CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

In today’s business environment, competition is order of the day. The International or global environment consists of all those factor that operate at the transactional, cross-cultural and across the border level which have an impact on the business of an organization. Before the complexity of environmental analysis started, traced back to post-second world war period, then it was characterized as essential political in nature with little in common with the interests of business and industry (Kazmi, 2008). The classification of the general environment into sectors after this period brings more light and exposes most of the business owner into real business environment. These then help most of organization to cope with it complexity, to compete the various difference factor that influence the operation of business in a particular area. A company’s marketing system must operate within the framework of forces which constitute the system’s environment, the major environmental forces are external variables which are not easily control or manipulate by the executives in a firm. (Adebisi 2006). Proper planning must put in place to ensure that the business environment is conducive enough and ready to put the organization to the best position in the market place. Any business that is not aware of its environment is bound to run into some crises that will definitely arise from the increasing complexity of the environment in which such business operates. The major objective of this study is to critically examine the effects of strategic environmental scanning on organization performance and to establish clear position about the result of company that adopts continuous environmental scanning and the company that merely operate with it. Organizations can use environmental scanning to determine whether or not to enter new market and also to know the present situation or condition of its environment. Its purpose is to identify strategic factors- external and internal elements that will determine the future of the organization. The simplest way to conduct environmental scanning is through PEST Analysis. PEST is the acronym used for describing the Political, Economical, Social-Cultural, and Technological factors that affect the organization. The external environments consist of variables opportunities and threats that are outside the organization and not typically within the short-run control of the top management. The management of any organization has little or no influence on the external environment. Most managers feel that in today's turbulent business environment the best scanning style is continuous scanning using PEST analysis because this allows the firm to act quickly, take advantage of opportunities before competitors do and respond to environmental threats before significant damage is done, this will allow the organization to survive, sustain the environment hardship. As a way of managing organization strategies, the managers have to keep abreast of everything about his environment (internal and external) for the purpose of achieving the organization goals and objectives. It is the fundamental decision about the future direction of an organization, its purpose, its resources and how it interacts with the world in which it operates (the environment of the organization).

1. STATEMENT OF THE PROBLEM

Understanding of management strategy or organization policy and effectiveness is not as easy as some people believe; it requires looking at how company is griped with the challenges and opportunities facing it. It requires proper evaluation on the position of an organization, whether the adopted strategy is working well and if not why and how should we go about it? Strategies are means of operationally signing a policy for goals and objective. For company to function very well and to be productive even to its maximum standard effective strategy should be impeded in such company, with this it will have positive effect on sales performance of such organization. According to Dess, et al (2005) management’s strategies consist of the analysis, decision and action an organization undertakes in order to create and sustain competitive advantages. This definition captures two main elements that go to the heart of the field of management strategy. Adebis (2011) explained that strategic management is also about assessing why some organization are doing fine and why some are doing otherwise in the same environment with opportunities and threats.

In the light of the above, the study therefore is to assess the relationship between environmental scanning and organizational performance in a competitive business environment, attitudes towards strategic environment scanning, factors of environmental scanning, challenges of environmental scanning and the effects of environmental scanning on the organizational performance.

1. AIMS AND OBJECTIVES OF THE STUDY

The aim of this study is to assess the relationship between strategic environmental scanning and organizational performance in a competitive business environment.

The objectives of the study are as follows:

1. To examine attitudes towards strategic environment scanning on the organizational performance in a competitive business environment.
2. To examine the factors of strategic environmental scanning on organizational performance
3. To know the challenges of environmental scanning on organizational performance
4. To assess the effect of strategic environmental scanning on the organizational performance in a competitive environment.

1. RESEARCH QUESTIONS

The research questions to be address in this study are as follows:

1. What are the attitudes of business men/women towards strategic environment scanning on the organizational performance in a competitive business environment?
2. What are the factors of strategic environmental scanning on organizational performance?
3. What are the challenges of environmental scanning on organizational performance?
4. What are the effects of strategic environmental scanning on the organizational performance in a competitive environment?

1. STATEMENT OF HYPOTHESIS

H0 there is no significant relationship between strategic environmental scanning and organizational performance in a competitive environment.

1. SIGNIFICANCE OF THE STUDY

The study is on strategic environment scanning and organization performance in a competitive business environment. The study therefore will serve as an eye opener to both young and future entrepreneurs on the relationship that exist between strategic environment scanning and organization performance in a competitive business environment. Furthermore, it will also help them to know the challenges, factors, and effects of strategic environment scanning on the organization performance. This will invariably bring development as businesses thrive and most individuals would be economically independent.

1. SCOPE OF THE STUDY

This study is to investigate the relationship that exists between strategic environment scanning and organization performance in a competitive environment in Nigeria. It takes a focus on the business men and women and the entrepreneurs in general. It covers the entire business environment in Nigeria.

1. LIMITATION OF THE STUDY

TIME CONSTRAINTS: One the challenges experienced by the researcher is the issue of time; the research will simultaneously engage in departmental activities like seminars and attendance to lectures. But the researcher was able to meet up with the deadline for the submission of the project.

FINANCIAL CONSTRAINTS: Every research work needs funding; however lack of adequate funds might affect the speed of the researcher in getting materials for completion of the project.

1. DEFINITION OF TERMS

ENVIRONMENTAL SCANNING

One of the authors to address this theme was Aguillar (1967), who defines scanning as a manner through which managers acquire relevant information about what happens outside the company so that future courses of action are taken. According to McGee and Sawyerr (2003), environmental scanning is a present and essential practice in business management, where the collection of accurate information is necessary. This scanning is important so that organizations operate as open systems, searching for resources and legitimacy in their environment. In addition, scanning makes it easy to obtain signals or information and, whenever effectively taken into account, it describes the conditions reflected in the environment, shows advancements, opportunities and the conditions related to existence or nonexistence of problems (Yasai - Ardekani ; Nystrom , 1996). 

STRATEGY AND STRATEGIC BEHAVIOR

The word strategy has a number of definitions. Ansoff (1977) regards strategy as a set of decision rules for the company to enjoy profitable growth. Strategies, according to Bourgeois (1980), are the means by which the management of a company sets goals and pursues them through the alignment of the organizational resources with the environment’s opportunities and threats. According to Porter (1986), strategy is associated with the positioning of the company in the environment it is part of, with the aim of achieving a favorable position.

ORGANIZATION

Organization is the process of identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.” In the words of Allen, organization is an instrument for achieving organizational goals. The work of each and every person is defined and authority and responsibility is fixed for accomplishing the same.

PERFORMANCE

In the work place, job performance is the hypothesized conception or requirements of a role. There are two types of job performances: contextual and task. Task performance is dependent on cognitive ability, while contextual performance is dependent on personality. Task performance relates to behavioral roles that are recognized in job descriptions and remuneration systems. They are directly related to organizational performance, whereas contextual performances are value-based and add additional behavioral roles that are not recognized in job descriptions and covered by compensation; these are extra roles that are indirectly related to organizational performance.