Environmental Constraint on Business ion
Transcript of Environmental Constraint on Business ion
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ENVIRONMENTAL
CONSTRAINT ON
BUSINESS
ORGANISATION
A CASE STUDY OF SOLACE FAST FOOD.
EFFURUN.
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COLLEGE OF ACCOUNTANCY AND COMPUTER
TECHNOLOGY
BLOCK B, FLAT 8, MASOJE ESTATE.
P.T.I ROAD, EFFURUN. DELTA STATE. NIGERIA.
BEING A PROJECT WORK SUBMITED TO THE
DEPARTMENT OF BUSINESS ADMINISTRATION, SCHOOL
OF BUSINESS STUDIES, AKWA IBOM STATE
POLYTECHNIC, IKOT OSURUA, IKOT EKPENE, IN PARTIAL
FULFILMENT FOR THE AWARD OF NATIONAL DIPLOMA
(ND) IN BUSINESS ADMINISTRATION.
SEPTEMBER 2008
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CERTIFICATION
We hereby certify that this research project was carried out by
for the award of NATIONAL DIPLOMA CERTIFICATE. Department
of Business Administration
_________________ _________________
DATE
Project supervisor
__________________ ________________
DATE
Centre co-ordinator
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DEDICATION
This research project is dedicated to the Almighty God for His
ever enduring love, kindness, mercy and grace all through the
course of this programme. Father, I thank and worship you and
give You all the Glory and Honour.
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ACKNOWLEDGEMENT
I hereby Acknowledged the following people that has made my dream and
purpose in life to come through. First of all, thanks to Almighty God who
gave me power and wisdom, and the grace to be educated and to my
dear One and Only love that gives me Joy, MR
___________________________________________ and my dear mother Mrs.
___________________________________________ who is an encouragement to
my life and my brothers and Sisters ________________
___________________________________________________________________ for
their love towards me in prayer, also my supervisor Ogwu Frederick who
has been a great help to me. _______________________________________ and
my lovely Register of warri center Mrs Stella Oyabugbe and my father
______________________________________________________ whose Vision for my
life was to be great and useful in life and those many love ones too
numerous to name. My prayer to God Almighty is that HE should bless you
richly in JESUS NAME.
ABSTRACT
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Considering that performance is the major objective of an organization, it
is generally accepted that the structure and decision making in an
organization is influenced by environmental complexity and volatility.
Swot analysis is "a process of monitoring both internal and external
changes to ascertain the major constraint which will ensure company
awareness and assist in the prediction of future trends. It matches
company capabilities with the wants of the customer and isolates
restraining influences."
This SWOT analysis considers the strengths and weaknesses of the
business and its current strategy, and the opportunities and threats the
business environment may present the firm with in the future.
Business activity is constrained (limited) by the environment in which the
business operates. There are a number of important components of this
environment that pose constraint to business that will be unveiled by the
study.
CHAPTER ONE
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INTRODUCION
1.1 BACKGROUND OF THE STUDY
Businesses are constrained by a host of factors in their surrounding
environment. For example, legal constraints determine how they produce
(e.g. Health and Safety and Product Safety laws). Social constraints
determine the tastes and buying patterns of consumers. For example, in
recent years consumers have turned increasingly to healthy foods as an
alternative to ones that are heavily saturated in fats and contain high
levels of sugar. Solace Fast Food adopted a simple trend to meet up with
the changing demand of its numerous customers.
Global Trends
Solace is directly or indirectly influenced by major global trends.
2008/2009, with the financial crisis (economic meltdown), saw
globalization come under pressure, raising concern about protectionism.
Economic growth suffered a set-back in 2008/2009, whereas population
growth continued, although at lower rates in recent years. Another global
trend relevant to Solace Fast Food business, urbanization, continued with
a majority of people in living the urban areas.
Growth – of economies and population with the vicinity – creates
increased demand for food. Urbanization contributes to environmental
challenges, increasing the demand for Solace products and environmental
solutions. Globalization is a major facilitator for global trade and the
transfer of capital and knowledge.
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1.2 STATEMENT OF THE PROBLEM
In looking at the issue of environmental constraint on
business organisation, some of the questions that easily
come to mind are:
1. what are the root causes of constraint in business
organisation?
2. what are the major effects on individual, business and
the society?
3. what is the nature of relationship between various types
of environment surrounding business organisation?
4. what steps should be taken to ensure that
environmental constraints do not hinder business
growth?
5. how is environmental constraint a problem to an
organization?
6. how can the problem of environmental constraint be
solved?
1.3 OBJECTIVE OF THE STUDY
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The main objective of the study is to determine the
environmental constraint on business organization.
The subsidiary objective includes:
i. to determine the causes of environmental
constraint on business organisation
ii. to determine the positive and negative effects
of this constraint on individual, business and the
society
iii. to determine the various types of environment
surrounding business organisation
iv. to determine the possible means of reducing the
constraints in business organisation.
v. To find a long standing solution to
environmental constraints.
1.4 SIGNIFICANCE OF THE STUDY
This study is significant because it will produce data
on the environmental constraint on business
organisaion that will be useful to:
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1. managers and top executives in organized private
sector (especially those that own canteen,
restaurant etc.)
2. The executives, management staff and employees of
Solace Fast Food.
