ENVIRONMENTAL FACTORS AND ITS EFFECTS ON BUSINESS
OREGANIZATION
(CASE STUDY OF INTERNATIONAL BREWERIES ILESHA, OSUN STATE]
ABSTRACT
It has been argued that the success and effectiveness of an organization are not
determined solely by the abilities and competencies of the employees and management
alone, the environment also has found effect on company operations. Based on these
facts therefore, this research work was undertaken to analyse the impact of
environmental factor on purchasing business strategies in an Organization using
International Breweries, Ilesha as the case study. In carrying out this work, 30 (thirty)
copies of the questionnaire in all are distributed to the company understudy. And to
test the validity of the assumption, a hypothesis was formulated for this study. The chisquare (X2) statistical tool was used. The major findings of this work can be
summarized as follows. Environmental factors have profound impact on
organizational performance organizational culture influences corporate performance
of International Breweries, Ilesha. And government legislation influences
organizational goal accomplishment. Finally, it was recommended that the
management of the company could perform their effectively by having a good and
clear understanding to the environmental variables. This will in turn increase
productivity thereby achieving its sets objectives.
TABLE OF CONTENTS
TITLE PAGE
APPROVAL PAGE
ii
DEDICATION
iii
ACKNOWLEDGMENT
iv
ABSTRACT
v
TABLE OF CONTENT
vi
CHAPTER ONE
1.0
INTRODUCTION
1
1.1
BACKGROUND OF THE STUDY
1
1.2
STATEMENT OF THE PROBLEM
2
1.3
OBJECTIVE OF THE STUDY
2
1.4
SIGNIFICANCE OF THE STUDY
2
1.5
SCOPE OF THE STUDY
3
1.6
LIMITATION OF THE STUDY
3
1.7
RESEARCH QUESTIONS
4
1.8
RESEARCH HYPOTHESIS
4
1.9
ORGANIZATIONAL CHART
5
1.0
DEFINITION OF TERMS
6
CHAPTER TWO
2.0 LITERATURE REVIEW
7
2.1 CHARACTERISTICS OF BUSINESS ENVIRONMENT
7
2.2 ENVIRONMENTAL INFLUENCES OF BUSINESS
8
2.3 PROBLEMS IN UNDERSTANDING THE ENVIRONMENT INFLUENCES 11
2.3 ENVIRONMENTAL ANALYSIS
13
2.4 ENVIRONMENTAL INFLUENCE ON SWOT
14
2.5 COMPONENTS OF BUSINESS ENVIRONMENT
15
2.6 RELATIONSHIP BETWEEN ORGANIZATION AND ITS ENVIRONMENT 15
CHAPTER THREE
3.0
RESEARCH METHODOLOGY
19
3.1
INTRODUCTION
19
3.2
RESEARCH DESIGN
19
3.3
RESEARCH INSTRUMENT (QUESTIONNAIRE)
19
3.4
SOURCES OF DATA COLLECTION
20
3.5
STUDY SAMPLE
20
3.6
STUDY POPULATION
21
3.7
STATIONED TECHNIQUES
22
CHAPTER FOUR
4.0
ANALYSIS AND EVALUATION OF FINDINGS
25
4.1
HYPOTHESIS TECHNIQUE
29
4.2
DECISION RULE
29
CHAPTER FIVE
5.0
SUMMARY, CONCLUSION AND RECOMMENDATION
33
5.1
SUMMARY
33
5.2
CONCLUSION
33
5.3
RECOMMENDATION
33
BIBLIOGRAPHY
35
APPENDIX I
36
APPENDIX II
37
CHAPTER ONE
1.0
INTRODUCTION
1.1
BACKGROUND TO THE STUDY
The evolution of organizations, change management system in planning,
require
new ways of orientation and place of business, requires organizations to
continuously adapt to environmental changes inside and outside the action.
Organization's environment includes a set of 'actors' and interest groups
represented owners, managers, customers, suppliers, etc., knowing the literature,
stakeholders, who are directly affected or indirectly by the organization's work and
have the means control over it. Under these conditions requires achieving harmony
between the organization's external environment (economic, political, technological,
legal) and internal (resources, structure, organizational culture, leadership style,
manner of exercising the power).
A business is an organization that provides goods and services to others who
want or need them with a profit motive. It may also be understood as an organized
effort of enterprises to supply consumers with goods and services. The main purpose
of any business is to earn profit.
Environment refers to the surroundings of an object. It also refers to the
surroundings of a physical system that may interact with the system by exchanging
mass, energy, or other Properties.
