ABSTRACT: This study examined the Environmental Factors and Growth of Champion Breweries Plc Uyo Akwa Ibom State. Four research questions and four research hypotheses were set to guide the study. This study was basically a survey research and therefore required the use of survey method of investigation. In this survey research, a questionnaire is designed to gather information the effects of environmental factors on the growth of business enterprise. The population of the study comprises all the key staff and functional heads champion breweries Plc, industrial layout, Aka Offot, Uyo. There were a total of 60 personnel’s in the various departments, whose views, opinions and knowledge were consulted for the study. The sample size used in the study was fourty (40) management and functional staff drawn from Champion breweries, Uyo-Akwa Ibom State.
To ensure the determination of accurate sample size, the statistical formula derived by Taro Yamane (1964) was employed. The tools used in analyzing the data include; tables, frequency and simple percentage method. These tools made it possible for the researcher to make proper analysis of the data which were collected during the course of carrying out the study. The findings of the study concludes that: There is a significance effect of economic factors on the growth of business enterprise, Political factors have significant effects on the growth of Business enterprise, There is a significance effect of cultural factors on the growth of business enterprise, There is a significance effect of technological factors on the growth of business enterprise. It was recommended among others that, the management of Champion Breweries Plc should constantly scan the environment in order to understand the major trends of events and make proactive decisions that would neither jeopardise nor mortgaged the future of the organization.
Environmental Factors And Growth Of Champion Breweries Plc Uyo Akwa Ibom State
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Business organizations anywhere in the world operates within environments which according to Adidu & Olanye (2006) is an aggregate of all conditions, events, circumstances and influences that surround and effect the business organization. Ukaegbu (2004) stated that the contemporary environment is becoming dynamic and competitive and since business organizations do not operate in vacuum, they affect and are affected by environmental conditions. Therefore, business organizations irrespective of their objectives must take into consideration, these environmental opportunities and constraints. Businesses affect the environment by providing the required goods and services thereby contributing to the development of the business by presenting opportunities and threats. One thing to be emphasized at this point is that, the extent to which managers could identify, evaluate and react to the environmental forces will have considerable impact on organizational performances.
No business organization can operate successfully in isolation without dependence on supportive institutions, variables and factors (Oginni, 2010) i. e. business organization exists and operates within an environment where there is complex interplay in terms of activities as well as networks of relationship between and among human resources, material resources and other systems. In the views of Aborade (2005) all business decisions are found to be contingent upon a good analysis of the environment which is often the bane of all the constraints as this environment creates the opportunities, threats and problems for the business organization.
In management, the term “Environment” does not necessarily mean physical surroundings but, it is used as a total forces, factors and influences that surround and affect business organizations as a separate entity as well as other business organizations. This means that business organizations must interact with those forces that influence its decisions, directions, actions, size, health, profitability and performance of the organization as a whole.
Kuye, (2004), emphasized that the need to study business environments is very important considering the fact that business organizations do not operate in vacuum and an effective management in complex and dynamic society requires the assessment of strengths and weaknesses of the organization and the opportunities and threats provided by the challenges of the external environment, hence for survival and growth, organizations must cope and adopt to these challenges posed by the ever changing environment (internal & external) in which managers operate means that managers must not only be aware of what constitutes the elements of their business environment but also should be able to respond to the forces of the environment which inevitably impinges on the operations of the business organization.
Ukaegbu (2006) further stated that the relationship between a business organization and its host environment can be examined from three strategic ways; Firstly, the organization can be viewed as importing various kinds of inputs (resources), such as human resources, capital, managerial and technical inputs. These inputs are then transformed to provoke output which takes the form of goods and services. A second approach is the study of the relationship between the organization and the society. It focuses on the demands and legitimate rights of different claimants such as employees, consumers, suppliers, stakeholders, government and the community. A third approach is to view the organization as operating in an external environment of opportunities and constraints. Thus no single approach is sufficient for all times and in all circumstances. They are complementary. The elements external to the organization affects its performance as well as those elements within the organizations.
