, PhD, Asisstant Professor, Department of Business and Entrepreneurship, Kwara State University, Malete Nigeria
, PhD, Assistant Professor, Department of Business Administration, Federal University of Agriculture, Abeokuta, Nigeria
, PhD, Assistant Professor, Department of Accounting, Babcock University Ogun State, Nigeria
This paper summarizes the arguments and counter arguments within the scientific discussion on the issue exploring the link between Competitive Strategies and Organizational Performance in Beverage Industry. Competition is a critical force that shapes the affairs of an organization in a competitive environment and its impact cannot be over emphasized. The main purpose of the research is to exam-ine the significant effect of cost management strategy on sales turnover and focus strategies on market leadership coupled with the significant effect of competitive strategies on organizational performance. Systematization literary sources and approaches for solving the problem are carried out in the follow-ing logical sequence. A cross-sectional design was adopted for this study. The field survey was car-ried out in the year 2018. The study employed statistical tools which include: analysis of variance (ANOVA), correlation efficient and regression analysis in testing hypotheses. Statistical package for the social sciences, (SPSS) was employed. Yamane formula was adopted to determine the sample size. The object of research is the management of Nestle Plc, Lagos Nigeria. 124 copies of question-naire were administered to the top and middle level management of Nestle Plc Lagos Nigeria to get primary data that treated and tested appropriate research questions and hypotheses accordingly. The paper presents the results of an empirical analysis which showed that there was a significant relation-ship between cost management strategies and sales turnover and also market focus strategies can lead to improved market leadership and share. The research empirically confirms and theoretically proves that competitive strategies can lead to improved organizational performance.The results of the re-search would help organization to create a scorecard on which performance can be measured. The study recommends that organizations should consistently seek ways of utilizing the competitive strat-egies at their disposal as it helps improve organizational performance and ultimately lead to a sus-tained competitive advantage over competitors.
Keywords: cost management strategy, focus strategy, organizational performance, competitive strategies.
JEL Classification: M1, M11.
Cite as: Akpoviroro, Kowo Solomon, Amos, Akinbola Olufemi, Olalekan, Akinrinola (2019). Exploring the Link Between Competitive Strategies and Organizational Performance in Beverage Industry. (A case of Nestle PLC). SocioEconomic Challenges, 3(1), 116-126. http://doi.org/10.21272/sec.3(1).116-126.2019.
- Dow Jones -Irwin. Anwar, J. and S. Hasnu (2016). Strategy-performance relationship: A scoring method framework for typological research. International Journal of Information, Business and Management, 8(2), 19-35.
- Balsam, S., G. D. Fernando and A. Tripathy (2011). The impact of firm strategy on performance measures used in executive compensation. Journal of Business Research, 64(2), 187-193. http://dx.doi.org/10.1016/j.jbusres.2010.01.006 .
- Bentley, K. A., T. C. Omer and N. Y. Sharp (2013). Business strategy, financial reporting irregularities, and audit effort. Contemporary Accounting Research, 30(2), 780-817. http://dx.doi.org/10.1111/j.1911-3846.2012.01174.x
- Blackmore, K. and K. Nesbitt (2013). Verifying the Miles and Snow strategy types in Australian small- and medium-size enterprises. Australian Journal of Management, 38(1), 171-190. http://dx.doi.org/10.1177/0312896212444692
- Chong, H., M. Zey and D. A. Bessler (2010). On corporate structure, strategy, and performance: A study with directed acyclic graphs and PC algorithm. Managerial and Decision Economics, 31(1), 47-62. http://dx.doi.org/10.1002/mde.1475
- Conant, J. S., M. P. Mokwa and P. R. Varadarajan (1990). Strategic types, distinctive marketing competencies and organizational performance: A multiple measures-based study. Strategic Management Journal, 11(5), 365-383. http://dx.doi.org/10.1002/smj.4250110504
- Datta, D. K., X. Liang and M. Musteen (2009). Strategic orientation and the choice of foreign market entry mode: An empirical examination. Management International Review, 49(3), 269-290. http://dx.doi.org/10.1007/S11575-009-0143-.
- Evans, J. D. and C. L. Green (2000). Marketing strategy, constituent influence, and resource allocation: An application of the Miles and Snow typology to closely held firms in Chapter 11 Bankruptcy. Journal of Business Research, 50(2), 225-231. http://dx.doi.org/10.1016/S0148-2963(99)00036-3 ANWAR et al.: Business Strategy and Organizational Performance 119.
- Easterby-Smith, M., Thorpe, R.,& Jackson, P.R. (2011). Management research (3 rd Edition). London: SAGE Publications.
- Ghoshal, S. (2003). Miles and Snow: Enduring insights for managers. The Academy of Management Executive, 17(4), 109-114. http://www.jstor.org/stable/4166012.
- Guérard, S., A. Langley and D. Seidi (2013). Re thinking the concept of performance in strategy research: Towards a performativity perspective. Management (France), 16(5), 566-578. http://dx.doi.org/10.3917/mana.165.0566.
- Hambrick, D. C. (1981). Strategic awareness within top management teams. Strategic Management Journal, 2(3), 263-279. http://dx.doi.org/10.1002/smj.4250020305.