The environment of a business means the external forces influencing the
business decisions. These can be social, political, economic or technological factors
and these are outside the control of the business.
Environmental Factors refers identifiable element in the physical, cultural,
demographic, economic, political, regulatory, or technological environment that
affects the survival, operations, and growth of an organization or business. Internal
factors Environmental Factors External Factors Micro Macro
1.2
STATEMENT OF THE PROBLEM
Environment factors of constraints are largely if not totally external and beyond
the control of individual industrial enterprises and their arrangements. These are
essentially the ‘givers’ within which firms and their managements must operate in a
specific country and they vary, often greatly from country to country.
1.3
OBJECTIVE OF THE STUDY.
The study was strictly related to environmental factors and its effects on
business organizations.
The purpose of the study is to critically examine the role of internal and
external environmental factors on business organizations with a particular reference to
International Breweries Plc Ilesha. Also to determine how organizations respond to
the various factors that beset them. These are the following objective that we are
going to focus on.
1. To know the environmental factors that affects a business organization.
2. To examine the effects of environmental factors on business organizations.
3. To examine the various measures put in place by business organizations in
coping response to environmental factors.
4. To know if environmental factors affects profit margin of business
organizations.
1.4
SIGNIFICANT OF THE STUDY
The study is designed to know the available environmental factors and their
effects on a business organization. This research work will serve as an eye opener and
an enlightener to business organizations on the environmental factors that surround
them and their effects (positive and negative) on the profit margin.
1.5
SCOPE OF THE STUDY
Evaluation conveys on impression of critical assessment, after examination and
investigation of the effectiveness degree of success of environmental factors and its
effects on business organizations.
We shall also restrict our study on this subject to the following:1.
The details explanation of what environmental factor is all about.
2.
It’s various definitional approach of different authors, with
historical review of manpower development history
3.
detailed
on Nigeria.
We shall examine the effect of environmental factors on business
organizations.
Due to time and financial constraint, the research makes use of International
Breweries Plc Ilesha as its case study.
1.6
LIMITATION OF THE STUDY.
This research raced certain constraints and limitation which put certain
impediment on the ways of preparing more comprehensive research work.
Those constraints or limitation are as follows:(i)
Financial Constraints: - A lot of money is used in the gathering of
information used in the research work.
(ii)
Less Information: - Another constraint forced is the problem of letting
out the whole requirement needed by the researcher to do this research
work for fear leaking important information to this competitor.
(iii)
Time Constraints: - A lot of time was used in gathering the research
work.
1.7
RESEARCH QUESTION.
The questions to be answered by the study are: 1. What are the environmental factors that affects a business organization?
2. What are the effects of environmental factors on business organizations?
3. What are the various measures put in place by business organizations in coping
response to environmental factors?
4. Does environmental factors affects profit margin of business organizations?
1.8
RESEARCH HYPOTHESIS.
The hypothesis of the project, the role of manpower training and development
on productivity in organization.
Ho: There are no significant relationship between environmental factors and business
organizations.
Hi: There are significant relationship between organizational factors and business
organizations.
Ho: There is no significant between environment and profit margin.
Hi: There is significant factors between environmental factors and profit margin.
1.9
ORGANIZATIONAL CHART OF INTERNATIONAL BREWERIES
PLC, ILESHA
BOARD OF DIRECTORS
MANAGING DIRECTORS
GENERAL MANAGER
Product
manager
Marketing
manager
Factor
supervisor
Personnel
manager
Purchasing
manager
Research and
development
manager
Marketing
coordinator
Human
resource
manager
Procurement
manager
Marketing
research
executive
General
accountant
Store man
Sales
coordinator
Selecting
and
induction
officer
Technical
manager
Management
accountant
Production
workers
Advertising
g officer
Procurement
officer
Finance
controller
Cost
accountant
Wages and
salary act
1.10
DEFINITION OF TERMS
Environment: Environment refers to the immediate surrounding both internal and
external and surroundings of a business organization.
Effect: This refers to the impact of something on the other. In this case, this refers to
the impact of environment on a business organization.
Organization: This is a firm or business unit where business transactions or official
works are carried out.
Business: This can be defined as the sub total of all activities involved in the product
in and distribution of goods and services for the profit to an entrepreneurship. It is the
sum total of these activities that have as their main purpose the creation maintenance
and existing of a concern which continue top existing because it earns profit.
Management: This is the act of managing. Management use tools like planning,
controlling, coordinating, staffing to drive home to point. So we can say management
is the act of controlling, planning and coordinating, staffing motivating resources to
arrive at a special goals or the act of getting things done through people in a
financially organized group.