ENVIRONMENTAL

CONSTRAINT ON

BUSINESS

ORGANISATION

A CASE STUDY OF SOLACE FAST FOOD.

EFFURUN.
 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

2
 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

3
 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.

4
 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.

5
 ABSTRACT

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.

6
 CHAPTER ONE

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

7
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.

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?

8
 6. how can the problem of environmental constraint be

solved?

1.3 OBJECTIVE OF THE STUDY

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.

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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:

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.

10
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

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

11
 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

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

12
 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.

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?

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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

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

15
 • 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

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

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• 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

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

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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

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.

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• 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.

• 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

19
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

2.3.1 Anticipatory 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.

2.3.2 Reactive 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

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

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 • 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

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

21
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

individual consumer.

There are a number of laws to protect consumers including:

22
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

check on a range of premises including those where food is

prepared.

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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.

• Cost.

• Quality.

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 • 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

Considering that performance is the major objective of an

organization, it is generally accepted that the structure and decision

25
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).

26
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

27
to organizations than factors in the general environment. This is

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:

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 CHAPTER THREE

RESEARCH METHODS AND PROCEDURES

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;

29
(vi) The answers of the respondents are assumed to be

largely unaffected of the Context in which they are

brought;

(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

30
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 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

31
 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 ).

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

32
 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,

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.

33
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

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

34
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

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

35
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

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

36
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 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.

37
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.

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

38
 (d) Stub or the designation of the

rows and columns

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;

A table ensure an easy location of the required figures;

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

39
 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

question is given at 5% level of significance to a

particular (Spiegel, 1992)

40
 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

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

41
 4.2 DATA PRESENTATION

TABLE 4.1
THE SUMMARY OF THE PERSONAL DATA
OF THE RESPONDENTS

1 SEX FREQUENCY
Male 150
Female 50
Total 200
Angles
2 Marital Status subtended
Married 130 in degree
Single 70
Total 200

3 AGE
21-30 years 90
31-40 years 90
41-50 years 10
51-60 years 10
Total 200

4 HIGHER
EDUCATIONAL
QUALIFICATION
DIPLOMA 10 18
OND 30 54
HND 80 144
FIRST DEGREE 20 36
SECOND DEGREE 40 72
NIM 20 36
TOTAL 200 360

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,

42
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

160-

140-

120-

100-
Frequency

80

60 --

40 -

20
-
0 -
MAIL FEMALE
Gender

TABLE 2. GENDER OF THE RESPONDENTS

Frequency percentage Valid Cumulative
Percent Percent
MAIL 150 75.0 75.0 75.0
FEMALE 50 25.0 25.0 100.0
Total 200 100.0 100.0

43
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

140 -

120 -

100 -
Frequency

80 -
60 -
40 -
20 -
0 -
MARRIED SINGLE
Marital status

TABLE 4.3. MARITAL STATUS OF THE RESPONDENTS

Status frequency Percentage Valid Cumulative

Percent Percent
MARRIED 130 65.0 65.0 65.0
SINGLE 70 35.0 35.0 100.0
Total 200 100.0 100.0

44
 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

100
80
60
Frequency

40
20
0

1.0 2.0 3.0 4.0

Age group

TABLE 4. AGES OF THE RESPONDENTS

Categories Frequency Percentage Valid Cumulative

Percent
(years) Percentage
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

SOURCE: From the data in Table 1.
Total 200 100.0 100.0

45
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

OND DIPLOMA
FIRST DEGREE
5%
15% OND
SECOND DEGREE 10%

20%
HND
80%
FIRST DEGREE 10%

46
 TABLE 4. 5 EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
Educational Frequency Percentage Valid Cumulative
level Percentage Percentage
DIPLOMA 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 40 20.0 20.0 90.0

DEGREE
NIM 20 10.0 10.0 100.0

Total 200 100.0 100.0

SOURCE: from the data in table 1.

47
 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

TABLE 6. CROSS- TABULATION 1

DOES OPPORTUNITIES AND THREATS EXIST IN
EXTERNAL ENVIRONMENT?

NO
YES NO DON’T ANSWER Total
KNOW 2 12
19
91
DIPLOMA 6 2 2
OND 19 7
HND 26
FIRST
60 31 31
DEGREE - 10 9 21
SECOND 31 9 200
DEGREE 21
NIM
Total 100 43 11

39 939
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.

48
 TABLE 7. Cross-tabulation 2

IS CONSTRAINT A FACTOR THAT LIMITS OR HOLDS

YES DON’T NO
BACK THE POSSIBLE SUCCESS OR PLAN OF BIZ ORG?
NO KNOW Total
DIPLOMA 10
ANSWER 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

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.

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

49
 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

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

50
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 Expected Residual Decision
F F
YES 100 50.0 50.0 Accept
NO 43 50.0 -7.0 Reject
DON’T
KNOW 39 50.0 -11.0 Reject
NO 50.0
ANSWER 18 -32.0 Reject
Total 200

Chi-Square Test (2)

IS CONSTRAINT A FACTOR THAT LIMITS OR HOLD BACK

THE POSSIBLE SUCCESS OF BUSINESS ORGANISATION?

Observed Expected Residual Decision

F F
YES 104 50.0 54.0 Accepted
NO 40 50.0 -10.0 Rejected
DON’T
KNOW 47 50.0 -3.0 Rejected
NO
ANSWER 9 50.0 -41.0 Rejected
Total 200

Residuals

51
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

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

IS CONSTRAINT A
DOES OPPORTUNITY
FACTOR THAT
AND THREATS EXIST
LIMITS OR HOLD
IN
BACK THE
EXTERNAL
POSSIBLE
ENVIRONMENT?
SUCCESS OF
BUSINESS
ORGANISATION?

Chi-Square 73.880 94.120

df 3 3

52
 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?

, 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

53
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:

• 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

54
 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.

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

55
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.

REFERECES

56
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)

Stone, E. Research method in organisational behaviour (Santa,

Monica, California:Good Year publishing company

incorporated, 1995).

57
REFFERENCES

58