3. Students carry a research work in this same issue.
4. The promoters of firms in Nigeria
5. Financial managers, management accountants
6. The customers of the firm.
1.5 LIMITATIONS OF THE STUDY
This work was carried out under a tight schedule of school
pressure and work load which makes it absolutely
necessary to devote limited time to do it, having sleepless
night etc.
Another problem encountered is finance, the cost of
transportation in carrying out the investigation. Individual
differences in responses to questionnaire are also a
limitation encountered.
The Questionnaire method of primary data collection was
limited to the verbal responses of subjects to pre-arrange
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questions. It also had limitation that its usefulness
depended on the level of education of the subjects. There
was the limitation of the problem of memory in
remembering past facts. The structured nature of the
questionnaire may compel the respondents to give
answers that they do not fully endorse, There was the
limitation of the rigidity of the research instrument, which
diminishes the amount of information that could be
gathered.
There was the limitation that the cost of administering the
questionnaire was very high due to high administrative,
personnel and traveling costs especially when some of the
respondents were initially not on their seats. There was
the limitation that the researcher and the field data
collectors were not policemen and so they could not force
some of the respondents if they refuse to give answers.
There was also the limitation of the scarcity of time and
money resources.
1.6 HYPOTHESIS
It is a conjectural statement of the relationships between
two or more variables. It is testable, tentative problem
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explanation of the relationship between two or more
variables that create a state of affairs or phenomenon.
E,C, Osuola (1986 page 48) said hypothesis should always
be in declarative sentence form, and they should relate to
them generally or specially variable to variables.
HYPOTHESIS THUS:
1. Explain observed events in a systematic manner
2. Predict the outcome of events and relationships
3. Systematically summarized existing knowledge.
In essence, there exist NULL HYPOTHESIS set up only to
nullify the research hypothesis and the ALTERNATIVE
HYPOTHESIS for the purpose of the study. For the
efficiency of the study, the hypothesis is as follows:
NULL HYPOTHESIS (HO)
1.Opportunities and threats (constraints) exist in the external
environment
2.` A constraint is a factor that limits or holds back the
possible success of a plan in business organisation.
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ALTERNATIVE HYPOTHESIS (HI)
1. Do Opportunities and threats (constraints) exist in the
external environment?
2. Is Constraint a factor that limits or holds back the possible
success of a plan of business organization?
1.7 THE STRUCTURE OF THE RESEARCH WORK
This research work is to be organized in five chapters as
follows:
1. Introduction
2. Review of Related Literature
3. Research Methods and Producers
4. Data presentation and Analysis and
5. Summary, Findings, Conclusion and Recommendation.
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CHAPTER TWO
REVIEW OF RELATED LITERATURE
The process of starting up and developing a business is not just
an adventure, but also a real challenge. In order to help
entrepreneurs with this, it is essential to create a favourable
business environment.
Ensuring easier access to funding, making legislation clearer
and more effective and developing an entrepreneurial culture
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and support networks for businesses are all instrumental as far
as the setting up and growth of businesses are concerned.
However, creating a favourable business environment does not
mean simply improving the growth potential of businesses. It
also means turning the environment into a place in which it is
advantageous to invest and work. In this way, the promotion of
corporate social responsibility is contributing to making
business more attractive.
Some of the most important environmental constraints on a
business include:
the actions of competitors
changes in consumer demand and changing tastes
legal changes
changes in technology and
changes in the economic environment.
2.1 THE SPECTRUM OF BUSINESS ENVIRONMENT
Business Environment mainly refers to external forces that impact
business. Such forces include political-
legal ,technological ,cultural ,economic and physical.
Factors under External Environment
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All the factors that provide opportunities or pose threats to an
organization make up its external environment.
• DEMOGRAPHIC ENVIRONMENT
• SOCIAL ENVIRONMENT
• CULTURAL ENVIRONMENT
• POLITICAL ENVIRONMENT
• ECONOMIC ENVIRONMENT
• FINANCIAL ENVIRONMENT
• TRADE ENVIRONMENT
• TECHNOLOGICAL ENVIRONMENT
• LEGAL ENVIRONMENT
• REGULATORY ENVIRONMENT
• TAX ENVIRONMENT
• ETHICAL ENVIRONMENT
External environment consists of
1. Micro Environment
2. Macro Environment
1. Micro Environment
• Micro environment is called as the task environment and operating
environment.
• Micro environment forces have a direct bearing of the operation of the
firm.
• These factors are present in companies environment and affect on the
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performance of the companies.
• Includes – suppliers ,marketing intermediaries .competitors, customers
and public.
Micro environment are more intimately linked to company than macro.
Suppliers :
o Those who supply inputs, raw material and components
o Uncertainty in supply compels high inventory cost.
o Globally companies are resorting to partenering relationship marketing.
2.2 ENVIRONMENTAL ANALYSIS
To mellow down for easy understanding of the environmental analysis, the
researcher decided to adopt the application of SWOT (strength, weakness,
opportunity and threat) analysis. Swot analysis is "A process of
monitoring both internal and external changes which will ensure company
awareness and assist in the prediction of future trends. It matches
company capabilities with the wants of the customer and isolates
restraining influences."
