ABSTRACT
This research work looked into Effect of Environmental Scanning on Business Performance (The Study of Coca-Cola Company Enugu Depot). The major objectives of the study are to ascertain whether Coca-Cola Company engages in systematic environmental scanning, to identify the challenges associated with environmental scanning in the organization, to examine the benefits of environmental scanning in the organization and to ascertain whether the techniques used in scanning the organization are outdated. Data were collected through primary and secondary data sources. In carrying out the investigation through primary source, number of questionnaire were designed, while the secondary source included information from textbooks, journals and newspapers etc. the sample size which are 306 representing entire population of 1300 which was determined using Taro Yamene formula. The methods of statistical analysis included the use of tables, percentage analysis, while chi-square was used to test hypotheses formulated. The study led to major findings such as the techniques used in scanning the organization are outdated. The researcher recommends that the organizations should make use of current techniques in order to enhance the growth of the organization in Nigeria as a hole.
TABLE OF CONTENTS
Title Page ii
Certification iii
Dedication iv
Acknowledgement v
Abstract vii
Table of Contents viii
Chapter one: Introduction
- Background of the Study 1
- Statement of the Problem 7
- Objectives of the Study 9
- Research Questions 10
- Research Hypotheses 10
- Significance of the Study 10
- Scope of the Study 12
- Limitations of the Study 13
- Definition of Special Terms 13
References
Chapter Two: Review of Related Literature
- Conceptual Framework of the Study 17
- Theoretical Framework of the Study 23
- Historical Background of the study 26
- Reviews According to the Objectives of the Study 28
- Identifying External Environmental Variables 30
- Analyzing the internal Environment 32
- Influential Factors in the Task Environment 34
- Determining Strengths and Weakness 35
- Technique for Effective Environmental Scanning 37
References
Chapter Three: Research Design and Methodology
3.1 Research Design 41
3.2 Area of Study 41
3.3 Sources of Data 42
3.3.1 Primary Data 42
3.3.2 Secondary Data 42
3.4 Population of the Study 43
3.5 Sample Size Determination and Sampling Techniques 44
3.6 Methods of Data Collection 49
3.7 Validity of the Instrument 49
3.8 Reliability of Instrument 49
3.9 Methods of Data Presentation and Analysis 50
Chapter Four: Data Presentation and Analysis
4.1 Data Presentation 51
4.2 Test of Hypotheses 60
- Discussion of Findings 70
Chapter Five: Summary of Findings, Conclusion and Recommendation
5.1 Summary of Findings 71
5.2 Conclusions 72
5.3 Recommendations 73
Bibliography
Appendix
Questionnaire
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
An organization is a creation of its environment, its very survival and of its strategies resources problems and opportunities are generated and conditioned by environment. Thus, it is important for an organization to monitor the relevant change that takes place in its environment and formulate strategies to help in adapting to these changes.
Environment scanning is generally accepted as being the first in the process of aligning strategy with environment because environment scanning will help the organization to learn more about opportunities for taking competitive advantages and threat referring to its survival, however although environmental scanning is the mechanism by which managers discover important events and trends outside their organization, scanning the business environment has been initially defined as the activities aimed at collecting information about event aid relationship in company outside environment, the knowledge of which would assist the management in its task of charting the company’s future course of action.
Egeole (2008:1), for an organization to survive and proper, the strategist must master the challenges of profoundly changing, political, economic, technological, social and regulatory economic, technological, social and regulatory environment. Environmental scanning is one of the four activities comprising external analysis. The external analysis is the broader activity of understanding the changing external environment may impact the organization. In describing external analysis the organization scan the environment to identify changing trends and patterns monitor’s specific trends and pattern, forecast the future direction of these change and pattern and asses their organization impact merged with internal analysis and weakness external analysis assist decision markers in formulating strategic directions and strategic plan.
