Arts & Culture

15 pages
4 views

ANALYSIS OF THE NIGERIAN BUSINESS ENVIRONMENT AND FACTORS THAT CAN AID EFFECTIVE STRATEGY FORMULATION

of 15
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Share
Description
ANALYSIS OF THE NIGERIAN BUSINESS ENVIRONMENT AND FACTORS THAT CAN AID EFFECTIVE STRATEGY FORMULATION
Transcript
  BABCOCK UNIVERSITYILISAN REMOOGUN STATEAN ASSIGNMENT SUBMITTED IN FULFILLMENT OF THE COURSE STRATEGIC MANAGEMENTBSAD802SUBMITTED BY NNOROM GOODLUCK KELECHI07/0403M.Sc. BUSINESS ADMINISTRATIONSUBMITTED TO DR. ABIODUNFEBRUARY 2013  THE NATURE OF THE NIGERIAN BUSINESS ENVIRONMENT AND STRATEGIC MANAGEMENT A business environment is defined as forces, dimensions, factors and measures that impact either directly or indirectly on the operations of a business organization. The business organizations will have to either adjust their operations to suit the nature of these factors.Basically a business environment should help to even bring a business up to survival at least to a great extent. Business environments have the potential to either help a business grow or declines. This is so because sometimes the policies and forces by these environmental factors at different points can be of benefit to helping the business grow and at sometimes they may hit a  business hard and make them fall out of operations. Basically it could be a government policy, or interest rate on capital or the nature of competition in the market or the level of technological sophistication compared to that which the company operates on.The igerian business environment is such that has peculiar difference from conventional  business environments. !enerally the igerian business environment is a kind that should have a different study to it. This is so because the environment has potentials to either support the growth of business or not. Basically the igerian business environment will be examined under the some headings"  A REVIE OF THE NIGERIAN BUSINESS ENVIRONMENT UNDER THE FOLLOING HEADINGS • T#$ %&''$T ()*AT(+ 'AT$ • $-+!'A#/ • $%++-/ • 0+%(+1%&*T&'A* 0T'&%T&'$ • !*+BA*(2AT(+According to Amaka, 345678, the igerian business environment will be examined under the headings as listed above" THE CURRENT INFLATION RATE As at ecember 4564, the inflation rate in igeria was recorded at 64 per cent. )rom 4559 until 4564, igeria (nflation 'ate was more or less at 65.: er cent (n igeria, the inflation rate measures a comprehensive rise or fall in prices that customers pay for a normal basket of commodities. (nflation in Africa;s largest oil producer accelerated from 66.: per cent in +ctober, the ational Bureau of 0tatistics published in an e1mailed report. The current inflation rate has an implication on business practices. The implication is such that  business persons will be afraid to go into business. But the good news is this no matter how the inflation rate increases< businesses will still continue to flourish.  DEMOGRA!HY The demographic structure in igeria is such that affects the conduct of business in the igerian environment. laces like *agos, Abuja, ort #arcourt and =ano have high population or demographic density. This makes business activities to flourish in such areas. (n fact these areas have almost the highest concentration of industries. This makes case for the influx of people and  business activities around there. The country has a current population of over 6>5 million and the rate of young, active, and mobile population reaches to ?5@. This is a positive point when it comes to obtaining labour force for new and existing businesses in the country. But on the other hand, the large workforce or population makes the conduct of business to be very tight. This is so  because there will be too many sellers or service providers in the environment and this will affect the conduct of business in the igerian environment. ECONOMY The economic situation in igeria at some point has been hinted to be unfavourable for business activities. This could be true to some extent but the fact is that the present economic status of the country has some hope for the conduct of business. $ven though the importations of some capital goods are left in the hands of particular individuals, it still has a fair day on the common business man. 0ome economic factors affecting the igerian business environment include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. )or example, interest rates affect a firms cost of capital and therefore the extent to which a business grows and expands. $xchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. $conomic  policies also go a long way to affect the conduct of activities in the igerian business  environment. 0ometimes the policy on tax or trade can affect the conduct of business. )or example Aliko angote is the only person in charge of the importation of some goods in igeria. This affects other business men and makes the igerian business environment less conducive for  business persons. SOCIO"CULTURAL STRUCTURE  igeria is a nation with diverse cultures and a multi1ethnic background. These connotations have their own spell on the activities that go on in the igerian business environment. These are the social and cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety nets. Trends in social factors affect the demand for a companys products and how that company operates. igeria is a combination of  people of all ethnicities, races, and languages. There are many strong factors which ensure a successful business in the country and abroad. )urther, social considerations include protecting the health and safety of the general population, avoiding harm to the natural environment, developing and deploying ethical standards and practices, meeting cultural and social norms,  balancing interest of the business with the interests of the society, and being a proactive entity. The culture of a people will go a long way to influence the kind and pattern of business activities to engage in hence the impact of culture on the igerian business environment. The culture in riverine areas may permit the trading of fish and other sea or river products. This is not the case up north where the culture makes way for the cultivation or trading of farm produces such as yam, garlic etc.
Related Documents
View more...
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks