Analysing The Factors That Influence the Process of Expansion of Factory Capacity at Zambian BreweriesBREWERIES

Abstract

This study examines the factors influencing the expansion of factory capacity at Zambian Breweries, focusing on the drivers, economic implications, and operational challenges associated with such industrial growth. A major player in the beverage sector, Zambian Breweries is presently undertaking a calculated step to increase the capacity of its production. Improving operational efficiency and the growing market demand are the driving forces behind this decision. Even while growth techniques have advanced significantly, research on the success criteria specific to the brewing sector with regard to expanding plant capacity is conspicuously lacking. The main objective of this is to analyse the factors that influence the process of expansion of factory capacity at Zambian Breweries. Utilizing theoretical frameworks such as the Resource-Based View and Stakeholder Theory, the research highlights how market demand, technological advancements, and growth objectives serve as primary motivators for capacity expansion. The findings reveal that increasing market demand is the most significant driver, supported by technological innovations and strategic alignment with long-term growth goals. The study also evaluates the economic implications, including job creation, revenue growth, and the development of local supply chains, emphasizing the critical role of industrial expansion in fostering regional economic resilience. However, significant operational challenges, such as supply chain disruptions, regulatory compliance, and stakeholder management, were identified, underscoring the complexities of expanding manufacturing operations in a developing economy. Based on these findings, the research offers actionable recommendations for Zambian Breweries, policymakers, and other stakeholders. These include strengthening local supply chains, adopting sustainable practices, streamlining regulatory processes, and enhancing stakeholder engagement. Revenue growth emerged as another significant economic implication of factory capacity expansion, with the study showing a coefficient of 0.50. This indicates a substantial positive impact on Zambian Breweries’ financial performance, driven by the ability to produce and sell more products. The increased revenue not only strengthens the company’s profitability but also enhances its contribution to Zambia’s fiscal revenue through taxes and levies. Additionally, the study highlights prospects for future research, such as exploring the long-term impacts of industrial expansion, the role of emerging technologies, and the influence of regional trade dynamics. This research contributes to the academic discourse on manufacturing and industrial growth in emerging economies, providing valuable insights for business practitioners and policymakers. By addressing both opportunities and challenges, the study underscores the importance of localized, strategic approaches to achieving sustainable industrial development in dynamic markets.