Effect of Strategic Management on Productivity and Profitability of Business Organisations: A Study of Nestle Nigeria Plc & Cadbury Nigeria Plc (2013-2023)
Research Objectives: The study examined the Effects of Strategic Management on Productivity and Profitability of Business Organisation as evidenced on quoted Nigerian Beverage Companies; Nestle Nigeria Plc and Cadbury Nigeria Plc (2013-2023). The main objective of the study is to determine the effects of strategic management on Productivity and Profitability of business organizations, other specific objectives are to ascertain the effect of Return on Asset (ROA), Debt Equity Ratio (DER), Debt Assets Ratio (DAR) and Interest Coverage Ratio (ICR) on profitability of two Beverage companies in Nigeria.
Methodology: The study adopted ex-post facto research design and the data were obtained from annual financial statements of the two companies, CBN bulletin and fact books were used. Descriptive statistics and multiple regression analysis were adopted to examine the effect of independent Variable and dependent variable. Ordinary Least Square Regression Analysis on E- view 8 version, to determine the significant level.
Findings: The study revealed that Debt Equity Ratio (DER) negatively and insignificantly affect Return on Assets of two Beverage companies in Nigeria.
Conclusion: The work concludes that strategic management practices are reliable predictors of an organizational performance in a competitive industry and its importance cannot be over-emphasized.
Recommendations: The study recommends that business organizations in Nigeria should reduce the volume of debt in capital structure to boost their earnings capacity.