DECLARATION

I, Okoroji Godswill Chinazam, a student of Department of Business

Administration Renaissance University, Ugbawka with matriculation number
RNU/BUS 2013/0005 hereby declare that this project report is original and has not
been submitted for any degree or diploma in any University or institution.

……………………………………… ……………………..
Okoroji Godswill Chinazam DATE
RNU/BUS 2013/0005

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 APPROVAL

This project topic titled “Effects of Environmental Factors on Business Location”

is a work by Okoroji Godswill Chinazam with Registration Number

RNU/BUS2013/0005. It has been read and approved as adequate for the partial

fulfilment of the requirements for the award of Bachelor of Science (B.Sc.) Degree

in Business Administration, Renaissance University, Ugbawka Enugu.

_______________ _______________
Mr Nnamani Willy Date
Project supervisor

_______________ _______________
Dr. Edeh L.O. Date
Head of Department

_______________ _______________
Dr. Ezeonwuka I.F. Date
Dean, collage of Management
And Social Sciences

_______________ _______________
External Supervisor Date

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 DEDICATION

This work is dedicated to God Almighty who gave me the strength and wisdom to
overcome some challenges, and my parents, Mr. and Mrs. Victor Okoroji.

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 ACKNOWLEDGEMENTS

I want to use this medium to extend my gratitude to a number of people who have
helped in contributing to this work in making it a successful one. I also express my
humble gratitude and appreciation to my supervisor, Mr. Nnamani Willy who in
his time and patience helped in contributing in so many to this project work.
My sincerest appreciation goes to the Head of Department of Business
Administration, Dr. Ede, L.O. and also my lecturers, Dr. Achidike, Dr. Nwele, Mr.
Anyansi and Mr. Okeke, for all their contributions and guidance in this project
research.
Not forgetting my loving family, my parents Mr. and Mrs. V.O Okoroji, my sibling
Mr. Victor Okoroji, Mrs. Adannaya Unachukwu, Mr. Onyedikachi Okoroji and
Favour Okoroji for their love and support, and also my wonderful friends,
Stephanie, Nonso, Esther, Okpaluwa, Clinton, Nsikan, Tony, and others for their
contributions, May God Almighty bless u all Abundantly.
Above all, I give all glory and honor to God Almighty, for his abundant love,
strength and guidance, in enabling me complete this project research. I am most
grateful to him.

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 ABSTRACT

This study examines the effect of environmental factors on business location. A

study of Ama brewery, Enugu state. Business location is among the most important
strategic decisions carried out by an organization, because it is key in the success
of an organization. However before an organization can be cited to a location,
certain factors are to be considered and a major factor includes the environmental
factor. The problem of the study was to determine how the environmental factors
affects the business location of Ama breweries, Enugu. The main objective of this
study were to determine the problems imposed by the influence of business
environment in an Organization, to recommend solution on environmental
problems as they affect business, to recommend measure(s) in order to make the
environment more conducive for business. Survey research method was the
research design used. The survey research method is necessary when the
population to be studied is so large to be observed directly. The data for this
research were collected from questionnaires handed out and with the aid of review
of relevant textbooks. In the course of research, 540 questionnaires were
distributed to the respondents but only 372 were received, this gave response rate
of 69%. In the findings of the research work, there are two categories of
environmental forces that influenced business performance. These are internal
environmental forces and external environmental forces. The internal
environmental forces or influence are those that affect the enterprise as separate
entity. They consist of function structure and relationship in the enterprise. The
forces that affect a business unit as well as other enterprises operating within the
same environmental are known as external environment. They are external to the
enterprise and cannot be effectively controlled by managers. It is revealed that the
success of a business depends on the consideration of environmental factors before

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establishing or locating any business. The researcher recommends that to minimize
the frequent occurrence of company liquidation and smoothen operation of any
organization business location must be put into consideration.

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 TABLE OF THE CONTENTS
Title page i
Deceleration ii
Approval iii
Dedication iv
Acknowledgement v
Abstract vi
List of contents ix
List of tables xiii

CHAPTER ONE: INTRODUCTION

1.1 Background of the study 1

1.2 Statement of the problem 2
1.3 Objectives of the study 2
1.4 Research questions 3
1.5 Research hypothesis 3
1.6 Significance of the study 4
1.7 Scope of the study 4
1.8 Limitation of the study 4
1.9 Definition of term 5
1.10 Historical Background of Ama Breweries, Enugu. 6

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CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 conceptual framework 7

2.1.1 Meaning of business 7
2.1.2 Characteristic of business 8
2.1.3 Objectives of business 10
2.1.4 Classification of business 17
2.1.5 Structure of Business ownership 18
2.1.6 Component of Business 18
2.1.7 The environment of business 24
2.1.8 Classification of business environment 27
2.1.9 Controllable and uncontrollable environment 28

2.1.10 The role of environment on location of industries 30

2.1.11 Differences between the location and localization of industry 31

2.1.12 Reason for locating and localizing industry 31

2.1.13 Reasons for localization of industries 33

2.2 Theoretical framework 33

2.2.1 Capitalist theory 33

2.2.2 Socialist theory 34

2.2.3 Mixed economy theory 34

2.3.4 Weber’s theory of location of industries 35

2.4 Empirical review 35

2.5 Summary of related literature 39

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CHAPTER THREE: METHODOLOGY

3.1 Introduction 41
3.2 Research Design 41
3.3 Area of the study 41
3.4 Sources of Data 41
3.5 Population of the study 42
3.6 Determination of sample size 42
3.7 Description of research instrument Administration 42
And collection of data
3.8 Validity of research 42
3.9 Reliability of research instrument 43
3.10 Method of data analysis 43

CHAPTER FOUR: DATA PRESENTATION AND ANALYSES

4.1 Introduction 45
4.2 Presentation and Analysis of Data 45
4.3 Analysis of questionnaire items 47
4.4 Test of Hypotheses 53
4.5 Discussion of findings 56

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CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION, AND
RECOMMENDATION

5.1 Summary of findings 57

5.2 Conclusions 58
5.3 Recommendations 60
5.4 Suggestions for further studies 61

BIBLIOGRAPHY 62

APPENDICES 64-68

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 LIST OF TABLES
PRESENTATION AND ANALYSIS OF RESPONSES TO
QUESTIONNAIRES

SECTION A

Table 1: Determination of response 45

Table 2: Respondents by Gender 46

Table 3: Age distribution 46

Table 4: Education qualification 47

SECTION B

Table 1: Does the religion of the people around has a negative impact 47
on the product patronage?

Table 2: Is there any change in the state of equipment used? 48

Table 3: Does the system of education affect the supply of manpower? 48

Table 4: Does the technological level of this country affect 49

your production level?

Table 5: Do you think the relationship between the trades union 50

and management of this company is cordial?

Table 6: Does the type of business pursued by the organization 50

have a negative effect on the environment.

Table 7: Is there any change on your product method? 51

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Table 8: Does this company render after sales services to its customers? 51

Table 9: Is the majority of the customer located within the environment? 52

Table 10: Does the company charge extra fees for the after 52
sales services rendered to its customers?

TEST OF HYPOHESIS

Table 1: Hypothesis one 54

Table 2: Hypothesis two 55

Table 3: Hypothesis three 56

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