Amount: ₦5,000.00 |

Format: Ms Word |

1-5 chapters |


The competitive nature of the economy, cause many products and services to lose their distinctiveness, the competitors’ offering of lower prices, and the deteriorating public perception of the business organizations have called for the strategies,  and public relations in the marketing of consumer goods. The concept of Diversification strategy is that, the organization’s eggs are kept in different basket so that the risk bankruptcy will be reduced.   This research examined the significant impact of Diversification to the Nigerian Bottling Company.  The objectives of the study were to assess the success of Diversification strategy to the organization and to also assess those problems associated with Diversification strategy. The major findings of the study were that; Diversification strategy has a significant impact on the survival and growth of the Nigerian Bottling Company, Diversification adopted by the organization is said to be effective and efficient but has not attained it optimal point due to low attention being given to some element of Diversification such as; horizontal and vertical integration. Some recommendations proffered were that; the management of the Company should improve more on their core competencies so as to vibrate competitive strength , the company should carry out the review of performance of its various sales of new product at different point in time in other to detect weakness with a view to take corrective measures, the company should embark on comprehensive public relations  to build a good public image, and should be socially responsible to have the support of its environment.


Title page

Approval page




Table of content



1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study




3.0        Research methodology

3.1         sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis



4.1 Introductions

4.2 Data analysis


5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation




1.1        Background of the study

Diversification has a long and varied history as a research topic. In the world of finance, it was most famously studied by Nobel Prize-winning economist Harry Markowitz as far back as the early 1950s. Markowitz’s seminal work, commonly known as “modern portfolio theory,” holds that diversified portfolios of investments outperform undiversified ones for any given level of risk. Accordingly, in finance, diversification is usually considered unequivocally beneficial. In the world of business, subsequent studies have shown that modern portfolio theory applies only in a limited way to individual firms. From the perspective of large enterprises, several studies have shown that those that are somewhat diversified in products and services, sectors, or geographical region are likely to outperform those with a narrow focus, as well as those that are highly diversified. Put differently, optimal diversification for large businesses—unlike optimal portfolio diversification—appears to entail finding a “sweet spot” in which a firm is neither overly concentrated, nor spread too thinly. Thus, a car manufacturer would usually be better served by making other types of vehicles than by diversifying more narrowly by simply offering a wider range of cars. Furthermore, diversifying across the transportation sector would normally be more beneficial than moving into a totally unrelated sector. What about small and mid-sized businesses, whose organizational constraints differ from those of large firms? For this type of business, diversification is arguably a more complex issue and one that has been researched less fully. For one thing, small businesses can have high risk exposure in ways that large firms do not. In some industries, for instance, small and mid-sized businesses often maintain significant exposure to a single major client. These industries, which include natural resources and aerospace, tend to be characterized by having just a few large firms at the top of the supply chain. High risk exposure can also arise from offering just one product or service line, even if a business has a broad customer base. Not all small and mid-sized firms are undiversified, however, and diversification is not merely a function of size or age. Our survey shows that some small businesses decide early on that diversification is important. Similarly, while highly diversified businesses are—as one might expect—larger, on average, than their undiversified counterparts, diversification is positively linked with financial performance regardless of firm size.

1.2   Statement of the Problem

In hyper competitive markets, competition is high and only firms able to build strategies for instance diversification strategies survive. Diversification presents an organization with numerous advantages like spreading investment risk in various businesses, increased profits, and avails economies of scale among others. The failure of organisations to embrace diversification has led to poor performance which has affected the various shareholders, indirect dependants and the national economy as a whole. Past studies have shown that advances in technology, changing economic conditions and new entrants in the companying industry have completely revolutionalised the way organisations operate. With these new developments, the intensity of competitive rivalry has also increased significantly. Since 1986, Nigeria has experienced companying problems which has led to the failure of 37 organisations as at 1998 following the crises of 1986-1989, 1993/1994 and 1998. In the year 2002 pre-tax profit declined by 4.5 percent as a result of the stiff competition experienced in the country. The financial sector is one of the most important sectors in the economy and if it fails Nigeria will not meet its vision 2030 neither will it fulfill its sustainable development goals. Therefore, it is of utmost importance that studies in regards to diversification and how it affects performance be conducted. As the companying industry expands over the years it has been of necessity to research on diversification strategies like banccasurance, electronic money transfer and agency companying. These strategies offer numerous benefits to the organization in terms of increased business, economies of scales and business growth among others. This study sought to focus on how these diversification strategies affect the competitive performance of Nigeria Bottling Company in Nigeria which has seen significant growth over the last few years making it the most profitable company.

1.3   Objectives of the Study

The study has the following objectives:

  1. To determine whether there is a significant difference in performance between the undiversified and the moderately diversified firms.
  2. To determine whether there is a significant difference in performance between the undiversified and the highly diversified firms.
  3. To determine whether there is a significant difference in performance between the moderately diversified and the highly diversified firms.

1.4   Research Hypotheses

H0: There is no significant difference in performance between the undiversified and the moderately diversified firms.

H0: There is no significant difference in performance between the undiversified and the highly diversified firms.

H0: There is no significant difference in performance between the moderately diversified and the highly diversified firms.


The researcher chose Nigeria Bottling Company owing to its frontline position in innovating products that meet and exceed customer expectations. Nigeria Bottling Company also has the highest number of customers and being an early adopter of innovations, the researcher found it fit to use the company as a case. The study was expected to increase the knowledge of diversification strategies that enable commercial organizations to compete effectively in the industry. Given the various advancements in technology and new entrants among commercial organizations, the intensity of competition has increased. Therefore the need to develop organizations that can diversify as a way to improve their competitive capability in the industry was inevitable.

1.6   Scope and Limitation of the Study

This study was conducted among the corporate managers who are involved in strategy implementation, divisional managers in charge as well as the branch managers of Nigeria Bottling Company Nigeria. The aforementioned managers were hypothesized to be the most conversant with organizations diversification strategies.

1.7   Definition of Terms

Diversification: In finance, diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A common path towards diversification is to reduce risk or volatility by investing in a variety of assets.

Assessment: the action or an instance of making a judgment about something the act of assessing something appraisal How to use assessment

Survival:  the act or fact of living or continuing longer than another person or thing

Growth: the process of increasing in size, something that has grown or is growing

Strategy: a plan of action designed to achieve a long-term or overall aim.

1.8    Organization of the Study

The study is divided into five chapters. Chapter one deals with the study’s introduction and gives a background to the study. Chapter two reviews related and relevant literature. The chapter three gives the research methodology while the chapter four gives the study’s analysis and interpretation of data. The study concludes with chapter five which deals on the summary, conclusion and recommendation.

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