Nigeria Business environment
The natural world as a whole or in a particular geographical area, especially as affected by human, animal, or plant is referred to as the Environment, mind you, not only the three elements above are being affected by environment, but also all business activities.
Thereby. Business environment means all of the internal and external factors that affect or influence how the company functions including employees, customers, and management, supply and demand and business regulations. Whereas, one of the characteristics a business must possess so as to survive is the “adaptation of the business to its existing environment”. Failure to adapt which will surely lead to an untimely liquidation of the such business or company.
The business environment may pose threats to a firm or offers immense and absolute opportunities for potential market exploitation. Environmental business solutions will surely give way to the environmental business opportunities.
A SWOT analysis is used to identify the key internal and external environmental factors of a business that are seen as important in achieving organizational goals. A good SWOT analysis will help an organization minimize its weaknesses and threats while taking advantage of the strengths and opportunities to survive
From the above, it can easily be deduced that Business environment in Nigeria can be classified into two main parts, (i.e internal and external factors). Now lets take a look at the meaning of the parts one by one:
Internal factors of business
The internal factors also known as “Micro environment” comprises of the factors in the immediate environment of a company that affect the performance of the company.
It includes:
- The suppliers
- Competitors
- Marketing intermediaries
- Customers
- pressure groups
- The general public
External factors of Business
The external factors of business otherwise called “Micro environment” can be refers to as forces out side of the business or organization that potentially affect the performance and welfare of the organization.
The macro environment of business consist:
- The economic factor
- Demographic factor
- Natural factor
- Cultural factor
- Government or political factor