METHODS OF DATA COLLECTION

Data can be regarded as information. It can be given out or taken for the purpose of making interferences in research. In this case, it may include numerical or statistical results or figures such as percentages. It may also include verbal materials like newspaper accounts, scholastic essay etc. we can therefore say that any collection of verbal or numerical information from which inferences or conclusions can be drawn or analyzed is regarded as data. It means that data can be quantitative or qualitative. 

Any information which comes in numbers, figures, measures or quantities is said to be quantitative. Where as any information which comes as a verbal description of attribute or characteristics is regarded as qualitative. So when you have evidences obtained from other research studies, observations made from the field and laboratory settings, information extracted from records and documents, score collected from tests of various types etc; you say you have data. 

Remember that you go to the field to collect data for the purpose of using the data carefully collected from your subject, to test your hypotheses in order to draw your inferences and conclusions. These inferences and conclusions are about rejecting the hypotheses or supporting them as away of providing answers to your problem of study. Therefore, the data you collect and the tools which you use for collecting them must be relevant to your hypotheses and research design. According to Tolbert (1967) all data gathering devices should be closely related to the design of the study. You can conveniently describe data collection then, as a research activity involving the process of gathering relevant information with reference to the stated hypotheses, variables and design

TYPES OF DATA USED IN RESEARCH INVESTIGATIONS 
There are basically two categories data collected and used in research. These, according to Gupte (1979) are: - Primary data and Secondary data

Primary data: These are information, facts or statistical materials which you as a researcher originate for the purpose of the inquiry on hand. This is sometimes popularly called the “First hand information” or “information from the horses mouth”. They are referred to as eye witness account of an event or phenomenon. Such information is extracted from the actual participants themselves. It may be through oral interviews or discussions or through written diaries, minutes, proceedings, pictures, objects etc

 Secondary data: These refer to information, facts or statistical materials which are not originated by you as the researcher or investigator. These are materials from someone else‟s records or other documents like books, journals, newspaper reports and other research works that may be got from the libraries. In the simplest form, secondary data are not first hand information.

QUESTIONNAIRE METHOD OF COLLECTING DATA 
Let us start this section by letting you know that any time you want to collect data. You will need to consider some factors before you choose the suitable method. These factors include: Purpose, problem and hypothesis of the study Time required for the study The accuracy desired of the study Funds available for the study Other facilities available and The nature of the person conducting the research in terms of the level of training. 

Most researchers, who conduct survey researches, make use of the questionnaire as the instrument for data collection. The questionnaire is generally a form containing some questions which the respondents fill out without any help or comment from the researcher. It enables data to be collected from large samples

According to Okpata, Onuoha and Oyedeji (1993) a questionnaire is a self reporting instrument that has received a good use in educational, researches, psychological and social science researches, programme evaluation etc. it is described as the most common type of research instrument.

CHARACTERISTICS OF A GOOD QUESTIONNAIRE 
The characteristics of a good questionnaire are: 
- A questionnaire deals with a significant topic:. The topic or problem should be such that any respondent will recognize it as important enough to warrant spending his time on. Therefore, the significance should be clearly and carefully stated either on the questionnaire or in the accompanying letter. 
 - It seeks only such information which cannot be obtained from other sources like financial reports, census data etc. 

 - It is as short as possible, and only long enough to get the essential data. Do not make the instrument very long. This is because most people find it time wasting. Most of the times, long questionnaires find their ways into the waste basket. Therefore, make the questionnaire response clear and very easy to complete. Keep the writing required to a minimum. 

 - It is attractive in appearance. It is neatly arranged and clearly printed or produced.

 - Instructions are clear and complete. Important terms are defined. Each item deals with a single idea and is worded as simply and possible.

CONSTRUCTION OF A QUESTIONNAIRE 
According to Okpala, et al (1995) a researcher is faced with respondents who have great amount of information that could go untapped unless the questionnaire items are valid and reliable enough to elicit the required information. Henderson et al (1978) suggested eight steps to which the process of developing and using a questionnaire can be divided. 
These are; 

• Identifying the programmes objectives and specific information to be obtained. 
• Select a response format 
• Identifying the frame of reference of the respondents. 
• Writing the items/questions 
• Preparing a data summary sheet 
• Critiquing the questions, trying them out and revising them 
• Assembling the questionnaires 
• Administering the questionnaires

TYPES OF QUESTIONNAIRES 

There are two main types of questionnaires based on two basic types of question formats. These are closed ended questions and open-ended questions. Closed ended questions and those that provide respondent with fixed set of alternatives from which they are to choose. For instance, the response format of multiple choice-items and scales are all closed-ended. Where as open-ended questions are those questions to which the respondents write their own response, as it is in an essay examination questions. 

