Components of Business Environment

Components of Business Environment

The component of business environment consist of those factors which are external in nature that affects our businesses, they includes physical, economical, social, technological, demographical and political factors. Owuoha (1994:267-269).

Physical Environmental Factor
For years, it was believed that our natural resources were free goods, which although wasted and exploited, would be replenished by nature, nation did not recognize that it was destroying the ability of nature to maintain a balance ecological system. Today many of our lakes and steans are too polluted to support plant and fish life. In strip-mine the waste and lies barren energy sources that took nature thousands of years to create are consumed within-minutes, as indicated by these few examples, a realistic programme of environment and energy conservation should be adopted by every business.

Economic Environment (al) Factor

Business persons are making decision in an economic environment, which are factors outside the control of a firm, such as international economic developments are exerting greater impact on Nigeria business. The policies of government and business have a strong influence upon our economic environment, and in turn, the economic environment affects the policies devised by government and business. Broom and Longnecker (1984-86)

Socio-Cultural Environment (al) Factor

Over the past several decades, there has been several significant social developments that have influenced the function and structure of Nigeria society. Successful businesses have responded to these changed social conditions by altering their company policies and product offering business that have failed to recognized and adopt the socio-cultural trends have experienced sales and profit decline. Gomez and Bukin (2002:4).

Demographical Environment (al) Factors

These involve the study of the basis characteristics of human population to ascertain their strata and variables as they affect the existence of a business, sex, age, family all of these categories constitutes the demography of a targeted consumers, managers are inevitably making decision o these environments and under such otiose to survive or fail as many be implied in their approach to the demographic situation. Morgan, Jr (1973).

Technological Environment (al) Factor

Technology is the practical application of research and discovery, which result in a higher standard of living and increased productivity, since many of the technological advancements in production cause a greater amount of energy than the production facilities which they replace, they have added to out pollution and energy problems. The estimates that 90% of all the scientists that lived and are still living today indicates that even greater technological achievement can be expected Akpela (2003)

Political Environment (al) Factor

In the last quarter o the last century, the east north civil war, tribalism, militaries dictatorship era have caused numerous companies to seek new markets in other parts of the country and abroad and produced high levels for government spending and regulation. Federal action contributed to greater employment; some shortages and inflation although it is difficult to separate political factors, this section will attempt to indicates governmental action that affect managerial decision making (Nwosu, 1996).