Oprational Challenges on Performance of Multi-National Companies in Ethiopia: The Case of Unilever Ethiopia

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2022-11-16

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A.A.U

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Operation performance is generally used to express effectiveness of the firm (business) in organizing and transforming inputs into goods and services, and marketing it to achieve targeted goals over a given period of time. Multinational companies become a significant policy priority in developing countries with a view to reap the positive effects, and such companies have been widely recognized as a growth enhancing factors for host countries (Mesfin, 2016). Thus, the goal of this thesis was to assess the operational challenges of Unilever Ethiopia with respect to economic environment, political environment, taxes regulation and exchange control. Respondents from the company selected based on random sampling technique. The survey was conducted with 132 respondents. Descriptive statistics and multiple linear regression analysis were used to analyze the data with the aid of SPSS version 23. The finding of this study implies that the economic environment such as shortage of raw materials; fluctuations of the exchange rate in the market, and the agriculturally based economy significantly affect company’s production performance. This study has also an important policy implication. and this study suggested that government should provide sufficient foreign exchange through using both domestic and international financial service providers. Strength the capacity of the producers through providing the needed raw materials, build more infrastructure and create pro-business environment in line with its forward linkage effect. Keyword: Multinational companies, production performance, operational challenges

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