A SWOT analysis considers the strengths and weaknesses of the business
and its current strategy, and the opportunities and threats the business
environment may present the firm with in the future.
SWOT analysis can be a very useful way of summarising many of the
other analyses and combining them with the key issues from
environmental analysis. The aim is to identify the extent to which the
current strategy of an organisation and it's more specific strengths and
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weaknesses are relevant to and capable of dealing with, the changes
taking place in the business environment.
This simple technique provides a method of organising information in
identifying possible strategic direction. The basic principle of SWOT
analysis is that any statement about an organisation or its environment
can be classified as follows:
In SWOT, strengths and weaknesses are internal factors. For example: A
strength could be:
• Your specialist marketing expertise.
• A new, innovative product or service.
• Location of your business.
• Quality processes and procedures.
• Any other aspect of your business that adds value to your product or
service.
A weakness could be:
• Lack of marketing expertise.
• Undifferentiated products or services (i.e. in relation to your
competitors).
• Location of your business.
• Poor quality goods or services.
• Damaged reputation.
In SWOT, opportunities and threats are external factors. For example: An
opportunity could be:
• A developing market such as the Internet.
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• Mergers, joint ventures or strategic alliances.
• Moving into new market segments...
2.3 APPROACHES TO ENVIRONMENTAL CONSTRAINTS
Businesses are constrained by a host of factors in their surrounding
environment. For example, legal constraints determine how they produce
(e.g. Health and Safety and Product Safety laws). Social constraints
determine the tastes and buying patterns of consumers. For example, in
recent years consumers have turned increasingly to healthy foods as an
alternative to ones that are heavily saturated in fats and contain high
levels of sugar.
Source: liana kourteli (pg 445) athens graduate school of management, mitropolitou gennadiou 18 546-31, thessaloniki greece
2.3.1Anticipatory approach
Businesses need to be constantly aware of these environmental
constraints and how they alter over time. They need to take what is
termed an anticipatory approach ie. to anticipate changes that are likely
to take place in the future in the business environment. By anticipating change
businesses are able to adjust the way they operate to be ahead of
competitors.
2.3.2Reactive approach
Businesses that take a reactive approach i.e. which only change when or
after the environment alters will be left behind.
Studying environmental constraints and environmental change is
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important to businesses that want to plan ahead.
Some of the most important environmental constraints on a business
include:
the actions of competitors
changes in consumer demand and changing tastes
legal changes
changes in technology and
changes in the economic environment.
2.4 BUSINESS PLANS AND ENVIRONMENTAL
CONSTRAINTS
A business plan needs to be realistic, so it is important to set out in detail
the constraints that are likely to act as limits on business activity.
Typical constraints facing the business include:
1.The size of the market. The extent of the market determines a
businesses ability to make sales. You can't make sales if there are no
customers out there.
2.The nature of demand in the market. It is important to identify the
nature of your customers and their requirements through detailed market
research.
3.The availability of supply. A business often depends on supplies. For
example, a clothes retailing business needs to acquire garments, in the
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appropriate quantities, prices and at the right times.
4.The nature of the competition. The strength of the competition is a key
constraint on business success. Businesses need to position themselves in
such a way as to limit the effect of the competition.
5.The availability of finance. Businesses need to have the right quantities
of finance at the right times to match their needs. Liquidity and cash flow
are thus very important. It is necessary to have funds when they are
required to meet the pressing needs of the business.
6.The quality and skills of employees. The human resource is one of the
most important resources of any organisation. It is essential to have the
right number of people with the appropriate skills to enable the business
to achieve its business objectives.
7. The quality of direction and management. Directors and managers of a
business need to have the right skills and abilities e.g. to create well
structured plans, and to motivate and lead other members of the
organisation. In creating a business plan you therefore need to identify
the key constraints, and to set out plans for dealing with any pressing
constraints.
2.5 CONSUMER PROTECTION
Consumer protection is the process of defending consumers against
unscrupulous practices by producers and sellers. Over time, case law in
this country has developed to provide consumers with a range of
protections, although the best protection is the common sense of an
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individual consumer.
There are a number of laws to protect consumers including:
The Sale of Goods Act
Sets out that goods must be:
'of satisfactory quality'
'fit for the purpose' for which they are intended
'as described' by the seller.
2.5.1 The Trades Descriptions Act
Sets out that goods must be as described. The description provides
part of the contract between the buyer and seller.
2.5.2 The Weights and Measures Act
Sets out to make sure that consumers get the weight or measure
(e.g. for liquids) that they are offered.
2.5.3 The Consumer Protection Act
Provides for liability for damage by defective products.
The Trading Standards Department of your local authority has
powers to investigate complaints. Environmental Health Inspectors
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check on a range of premises including those where food is
prepared.
2.5.4 Consumer protection
There are a number of bodies that have been set up to protect
consumers. For example, the British Standards Institute (BSI)
establishes a range of standards for products and processes.
Products that comply with these standards are able to display the
'Kitemark' of the BSI, which is a mark of quality. Another well known
body that protects consumers is The Consumers' Association which
produces the magazine 'Which?'. The Consumers' Association, like
the BSI, carry out tests on a range of products, and publish the
results showing best buys and value for money from a range of
products.
