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Diversification Strategy and Firm Profitability: Evidence from Selected Fast- Moving Consumer Goods Firms in Lagos State, Nigeria

Authors: BINUYO Babatunde

Publication Type: Journal article

Journal: International Journal Of Innovative Science, Engineering & Technology

ISSN Number:

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Abstract

The environmental turbulence has affected many fastmoving consumer goods manufacturing
firms owing to the keen competition of the players in the industry. To cope with the dynamics of
the business environment, several organisations in the industry resorted to diverse strategies one
of which is the diversification strategy. The paper thus established the effect of diversification
strategy on profitability of fast-moving consumer goods manufacturing firms in Lagos State,
Nigeria. Survey research design was adopted for the study. Data were collected with the use of a
validated research instrument whose Cronbach’s alpha reliability coefficients ranged from 0.731
to 0.956. The population comprised 1,337 top and middle level management staff of four notable
players in the FMCG industry in the State (Honeywell flower mills plc, Dangote flower mills,
Unilever Nigeria Plc, and Cadbury Nigeria Plc. Through proportionate stratified random
sampling technique, 400 out of the 1,337 were sampled for the study. The research instrument
was administered to the sampled population with 84.25% response rate. The data were analysed
by descriptive as well as inferential techniques. The results indicated that diversification strategy
had a significant effect on profitability of the fast-moving consumer goods manufacturing firms
in Lagos State Nigeria (0.726, ? = 0.842, t = 29.782, P ? 0.05). The study recommend that policy
provisions should be made by fast moving consumer goods in Lagos State, Nigeria to promote
and support diversification strategies in the interest of firms profitability.

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BINUYO,B. . (2019). Diversification Strategy and Firm Profitability: Evidence from Selected Fast- Moving Consumer Goods Firms in Lagos State, Nigeria, 6 (), 75-75.

BINUYO,B. . "Diversification Strategy and Firm Profitability: Evidence from Selected Fast- Moving Consumer Goods Firms in Lagos State, Nigeria" 6, no (), (2019): 75-75.

BINUYO,B. and . (2019). Diversification Strategy and Firm Profitability: Evidence from Selected Fast- Moving Consumer Goods Firms in Lagos State, Nigeria, 6 (), pp75-75.

BINUYOB, . Diversification Strategy and Firm Profitability: Evidence from Selected Fast- Moving Consumer Goods Firms in Lagos State, Nigeria. 2019, 6 ():75-75.

BINUYO,Babatunde , . "Diversification Strategy and Firm Profitability: Evidence from Selected Fast- Moving Consumer Goods Firms in Lagos State, Nigeria", 6 . (2019) : 75-75.

B.Babatunde , "Diversification Strategy and Firm Profitability: Evidence from Selected Fast- Moving Consumer Goods Firms in Lagos State, Nigeria" vol.6, no., pp. 75-75, 2019.

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