Full Project – The impact of environmental factors on business productivity

Full Project – The impact of environmental factors on business productivity

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Business is any commercial or economic activity that is profit oriented. The primary, objective of any business organization is to make profit, grow and survive in the environment in which it operates.

The environment in which business operate is a complex, multi-focus and has a far reaching effect on business organizations. The environment tends, shape the outlook, and goals of the organization by placing limitations on them. These limitations in the environment of organization could be in the form of competition, government regulation, worker unions, and technological innovation. This set limit on the goals specify by the organization. Currently, business environment is perceived to have been rarely exceeded in complexity, turbulence and rapid in change, all Nigerian organizations (large or small) must pay greater attention than ever before to their environments when formulating and implementing policies and strategies in order to survive and grow (Otokiti & Awodun, 2003).

In management, the word “environment” does not necessarily means physical surroundings, but is used to describe all those factors that affect the individual organizations. Business environment is used to mean anything, which surround the business organizations. Affects the decisions, strategies, process and productivity of the business. The environment comprises of factors which are beyond the control of the business (STEP) social, technological, economical, legal and political. It provides opportunities or poses threats to the organization. This means that business organizations must interact with those forces that influence the decisions, directions, actions, profitability, performance and productivity of organizations.

Ukaegbu (2004) stated that the contemporary environment is becoming dynamic and competitive and that business organizations do not operate in vacuum, they affect and are affected by the environment. Therefore, business organizations regardless of their objectives must take into consideration, these environmental opportunities and constraints. Business affect the environment by providing the required goods and services and the environment contribute to the development of the business by presenting opportunities and threats. One thing to be emphasizing at this point is that, the extent to which managers could identify, evaluate and react to the environmental forces will have considerable impact on the organizational productivity.

Organizations survival and success depend on the appropriate adoptions to a complex and ever changing environment. It is pertinent for top management of organization to identify opportunities and threats in the external environment, internal environment; it should focus on strengths and weakness, potential and existing ones. It should respond swiftly, in order to know where it can have competitive advantage over its rivals. Therefore, any organization should look or search its environment continuously. Oghojafor (1998).

The need for studying business environment became important considering the fact that business organization do not operate in isolation and effective management in complex and dynamic society such as Nigeria requires the assessment of strengths and weaknesses of the organization and the opportunities and threats posed by the challenges of the external environment. For survival and growth, organization must adapt to these changes. The objective of this study is to examine the impact of environmental factors on the productivity of business organizations using Desert Prince Hotel Bida, Niger state as a case study for this project work.


The impact of environmental factors on business productivity varies from one situation to another. The environment conducive for the growth of a particular business may be hostile to the survival of another business. The relationship between companies and government institutions keep nose-diving virtually on matters, criminal activities at increasing alarming and uncontrollable rate, exercising excessive control through plethora rules and regulations, tax policies without adequate provision of infrastructural facilities to ameliorate business operations. The problems that also necessitated this research work are as follows:

  1. The impact of environmental factors such socio-cultural value of the society as it affects the operations, profitability and productivity of desert prince hotel bida.
  2. The problem that also prompts this research is how managers of desert prince hotel react to the challenges present in the environment as critical to the organizational productivity.

Consequently, in the face of all these challenges, how effectively can a business organization respond  its basic operational function of survival, growth and profit maximization, hence this study seeks to investigate the impact of business environment on organizational productivity using desert prince hotel bida, Niger state as case study.


The purpose of this study is to assess the extent to which socio-cultural environment affect business productivity, as it determine its success and failure and discus it likely effect on organizational survival and growth. The objectives of this research seek to achieve are:

  1. To determine the extent to which environmental factors affect Bida
  2. To evaluate business environment in order to ascertain the type of environment suitable for growth and development of business.
  3. To examine the environment and business relationship.
  4. To add to existing knowledge in various categories of business sector
  5. To explore way in which productive performance can be achieved.


  1. How do economic problems affect the business productivity?
  2. How does the improvement in technological innovation affect the business development?
  3. What are the political challenges facing the business organization?
  4. Do managers of the organization maintain flexible policies that respond to changes in the environment?


The following formulated hypothesis would be tested in order to help provide answers to the research.

H0:    There is no significant relationship between business productivity and socio

Cultural factors within the business environment where it operates.

H1:    There is significant relationship between business productivity and socio

Cultural factors within the business environment where it operates.

H0:    Environmental factors do not affect business productivity.

H1:    Environmental factors affect business productivity.


This study upon completion will be highly useful for business organizations, entrepreneurs and the government. This research on the impact of environmental factors on business productivity, a case study of desert prince hotel bida would have considerable benefit on the hotel as it would:

  1. Help the hotel become sensitive to the uncontrollable external environmental factors impinging on the performance of the business and how it can effectively manage these factors and opportunities for enhanced productivity and profitability.
  2. To entrepreneurs: the knowledge gained from this study will enable them to know how critical environmental factors are and how to effectively respond to these factors for the survival and growth of business.
  3. To organizations: the study will be essential to organizations and the society on how to respond changes in technological advancement.
  4. To the government: this research will also be essential to the government in the formulation of policies toward business organizations in Nigeria.


However, there were some constraints encountered in course of this study.


They are:

  1. Financial constraint: the cost of sourcing information and administering questionnaire was quite high, which also include typing and printing of the research work and transportation cost.
  2. Time: the limited time frame given to achieve this research work was also another constraint.


  1. Environment: surrounding condition that influence decision, growth or development.
  2. Performance: this is the act of doing a piece of work which one either ordered to do or promised to do. It could be as result of an act, which is measured in quality or quantity.
  • Business: a business is an economic undertaking carried out by individuals or organizations that involves production, distribution or purchases and sales of goods or services needed by members of the society in order to make a profit within a scope of legally accepted standard.
  1. Business management: the total interrelationship between business and the community.
  2. Productivity: a measure of the efficiency of a person, machine, factory, system, etc. in converting input into useful output.



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Full Project – The impact of environmental factors on business productivity