The goal of environmental scanning is to alert decision marketers to potentially significant external changers before they crystallize so that decision makers have sufficient lead time to react to the change consequently; the scope of environmental scanning is broad. To achieve this broad prospects the strategist need to develop and implement a systematic approach to environmental scanning activities must be intensified and directed by explicit definition of purpose, scope and focus the efforts of businesses to cope with these problems are contributing to the development of systems for exploring alternative with greater sensitivity to long run implication.
This emerging science has the promise of providing a better framework for maximizing opportunities and allocating resources in anticipation of environmental changes. When we scan it is useful to view the environment in a manner that organization over scanning effort. It entails obtaining environment in which a company is operating or is considering, entering.
Certo (1992:191) environment scanning pinpoint analysis to help them understand what is current in the society and of interest to their organization. The decisions made by mortgagers must conform to what the environmental scanning analysis is done to identify environmental resources that are qualities, characteristics or component of the surroundings that an enterprises may utilize to achieve goals. Managers must look out for opportunities for their businesses as well as identify potential threats to it. By doing to viability of the enterprises can be assured. That means that the business enterprises can produce goods and services for which there is demand or market quality and quantity that people would appreciate and want to pay their earn money.
Apart from the external environment, there is also the internal environment of the firm, it is necessary therefore, to understand t structure of organizational environment in order to carryout comprehensive environmental scanning analysis for the purposes of environmental of an organization is generally divided into three distinct levels the general environment, the operating environment and the internal environment. The components of each level of environment can be stated as the general environment which is made up of the economic components/factor, and the political components factors. The operating (task) environment is made up of customers component, computation component, labour component and supplier component which the internal environment consist of planning aspect, organizing aspect, influencing /co-ordinating aspect and controlling aspect.
Environmental scanning include both looking at information (viewing) and looking for information (searching). It could range from casual conversions at the lunch table or a change observation of an angry customers to formal market research programme or a scenario planning exercise, scanning behaviour is influenced by external factors such as environment influences unrest, commotion and resources depending, organization factors such as the nature of the business and the strategy pursued. Information factors such as the scanner knowledge or cognitive styles. Thus, may research studies, on scanning investigate the affect of situation dimension, organizational strategies, and information need and personnel traits on scanning behaviour.
Eze and Onodugo (2002:108) defined environmental scanning as a careful examination of the environmental with a view of identifying opportunities to maximize while minimizing and containing threats along the line dictated by the mission and goals of a particular business. Hicks and Gullet (1976:289) defined environment as those forces that are largely or totally outside the management’s control for example customers incomes levels and competitors actions are not subject to control by government but key factors in influencing the success of a decision to develop and sell a new product.
1.2 Statement of Problem
Coca-Cola Company perceives environmental scanning to un-analyzable and so does not understand it. Consequently, this has resulted in poor understanding of the scanning resulting, ill defined problems as lack of awareness and unsystematic approach of environmental scanning. The information they seek are casual and opportunistic, they also rely more on irregular contacts and information from external sources. Consequently, this will result to inaccurate information on the threats and opportunities, strength and weakness of the business environment, gathering of false data on competitor’s strength, lack of tools that are not effective for information scanning.
In some situations, issues are imposed by the external environment, as when government of agencies, industries association, consumer group or other stakeholders bring forth area of concern. Consequently, this has resulted to the company not finding interest in carrying but environmental scanning, lack of motivation and managers who discover important events and trends outside their organization, net finding interest in environmental scanning because of the high cost and issued imposed by the external environment. Most of the techniques used in scanning the company are outdated and information needed by the company is ill defined. This result to ineffectiveness and lack of efficiency among staff and productivity will be adversely affected, competitors may come in and out way they because of lack of will define information.
Most of environment scanning strategies of Coca Cola Company, lack of efficient and effective business performance. This result to managerial incompetence and lack of promotion to business and economic environment for profitability and growth, there will be no relationship between scanning and increased business growth and performance. These entire problems therefore, compel the researcher to investigate the phenomenon.
- Objectives of the Study
- To ascertain whether the Coca-Cola Company engages in systematic environmental scanning.
- To identify the challenges associated with environmental scanning in the organization.
- To examine the benefits of the environmental scanning in the organization.