2.5.5 Standards
Every product or service that is bought and sold must meet
standards. These standards include legal requirements such as
those under the Sale of Goods Act, as well as those created by
standardising bodies such as NAFDAC,SON.
2.6 MAIN CONSTRAINTS OF A PROJECT
The main constraints or limitations of a project are as follows:
Time.
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Cost.
Quality.
Scope.
Conflicting and ambiguous requirements.
Time and cost required to develop a project always
depends upon the factor that how many components of project are
unique. The schedule and economic feasibilities of a task that has
already done are easy to develop as compared to a task that is never
been done.
Quality is always a matter of constraint between the developers and
quality management people or customer and developer. Quality of a
project is evaluated as how much a project is meeting the
expectations and requirements of the customer. Goals or objectives
of a project are called scope of project. Time, cost, quality and
scope are normally represented as a triangle. Time and cost
constraints are managed in such a way that quality is not sacrificed
to achieve the scope of the project.
To balance the conflicting requirements between the customer and
end users is a major constraint for any project. Customer varies
his/her statements as the project progresses that create ambiguity
for the project leader as well as for the developer.
2.7 SCANNING BUSINESS ENVIRONMENT
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Considering that performance is the major objective of an
organization, it is generally accepted that the structure and decision
making in an organization is influenced by environmental
complexity and volatility (e.g., Miles and Snow 1978; May et al.
2000). Furthermore, it is argued that the alignment of strategies of
organizations with the requirements of their environment
outperform organizations that fail to achieve such an alignment
(Chaganti et al. 1989; Venkatraman & Prescott 1990; Beal 2000).
Environmental scanning is generally accepted as being the first step
in the process of aligning strategy with environment (Hambrick
1982; Daft & Weick 1984; Daft et al. 1988; Beal 2000). This is
because environmental scanning will help the organization to learn
more about opportunities for taking competitive advantage and
threats referring to its survival (Dess 1987; Bourgeois 1980;
Schneider & De Meyer 1991; Lang et al. 1997).
However, although "environmental scanning is the search
mechanism by which managers discover important events and
trends outside their organizations" (May et al. 2000), scanning the
business environment has been initially defined as the activity of
acquiring information "… about events and relationships in a
company's outside environment, the knowledge of which would
assist top management in its task of charting the company's future
course of action." (Aguilar 1967: 1).
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Environmental factors
According to Milliken (1987) environmental uncertainty arises from
the organization's inability to predict its environment, or in other
words, to predict the factors that characterise its environment.
These factors are usually classified into two groups (Bourgeois
1980); "general" and "task" business external environment factors:
Factors of the general business external environment
The general environment is a relatively remote environment and the
elements that compose it have an indirect influence on the
organization. This environment is typically composed of factors such
as social values, educational, political, economic, legal, behavioural,
demographic, natural environment, natural resources, and
technological (Asheghian & Ebrahimi 1990; Grant 1999).
Factors of the task environment
The task environment is the closest environment of the organization
and the elements that compose it have a direct influence on the
organization. This environment is typically composed of factors such
as consumers, competitors, suppliers, labour market, industry, and
financial resources (Asheghian & Ebrahimi 1990; Grant 1999).
It is argued (Daft et al. 1988; Auster & Choo 1993) that factors in
the task environment usually create greater perceived uncertainty
to organizations than factors in the general environment. This is
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because it is believed that the task environment, which is connected
with the short-run, is more volatile than the general environment,
which is connected with the long-run. Thus, I hypothesise the
following:
CHAPTER THREE
RESEARCH METHODS AND PROCEDURES
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3.1 RESEARCH DESIGN
The research method selected for the study is a
combination of a survey and an industrial study. The
survey research method is described hereunder that:
(i) It is a design in which primary data is gathered from
members of the sample that represents a specific
population;
(ii) It is a design in which a structure and systematic
research instrument like a questionnaire or an interview
schedule is utilized together with the primary data;
(iii) It is a method in which the researcher manipulates
no explanatory variables because they have already
occurred and so they cannot be manipulated;
(iv) Data are got directly from the subjects;
(v) The subjects give the data the natural settings of
their workplaces;
(vi) The answers of the respondents are assumed to be
largely unaffected of the Context in which they are
brought;
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(vii) The impacts of the confounding factors are
“controlled” statistically; and
(viii) The aim of the research may span from the
exploration phenomena to hypotheses testing (stone
1995).
The survey research method has some merit, which are to
be articulated hereunder: In the survey research method,
the sample of the respondents is selected in such a way as
to make for the generally low due to the utilization of big
sample sizes, which results in generally low sample errors.
Also the probability sampling techniques utilized in
selecting the samples of the respondents in a survey
especially, the selecting the samples of the respondents in
a survey especially, the random sampling techniques
makes it possible to give every element in the population
a known and chance of belonging to the sample and by so
doing, sample bias is either minimised or completely
eliminated (Stone 1995). Sampling even as a compromise
has a lot of strength. The survey research method also has
the merit that data collection takes place in the “natural”
settings of the workplace rather than an activated
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laboratory. Data is collected directly from the
respondents. The advantage that the survey yields data
that suggests new hypothesis is very illuminating. There is
also the merit that a set of systematic data collection
instruments such as questionnaire interview schedules
and observation gadgets can either be used alone or in
conjunction with other instruments (Stone, 1995).