- Hambrick, D. C. (2003), On the staying power of defenders, analyzers, and prospectors. The Academy of Management Executive, 17(4), 115-118. http://www.jstor.org/stable/4166013.
- Jennings, D. F., D. Rajaratnam and F. B. Lawrence (2003). Strategy-performance relationships in service firms : A test for equifinality. Journal of Managerial Issues, 15(2), 208-220. http://www.jstor.org/stable/40604426.
- Jusoh, R. and J. A. Parnell (2008). Competitive strategy and performance measurement in the Malaysian context: An exploratory study. Management Decision, 46(1), 5-31. http://dx.doi.org/10.1108/00251740810846716.
- Ketchen, D. J. (2003). Introduction: Raymond E. Miles and Charles C. Snow’s organizational strategy, structure, and process. The Academy of Management Executive, 17(4), 94-96. http://www.jstor.org/stable/4166009.
- Lin, C., H. L. Tsai and J. C. Wu (2014). Collaboration strategy decision-making using the Miles and Snow typology. Journal of Business Research, 67(9), 1979-1990. http://dx.doi.org/10.1016/j.jbusres.2013.10.013 120.
- Luoma, M. A. (2015). Revisiting the strategy-performance linkage: An application of an empirically derived typology of strategy content areas. Management Decision, 53(5), 1083-1106. http://dx.doi.org/10.1108/MD-10-2014-0593.
- Olson, E. M., S. F. Slater and G. T. M. Hult (2005). The performance implications of fit among business strategy, marketing organization structure, and strategic behavior. Journal of Marketing, 69(3), 49-65. http://dx.doi.org/10.1509/jmkg.220.127.116.11362.
- Parnell, J. A. (2010), Strategic clarity, business strategy and performance. Journal of Strategy and Management, 3(4), 304-324. http://dx.doi.org/10.1108/17554251011092683.
- Parnell, J. A. (2011). Strategic capabilities, competitive strategy, and performance among retailers in Argentina, Peru and the United States. Management Decision, 49(1), 139-155. http://dx.doi.org/10.1108/00251741111094482.
- Parnell, J. A., M. A. Koseoglu, Z. Long and J. E. Spillan (2013). Competitive strategy, uncertainty, and performance: An exploratory assessment of China and Turkey. Journal of Transnational Management, 17, 91-117. http://dx.doi.org/10.1080/15475778.2012.676957.
- Parnell, J. A., Z. Long and D. Lester (2015). Competitive strategy, capabilities and uncertainty in small and medium sized enterprises (SMEs) in China and the United States. Management Decision, 53(2), 402-431. http://dx.doi.org/10.1108/MD-04-2014-0222
- Pertusa-Ortega, E. M., J. F. Molina-Azorín and E. Claver-Cortés (2009). Competitive strategies and firm performance: A comparative analysis of pure, hybrid and ‘stuck-in-the-middle’ strategies in Spanish firms. British Journal of ANWAR et al.: Business Strategy and Organizational Performance 121 Management, 20, 508-523. http://dx.doi.org/10.1111/j.1467-8551.2008.00597.x.
- Pertusa-Ortega, E. M., J. F. Molina-Azorín and E. Claver-Cortés (2010). Competitive strategy, structure and firm performance: A comparison of the resource-based view and the contingency approach. Management Decision, 48(8), 1282-1303. http://dx.doi.org/10.1108/00251741011076799.
- Porter, M. E. (1980). Competitive Strategy. New York: The Free Press.
- Porter, M. E. (1985). Competitive Advantage. New York: The Free Press.
- Richard, P. J., T. M. Devinney, G. S. Yip and G. Johnson (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management, 35(3), 718-804. http://dx.doi.org/10.1177/0149206308330560.
- Salavou, H. E. (2013). Hybrid strategies in Greece: A pleasant surprise. European Business Review, Volume 25(3), 301-314. http://dx.doi.org/10.1108/09555341311314834.
- Salavou, H. E. (2015). Competitive strategies and their shift to the future. European Business Review, 27(1), 80-99. http://dx.doi.org/10.1108/EBR-04-2013-0073.
- Saraç, M., Y. Ertan and E. Yücel (2014). How do business strategies predict firm performance? An investigation on Borsa Istanbul 100 Index. The Journal of Accounting and Finance, 61, 121-134.
- Slater, S. F., E. M. Olson and C. Finnegan (2011). Business strategy, marketing organization culture, and performance. Marketing Letters, 22(3), 227-242. http://dx.doi.org/10.1007/s11002-010-9122-1
- Zamani, S., J. A. Parnell, H. Labbaf and N. O’Regan (2013). Strategic change and decision making in an emerging nation: An exploratory assessment of Iranian manufacturing firms. Strategic Change, 22(5-6), 355-370. http://dx.doi.org/10.1002/jsc.1945.
- ZDeSarbo, W. S., C. A. Di Benedetto, M. Song and I. Sinha (2005). Revisiting the Miles and Snow strategic framework: Uncovering interrelationships between strategic types, capabilities, environmental uncertainty, and firm performance. Strategic Management Journal, 26(1), 47-74. http://dx.doi.org/10.1002/smj.431.