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RESEARCH METHODOLOGY

kalin (1995) sees research as the systematic and objective analysis and recording of controlled observations that may lead to the development of generalizations, principles or theories, resulting in prediction and possibly ultimate control of events. 

Research may be broadly described as any systematic endeavors or striving towards the understanding, on perceiving certain complex situational problem of more than immediate personal concern and stated in a problematic form (Heros, 1960)

Travers (1969) has described research as an activity directed towards the development of an organized body of scientific knowledge about the events with which human  beings are concerned

Leedy (1997) defines research as the systematic process of collecting and analyzing information (data) in order to increase our understanding of the phenomenon with which we are concerned or interested.

Research originates with a question or problem: Everywhere around us is filled with many answered questions and unresolved problems. When we look around, we observe things that make us wonder and to ask questions. These questions may start to spark igniting chains of reactions which terminate in the research process. An inquisitive mind is the beginning of research. 

Research requires a clear articulation of a goal: It is critical to have a clear and unambiguous statement of the problem. This statement gives you an exercise in intellectual honesty. The ultimate goals of the research should be given in a grammatically complete sentence which is precise and clear. 

Research requires a specific plan of procedure: You should not hope that the data necessary to solve the problem would somehow fortuitously come up. You have to have rather a planned attack, a search – and – discover mission explicitly planned or designed in advance. 

Research usually divides the principal problem into more manageable subproblems: A whole is made up of parts. This is a natural law universally accepted. So when you think about your principal goal in research, try to observe this goal precept. Research is guided by specific research questions, problems or hypothesis: These guide you and direct you on what to do and how to do it in order to arrive at the solution to the problem. 

Research accepts certain critical assumptions: These must be self-evident truths. These assumptions must be valid in order to make the research to proceed. You must let others know what you assume with respect to your study.

Research requires the collection and interpretation of data: You need to collect appropriate data, organize them in a meaningful way so that they can be analyzed and interpreted.

CHARACTERISTICS OF RESEARCH

The major characteristics of any research are; Objectivity, precision, design and verifiability.

Objectivity: In an ideal situation, a research is beyond the subjective bias of the researcher. As a researcher, you have to make deliberate efforts to eliminate all personal preferences. You should resist the temptation to seek only such data which support your hypotheses or your 9 line of taught. In a scientific research, emphasis is on testing the hypothesis not to prove it. You have to willingly suspend your personal judgment in order to allow the data and logic to lead independently to a sound conclusion.

Precision: When you conduct a good research and write the report but your readers do not understand what you have done, you may have succeeded in wasting your time and efforts. Every research should use a technical language in order to convey the exact meaning to the readers. Such research languages include validity, reliability, random sampling variables etc. The most precise expression in quantitative research is the mathematical equation or statistical finding which explains or represents the truth. But in qualitative research, precision is achieved through words rather than numbers

Design: If you want to have a good research, you must have a very good and systematic design. This implies that every scientific inquiry will generally undergo such steps as:

 - Definition of the problem 

 - Statement of the hypothesis 

 - Collection and analysis of data 

 - Testing and confirmation or rejection of hypothesis. 

 - Reporting of the results. 

Any research, which has no orderly design, cannot be replicated for verification.

Verifiability: When you conduct a research, you write your report. This presents the research design and the findings to the professional community. From this point other researchers and scholars will study the report, analyze it in order to confirm or reject the outcomes. This tells you that research is a social enterprise. Its information is open for public scrutiny. Verification is related to objectivity and precision. It is only through further investigation or replication of the study can the results of any study be confirmed, revised or rejected. It is also through this process that a body of new knowledge is developed and new questions identified. 

Verifiability can be achieved through two different approaches:

- Analyzing the same data on the same sample through alternative analytical tools or statistical methods.

-  Replicating the study on a different sample.

TYPES OF RESEARCH 

Research in general can be classified in many different ways. If we want to classify research based on its goal or objective, then we think of two major types. These are fundamental or basic research and applied research.

Fundamental Research: The main purpose of these types of research is to obtain empirical data which can be used to formulate, expand or evaluate a theory. It is not actually directed in design or purpose towards the solution of practical problems. The main aim is to expand the frontiers of knowledge without the intention of having practical applications.

