Role of Diversification Strategies on Organizational Productivity among Multinational Oil firms in Kenya: A Case of Kenolkobil Limited

Abstract

Diversification is one of the key strategy to plan to change and transform a loss making firm into a profitable enterprise and gaining competitive advantage. The purpose of the study was to determine the role of diversification strategies in organizational productivity within the oil industry in Kenya. The findings of the study were that diversification as turnaround strategy was important turnaround strategy, help in cutting cost, help in risk spreading, enhance organizations characterized by narrow core competence, help to reduce excess and lack of domain change that may lead to crisis, is form of divestment with the enterprise and lead to introduction of new products. The study recommends that management should encourage research and development so that the employees can come up with diversified products which help the organization achieve target markets.