CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In his theory of evolution, Charles Darwin sought to explain the nature of the relationship that exists between organisms and their environment. The theory “suggested that environmental change forces each species to incremental, but continuous, mutation or transformation. Through such a change, a living entity can adapt to its environment and survive. A specie that cannot conform to its environmental requirements is doomed, eventually becoming extinct” (Wright et al, 1996:7). This theory emphasizes that animals evolve as time goes on and that the direction of this evolution depends on the nature of the environment in which the animal lives. When life was purely aquatic, animals evolved features that enabled them to live in water; when life moved from water to land, the amphibians that effected the transition evolved features that enabled them to survive in both land and water, and when life became terrestrial, terrestrial animals developed features suited for life on land. Darwin’s theory also postulates that the ability of any given specie to survive in its environment for long will depend on the ability of such specie to adapt to changes in its environment.
On closer examination, the theory of evolution itself seems to be an exposition of a primordial universal law that manifests with an uncanny similarity in biology and in the corporate world. For instance, in management literature, coevolving refers to the corporate strategic process by which business organisations “routinely change the web of collaborative links among businesses to exploit fresh opportunities for synergies and drop deteriorating ones .” The links could be in the form of exchange of information, shared business assets and strategies, etc. Only organisations that master this process are able to synergize. But the term co-evolution is an aspect of the general theory of evolution and therefore has its origin in biology and “it refers to successive changes among two or more ecologically independent but unique species such that their evolutionary trajectories become intertwined over time; as these species adapt to their environment, they also adapt to one another. The result is an ecosystem of partially interdependent species that adapt together……(Eisenhardt and Galunic, 2001: 111-138 ).
Management and organizational theorists have been significantly influenced by this perspective of evolution;
As a result they believe that organisations are influenced by the environment; that environmental change is gradual, requiring concomitant organisational change; and that effective organisations are those that conform most closely to environmental requirements. Firms that cannot or do not adapt to gradual external change eventually find themselves outpaced by their competitors and forced out of business.
Organisations are systems. The Oxford English Dictionary defines a system as a set or assemblage of things connected, or interdependent, so as to form a complex unity; a whole composed of parts in orderly arrangement according to some scheme or plan. Systems can be considered to be either closed or open. A system is regarded as open if it exchanges information, energy or material with its environment as happens with biological or social systems; otherwise it is regarded as closed (Koontz et al, 1981:19). Researchers have long discovered that organisations are open systems that constantly interact with their environment and in the process affect and are affected by the environment. According to Hicks and Gullet (1987:70), an organisation does not exist in a vacuum but exists in an environment that provides resources and limitations. If it is to remain prosperous, an organisation must continually adapt to its environment which is constantly changing. They also believe that failure to adequately adapt to the environment is a major cause of organisational failure.
The environment in which organisations operate in Nigeria as in other parts of the world is dynamic and is becoming increasingly so. As the environment changes, there is the need for organisations to change in order to adapt to such environmental changes. Organisations that are unable to adapt eventually die or fold up. The increase in the rate of change, complexity as well as level of competition in the Nigerian business environment can be attributed to a number of factors. First among such factors is globalization. Propelled by accumulated developments in transportation and information technology, globalisation has transformed the economies of the world into one global market where local market boundaries to a large extent have been effaced. This simply implies that a firm in Nigeria is not just competing with other firms in its industry in Nigeria but with every other firm in the same line of business anywhere in the world. Globalisation therefore spells intense competition and for firms in developing countries like Nigeria, this poses a big threat. Of course, it also increases the range of opportunities open to each individual firm. This calls for some level of flexibility among firms if they are to remain competitive.
Commenting on the importance of organisational flexibility, Blyton (1998:57) states that greater market uncertainty and changes in technology and production processes are widely associated with giving added significance to organisational flexibility and that other factors include growth in international trade and competition stemming from the increased activities of Japan and other industrialised nations, expansion of multi-national corporations, increase in cross border trade due to liberalisation and the collapse of the east-west divide in Germany. Blyton believes that this growth in competition and expansion of multinationals into a wider range of markets have made the markets more volatile and less dependable for individual companies and that this has in turn heightened the need for organisations to increase their responsiveness and consequently to develop greater flexibility.
Another factor that has increased the level of turbulence in the Nigerian business environment is the extensive and comprehensive economic reform programme which the federal government has for some time been implementing. This reform initiative involves among other things the privatisation and commercialisation of government owned companies (NEEDS, 2004). This has introduced competition into economic sectors that hitherto were monopolies and has also expanded the scope of business opportunities available to operators in the private sector. There is also the recapitalisation requirement for the banking and insurance sub-sectors which has led to the consolidation of that sector through mergers and acquisitions. Globalisation and the economic reform programme by the government together comprise what Kazmi (2005: 108) refers to as the LPG (liberalisation, privatisation and globalisation) of the business environment. Combine this with the constant changes occurring in all the other aspects of the business environment especially government policies and it becomes clear that any organisation that remains unresponsive is doomed to failure.
| Project details | Contents |
|---|---|
| Number of Pages | 59 pages |
| Chapter one | Introduction |
| Chapter two | Literature review |
| Chapter three | methodology |
| Chapter four | Data analysis |
| Chapter five | Summary,discussion & recommendations |
| Reference | Reference |
| Questionnaire | Questionnaire |
| Appendix | Appendix |
| Chapter summary | 1 to 5 chapters |
| Available document | PDF and MS-word format |
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