The survey research method also has some demerits.
There is the demerit that there is a decreased willingness
of the subjects to give responses to survey probes.
There is also the demerit of the survey that in terms of
total expenditure, the survey research methods is a highly
costly research method due to a large administrative,
and/or personnel and travel expenses especially when the
research and the field data collectors have to do several
trips to get at some subjects that were not originally
available. There is also the demerit that the structured
and pre-arranged response formats of many survey
measures e.g. questionnaires and structure interview
schedules may compel the subjects to give response
which they do not really accept (stone, 1995 ).
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Apart from the choice of the survey research design, the
industry is also chosen for the study. The study on the
internal control in the aviation industry is for only industry
and there was the need to deliver questionnaires to the
managers in at least two firing investigation in some
depth.
3.2 SAMPLING
Spiegel (1992) observes that sampling theory is a study of
the relationship existing between a population or universe
and the samples drawn from it. The population in this
study is the entire staff of the firm.
In order to make conclusions of sample theory and
statistical references to be valid, a sample must be
selected as to be representative of the population
(Spiegel, 1992 ). One way in which a representative
sample may be got, is by the process of stratified random
sampling. In this research work, the technique of simple
random sampling is used to select the sample of 100
respondents from a total sample size of 200. From the list
of all the staff of the firm (Solace Fast Food) personnel
department. The numbers are written on a piece of paper,
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put in a basket and the papers are folded to cover the
numbers and one of the pieces of paper is selected at a
time without replacing it and any name corresponding to
the number becomes a number of the sample. This
method of sampling without replacement is done until the
sample of 100 respondents per firm is got.
3.3 DATA COLLECTION
As earlier stated, the primary data collection instrument in
this study was the questionnaire. In the questionnaire
method of primary data collection, a heavy dependence
was placed on verbal reports from the subjects to get
information on the role of packaging as a management
strategy.
The questionnaire had a lot of merits. It needed less skill
to administer. Further, Questionnaire can be administered
to a big number of individuals at the same time. Also with
a specific research budget, it was usually possible to cover
a brooder area and to get information from more subjects
by a questionnaire. The impersonal nature of a
questionnaire, its structure and standardized wording, its
order of question, its standardized instructions for
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recording answers might make one to conclude that it
offers some uniformity from one measurement occasion to
another (Selltiz et al, 1976).
Another merit of questionnaire was that subjects may
have a bigger confidence in their anonymity, and thus feel
freer to express views they feel might be disapproved-
Another attribute of the questionnaire that is sometimes,
through not always desirable is that it might place less
pressure on the subjects for immediate response (Selltiz et
al, 1976).The questionnaire also has some demerits. It has
been estimated that for purpose of giving dependable
responses to a questionnaire, one respondents must be
considerable educated, Thus one of the demerits of the
usual questionnaire is that it is appropriate only for with a
considerable amount of education. There is also the
demerit that subject may be reluctant and unable to
report on the particular subject matter. Also, if a subject
misinterprets a question or give his or her answer in a
batting manner, there is often a little that can be done to
ameliorate the situation. In a questionnaire, the
information the researcher gets is limited to the fixed
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alternative answer format, when a specific answer is not
available, it can lead to errors (Selltiz, 1976).
There is also limitation of memory in reporting on past
facts. There is also a problem beyond memory. Usually,
the cause of a failure to report past facts is not forgetting
in the usual sense of the word but rather, it may be
motivational. Also the researcher is not a policeman that
can compel answers. That is, the information may not be
readily accessible to the subject and thus the subject may
be reluctant to put forth enough alternative information
that he or she is only barely conscious of (Selltiz et al,
1996).
In this research project a structured and undisguised
questionnaire is utilised which is made up of two parts
namely, the personal data section and the section on the
data on the actual subject matter of the work. The
questionnaire is undisguised in the sense that the purpose
of the data collection which is to collect primary data for
writing up the researcher’s ND project is made known to
the 200 respondents. The questionnaire is structured in
the sense that the questions are logically sequenced and
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are to be asked to the respondents in the same manner
and no follow up questions are to be allowed. Some of the
questions are of the fixed alternative answer format type.
Ten (10) of the questions have yes or no answers, Ten
(10) of the questions have alternative answers for the
respondents to tick.
The structured questionnaire has the merit that it yields
data that is easier to analyse than data produced by an
unstructured questionnaire. Also the structured nature
diminishes both researchers and research instrument
biases. It however has the demerit that the rigidity of the
research instrument diminishes the amount of information
that could be got.
The method of communication of the research instrument
is by means of the personal interview. The method has the
merit that it produces a better sample of the population
than either mail or the telephone methods. It also has the
merit that it gives a very high completion and response
rates. It has the merit that the interview has a bigger
sensitivity misunderstandings by the respondents and
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gives a chance for clarification of misunderstood
questions.
It has the merit that it is a very feasible method (Selltiz et
al, 1976). The personal interview method has the demerit
that it is more costly than the mail or the telephone
methods of communication of a questionnaire.
3.4 FIELD WORK
The researcher and three other field data collectors did
the fieldwork.
The field data collectors were other classmates also
offering the full-time ND program, who have also offered
Research Methodology and are staff of the firm, they had
no problem gaining entrance into the firm. They were to
be trained by the researcher on how to gain entry , greet
the respondents and , how to tick the questionnaire
correctly, and honestly.