Applied Research: Unlike basic research, this type is directed towards the solution to an immediate, specific and practical problem. It is the type of research which you can conduct in relation to actual problems and under the conditions in which they are found in practice.

When research is classified according to methodology, if can also be classified according to Creswell (1994) into two broad areas. These are quantitative and qualitative approaches.

Quantitative and Qualitative Research: According to Leedy (1995) Quantitative research is an inquiry into a social or human problem, based on testing a theory composed of variables measured with numbers or figures and analyzed with statistical procedures in order to determine whether the predictive generalizations of the theory hold true. He also defines Qualitative research is an enquiry process of understanding a social or human problem, based on building a complex, holistic picture formed with words reporting detailed views of information, and conducted in a natural setting.

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DEFINITION AND SCOPE OF LABOUR ECONOMICS

Definition of Labour Economics
Labour is the totality of all human, physical and mental efforts used in creation of goods and services.
That is, it is the measure of work done (i.e. physical or mental) by human beings. From the above definition, it is clear that labour is an important factor of productive resources. Also, it is logical to
conclude that labour in economics is not just limited to physical effort but also mental activities which give rise to the creation of utility. 
Therefore, in the field of economics, labour is classified into skilled, semi-skilled and unskilled labour.

Skilled Labour: It is a segment of the work force with a high skill level that creates significant economic value through the work performed. Skilled labour is characterised by advanced or formal education. Examples of skilled labour include medical doctors, engineers, scientists, lecturers, lawyers, etc.
Semi-Skilled labour: It is the part of the work force requiring less training than skilled labour, and more than unskilled labour. The labour requirement here is generally routine in nature and requires less skill or expertise. Examples include book binder, ironman, dyer, dry cleaner, etc. it can be added that semi-skilled labour stands in between the skilled labour and unskilled labour.
Unskilled labour: This requires operations that involve the performance of simple duties, which require little or no skill. This kind of labour requires physical exertion as well as familiarity with variety of articles. Examples include watchman, sweeper, cleaner, loader, messenger, etc.

Economics is concerned with maximization of resources (i.e. labour) to achieve maximum output.

Labour economics is defined as the branch of economics which studies how the market for labour operates, with a view to understanding the interactions between workers and employers. Labour
economics studies the nature and determinants of employment and compensation. There are three (3) key players in the Labour market: the workers, the firm and the government. 

Labour economics basically looks at the suppliers of labour services (workers), the demanders of labour services (employers), and attempts to understand the resulting pattern of wages, employment and income.

Below are some of the reasons for studying labour economics;
 For virtually all households in the economy, the sale of their labour services constitutes their major source of income.
 The price of the goods that they sell is the main determinant of their economic well being.
 To understand the distribution of income in society─who earns what and why, we need to understand labour markets, and how wages are determined.
 Like every commodity, labour has a number of special features/peculiarities that must be taken
into account in a more in-depth analysis.
 Each of these features has important implications for how labour markets work and for prices and
quantities.
 Labour economics helps to understand the result pattern of income, employment and wages by examining and analyzing wage distribution across industries.
 It has helped us to gain a far better understanding of the factors affecting labour and labour market.

Labour Market
In a simple term, labour market is a market in which workers find paying work, employers find willing and able workers, and the wage rates are determined. Technically, labour market involves the interplay of the demand for labour and the supply of labour in the determination of the wage rate

Types of labour market
There are two types of labour market: internal and external labour market.
Internal labour market (ILM) refers to the determinants of pay and employment within a firm, while external labour market (ELM) refers to the determinants of pay and employment between firms, or within and across industries. Economists place emphasis on these distinctions in explaining how labour market works.

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GENERAL INTRODUCTION TO LAW AND BUSINESS LAW

Law simply means “that which is laid down, ordained or established; a rule or method according to which phenomena or actions co-exist or follow each other. That which must be obeyed and followed by citizens subject to sanctions or legal consequences is a “law.”

Classification of Law
(i) Public Law deals with the State in its political and sovereign capacity e.g. Criminal Law, Administrative and Constitutional Law.
(ii) Private Law is administered between citizens. It deals with enforcement of rights e.g Contract, Family Law, Torts, Trusts and Succession.
(iii) Public International Law consists of rules regulating relationship amongst sovereign states.
(iv) Private International Law is also called “Conflict of Laws,” that is, differences between the municipal laws of different countries. It arises from the diversity of laws of the different nations and the need to reconcile the inconsistency e.g. Marriage laws.