This is also in line with the views of Adi (2006) that the most important sole influence on organizational policy and strategy at any point in its development is the environment, both within and outside the organization. Akanji (2003) was of the opinion that the more complex, turbulent and dynamic an environment becomes, the greater the impact on human attitudes, business, organizational structure, market and process as well as facilities, therefore there is need for all organizations to direct their attention to the environment when formulating their strategic management policies in order to facilitate their survival, growth and profit motives. Environmental factors such as income, employment, cost of capital, inflation, exchange rates, technology, legal provisions, industry demand and nature of competition need to be captured in the business plan (Hisrich, Peters, and Shepherd, 2008).
Organizations survival and success depend on the appropriate adoptions to a complex and over changing environment. The foregoing implies that the environment of a business is the pattern of all the external and internal conditions and influences that affect its life, growth and development. Consequently, since growth and development through conspicuous industry and market positions are central to mission statement and vision of a thriving business, it is onerous on the corporate strategist to keep abreast with the factors of the business environment which influences it growth
1.2 Statement of Problem
The accomplishment of an organization largely depends on how well it explains, apprehends and faces vicissitudes in its environments. No business can operate in isolation without having to depend on various factors, bodies and institutions. This means that organizations cannot exist in a vacuum, there is constant interaction between business environment and the business itself. This interaction enables business to make use of the available resource in the environment such as human resource, material resource and machinery.
The need for researching into the factors of business environment became imperative considering the fact that business enterprises do not operate in vacuum and effective management in complex and dynamic society requires the assessment of strengths and weaknesses of the organization with the generic objective of establishing the relative significance of the environments to business strategic management process.
The effects of environment on organizational performance vary from one situation to another. The environment suitable for the growth of a particular business may be hostile to the survival of another business. This however implies that the environment of a business has a far-reaching or greater impact on its success, survival and growth.
In nature, the environmental factors and their influences are economic, political-legal, socio-cultural and technological. For organizations to achieve their goals, they must do that within allowable resources of the environment. The economy provides the needed market situation and funding for businesses, when the economic factors in the environment does not support business performance, the firm may not be able to produce profitably. Peace is a sine-quanon for productivity, the political environment especially in developing economies like Nigeria may be exposed to violence and frequent change of government, and this may lead to change in both economic and public policies. This makes it difficult for business organization to accurately forecast and plan their operations. This therefore calls for re-examination of the effects of environmental factors on the growth of Business Enterprise.
1.3 Objective of the Study
The general purpose of this study is to assess Environmental Factors And Growth of Champion Breweries Plc, Uyo-Akwa Ibom State. Specifically, the study sought to:
- Determine the effects of economic factors on the growth of business enterprise.
- Determine the effects of political factors on the growth of business enterprise.
- Determine the effects of cultural factors on the growth of business enterprise.
- Determine the effects of technological factors on the growth of business enterprise.
1.4 Research Questions
The following research questions are raised to aid the study.
- To what extent does Economic factors affects the growth of business enterprise?
- How does political factors affect the growth of business enterprise?
- To what extent does cultural factors affects the growth of business enterprise?
- To what extent does technological factors affects the growth of business enterprise?
Environmental Factors And Growth Of Champion Breweries Plc Uyo Akwa Ibom State
1.5 Research of Hypotheses
This research is undertaken on the basis of the following null hypothesis.
- There is no significance effect of economic factors on the growth of business enterprise.
- Political factors have no significant effects on the growth of Business enterprise.
- There is no significance effect of cultural factors on the growth of business enterprise.
- There is no significance effect of technological factors on the growth of business enterprise.
1.6 Scope of the Study
The study covers all the small and medium scale enterprise in Akwa Ibom State. However, due to time and financial constraint, the researcher limited the study only to Champion Breweries Plc, Uyo-Akwa Ibom State.
Therefore this study seeks to empirically investigate on the effects of environmental factors on the growth of business enterprise using chi-square method of analysis on primary data obtained from the company.
Originally posted on September 25, 2021 @ 2:25 pm