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3.5 DESCRIPTION OF DATA PRESENTATION AND
ANALYSIS TOOLS
The data presentation tools were simple bar charts,
histograms, and pictorial tables. The most important parts
of a table include;
(a) Table numbers
(b) Title of the table
(c) Caption
(d) Stub or the designation of the rows and columns
(e) The body of the table.
(f) The head note or prefatory note or explanatory
just before the title;
(g) Foot note, which is an explanation note at the
end of the page
(h) source note, which refers to the literally or
scientific source of the table(Mills and Walter
1995)
Anyiwe (1994) has observed that a table has the
following merits over a prose information that;
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(i) A table ensure an easy location of the required
figures;
(j) Comparisons are easily made utilizing a table
than a prose information;
(k) Patterns or trends within the figures which
cannot be visualised in the prose information
can be revealed and better depicted by a table;
and
A table is more concise and takes up a less
space than a prose information:
The data is to be analysed by means of percentage,
cross tabulation and the chi-square test of population
proportions for testing the two hypotheses.
Percentages express the ratio of two sets of data to a
common base of 100. Percentages facilitate
comparison and address the problem of the
misleading tendency of absolute. Cross tabulation
involves utilising a table to display two or more
variables. The chi-square test of population of the
respondents who said yes to a particular yes or no
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question is given at 5% level of significance to a
particular (Spiegel, 1992)
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 INTRODUCTION
In the previous chapter, the research methods and procedures have
been handled. In this chapter the data presentation and analysis are
to be done. The data is to be presented by means of tables, two
simple bar charts, one histogram and one pie chart to make it
amenable for further analysis. By analysis is meant the act of noting
relationship and aggregating the set of variables with similar
attributes and also breaking the unit of their components (Mills and
Walters 1995).
In this research work, the research accepts the contention of
Podsakoff and Dalton (1995) that the factual information from the
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data can be used as a basis for reasoning, calculation and
discussion.
Apart from the heading above, the other headings in this chapter
include:
Data Presentation,
Percentage analysis
Cross-tabulated analysis
Hypothesis testing
4.2 DATA PRESENTATION
TABLE 4.1THE SUMMARY OF THE PERSONAL DATA
OF THE RESPONDENTS
1
2
3
4
SEXMale
FemaleTotal
Marital StatusMarriedSingleTotal
AGE21-30 years31-40 years41-50 years51-60 years
Total
HIGHEREDUCATIONAL
QUALIFICATIONDIPLOMA
ONDHND
FIRST DEGREESECOND DEGREE
NIMTOTAL
FREQUENCY15050200
13070200
90901010200
103080204020200
Anglessubtendedin degree
1854144367236360
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The marital statuses of the 200 respondents it is found that 130 of
them are married while 70 of them are single. For the ages of the
200 respondents they are 21-30 years, 31-40 years, 40-50 years, 51-
60 years with frequency of 90,10 respectively. For the educational
qualification of the 200 respondents they are diploma, OND, HND, First
Degree, Second Degree, NIM. and they have frequencies of 10, 30, 80,
20, 40 and 20 respectively.
Figure 4.1 below shows the simple bar chart of the data on the sex of
the respondents.
FIGURE 4.1: THE SIMPLE BAR CHART OF THE DATA ON THE SEX OF THE RESPONDENTS
GENDER OF THE RESPONDENTS
TABLE 2. GENDER OF THE RESPONDENTS
41
160
140
120
100
80
60
40
20
0
-
-
-
-
-
-
-
-
-
MAIL FEMALE
Fre
quen
cy
Gender
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Source: from data in table 1 (generated from SPSS) statistical package for social science.
From figure 4.1 above, it is shown that male respondents have the
modal frequency of 150 out of the 200 respondents while the
female respondents have the frequency of 50 of them.
Figure 4.2 below shows the simple bar chart of the data on the
marital statuses of the respondents.
FIGURE 4.2: THE SIMPLE BAR CHART OF THE DATA ON THE MARITAL STATUSES OF THE RESPONDENTS
TABLE 4.3. MARITAL STATUS OF THE RESPONDENTS
Frequency
percentage
Valid Percent
Cumulative Percent
MAIL 150 75.0 75.0 75.0FEMAL
E50 25.0 25.0 100.0
Total 200 100.0 100.0
Status frequency
Percentage
Valid Percent
Cumulative Percent
MARRIED 130 65.0 65.0 65.0SINGLE 70 35.0 35.0 100.0Total 200 100.0 100.0
42
140
120
100
80
60
40
20
0
-
-
-
-
-
-
-
-MARRIED SINGLE
Fre
quen
cy
Marital status
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From figure 4.2 above, it is shown that the married respondents
have the modal frequency of 130 out of the 200 respondents while
the single respondents have the frequency of 70 of them.
FIGURE 4.3: THE HISTOGRAM OF THE DATA ON THE AGES OF THE RESPONDENTS.
AGES OF THE RESPONDENTS
TABLE 4. AGES OF THE RESPONDENTS
SOURCE: From the data in Table 1.
