Oprational Challenges on Performance of Multi-National Companies in Ethiopia: The Case of Unilever Ethiopia
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Date
2022-11-16
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A.A.U
Abstract
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