The Impact Of Socio-Cultural Environment On Organisational Growth In The Private Sector (A Case Study Of Selected Organization In Nigeria)

Project and Seminar Material for Business Administration and Management BAM

The Impact Of Socio-Cultural Environment On Organisational Growth In The Private Sector (A Case Study Of Selected Organization In Nigeria)


This project research was conducted to find out the impact of socio-cultural environment on organizational growth in the private sector.(A study of selected firms in Owerri). Two types of data were used in conducting these studies are secondary and primary data. Secondary data were collected mainly from textbooks, journals and reports found in the libraries. Primary data of the study were generally meeting the objectives of the study. Data collected were subsequently analysis on table using chi-square, frequently distribution table and the following were found.

That management of the organization should be strengthening its resource and capability to meet the requirement of changing environment in order to meet the goals and objectives of the organization.

The major reason the researches discovers that control and management of socio-cultural environment thus choosing appropriate technology, organization structure design of organization domain would enhance efficiency productivity and total output in private sector.

Table Of Content

Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Statement problem
  • 1.3 Purpose/objective of the study
  • 1.4 Research question
  • 1.5 Research hypothesis
  • 1.6 Significance of the study
  • 1.7 Scope/delimitation of the study
  • 1.8 Limitation of the study
  • 1.9 Definition of terms and concept

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 Nature of business organization
  • 2.2.1 Elements of business organization
  • 2.3 Management of business organization
  • 2.4 Analysis of business environment

Chapter Three

3.0 Research Methodology

  • 3.1 Introduction
  • 3.2 Sources of data
  • 3.3 Method of data collection
  • 3.4 Population of study and sample size determination
  • 3.5 Sampling techniques/procedures
  • 3.6 Validity and reliability of measuring instrument
  • 3.7 Method of data/statistical analysis

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Introduction
  • 4.2 Dividing into appropriate
  • 4.3 Test of hypothesis 1
  • 4.3.1 Test of hypothesis 11

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Summary of findings
  • 5.2 Conclusion
  • 5.3 Recommendation
  • Bibliography
  • Appendix
  • Questionnaire

Chapter One

1.0 Introduction

1.1 Background Of The Study

Business organization is a formal system of co-ordinate activities of a group of people working co-operating towards a common goal, under authority and leadership. The concept of formality means that they came into existence in out society Nigeria at a point in time with a view of accomplishing formal goals.

These formal goals are the basis for their legitimacy to exist in our society since these goals have aspects of functional relevance for the societal development and national growth.

Obviously, no business venture is done in isolation of the prospective investor and customers. A business outfit that does not command patronages is not fit to exist. This is why it is pertinent to state that all business must co-operate with the environment to avoid blunders. There are certain key elements or factors that are often considered in the over all or total business environment there include among others.

  1. Socio-cultural environment
  2. Market/competitive forces
  3. Political/legal forces
  4. Technical forces Etc.

These have been classified under task core and general environment.

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 it must interact with and respond to many environmental forces.

Location of any business venture of organization has certain features of 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.

There are certain key factors a business administrator of manager must consider pertinent which include the environment, location prospective users of the products, accessibility, access roads, and finance. Manager of any such business venture must be very verse in all aspects of management. He must be customer friendly, must exercise a sound academic and professional knowledge of the organizational requirement. The beneficiaries must have cause to invest in the establishment, which means that it must encourage productivity and profit.

The quality of the working personal will be satisfactory to encourage quality output the input-output ratio or deposition must be promising. The relationship between management and staff must be very cordial so as to attract investors. The relationship between the organization and its neighbours should be encouraging to ensure inter-managerial exchange of resources including sound and professional ideas and manpower- technical manpower contributions.

The environment must be devoid of rancor and acrimony so as to attract potential investors and manager of sound managerial and professional acumen. The organizations disposition towards the welfare of its staff must be very dynamic and encouraging to ensure greater productivity and staff satisfaction.

The ecstatic beauty of the entire environment must be worthy of emulation. Any good/sound administrator must consider recreational facilities vital to the growth of his organization as this will limit the activities of his personnel to the organization area of jurisdiction without unnecessary man-hour losses on frivolities. Any dynamics and promising establishment will be futuristic that is it must be future-oriented. There must be a long term planning rather than short term that is short lived. There will be room for continuity for the growth and development of the organization.

The behaviour/activities of the managers should be exemplary since their behaviour influences their staff. The general staff disposition and the general administrative demeanor speak volume of the tone of the organization.
These various factors influence the life of the organization. The growth and development or expansion of the outfit becomes dependent on the quality of the personnel. The managers must be transparently honest, financial prudence will be their guiding principles, as this alone will increase the profit margin while the profit margin attracts or dispels customers.

