Analysis of Diversification Strategies Adopted by Tea Plantations
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Date
2012
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Uva Wellassa University of Sri Lanka
Abstract
Sri Lankan plantation crop industry mainly consists of Tea, Rubber and Coconut while tea plays a dominant role in Sri Lankan economy being the plantation crop with extent of 80,185 ha. Plantation crop industries have been listed under 23 Regional Plantation Companies. In a new competitive era, organizations try to improve its performance by applying different strategies namely crop diversification strategies and non-crop diversification strategies. Crop diversification strategies would be diversification out of core crop strategies while non crop diversification seems to be focused on core crop to utilize under - utilized resources to gain maximum efficiency out of them or diversification with non-related business activities (Daud et al, 2009). Ultimately, these strategies are applying to boost the performance and stay competitive in the market. But the question here is whether these crop diversification strategies and operations are really improves the company performance. If yes what will be the optimal level which will maximize the performance of the company?
Hence, the main objective of the study is to evaluate the effectiveness of the diversification strategies adopted by Kahawatte Plantations PLC in different perspectives. Other objectives include identification of the impact and relationship of diversification strategies on the performance of the listed diversified estates comes under Kahawatte Plantations Company and determination of the optimum level of crop diversification which maximizes performance of listed diversified estates of Kahawatte Plantations Company.
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Keywords
Tea Technology and value Addition, Tea Technology, Rubber Processing technology, Coconut processing technology