THE IMPACT OF BUSINESS ENVIRONMENT ON MANAGEMENT DECISION

Abstract

This project work is on the “impact of Business Environment on Management Decision” a case Study of First City Monument Bank Plc. This seems not to apparently clear to most people but the research has therefore attempt to time out for effectiveness and efficiency, relevant information was gathered through the primary and secondary source of data collection such as journals, pamphlets, magazines, etc. to enhance the scope of the topic, the topic was therefore divided into five chapters which on literature review of the past author, chapter three deals on the method employed in carrying out the research such as the population, sample research instrument and chapter four which deals on the explanatory survey design in conjunction with self formulated question in the questionnaire, simple percentage method and chi-square. The statistical tools were to collect information analyze the data on presentation as analysis such as introduction, presentation of results, hypothesis testing, finding and discussion. Then the last part, chapter five is all about the summary of the project, conclusion and recommendation.

 CHAPTER ONE

INTRODUCTION

• Background of the study

Environment of a firm consists of all group and institution that have an actual or potential influence on the organization and its ability to achieve its objective. Business environment comprises the large number of factor in a organization and in the outside world that can influence the work or managers (Oyedijo, 2002). The business environment includes customers, competitor, government regulatory agency, legal and political frame work and institution, technology development and social culture factors that influence business behavior. Management of a firm work their decision within those environmental force because any neglect of these factors can cause a lot of damage to the political environment that affect all forces of organization. Therefore, for the firm management to make effective and efficient decision that will help to achieve its missions and strategies of the firm, they must look into internal and external environment. The environment forces are divided into two which are internal and external environment. For internal influencing management decision, the internal environmental force to the firm under study include the (F.C.M.B), its employee and shareholder forces the external, the tax environment consist of the customers, competitors suppliers and human resource/labor market and government agencies, the needs of the people and for making profit. (Obasan 2001:2) for a business to exist, such business is carried out. Therefore management decisions are depended on its firm environmental force influence.

1.2 STATEMENT OF THE PROBLEM

This study is designed to investigate the critical relationship between management decisions and environment forces. The environment force play an important role in an organizational existence, these environmental forces virtually influence every aspect of the organization. Management decision may be made based on improper assessment of the environment. For this reason, problem that could arise and needed to be assessed are as follows;
· The influence of the environment in the performance of the organization
· The influence of the environment on the laws that govern the organization or business

• The influence of the environment or the interest of the buyer and seller of the organization or business
• The influence of the environment decision making of the organization or business.
  · The relationship between the organization environment and its goal.

1.3 OBJECTIVE OF THE STUDY

The general objective of the study is to examine the influence of business environment on management decision in Nigeria firm with particular reference to F.C.M.B Olipanu. The specific objective includes;
· To reveal the effect of environmental forces on the performance of the organization

• To determine the effect of the environment of force on management decision.
• To ascertain the influence of the environment on the interest of the buyer and seller of the organization or business