SOURCE:

Faculty: Management Sciences
Department: Business Administration

CONTRIBUTORS:

Enemuo, U.C;
Apkan, P.L;

ABSTRACT:

This study is centered on Strategic Environmental Scanning and Performance of selected Food and Beverage firms in Nigeria. The current business environmental problems in Nigeria and its attendant negative consequences on Performance of Food and Beverage sub–sector is the major concern that necessitates this study. Despite the high expectation of these firms to record positive performance on account of the viability of the sub-sector, their performance have been on the decline. Food and Beverage firms adopt different strategic approaches to monitor the relevant environment in recognition of the economic, technological, informational and market problems in their survival process. Thus, high rate of taxation, exchange rate instability, technological changes, high cost of production due to inflation, poor infrastructural facilities, lack of modern technology, high rate of insecurity in the country are some of the problems affecting the performance of Food and Beverage firms. In view of these, this study examined those strategic factors within the environment of Food and Beverage firms so as to determine the extent of the influence on the performance of these firms. To achieve this, models were specified in line with objectives of the study. These include; to examine the influence of taxation on Food and Beverage firms; to ascertain the influence of strategic investment on the profitability of Food and Beverage firms; to assess the influence of technology on the profitability of Food and Beverage firms, to determine the extent of the value added by turnover on sales on profitability of Food and Beverage firms and to examine the influence of societal environmental variables on goal attainment of Food and Beverage firms. Data was obtained from both secondary and primary sources. Data obtained were analyzed using ordinary least square (OLS) technique. Findings from the study revealed that strategic environmental scanning, taxation, exchange rate, technological changes in relation to competitor environment, economic environment enhance profitability thereby leading to successful performance. The study recommends that policy makers and monetary authorities should facilitate exchange rate stability and reasonable taxation aimed at strategic achievement of the lofty goals of the economy which in turn favors Food and Beverage firms in the business environment of Nigeria. Managers of Food and Beverage firms should strategically scan their environment especially the economic, technological and competitor environment so as to realize the need for improved technology and facilitate large scale production, greater return on strategic investment, efficient and effective decision making to secure the future of the firm.