October 1, 2021 Thesis Open Access

TSIGEREDA DESSALEGNE

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    <subfield code="a">THE EFFECT OF DIVERSIFICATION STRATEGIES ON ORGANIZATION PERFORMANCE: THE CASE OF ETHIOPIAN AIRLINES</subfield>
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    <subfield code="a">&lt;p&gt;Studies show that when implemented well, diversification leads to enhanced performance. Both related and unrelated diversifications had an effect on firm performance depending on how the strategy was implemented. Some scholars indicate that related diversification has a better impact on performance than unrelated diversification. There is evidence that indicates diversification should have a positive influence on performance due to market power effects, risk reduction effects, and learning effects. The purpose of this study was to examine the effect of the diversification strategy on the strategic performance of Ethiopian Airlines. The study adopted a descriptive and exploratory research design. The target population comprised 102 employees, with direct relation to diversification strategies and performance. A sample of 81 respondents was obtained by using the formula proposed by Kothari, and 89% of data were collected. Data collection was done through the use of questionnaires. Exploratory statistics was used to summarize the results for each of the variables. The study showed a significant positive relationship between the related diversification and performance. The study concluded that diversifying into related businesses has a significant positive effect on performance. It is recommended that Ethiopian airlines continuously work on skill development for employees and on infrastructure that supports new expansion strategy to ensure effective and successful implementation of growth strategies&lt;/p&gt;</subfield>
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