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Chapter one

1.0 Background.

The environment is a primary source of uncertainty for a business management, and as such, it influences organisational design and structure configuration (Akanwa, 200:59).

Environment could also be seen as a collection of natural objects (living and non-living things) created by humans and the inter-relationship between them and numerous circumstances that surround individuals on earth (Ohazurikke 2003:59).

Business operates in an environment that includes variables and pressures that are external to the organisation. In order to achieve its goals, an organisation must engage with other members of the environment.

An organisation and its environment are interdependent; the organisation relies on its surroundings for the resources and opportunities required for its survival.

Furthermore, the environment dictates the limits of an organization’s activity. For example, the passage of a new law by the government may force certain businesses in Nigeria to close or transition to another line of business (Alugbo 2002:1). The sources of growth in the environment can thus be internal or external. Both have an impact on the organisation.

A business can thus be regarded as an open adaptive system with its environment acting as a sepias system; such business must change volumes, materials, or energy within the environment; the principal task of the manager is to design an internal environment for performance;

he must do so within the strength of the enterprise, externals environments whether economic, technological, social, political, or either all Nigeria context (Awuto 1997, 265): it is positive.

However, the purpose of this research is to determine the impact of environmental factors on organisational performance, specifically how and to what extent an environment can influence the objectives and goals of a corporate organisation.

At this point, this study will advise management to be well-informed and manage its environment in order to adapt to changing climates and achieve its set of objectives and goals.

1.1 Historical Background of the Study

A brief history of ABC Transport Plc. Associated Bus Company Limited, the operators of ABC Transport, began road passenger transport operations on February 13, 1993 as an OFF-Shoot of Ropido Venture with the goal of running Nigeria’s contemporary road transport system.

Capital Alliance Private Equity (CAPE) purchased 30% of ABC Transport in March 2003, and Capital Allowance (Nigeria) became a stakeholder in the company, repositioning it for improved performance.

ABC Transport operates luxurious and minibus services in accordance with approved international road transportation standards; these services are specifically created for distinguished travellers who would otherwise use services.

The operator in Nigeria operates in ultramodern terminals with comfortable luggage in places such as Lagos (Jibawn and Festac), Aba, Owerri, Port-Harcourt, Abuja, Enugu, Warri, Onitsha, and Umuahia. ABC buses are branded with the company’s trademark, the “Reindeer.”

The reindeer was chosen as the company’s symbol after thorough consideration of the animal’s unique characteristics, including its strength, speed, and ability to navigate through herbs. ABC Transport received the following honours in recognition of its outstanding achievements in transport.

1) Rotary clubs received community service honours from 1997 to 1998.

2) 2005 Development Excellence Award in Transportation.

3) Award for Excellence as Best Luxury Bus Operator in the Year 200, 2003.

4) Best security-conscious land transport firm award 2006/2007.

5) West African Transport Services Award 2007 by the Quality Management Development Institute.

6) The Lagos Aviation and Logistics College awarded Transport of the Year 2004.

1.2 Statement of the Problem

With the dynamic changes in society, many organisations have been affected in some way due to inadequate planning or a lack of a good management team. Organisations must adjust to certain changes in the loess environment, but this will not be sufficient.

Corporate organisations who fail to analyse and assess their external environment have experienced significant losses in terms of poor return on investment, low consumer patronage, poor product or service quality, and so on.

As a result of the unpredictable nature of today’s business climate and the speed with which changes occur, it is critical that every organisation succeed. It must keep track of all of the factors that influence its operating environment.

This study focuses on ABC-related difficulties. Government restrictions influence organisational goals.

1) A lack of trained workers leads to poor environment scanning results.

2) The company was able to provide services that met the needs of customers, and their services are in accordance with customer needs; however, customers react negatively to sudden increases in the price of their service.

Political involvement (instability) has an impact on a small number of client purchases.

3) Competition from other firms (companies) prevents the corporation from expanding its market share.

1.5 Object of the Study

The goal of this project is to investigate the following:

1. The effect of environmental factors on the efficiency of commercial organisations.

2. The amount of competition, which determines whether the environment is favourable or not.

3. The level of environmental hostility, strategic decisions, such as finance, marketing, purchasing, production people, and so on.

4. Goal formulation as part of the managers’ procedure for achieving them.

5. Whether culture contributes to corporate success or hinders performance.

6. Determine whether the company has a good relationship with its customers and the influence this has on the business.

1.4 Significance of the Study

According to Anyanwu (200–198), significance is the transmission of meaning to specific people and groves. It is critical to understand that an organisation functions in an environment that directly or indirectly influences its outcomes; the importance of the business environment to organisational performance cannot be overstated.

Organisations, regardless of how well their programmes are expressed, must be aware of their surroundings. The relevance of this work cannot be understood from this perspective; thus, it will help both the researcher and the general public.

The case study organisation and management scholars are organised in the following ways. This work will act as a guide and reference for the general audience and other researchers working on this topic.

The case study organisation stands to benefit more from the research. This is because the research will be directly related to its activities and will assist them, particularly managers, in understanding how to effectively use and manage the business environment.

This study will also contribute to academic progress by examining how the corporate environment effects organisational performance, which will be extremely beneficial to management academics.

1.5 Scope of the Study

According to Anyanwu (200:1999), the scope of the study, or its definitions, is concerned with determining research boundaries. In other words, the scope attempts to inform the reader where the study begins and concludes.

The study’s scope includes the impact of environmental factors on organisational performance. There is no significant association between the company’s policy as an internal aspect of the business environment and its organisational performance on ABC Transport Limited in Imo State.


The research question for this paper is as follows:

Do environmental reforms help corporations achieve their goals?

c) Can management successfully manage the corporate environment in adverse conditions?

c) How does government legislation affect corporate aims.

d) What are the primary environmental elements influencing organisational performance?


Ho: The environmental component has no substantial impact on organisational success.

1.8 Limitations of the Study

A fundamental problem was faced during the course of this research, with the researcher being highly unwilling/restive in their response to the question and, in most cases, determining an explanation before providing the answers.

The time frame in which this research was conducted made it impossible to acquire all of the necessary data. The investigation was hampered by insufficient funding, which slowed down the speed of work.

1.10 Definition of Terms

· The business environment encompasses all internal and external factors that impact or influence organisational performance.

· Effectiveness: The ability of a corporate organisation to achieve its goals.

· Environment scanning involves analysing the organization’s surroundings to identify potential possibilities and dangers.

· Organisation: A structure where individuals collaborate to achieve specific goals.

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