CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Business is any commercial or economic activity that tends towards business profit. The primary, objective of business organizations is to make profit, grow and survive in the environment in which it operates. The environment in which business organizations operate is a complex, multi-focus dynamic and has a far reaching effect such organization. The environment tends, shape the outlook, and goal of the organization byplacing constraints on them. These constraints in the environment of organizations goal could be in the form of competition, this sets a limit on the goals specify by the organization. For instance, trade union asking for increase in salary, will affect the shareholder dividend. Unethical behaviour also affects profit. All these settings provide multiple contexts that influence how the organization operates and how and what it produces. (Oghojafor, 1998) In management, the word “Environment” does not necessarily mean physical surroundings, but is used to describe all those influences that bear upon the individual organizations. environment is used to mean any thing,which surrounds the business organization. It affects the decisions, strategies, process and performance of the business. The environment is consisting of factors which are beyond the control of the business (STEP) social, technological, economical, legal and political.

It provides opportunities or poses threats to the organization Since business makes demand on the society and the society makes demands on the business, managers in any organization must interact with and respond to environmental factors internal or external to their organizations. The sum of these interrelationships within the business and between the business and the society is what the management regarded as business environment.

Organizations survival and success depend on the appropriate adoptions to a complex andover changing environment. It is pertinent for top management of organization to identify opportunities and threats in the external environment. Internal environment, it shouldfocus on strengths and weakness, potential and existing ones. It should respond swiftly, in order to know where it can have competitive advantage over its rivals. Therefore, any organization should look or search its environment continuously. Oghojafor (1998).A business environment comprises of such factors as infrastructure, cultural, economic, social arid political environments. These environmental forces have been found to becapable of either impeding or facilitating business activities. The World Bank is of the opinion that improvements in the enabling environment leads to greater levels of environment by the private sector, more wealth, job creation, and ultimately more poverty alleviation. The best way for government to understand how to improve the enabling environment is to involve the private sector through consultation and dialogue and, in particular, to understand and address the private sector’s needs and priorities as they

1.2     STATEMENT OF THE PROBLEM

For any business organization to be productive or to performance well, it must depend on the environment of it operation. This is necessitated by the fact that business success is a function of the quality of resource inputs which must be duly formulated by a daring managerial process. Many organizations, however, do not really understand the importance of good business environment and strategic formulation. Many that understand do not have the effective structure to implement them. Business organizations have been broken down due to some business environmental factors, such as internal and external factors. The need for studying business environment became important considering the fact that business organization do not operate in vacuum and effective management in complex and dynamic society such as Nigeria, requires the assessment of strengths and weaknesses of the organization and the opportunities andthreats posed and the challenges of the external environment by the challenges of the external environment. For survival and growth, organization must adapt to these change

1.3     OBJECTIVES OF THE STUDY

The objective of this study is to investigate Business Environment and Organizational Performance in Rivers State, and the following are the objectives of the study;

1.       Investigate the relationship between business environment and organizational performance.

2.       To unveil the environmental challenges confronting businesses activities.

3.       Identify the impact of the business environment on organizational performance.

4.       To review the different environments of business.

1.4     RESEARCH QUESTION

The following question shall be used in the course of this research study.

1.       What are the different environments in which an business organizations operates?

2.       What are the challenges in business environment of an organizational performance?

3.       What are the impacts of all these environmental factors on the performance and growth of an organization?

1.5     SIGNIFICANCE OF THE STUDY

This research project will make good for the management of company, organization and enterprises, also, make good for officials in government institutions in Rivers State. It will also serve as a structure for scholars and students who are researching into similar topics, more especially student of Business Administration of the higher institutions of learning in Nigeria and of course worldwide. This research will serve as a guide to companies and private sector too.

1.6     SCOPE OF THE STUDY

The research work is on the business environment and organizational performance in rivers state: the population to be interviewed comprises the staffs and management staff of the selected business organizations situated in Rivers State.

1.7     LIMITATION OF THE STUDY

The most limiting factor encountered in course of carrying out this researchwork was lack, of fund. The quality of any research work of this natureamount stress the researcher passes through, time and organizations, companies and firms. Other limitations questionnaire, collection and data analysis.

1.9     DEFINITION OF TERM

BUSINESS:

Is an organizational entity involved in the provision of goods and services to consumers, also is a social non-profit enterprises or state-owned public enterprises operated by governments with specific social and economic objectives.

ENVIRONMENT:

Is what is around something, it can be living or non-living things. It includes physical, chemical and other natural forces. Living things live in their environment.

ORGANIZATION:

Is an entity comprising multiple people, such as an institution or an association that has a collective goal and is linked to an external environment

ORGANIZATIONAL PERFORMANCE:

Is the actual output or results of an organization as measured against its intended outputs (or goals and objectives).

BUSINESS ENVIRONMENT:

The combination of internal and external factors that influence a company’s operating situation.