Law, Morals and Religion
(i) Law consists of rules and regulations.
(ii) Law varies from culture to culture hence the problem of universally accepted definition. Law is therefore better described in line with what it does in a particular setting.
(iii) Morality is premised on human behaviour. It is based on the notion of what is good or bad or what is right or wrong in the circumstance. Ability to enforce law is the main distinction between law and morality. Law, if disobeyed, is punitive. Violation of moral precepts leads to social sanction repulsion, indignation or surprise
(iv) Religion guides the morals of a given society by preaching what is good or bad. It impacts on the inner spiritual being of the people. According to Philosopher Karl Mark, ‘Religion is the opium of the people.’
(v) Law is essentially premised on authority and command. Austin (John) said. “It is the command of the commander to the commanded and as such, it must be obeyed, good or bad.” Bad laws may still be valid e.g. in Hitler’s Germany or Saddam Hussein’s Iraq.

Concept of Justice
􂀕 Justice means the idea of fairness according to law.
􂀕 The idea of justice is highly instrumental to the understanding of law.
􂀕 Justice is all about the just and fair application of legal rules with emphasis on fair hearing, natural justice and adherence to the due process of law. Justice is synonymous with peace in the society. The antithesis of justice is chaos and anarchy.
􂀕 Justice also relates to the fair and equitable distribution of obligations and opportunities in the society

Rule of Law
- The concept of rule of law pre-supposes that all activities within the society should be done according to laid down procedures. There should be no arbitrary actions by individuals, groups or institutions of governance.
- The idea of Rule of Law was propounded by A.V. Dicey, an English constitutional law expert who summarized it under the three principles of legality, equality and impartiality. Access to these implies freedom, liberty and justice for the citizens.
- Society would be orderly and peaceful. Economic, social and political development would be assured.

Fundamental Human Rights
Fundamental human rights are those categories of rights to which citizens are naturally entitled. They are inalienable rights that cannot be ordinarily derogated from. Those outlined in the 1999 Constitution (as amended) among others include:

(a) Right to life (s. 33)
(b) Right to dignity of human person (s. 34)
(c) Right to personal liberty (s. 35)
(d) Right to fair hearing (s. 36)
(e) Right to private and family life (s. 37)
(f) Right to freedom of thought, conscience and religion (s. 38)
(g) Right to freedom of expression and the press (s. 39)
(h) Right to peaceful assembly and association (s.40)
(i) Right to freedom of movement (s. 41)
(j) Right to freedom from discrimination (s. 42)
(k) Right to acquire and own immovable property anywhere in Nigeria (s. 43) Section 44 enacts that there shall be no compulsory takeover of property without adequate compensation

Functions of law in the society
(i) Maintenance of law and order
(ii) Ensuring national unity and cohesion
(iii) Resolving conflicting interests
(iv) Serving as means of social cleansing
(v) Serving as means of social engineering
(vi) Serving as means of correcting and guiding the people
(vii) Articulating and re-orientating human behaviour within the society
(viii) Ensuring the smooth ordering of affairs within the society
(ix) Conferring rights and imposing obligations and duties on the citizens and the government alike
(x) Manifesting and reflecting the ethos of the society. A society gets the type of law that suits its polity.

Sources of Nigerian Law
(i) Primary sources
- Received English Law – Common Law, Equity, Statutes of General Application as at January 1, 1900
- Nigerian Legislation and Statutes e.g., Hire Purchase (HP), Company and Allied Matters Act (CAMA), Sale of Goods Act (SOGA), Labour Act, Insurance Act.
- Judicial Precedents and Case Laws
- Delegated Legislation – Statutory Instruments and Ministerial Orders.
(ii)Secondary Sources
- Customary/Islamic Law: The Repugnancy Doctrine states that customary/Islamic law.
• Must not be repugnant to natural justice, equity and good conscience.
• Must not be contrary to public policy and
• Must not be incompatible with any law for the time being in force
- International law – Conventions, Treaties Protocols e.g., Economic Community of West Africa (ECOWAS). African Union (AU), United Nations Organisation (UNO).
- Books by Authors – interpretative opinions.

What is Business Law
Business or Commercial law or Mercantile law, also known as trade law, is the body of law that applies to the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales. It is often considered to be a branch of civil law and deals with issues of both private law and public law.