1.2 Statement Of Problem

One can rightly observe that business operations and organization are mostly carried out within an environment that is besieged by a number of problems and constraints. According to Ezekwe B.C (1999) most countries irrespective of their primitive or modern stature degree and extent of civilization, social and economic advancement educational attainment, the socio-economic status of their people and their business organization and orientation appear not to be the same. There difference in national outlook and individual differences / capacities.

There are also diverse natural gifts to the people therefore, the environmental factors that could influence any business organization are varied but the restrictive guideline governing the system becomes the major constraint militating against such business venture and the proliferation of business without due environmental consideration.

The dynamic society demands organized and articulated programmes that will determines the degree of acceptability and patronage in a changing business world. Consideration must be given to types of business located in an environment to ensure adequate coverage and protection as these encourage productivity.

However, the organization must choose appropriate technology relevant to their business operation and also react or adapt to the demands of the environment where they are located so the choice of technology and environment will determine the organizational structure, which an organization will use to achieve its overall goals. This is because environment and technology determine the three flows of activities in business organization namely input through (Technology) and out put of activities.

1.3 Purpose / Objective Of The Study

The broad objective of this study is to identify environmental influence and major constraints militating against productivity in business organization.

Furthermore the project will identify the environment problem and contributions adequate environment analysis have in survival and sustenance of business organization.

Finally this study made practical recommendation based on the findings on immense benefits from environmental study and control in the life business venture.

1.4 Research Question

The study suggests that strong performance requires more than an appropriate match or strategy to environment other words environmental analysis and diagnosis need to be done by the strategist to determine the magnitude and direction of opportunities and threats in order to respond appropriate.

In view of this research work I shall attempt to address the following central issues.

  1. What are the strengths and weakness of the organization?
  2. What is the impact of the environment on business organization?
  3. Does the company have adequate supply of its factors of production? Do these factors give the company any competitive advantage over other companies?
  4. How can business exploit the opportunities in the environment?
  5. How does the company respond to the changes in the environment?
  6. Does the organization engage in market research? Has this contributed to the ability to generate new product and new approaches to doing business?

1.5 Research Hypothesis

  1. Ho: in the event of change in economic, the organization does not experience changes in productivity
    Hi: in the event the change in economic, the organization experience changes in productivity.
  2. Ho: the monitoring of the environment does not create impact on the organization.
    Hi: the monitoring of the environment create impact on the organization.

1.6 Significance Of The Study

The purpose of this work has greatly been outplayed. This work greatly shows that the micro and macro economic situation in the world have necessitated the need to explore the influence or business environment on the productivity of business organization.

Consequent upon this also is the proliferation of business without adequate feasibility studies which will guarantee unmitigated production and liquidity ration of capital. This study will be beneficial to business organization as it gives numerous reasons why feasibility studies should be conducted in order to establish the organization to be sited to ensure maximum productivity in a competitive market.

Finally students and potential investors for knowledge acquirement also equipped good future business administrators in any part of the world and for wise investment decisions.

1.7 Scope / Delimitation Of The Study

This research work on the influence of business environment on the productivity of business organization will be centered the selected business organization in Owerri.

1.8 Limitation Of The Study

Problem and prospects, the major focus in both small and medium scale business organization in order to determine their various degrees pf environmental influences militating against productivity in out changing business world.

1.9 Definition Of Terms And Concept

1. Organization:

This is a deliberate association of two or more individuals working co-operational towards a common objective under authority and leadership.

2. Business Organization:

These are organization primarily oriented towards economic productions.

3. Productivity:

A measure of how well resources are brought together in organization and optimally utilized for accomplishing a set of results.

4. Management:

This is the process of directing co-coordinating and influencing the operations of an organization so as to obtain desired results and enhance performance.

5. Technology:

The science of technical process in a wide, thorough related field of knowledge. This industrial technology embraces the chemical mechanical and physical sciences as these are applied in industrial processes.

6. Decision Making:

This is a series of steps that starts with an identification of problem under consideration. It can simply be said to mean a deliberate adoption of means to ends.

7. Effectiveness:

The extent to which an organization as a social system given certain resources and means, fulfils its objective without incapacitating it means and resources and without placing undue strain upon it members.

Chapter Five

5.0 Summary, Conclusion And Recommendation

According to the federal ministry of economic affairs (2000) efficiency in the use of resources by effective prioritization rationalization elimination of wasteful expenditure and the proper channeling of scare resources to the most rewarding area of the economy should be the practice in Nigeria business organization.

Therefore advantages organization need to have differential advantages or distinctive competence over the element of its environment. Formulate management strategies to maintain the atmosphere of domain consensus in the task and general environment hence this improve its efficiency, productivity and total output.

5.1 Summary Of Findings

The findings of this project were based on the analysis of data collected from the different questionnaires administered to manager’s supervisor’s clerks and others in the company.

