integration strategy, the company seeks to achieve a clear cut competitive advantage over competitive products by ensuring that their products are available wherever, whenever, and however the consumers want their continuous attention is also given to developing the professional leadership skills of staffs at all levels so that they can directly contribute to growth and a higher level of performance.

To stimulate industrial growth, the company has a policy of long term sustainability business practice. Over 75% of their raw materials are sourced locally by their selves through the use of employed farmers and suppliers and also support an ever increasing standard of living through employment generation, increased income, infrastructure improvements, and a growing concern for the interest of the community here in Nigeria through the application of the nestle environmental management (NEM) and complies with applicable environmental legislation.

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