Abstract

PPCSS International Journal Series.Journal of Programme on Policy,Conflict and Strategic Studies,Babcock University,October 2015 Volume 2 Number 1 pp.101-128. In the ordinary parlance, the word distress connotes unhealthy situation or state of inability or weakness which prevents the achievement of set goals and aspirations. It is a known fact from the state of Nigerian economy, and various researches that profit making businesses in Nigeria have been unhealthy; they exhibit severe financial, operational and managerial weaknesses where sustainability and stability are missing in business. The objective of this work was to evaluate financial strategy as determinant of sustainable performance growth and an antidote to financial distress in profit making organizations in Nigeria. The research designs used were the survey and ex-post facto research designs. The population of study is the profit making organizations in Nigeria while the sample representatives were the retail banks (Deposit Money Banks) in Nigeria. The sampling techniques used are the judgmental and convenience because of availability of data. Multivariance Analysis of variance method (MANOVA) was applied in analyzing the primary data; multiple regression analysis was applied in analyzing the secondary data. Three hypotheses were formulated for testing the dependent and independent variables. Two models were applied for this research work: The contingency approach, General system of performance and growth model. The results from the two statistical methods used revealed a co-movement and correlation between Gross Domestic Product and organization performance indices. It was also discovered that reinventing strategies will eradicate distress in profit making organizations. The work recommends reinventing strategies and implementation of transformation model to avoid financial distress to maintain sustainable growth in the profit making organizations in Nigeria economy