43
020
4060
8010
0
1.0 2.0 3.0 4.0
Categories(years)
Frequency
Percentage
ValidPercentag
e
Cumulative Percent
21 TO 30 90 45.0 45.0 45.0
31 TO 40 90 45.0 45.0 90.0
41 TO 50 10 5.0 5.0 95.0
51 TO 60 10 5.0 5.0 100.0
Total 200 100.0 100.0
Fre
quen
cy
Age group
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From figure 4.3 above, it is shown that the age classes
limit are 20.5-30.5 years, 30.5-40.5 years, 40.5-50.5 years
and 50.5-60.5 years with frequencies of 90, 90, 10, and 10
out of 200 respectively. This shows that this is bi-modal
distribution as the age classes of 20.5-30.5 years and 30.
5-40.5 years have a frequency of 10.
Figure 4.4 below shows the pie chart of the data on the
highest educational qualifications of the 200 respondents.
FIG.4.4 THE PIE CHART OF THE DATA ON THE HIGHEST EDUCATIONAL QUALIFICATIONS OF THE 200 RESPONDENTS
44
15%
5%
10%
80%
10%
20%
FIRST DEGREE
OND DIPLOMA
FIRST DEGREE
OND
SECOND DEGREE
HND
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TABLE 4. 5 EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
SOURCE: from the data in table 1.
From figure 4.4 above, the Educational Qualifications are Diploma,
O.N.D, First Degree, Second Degree and NIM and the subtended
angles in degrees are equal to 180, 540, 1440, 360, 720 and 360 and
respectively at the center of the circle.
4.3 CROSS-TABULATED ANALYSIS
Table bellow show the analysis of the statuses of the 200
respondents
Educational level
Frequency Percentage Valid Percentage
Cumulative Percentag
eDIPLOMA 10 5.0 5.0 5.0
OND 30 15.0 15.0 20.0
HND 80 40.0 40.0 60.0
FIRST DEGREE 20 10.0 10.0 70.0
SECOND DEGREE
40 20.0 20.0 90.0
NIM 20 10.0 10.0 100.0
Total 200 100.0 100.0
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TABLE 6. CROSS- TABULATION 1
The above table shows that the total of 100 respondents
(out of 200 said YES. this proved that opportunities and
threats do exist in external environment.
TABLE 7. Cross-tabulation 2
The above table indicates that constraint is a factor that limits or holds
back the possible success of business or organization. 104 respondents
out of 200 said yes. While 40 did not agree with the fact.
46
DIPLOMA OND HND
FIRST DEGREE SECOND DEGREE NIM
Total
DOES OPPORTUNITIES AND THREATS EXIST IN EXTERNAL ENVIRONMENT?
YES NO DON’T KNOW
NOANSWER
Total
61960
-3121100
2
3110
43
2
9
11
2
7
9
39
12 19
91
263121200
939
DIPLOMA 10 10 OND 19 19 HND 14 30 47 91
FIRST DEGREE 10 9 19 SECOND DEGREE 40 40 NIM 21 21
Total 104 40 47 9 200
IS CONSTRAINT A FACTOR THAT LIMITS OR HOLDS BACK THE POSSIBLE SUCCESS OR PLAN OF BIZ ORG?
YES NODON’TKNOW
NOANSWER Total
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4.4 HYPOTHESIS TESTING
In attempting to arrive at decisions about the population, on the
basis of sample information, it is necessary to make assumptions or
guesses about the population parameter involved. Such an
assumption is called statistical hypothesis, which may or may not be
true. The procedure, which enables the researcher to design on the
basis, is sample regards whether a hypothesis is true or not is called
test of hypothesis or test of significance.
The null hypothesis asserts that there is no significant difference
between the statistics and the population parameters and what ever
is observed difference is there, is merely due to fluctuations in
sampling from the same population. Null hypothesis is thereby
denoted by the symbol H0. Any hypothesis, which contradicts the
H0, is called an alternate hypothesis and is denoted by the symbol
H1.
The researcher used chi-square analysis.
CHI-SQUARE TEST
The c is one of the simplest and most widely used non-parametric
test in statistical work. It makes no assumptions about the
population being sampled. The quantity c describes the magnitude
of discrepancy between theory and observation i.e. with the help of
c test we can know whether a given discrepancy between theory
and observation can be attributed to chance or whether it results
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from the inadequacy of the theory to fit the observed facts. If c is
zero, it means that the observed and expected frequencies
completely coincide. The greater the value of c the greater will be
the discrepancy between observed and expected frequencies.
The formula for computing chi-square is –
c =(O-E)2/E
Where,O=Observed frequency
E=Expected or theoretical frequency
4.5 SOFTWARE USED FOR DATA ANALYSIS:
For the data analysis and the interpretation, the researcher has
adopted advanced version of SPSS (statistical package for social
science). This application software has facilitated the researcher to
construct the frequency table, various types of charts and to find
out the valid percentage responses from the sample. By this
automated data analysis it has minimized the researcher’s time
constraints and reduced human error and give also accurate outlay
of information.
Chi-Square Test (1)
DOES OPPORTUNITY AND THREATS EXIST IN EXTERNAL ENVIRONMENT?
