dc.contributor.author | Mahaga, Donald F M | |
dc.date.accessioned | 2013-05-12T07:03:56Z | |
dc.date.available | 2013-05-12T07:03:56Z | |
dc.date.issued | 2003-11 | |
dc.identifier.citation | MBA | en |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/22224 | |
dc.description | Master of Business Administration | en |
dc.description.abstract | This study sought to establish the relationship between the degree of vertical
integration and performance in food manufacturing firms in Nairobi. It examined
the correlation between profitability performance ratios return on assets, return
on investment and net profit margin individually vis-a-vis the degree of vertical
integration as indicated by extent of a firm's value addition.
A cross sectional survey was carried out on seven food manufacturing firms in
Nairobi in the year 2000 consisting of five firms listed on the Nairobi Stock
Exchange and two to unlisted firms. An analysis using secondary data from
financial reports was done to establish each firm's degree of vertical integration,
its three common profitability performance ratios, and finally the relationship
between the degree of vertical integration and each of the profitability
performance ratios. The findings suggest that a firm's performance was
moderately positively associated to it's degree of vertical integration. Further the
study suggests that a change in the degree of vertical integration accounted for
between 24.4% to 39.7% of the total change in profitability of a firm.
The results showed that there was a positive correlation between the degree of
vertical integration and the profitability performance of firms in the food
manufacturing industry in Nairobi area in the year 2000. The implications of this
study are that food manufacturing firm policy makers and managers in Nairobi
area should create and adopt policies that take cognisance of and that facilitate
vertical integration as a possible strategy, since it is likely to result in improved
profitability performance. | en |
dc.language.iso | en | en |
dc.title | Vertical integration and performance of food manufacturing firms in Nairobi | en |
dc.type | Thesis | en |
local.publisher | School of Business, University of Nairobi | en |