1.1 Introduction
The business environment is constantly changing and thus presenting new opportunities and threats. A manager's task is to correctly analyze the environment and design a marketing mix, which will fit the environment. The ultimate purpose of the environmental analysis is to facilitate the firm's strategic response to the environmental changes. The firm can attain its objective with strategic planning in order to tap from the environmental opportunities. Business organization does not operate in vacuum; it operates within the environment where the production and distribution of goods and services are carried out. The business environment encompasses a wide array of external and internal factors that impact an organization's decision-making processes. These factors include economic conditions, regulatory frameworks, competitive landscapes, technological advancements, and socio-cultural dynamics.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of the Study
In recent years, the business environment's influence on decision-making has become even more pronounced with the advent of globalization, technological advancements, and digital transformation. Companies now operate in increasingly complex and interconnected environments, requiring sophisticated analytical tools and adaptive strategies. Research has expanded to include the impacts of rapid technological change, global supply chains, and socio-political dynamics on organizational decision-making. Business organization is described as a formal system of co-ordination activities of a group of people working co-operatively towards a common goal, under authority and leadership. Meanwhile, no business venture is done in isolation of the prospective investor and customers. Here a business outfit does not command patronages, is not fit to function well. This is why is important to state all business must be co-operate with the environment to avoid business blunders. There are certain key elements or factors that are often considered in the over or total business environment there include among others. Furthermore, business operations are carried out within an environment that is besieged by a number of problems and constraints. Business exists in an ever changing world where or interacts with and respond to many environmental forces.
Location of any business venture or organization has certain characteristics that must be associated with it before it can take off and flourish else its motive will be defeated. Business administrators must carry out feasibility studies before establishing any such an outfit in any given moment and place. Moreover, there are certain key factors a business administrator must consider, which involves the environment, the location prospective users of the products, accessibility, access roads, and finance. Managers of any such business venture must be very verse in all aspects of management.
Modern business managers operate in a dynamic environment. The change in the environment has been rapid and unpredictable. Economic variables have been complex, both in form and impact on business decisions. The most dramatic change has been that exhibited by competitive pressures. The sheer rapidity of competitive change in today’s Nigerian business environment needs adaptability. The environment of any organisation is the aggregate of all conditions, events and influence that surround and affect it. Since the environment influences an organisation in many ways an understanding of it is of crucial importance to the firms survival.
Recently, the Nigerian business environment has come under series of economic reforms and these include:
- Privatization and commercialization of some public enterprises. This measures has some economic and competitive implications for practicing organisation managers.
- Self-reliance through export promotion programme.
- Agro-economic based programmes an alternative to business undertakings.
- Self-denial and sacrifice through removal of the subsidy etc. These constitute elements that impact greatly on firm’s decision making.
- The task of this work is on the influence of environment in decision making of an organisation.
A business organisation operates within a larger framework. The task environment is that part of the world outside an organisation with which the organisation comes into frequent operating contact. Customers, suppliers, competitors, the labour and financial markets, government regulating agencies, social political issues and all these groups represent the types of people and institutions that comprises the task environment of Nigerian businesses. Business organisation in Nigerian also operates in a larger context, called the socio-cultural and political environment. All these affect the practice of management and indeed the firm’s decision making. There are several systems within these business sub-environments. Among them the more important ones are the economic, political, proactive and marketing systems, and the resources towards which they are directed. Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Influence of Business Environment on the Promotion of Employee's Performance in Business Enterprises.
1.3 Statement of the Problem
Investigation revealed that organizations operate in environments that are constantly changing due to economic fluctuations, technological advancements, regulatory changes, and socio-political shifts. These dynamic conditions create uncertainty, making it challenging for organizations to predict future trends and make informed decisions. Additionally, the external business environment comprises various interrelated factors, including economic conditions, market competition, technological changes, and legal regulations. Understanding and analyzing these factors' combined effects on organizational decision-making is a complex task.
Furthermore, effective strategic planning necessitates thorough environmental scanning and analysis. However, organizations often struggle with the systematic collection and interpretation of relevant data, leading to suboptimal strategic decisions. Hence, this research is therefore attempts to investigate the relationship that exist between these elements and the firm’s decision making.
1.4 Aim and Objectives of the Study
The aim of the study is to investigate the Influence of Business Environment in Decision Making in an Organisation. In achieving this aim, the following specific objectives were set out as follows:
- To determine the extent to which the element in the Nigerian business environment affects the firm’s decision making process;
- To identify the problems face by the forms in the cause of decision making as a result of business environment;
- To examine the relationship between the Nigerian business environments and the firm’s decision making; and
- To explore the various strategic responses and adaptations organizations employ to address environmental challenges.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Are there problems faced by the forms in the cause of decision making as a result of business environment?
- Is there any significant relationship between the Nigerian business environments and the firm’s decision making?
- To what extent does element in the Nigerian business environment affects the firm’s decision making process?
- What are the various strategic responses and adaptations organizations employ to address environmental challenges?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant relationship between the Nigerian business environment and the firm’s decision making
- H1: There is a significant relationship between the Nigerian business environment and the firm’s decision making
Hypothesis Two
- H0: The Nigerian economic reforms are not relevant to the firm’s decision making
- H1: The Nigerian economic reforms are relevant to the firm’s decision making
Hypothesis Three
- H0: Competitive pressures do not affect the firm’s performance
- H1: Competitive pressures do affect the firm’s performance
1.7 Significance of the Study
Managements understanding of the dynamic business environment will enhance the organisation business policy and strategy.
The components of the Nigerian business environment will be synthesized for the ultimate aim of making affective decision in the organisation.
The study will further expose the current economic reforms and its implications on the firm’s performance. Other researchers will benefit as this will serve as an additional references material.
1.8 Scope of the Study
The scope of the research is focused on the Influence of Business Environment on the Promotion of Employee's Performance in Business Enterprises using Innoson Group Emene Enugu as a case study.
1.9 Limitation of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research Material: availability of research material is a major setback to the scope of the study.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.10 Definition of Terms
Business Environment:
This is a complex and interacting elements or forces which are external to the firms but are currently or potentially of significant consequences to the future performance of the business enterprise.
Organization:
This is a deliberate association of two or more individuals working co-operational towards a common objective under authority and leadership.
Business Organization:
These are organization primarily oriented towards economic production.
Productivity:
A measure of how well resources are bought together in organization and optimally utilized for accomplishing a set of results.
Technology:
It is the science of technical process in a wide, through related field of knowledge. This industrial technology embraces the chemical, mechanical and physical science as these are applied in industrial processes.
Management:
This is the process of directing, coordinating and influencing the operations of organization so as to obtain desired results and enhance performance.
Decision Making:
This is a series of steps that starts with an identification of problem to be solved, an analysis of information animated in selecting from several alternatives to solve the problem under consideration. It can simply be said to mean a deliberated adoption of means to ends
Effectiveness:
The extent to which an organization as a social system, gives certain resources and means, fulfils its objective without incapacitating it means and resources and without placing undue strain upon it members.