Observed
F
ExpectedF
Residual Decision
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YESNO DON’TKNOW NOANSWERTotal
10043
39
18 200
50.050.0
50.050.0
50.0 -7.0
-11.0
-32.0
AcceptReject
Reject
Reject
Chi-Square Test (2)
IS CONSTRAINT A FACTOR THAT LIMITS OR HOLD BACK THE POSSIBLE SUCCESS OF BUSINESS ORGANISATION?
Residuals
The observed value of the dependent variable minus the value
predicated by the regression equation, for each case. Large
absolute values for the residuals indicate that the observed values
are very different from the predicted values.
SOURCE: From the questionnaires administered.
The formulated hypothesis that is subject to statistical test is at 5%
level of significance in testing hypothesis, the calculated value of
the test statistics is usually compared with tables of value. The
Observed
F
ExpectedF
Residual Decision
YESNO DON’TKNOW NOANSWERTotal
10440
47 9 200
50.050.0
50.0
50.0
54.0 -10.0
-3.0
-41.0
AcceptedRejected
Rejected
Rejected
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critical values of the test statistics serve as criterion value. It
afforded the basis for rejecting the null hypothesis is a function of
the value of the tested statistic.
Reject the null hypothesis if the calculated value of the test statistic
is greater than the critical value.
Accept the null hypothesis if the calculated value of the test statistic
is less than the critical value.
TEST STATISTICS
note: df = degree of freedom
4.6 SUMMARY OF RESULT
Level of significance……….0.05
Critical value………………………43.0
Calculated value……………………73.880
From the above analysis, it could be seen that in the first test, DOES
OPPORTUNITY AND THREATS EXIST IN EXTERNAL ENVIRONMENT?
DOES OPPORTUNITY AND THREATS EXIST
IN EXTERNAL
ENVIRONMENT?
IS CONSTRAINT A FACTOR THAT LIMITS OR HOLD BACK THE POSSIBLE SUCCESS OF BUSINESS ORGANISATION?
Chi-Squaredf
73.880 3
94.120 3
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, the calculated value is greater than the critical value so we reject
the hypothesis.
In the second test which state that IS CONSTRAINT A FACTOR THAT
LIMITS OR HOLD BACK THE POSSIBLE SUCCESS OF BUSINESS
ORGANISATION?, the level of significance is 0.05, the critical value is
44 while the calculated value from the test statistics table is 94.120.
Looking the data above, it shows very clear that the calculated
value is greater than the critical value so we reject the hypothesis.
It is in this respect that this study finds it worthwhile to address the following questions using time series data for a 31-year period, 1970-2000: (a) what is the nature of relationship between poverty, unemployment and growth in Nigeria? (b) what steps should be taken to ensure that growth is such that brings about decrease in unemployment and poverty in Nigeria?
CHAPTER FIVE
FINDINGS, SUMMARY, CONCLUSION AND
RECOMMENDATION
5.1 FINDINGS
Through this research, the researcher has been able to
discover and establish the fact that:
Business activity is constrained by the environment in
which the business operates. There are a number of
important components of this environment including:
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the actions of competitors.
legal requirements. E.g. what is legally expected
social requirements and expectations. The sorts of
expectations that society has of businesses e.g. to operate
in an ethical way
economic constraints e.g. the amount of income that
consumers generally have to spend
technological constraints. Often what businesses are able
to produce and sell and how they operate is determined
by the technologies available to them.
5.2 SUMMARY
Type of external environment: Respondents were asked to answer
whether they believe that the business external environment in
terms of its complexity and dynamism is assumed to be "stable"=1,
"unstable"=2, or "dynamic"=3.
General external environment: The level of uncertainty of the
general external environment was measured by ten items: social
values, educational, political, economic, legal, behavioural,
demographic, natural environment, natural resources, and
technological. These items were measured on Likert-type scales
ranging from 1 = very low uncertainty to 4 = very high uncertainty.
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Task environment: The level of uncertainty of the task environment
was measured by six items: consumers, competitors, suppliers,
labour market, industry, and financial resources. These items were
measured on Likert-type scales ranging from 1 = very low
uncertainty to 4 = very high uncertainty.
Type of scanning strategy: Respondents were asked to answer with
Yes (=1) or No (=0) whether they follow "predetermined", "flexible"
or "innovative" strategy in scanning business environment
respectively.
5.3 CONCLUSION
The best way of thinking about constraints and opportunities is to
realise that good businesses will seek to turn constraint into
opportunities, while at the same time building on existing
opportunities. Organisations should use their strengths such as
having a good reputation, and experience in a particular field or
segment of the market coupled with good marketing strategies and
resources, to build competitive advantage.
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REFERECES
Anyiiwe, E. M. A. Exostat!Statistical Handbook of Economist,
Social Scientists, (Yaba, Lagos: Ama Resources Nigeria
Limited, 1994)
Mills, G. Ho, and Wallter, J. A. Technical Writing, (New
York: Holt, Rinehart and Winston, 1995)
Selltiiiz, C. Wrightsman, L. S., and cook, S. W. Research
Methods in Social Relations,(NewYork: Holt, Rinehart and
Winstons, 1976).
Spiegel, M. R. Schaun’s outline of theory and problems of
statistics in S. I. Units, (New York: Mcgraw-hill book
company 1992)
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Stone, E. Research method in organisational behaviour (Santa,
Monica, California:Good Year publishing company
incorporated, 1995).
REFFERENCES
55