- To ascertain whether the techniques used in scanning the organization is outdated.
1.4 Research Questions
- Does Coca-Cola Company engage in systematic environmental scanning?
- Are there any challenges associated with environmental scanning?
- What are the benefits of environmental scanning in the organization?
- Are the techniques used in scanning the organization outdated?
- Research Hypotheses
H01: Coca-Cola does not engage in systematic environmental
scanning.
H1: Coca-Cola engages in environmental scanning.
H02: There are no challenges 0HHhhj;fsdflassociated with environmental
scanning in the organization.
H1: There are challenges 0HHhhj;fsdflassociated with environmental
scanning in the organization.
H03: There are no benefits in environmental scanning in the
organization.
H1: There are benefits in environmental scanning in the
organization.
H04: The techniques used in scanning the organization are
outdated.
H1: The techniques used in scanning the organization are not
outdated
1.6 Significance of the Study
The study will be useful to the students of business administration who might want to improve on this work. It is also hoped that the adopting and implementation of the findings and recommendation of this study will doubt help significantly in boosting our economy.
The work is significant in many aspects, it will help in studying the scanning mode in terms of sense making, knowledge, creation and decision making, and it also looks, at variable perceived in environmental uncertainty by measuring subjects, responses to questions about perceived in environmental sectors. It will also help in identifying modes of scanning predicted by the models, the characteristics of information seeking.
1.7 Scope of the Study
The scope of study of this research is Coca-Cola Company. The Coca-Cola Company is one of the largest manufacturer’s distributors and marketers of non-alcoholic beverage concentrate and syrups in Nigeria. The company is best known for its flagship product coca cola and other soft drinks.
- Limitation of the Study
The following factors limited this study;
- Time: The period given to complete this work was not enough. Times posed great problems to this work, not all the organization performance was scanned.
- Finance: it is very expensive to carryout this research hence I was battling with large resources.
- Attitude of Respondents: Attitude of the respondents was not encouraging as they refuse to give me accurate data for the fear of loosing their jobs or fear of unknown.
- Definition of Special Terms
- Environment: Environment is a surrounding atmosphere or condition for existence. Environment is defined as those forces that are largely or totally outside the management’s control for example customer’s income levels and competitor’s actions are not subject to control by government but key factors in influencing the success of a decision to develop and sell a new product.
- Scanning: Scanning which is the next operative world simple means careful examining of an area with a view to seek out a person or thing in that area.
- Environmental Scanning: Environmental scanning can be defined as the study and interpretation of political, economic, social and technological events and trend which influences a business, an industry or even a total market. Is the study of the organizational to pinpoint environmental factors that can significantly influence organizational operation.
- Business: Business can be defined as any activity which is profit-oriented legal and directed at satisfying the needs of the general public. Business also known as enterprise or firm is an organization on engaged in the trade of goods, services or both to consumers.
- Performance: Performance can be defined as how well or badly an individual perform something. Performance is also defined as the end of activities, actual outcomes of a strategic management process.
- Business Performance: This is the end result of business to ascertain whether a business has profit or loss during the cause of carrying out its activities, the actual outcome of a business or industrial strategic management process.
REFERENCES
Certo, S.C. (1002), “Modern Management Ethics and Global
Environment Boston” Ally and Bacon Inc
Egeole, F. (2008), “Unpublished Article Environmental
Scanning and Business Performance” Department of Management, University of Nigeria, Enugu Campus
Enudu, T.O. (1999), “Business Policy: An Introductory
Analysis” (2nd Edition), Johnkens and Willy Publications Ltd Enugu
Enudu, T.O. (2004), “Introduction to Business Management”
2nd ed Johnkens and Willy Publications Ltd Enugu
Ewurum, U.J.L and Unamka, P.C (1995), “Business
Management” Enugu Precision Printers and Publishers
Ezeh, J. A. and Onodugo, V.A. (2002), “Business Policy and
Strategic” University of Nigeria, Enugu Campus
Hicks and Gullet (1976), “Management” 4th ed Singapore:
McGraw-Hill Inc
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