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PARTNERSHIP (FORM OF BUSINESS OWNERSHIP)

Partnership
This is a business owned by two or more persons who have agreed to abide by a Partnership Agreement otherwise known as Partnership Deed. A partnership usually comprises of between 2 and 20 persons. The Partnership Deed will set out how management decisions are to be made and the proportion of the profits that each partner is entitled to. The Partners then pay personal income tax on their share of the profits.
Partnership like sole proprietorship also faces the challenge of unlimited liability. If the business runs into financial difficulties, each partner can be held responsible for all the business debts and not just his or her contributions to the partnership. The moral therefore is ‘know thy partner’. The life span of the partnership depends on the agreement signed by the partners involved.

Types of partnerships
There are different types of partnership arrangements. Below are some examples.

Limited Partnership
This is a type of partnership which is formed and registered under the Limited Partnership Act. In a limited partnership, there must be one general partner with unlimited liability and one limited partner whose liability is limited to the amount invested. The limited partners cannot take equal part in management and administration of the business but can have access to the account of the partnership.

General (Ordinary) Partnership
In this type of partnership, partners have equal responsibilities and risks in the business. All partners are agents of the firm and they share the responsibility of running the business. Hence they are liable to the full extent of the debts of the firm. The liability of members is unlimited.

Active Partnership
Partners under this type of partnership arrangement take active part in the management and administration of the partnership business. Partners contribute to the financing and formation of the business, take active roles in the day-to-day running of the enterprise and they earn salaries as agreed in the partnership deed.

Nominal (Quasi) Partnership
This is a type of partnership where a nominal partner contributes only his name to the formation of the business. He neither contributes capital nor takes part in the management of the firm. A nominal partner must be a distinguished personality within the society as his name must surely increase the reputation and possibly the goodwill of the partnership business. A nominal partner would share in the profits and or debts of the firm as specified in the Partnership Act of 1980.

Dormant Partnership
A dormant partner takes no part in the conduct and management of the partnership business. He will contribute capital and share from the profit but will not engage in the day-to-day running of the business. A dormant partner is not exonerated from the debts of the enterprise and would share in any liability in the event of wrong decisions by the active partners.

Formation of Partnership
Persons entering into partnerships usually express their intention in a partnership agreement known as Deed of Partnership. The Deed of Partnership is defined as agreements, rules and regulations guiding the members of a partnership.

The agreement contains the following rules and regulations:
1. The names of the partners.
2. The name of the firm.
3. The nature of the business formed.
4. The rights and duties of each partner.
5. The proportion in which capital is to be provided.
6. Whether interests should be paid on capital or not.
7. The signatories to the firm’s accounts.
8. The sharing of profits, provisions for drawings and payment of salaries to partners.
9. Duration of the partnership.
10. The circumstances under which the partnership shall be dissolved.
11. The method of admission of new partners.
12. The objective of the firm.

Advantages of partnership
The following advantages exist.
¨ Sufficient Capital: unlike sole proprietorship whose capital is limited to the investment of only one person, a partnership is able to generate adequate capital because it involves more persons who can provide more sources of funds for the business.
¨ Increase in production efficiency as a result of increase in capital and management.
¨ Better management through combination of skills and abilities and joint decision making that is, putting heads together to take joint decisions.
¨ Privacy: partnerships are not compelled by law to publish their annual accounts for public consumption.
¨ Sharing of risks and liabilities reduces individual burdens
¨ Higher chances of continuity
¨ No legal formalities required
¨ Specialization in management

Disadvantages of partnership
· Unlimited liability
· The business is not a legal entity
· Limited growth: growth potentials are dependent on the managerial abilities of the partners
· Disagreement between partners can end the business
· There is risk of dissolution of the business through death, insanity or bankruptcy
· The business may still not be able to raise sufficient capital required to run the business.

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SOLE PROPRIETORSHIP (FORM OF BUSINESS)

Sole proprietorship is a type of business that is wholly owned by one person. The business belongs to just one owner who has no partners or any other shareholder. The business owner is personally liable for the entire firm’s obligations, that is, the owner bears all the costs and keeps all the profits. The company may or may not be registered with regulatory authority that is, Corporate Affairs Commission (CAC).

Advantages of a Sole Proprietorship
· A sole proprietorship is a business that can be easily established.
· Capital requirement is small.
· Decision making process is quick.
· There are no strict regulations governing the establishment of a sole proprietorship.
· It is a form of business well-suited for small companies with informal business structure.
· All profits belong to the business owner.
· There is privacy in conducting business affairs.
· There is close relationship between owner and customers.

