Effect of vertical integration on the performance of agricultural commodity business. Case study of export trading company Ltd

Abstract

Vertical Integration remains a critical concept for organizational that seeks to own activities along the supply chain with an aim of gaining control of activities within their line of business. In most organizations vertical integration as a strategy once adopted along the supply chain, seeks to have an effect on value addition, cost reduction and control of the activities the organization has owned through vertical integration. The general objective of the project was to identify and evaluate the effects of vertical integration on the performance of agricultural commodity business. The theoretical review established the effects of vertical integration towards the performance of agricultural commodity business. The specific objectives of the study discussed the effects of ownership of warehouses; transport ownership, supplier relationship management and distribution ownership on the performance of agricultural commodity business in Export Trading Co Ltd. The study was conducted through a descriptive design to describe the effects of vertical integration on the performance of the agricultural commodity business. Stratified sampling technique ensured success of coming up with a sample size of 45 respondents from the target population of 148. Primary and secondary data was collected for the research, a semi structured questionnaires was used to collect primary data while press releases, journals, company website will provide secondary data. The primary data will be analyzed through Statistical Program of Social Studies SPSS (Version 20). The study conclusion gave percentage variations of warehousing, transport, distribution and food processing on the performance of agricultural commodity business. This provided a strong practical value from the results to assist future parties of interest within the subject of vertical integration with proper understanding of the subject