IMPACT OF DIVERSIFICATION STRATEGY ON ORGANIZATION PERFORMANCE: CASE STUDY OF ZAP GLOBAL ENTERPRISE IN IBADAN, OYO STATE, NIGERIA

Abstract

This study investigated the impact of the Diversification Strategy on Organizational Performance in organization in Nigeria. The specific objectives of the study are to ascertain the impact of Diversification Strategy namely; Product Diversification (PD), and Concentric Diversification (CD. Data were sourced from primary sources using questionnaire as the instrument of data collection and the hypothesis was tested using regression analysis. The findings revealed that Product Diversification (PD) and Concentric Diversification (CD), has a significant relationship with Organizational Performance (ORGP). Based on the findings, the study concluded that there is a significant relationship between Diversification Strategy and Organizational Performance in organization. Thereby it was recommended that organizations that wish to achieve economies of scale and redeem their financial position in the face of downturn or decline in the product life cycle should diversify their product lines to better meet customers' demands, as well as to achieve profitability and expansion as well as increase performance since diversified organizations were found to perform better than the undiversified entities.