THE PROBLEMS AND PROSPECTS OF OPERATING BUSINESS ENTERPRISE IN DELTA MUNICIPALITY AND NICON CORPORATION AS A CASE STUDY

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY
Every corporation has complex involvements with the people, groups and organizations in society. Some of these are intended and desired, others are unintended and not desired.
The traditional concept of business interacting with society only through transactions in the market place is certainly not true today, if it ever was. Market exchanges are only one of the ways in which business and society interact. Many social influences on business come from outside of the market place, as do many business influences on society.
One result of this close, inseparable relationship between business and society is that all business decisions have a social impact much as a pebble thrown into a pond creates ever-widening ripples. Another result is that the vitality of business and even its survival depend on society’s action and attitudes. Business can be smittered a heavy “blanked” of social demands. For example, a labour union may demand wages that exceed a company’s ability to pay, local taxes may be set at a punitive level, thereby driving business to other regions. Governmental regulation may prove to be too costly leading to business closure and lost of jobs. While business decisions can have both positive and negative impact on society, the actions of the society often can determine whether a business firm will prosper or die.
Basically, the problems of operating a business enterprise in Delta municipality will be closely examined using the various spheres of business environments. These environments are the uncontrollable forces in the society which hinder or encourage business operation. These are: first, the socio-cultural environment comprises of how the attitudes, needs, values and beliefs affect the business organization.
Secondly the legal environment affects business operation in Delta municipality. The rules and regulations of the society and the government policies always affect business decision making because they usually interfere with what managers would like to do, and usually add to the costs of doing business.
The third dimension of the environment which poses problem to the operation of business in Delta municipality is the economic environment where the system determines the decision making of business organizations and where it does not favours the firm, it becomes a problem.
Lastly, the technological environment brings changes and opportunity for business organizations to excel if they are able to apply it.
Therefore, the overall business is measured, not just by a company’s financial performance but also by how well it serves broad social and public interests.

1.2 STATEMENT OF THE PROBLEM
it has been observed with disappointment the poor performance of business activities in Delta municipality. This could be attributed to the various environmental set backs of our today’s business environment and the poor orientation of both the business practitioners and consumers.
The managers or the owners of a business will want to know whether the firm is operating at a profit or loss, since the primary aim of every business is to maximize profit or at worst to break even.
Also, the managers of any business need to ascertain the financial strength of their organization since the economic condition tend to swing up and down. When the economy is strong and growing, businesses grow and prosper, but in periods of economic stagnation or decline, businesses tend to suffer and so does employment.
Given the various problems listed above, the questions are:
What are the problems NICON insurance Company is facing in doing business in Delta?
What prospects are there for NICON Insurance Company in attaining their profit objectives in Delta