Factors Influencing Diversification Strategies At Haco Industries, Kenya Ltd
Diversification has been associated with organization growth. This study sought to determine factors influencing diversification strategies at HACO Industries. A case study research design was employed to achieve this objective. Primary data was collected through an interview guide. A face-to-face interview was conducted with the finance manager at HACO Industries. Secondary data from catalogues and other publications were also used. A content analysis method was used to analyze this information. The study revealed that market environment, partnerships, alliances and joint ventures are among the factors that have determined diversification strategies at HACO Industries. The leadership led by its chairperson has also played an integral part in determining the diversification strategies. The study revealed that the firm’s investment in information systems, sales distribution, marketing and talent development have also shaped diversification strategies. Diversification made HACO Industries one of the leading fast moving consumer goods (FMCG) firm in Eastern Africa. It was observed that diversification is a capital-intensive affair and may be a challenge to resource constrained firms. The study concluded that factors influencing diversification strategies at HACO Industries could be classified into three categories namely: firm factors, product factors and market factors. The study recommended that HACO Industries should evaluate the factors influencing its diversification strategies in order to make informed choices in the future. Further research should focus on the ranking of important elements of firm factors, product factors and market factors that affect diversification strategies.
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