SOURCE:

Faculty: Management Sciences
Department: Business Administration

CONTRIBUTORS:

Ezeilo, F. I.
Akpan, P. L.

ABSTRACT:

The aim of this research is to examine how the instability in the environmental factors influence the performance of breweries in Nigeria. Despite high expectations of breweries to record positive performance, the converse has been the case as the performance of breweries in Nigeria has been fluctuating recording more decline than success. Unpredictable environmental instability, unstable exchange rate, high rate of inflation, insecurity, problems of technological changes on profitability as well as low investment in research and development constitute problems to the brewing sector. In recognition of these problems, three registered breweries were selected for the study and regression models were specified in line with the objectives of this study to examine the extent to which environmental instability influence the performance of the selected breweries in Nigeria. The research analysed the correlation between the environmental factors and the performance of selected breweries using ordinary least square analytical techniques. Using the companys’ annual data for 25 years, this study found that exchange rate instability, inflation, insecurity, technological changes as well as investment have a significant relationship with the performance of breweries in Nigeria. The study recommends environmental scanning, substitution of imported with local raw material, adequate monetary and industrial policies, reassessment of brewer’s manufacturing processes and staying abreast with changing technologies, creation of employment for the citizens as well as creating an enabling environment devoid of insecurity to enhance performance. More importantly, the study encourages increase in investment on technology and enforcement of policy measures that can curb inflation as these will have positive and significant influence on the companys’ performance.