Assessment of the Effect of Vertical Integration in the Case of Ethiopian Commodity Exchange Coffee Trading.
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Date
2024-05-02
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A.A.U
Abstract
The Purpose of this study was to assess the Effect of Vertical Integration in the Case of Ethiopian
Commodity Exchange Coffee Trading. To accomplish the goal of the study both primary and
secondary data were used. The primary data was collected through structured questionnaires.
Descriptive and explanatory research design was applied. The target population of this study was
all staff members of the Ethiopia Commodity Exchange head office, excluding supporting
divisions. A sample of 245 respondents was taken by using simple random sampling technique.
Based on the collected data from the respondent, the study found that there was a strong positive
correlation between the performance of coffee trading in Ethiopian Commodity Exchange and
distribution ownership, warehouse ownership, transport ownership, supplier relationship
management. And also, all three variables have a significant impact on the performance of coffee
trading in Ethiopian Commodity Exchange. The findings demonstrate that vertical integration
factors such as warehouse ownership, transport ownership, supplier relationships, and
distribution ownership play a pivotal role in enhancing the performance of Ethiopian Commodity
Exchange. These factors serve as the backbone of operational efficiency and contribute
significantly to the overall success of Ethiopian Commodity Exchange. Ethiopian Commodity
Exchange should align its vertical integration efforts with specific capabilities that directly
contribute to their profitability and wealth generation goals.