1.1 Background of the Study
Enterprise success is a measure by how well a company meets the individual objectives of its business plan. It lies in understanding how each element can support or restrain the other, on how to balance the dynamics between the elements to determine the most constructive solutions in any situation. The concept of enterprise success has been widely studied at a global level. The theoretical framework that has been often adopted in the study of enterprise success is that of organizational performance, originally stemming from organizational effectiveness. Within this framework success of an enterprise is measured using organizational performance indicators. Initially, these indicators were largely economic, looking at return on investment, profitability, sales and employment as measures of success (Wiklund, 2009). One construct that can lead to enterprises success is environmental scanning. 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).
Environmental scanning is the monitoring, evaluating, and disseminating of information from the external and internal environment to key people within the corporation or organization (Kazmi, 2008). Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes. The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering (Bayode & Adebola, 2012).
According to Zhang, Majid and Soo (2009), environmental scanning should be used for tactical or strategic purposes to enhance project performance. Souchonet al. (2004) on receiving the processed information, the end-users would evaluate and use it for assisting with decision-making. In the current information intensive business environment, the utilization of information is indeed a critical factor in the achievement of organizational success and improvement of performance of organizational interventions.
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 environmental scanning on corporate success 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. From the foregoing therefore, the study was determined to examine the relationship between environmental scanning and enterprises success in some selected manufacturing firms in Rivers state.
1.2 Statement of Problems
The numbers of companies which are either underperforming or closing down businesses are increasing in the manufacturing firms. Harsh turbulent operating environment and an increasing competitive environment continues to prevail in Rivers State. The sector has been experiencing unprecedented challenges in the globalized operating environment. In light of the above, manufacturing firms are recording low business turnover which is leading to closure of the companies. Previous studies of determining the effect of environmental scanning on business performance have centered on large companies and limited research has been conducted on manufacturing firms. The study seeks to analyze the relationship between environmental scanning and business performance such that manufacturing firms can implement research findings for survival and increased enterprise success.
The study seeks to examine the relationship between environmental scanning and enterprises success in some selected manufacturing firms in Rivers state. To bridge the gap.
1.3 Objective of the Study
The main objective of the study is to examine the relationship between environmental scanning and enterprises success in some selected manufacturing firms in Rivers state. The specific objectives are as follows;
1. To examine the extent to which scanning needs assessment influence enterprises success in manufacturing firms in Rivers state.
2. To examine the extent to which acquisition of information associate with enterprises success in manufacturing firms in Rivers state.
3. To examine the extent to which processing of information influence enterprises success in manufacturing firms in Rivers state.
1.4 Research Questions
1. To what extent does scanning needs assessment influence enterprises success in manufacturing firms in Rivers State?
2. To what extent does acquisition of information associate with enterprises success in manufacturing firms in Rivers State?
3. To what extent does processing of information influence enterprises success in manufacturing firms in Rivers State?
1.5 Research Hypotheses
The following research hypotheses were formulated to guide the study.
H01: There is no significant relationship between scanning needs assessment and enterprises success in manufacturing firms in Rivers State.
H02: There is no significant relationship between acquisition of information and enterprises success in manufacturing firms in Rivers State.
H03: There is no significant relationship between processing of information and enterprises success in manufacturing firms in Rivers State.
1.6 Significance of the Study
The research findings will add to the existing knowledge on environmental scanning in Nigeria’s turbulent environment and will be useful to academics in their quest to improve enterprise. The findings will assist businesses prioritize and implement key environmental scanning activities and equip management with knowledge of how environmental scanning is linked to enterprise success. The policymakers in Nigeria’s will gain insights on policy formulation and programme improvements in environmental scanning training and funding requirements for businesses in Nigeria. The practitioners who specialize in strategic planning will enhance their knowledge of the Nigeria’s Retail environmental scanning behavior of managers/ business owners within the industry.
1.7 Scope/Delimitation of the Study
The study is delimited under the following heading: content scope, geographical scope and unit of analysis.
Content Scope: The content scope of this study involves an investigation to ascertain the relationship between environmental scanning and enterprise success. The independent variable is environmental scanning measured by acquisition of information, processing of information and utilization of information. While dependent variable is enterprise success, measures by market share, Sales Volume and profitability.
Geographical Scope: This study is delimited in Port Harcourt Metropolis with special reference to selected manufacturing firms in Rivers State.
Unit of Analysis: The unit of analysis in this research involves the individuals at the time of carrying out the study.
This study involves an investigation of job analysis in relation to corporate effectiveness. Hence it is a micro level study.
The major limitation of the study is the short time frame the research lasted, coupled with the tight academic time table, which prevented a very comprehensive study. The fund available to the researcher was also limited and therefore the study was limited to a small portion of the survey population.
Another limitation is the difficulties, encountered by the researcher in obtaining all needed information and materials from the right source and compilation of data for the project.
1.7 Definition of Terms
Environmental scanning: It is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes.
Enterprise success: It measures how well a company meets the individual objectives of its business plan.
Market share: It is calculated by taking the company’s sales over the period and dividing it by the total sales of the industry over the same period.
Sales volume: It is the number of units sold within a reporting period.
Profitability: It is the state of yielding financial profit or gain. It is often measured by price to earnings ratio.
Processing of Information: It is the change of information in any manner detectable by an observer.
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