Also oral interview and personal observation were conducted with some of the company staff. The researcher discovered that control and management of business environment structure, design or organizational domain would enhance efficiency, productivity and total output in business organization.

It was also discovered by the researcher that investment friendly, employment opportunities improves economy and good standard of living situation will be future experience in Nigeria economy as these articulated are used in our business organization.

Furthermore, poor management, high cost of maintaining staff and training, uncertainties associated with suppliers and consumers, ineffective communication network and lack of exert personal were also identified as some problems facing the control and management of influence of business environment in Nigeria business organization.

5.2 Conclusion

An organization is environmentally oriented if it has integrated environment issues into its overall strategy. Control and manage environmental influence in an appropriate way. To meet this requirement it is necessary to integrate environment into the goal structure of the organization using different set of goals, it is reasonable to assume that the most important objective/vision of an organization is survival.

That is strengthening its resource and capabilities to meet the requirement or changing business world and gain competitive edge. At the next level are strategic goals/mission which includes profit, productivity and market objective as a basic objective.

5.3 Recommendation

Based on the project report findings on the influence of business environment on productivity in Nigeria business organization. The researcher here by marks the following recommendations.

  1. Proper feasibility studies be carried out before proliferation of any business organization.
  2. Management is advised to employ financial forecasting in predicting financial needs and effects of new policies and there by reduce strategic emergency decision which affect productivity.
  3. Employ expert personnel in different departments
  4. State out appropriate domain which will help it now its defenders.
  5. The management should negotiate with its task environment in order to achieve domain consensus.
  6. Development competitive power, co-operative power and defensive power to manage its relationship with its environment hence the extent of productivity and survival depends on how it manipulates its power dependences.

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Frequently Asked Questions

How does the socio-cultural environment affect the functioning of an organization?

One of such notable factors that plays a decisive role in the functioning of an organization is the socio-cultural environment of the region in which the organization is operating. Socio-cultural factors such as social attitudes, belief systems, education, law, politics, etc., have a bearing on the prospects of a business.

How do socio-cultural factors affect a business?

Socio-cultural factors such as social attitudes, belief systems, education, law, politics, etc., have a bearing on the prospects of a business. If a business overlooks, or fails to identify the effects of socio-cultural factors, it runs the risk of alienating itself with its immediate environment.

How has McDonald’s adapted to the socio-cultural environment in India?

By adapting itself to the prevalent socio-cultural environment, McDonald’s has been able to penetrate into the Indian market, and establish itself as one of the most popular eateries in the country. One of the most important socio-cultural trends which has an impact on a business is the constantly changing preferences of customers.

What is the sociocultural environment of a business?

The sociocultural environment of a business is customs and value, which directs business practices. It is created by the demographic characteristics of its leaders as well as their leaders. This can be evident in the company’s vision and mission statement. The value of a company is reflected in its Sociocultural environment policies.

How do socio-cultural factors affect a business?

Socio-cultural factors such as social attitudes, belief systems, education, law, politics, etc., have a bearing on the prospects of a business. If a business overlooks, or fails to identify the effects of socio-cultural factors, it runs the risk of alienating itself with its immediate environment.

How does the social environment affect the functioning of a company?

A simple mnemonic to remember these factors is STEEP. The social values and culture of an environment play a huge role in the functioning of the company. So when the social environment changes it can have a direct or indirect effect on the company. For example in recent time society has seen a shift, and people no longer retire at 60.

How do socio-cultural factors affect the internal decision-making process?

In addition to a company’s interactions with the market and its customers, socio-cultural factors also impact a company’s internal decision- making process. For example, changing gender roles and increasing emphasis on family life have led to increased respect for maternity and even paternity leave with organizations.

What is the social and cultural environment of McDonald’s?

McDonald’s Socio-Cultural Domestic and Global Environments: the US and China The development of technology and increased industrialization continues to reduce worldwide markets into a global village.However, amidst their massive expansion, multinationals such as McDonald’s face the challenge of different social and cultural business environments.

How did McDonalds adapt in India?

Mcdonald Adaptation In India Marketing Essay. In order to have any success in India it was critical that McDonalds developed a local low cost supply chain. Before the first restaurant was opened McDonalds had spent approximately US$12 million in setting up a supply network, distribution centres and logistics support.

Why is McDonald’s so popular in Indonesia?

Many Indonesians are Muslims and McDonald’s adapts to the dietary needs of this particular demographic by replacing pork with fish and ensures their outlets are strictly halal. In addition, because Indonesians prefer rice over bread, McDonald’s has also incorporated rice into their meal together with some spicy alternatives that locals prefer.

How McDonald’s maintains its success in different countries?

Still, the company was able to withstand the drawbacks, making it one of the most successful fast food franchises in the world. It’s interesting to know how McDonald’s maintains its success. The key factors for McDonald’s fast food restaurants success in different countries are adaptation as well as innovation.

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