Disadvantages of a Sole Proprietorship
· One major disadvantage of sole proprietorship is that the owner is responsible for all the business’s debts and liabilities. If the assets of the business are not adequate to pay back the debts of the business, the personal belongings of a sole trader would be used in paying back such debts. 
· Problem of business continuity in the event of death of the business owner.
· Inadequacy of capital.
· Business expansion is limited to owner’s capital.
· Unregistered business name can not do business with government agencies and some well established companies.
· Inability to keep bank account in the name of an unregistered business name.
· Problem of business continuity in the event of death of the business owner.
· Inadequacy of capital.
· Business expansion is limited to owner’s capital.
· Unregistered business name can not do business with government agencies and some well established companies.
· Inability to keep bank account in the name of an unregistered business name.

Sources of capital of a sole proprietorship
The sole proprietor can obtain his capital from the following sources:
· Personal savings
· Loans from friends, cooperative societies etc
· Trade creditors
· Loans and overdrafts from banks
· Grants and loans from Government

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The Business Environment

The business environment is simply the surroundings within which a business exists. Business environment embraces all institutions, organisations and individuals whose activities have an impact, whether directly or indirectly, on business behaviour (Ifechukwu, 1986).

• Business environment is made up of the internal and the external environment. 
• The external environment is further divided into two - Macro and Micro Environment. 
• The macro environment is regarded as the general environment while the micro environment is regarded as the specific or task environment. 
• The internal environment could be termed the controllable environment while the external environment is seen as uncontrollable.

The internal environmental factors refer to those factors over which the management of the

business has control, at least in the short run; this is why it is also called the controllable environment of the business.

The external environment is a set of complex, rapidly changing and significant interacting institutions and forces that affect the organization's ability to serve its customers. External forces are not controlled by an organization but they may be influenced or affected by the organization. 

The external environment is divided into two – macro and micro environment. The macro environment is referred to as the general or remote environment while the micro environment is seen as the specific or task or operating environment. 

Macro environment (General or Remote Environment)

The external macro environment consists of all the outside institutions and forces that have

an actual or potential interest or impact on the organization's ability to achieve its objectives.

This includes the economic, technological, political, legal, social, cultural, demographic and

ecosystem. 

Economic Environment: The economic environment consists of factors that affect consumer

purchasing power and spending patterns. Economic factors include business cycles, inflation,

unemployment, interest rates, and income. Changes in major economic variables have a

significant impact on the marketplace. 

Technological Environment: The technological environment refers to new techniques or

methods which are used to create new product and market opportunities. Technological

developments are the most manageable uncontrollable forces faced by marketers.

Organizations need to be aware of new technologies in order to turn these advances into

opportunities and a competitive edge.

Political and Legal Environment: Organizations must operate within a framework of

governmental regulation and legislation. Government relationships with organizations

encompass subsidies, tariffs, import quotas, and deregulation of industries.

Demographic Environment: Demographics tell marketers who current and potential

customers are, where they are, and how many are likely to buy what the marketer is selling.

Demography is the study of human populations in terms of size, density, location, age, sex,

race, occupation, and other statistics.

Social/Cultural Environment: Social/cultural forces are the most difficult uncontrollable

variables to predict. It is important for businesses as well as marketers to understand and

appreciate the cultural values of the environment in which they operate. The cultural

environment is made up of forces that affect society's basic values, perceptions, preferences,

and behaviours.

Micro (Specific or Task or Operating) Environment

The external microenvironment consists of forces that are part of an organization's marketing

process but are external to the organization. These micro environmental forces include the

organization's market, competitors, producer-suppliers, and its marketing intermediaries.

While these are external, the organization is capable of exerting more influence over these

than forces in the macro environment.

Characteristics of Business Environment

The environment of business exhibits the following characteristics:

Dynamism: The business environment is not static. It is dynamic and as such changes

continuously. This is because of the interactions of the various factors that make up the

business environment.

Complexity: The business environment is not simple; it is complex by virtue of the various

components that comprise it and the interactions and interrelationships among these factors.

Multifaceted: The business environment is many-sided. It can be viewed from many angles

by the parties involved. Hence, an occurrence that is viewed as strength to an organization

may be perceived as a weakness by another.

Far-reaching impact: The happenings in the business environment can have enormous

impact on the organization. It could have the ripple effect. This is because the business

environment can be conceived as a system, specifically an open system made up of different

components that interact and interrelate with one another.

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