ABSTRACT
Micro environmental elements and the performance of a Port Harcourt fast service restaurant are the primary focus of this investigation. Thirty-six (36) participants who are managers and employees of a quick service restaurant in Port Harcourt were recruited for the study by the researcher using the convenience sample approach. One hundred and thirty (130) completed self-structured questionnaires were collected and verified for the research. Simple percentages and tables were used to show the data. An investigation of Port Harcourt's fast-food industry found that factors such as low customer traffic and an increase in competition from overseas fast-food chains would have a substantial influence on the success of the local restaurants.. As a result, the findings of the research suggest that environmental variables that impose excessive restrictions on Nigerian enterprises be reexamined. Multi-tax systems should be abolished, the currency rate should remain stable and a bill that would make it easier for citizens to get information about their own government's activities should be passed into law quickly. Businesses should move their focus away from internal variables that exacerbate managerial inefficiencies in order to decrease their vulnerabilities.
THE FIRST CHAPTER
INTRODUCTION
The context of the research
It is impossible for a company to function in a vacuum; instead, it relies on the creation and distribution of products and services to function. There are many factors that contribute to a company's success, including both external and internal factors. The business environment encompasses all of these factors. Business environments impose pressure on organizations, causing diverse reactions from organizations as they seek legitimacy in order to survive and thrive in that environment. As a consequence of the dynamic character of every organization's environment, management functions cannot be carried out unhindered. It is the sum total of all the circumstances, events, and forces that surround and impact any given organization ( Davis, 1975). Because the environment influences the design of any organization and the configuration of any organizational structure, a manager is unable to make important operational decisions in his organization without a thorough analysis of the environment, which is essential in attaining various business goals. Every aspect of organization, whether official and informal, functions in a well defined context.
Internal and external components of the business environment have been distinguished by Oginni and Adesanya (2013). An organization's internal business environment comprises all of the factors that have an impact on the way business is done and the level of success it achieves. The company's internal environment includes its owners, board of directors, employees, culture, physical workplace, and other divisions that make it up (the organizational structure). Organizational culture, organizational direction, mission and objectives, management structure, and nature of human resources are examples of the internal environment, according to Hans (2018). Business intelligence, brand image and brand equity, physical assets and buildings, research and technical abilities, as well as marketing resources are just a few of the many additional variables that contribute to a company's success.
There are macro and micro elements to consider when discussing the external business environment. Microenvironment, or task environment, refers to the factors that affect an organization's operations in its immediate surrounds. All firms in a certain industry aren't affected by micro factors in the same manner. Included in its scope are stakeholders such as investors and regulators in addition to the company's end-customers (Kattookaran, 2016). There is a global and a micro environment for every firm. Companies face both possibilities and dangers in today's macroeconomic climate. A company's success is mostly defined by its capacity to adapt to the external environment, rather than by its ability to control the macro factors. Economic, political, technological, social, legal, cultural and labor environments are all part of a company's macroenvironment (Kattookaran, 2016).
As a result, the effect of the business environment on businesses differs depending on the economic status of the nation or area (Ng & Kee, 2012). As a result, when the economic climate in industrialized nations is steady, businesses are clearly better off. However, the significance of SMEs mitigating the impacts of the business climate on their operations cannot be overstated.
1.2 Defintion of the Issue
Due to the fact that people must eat to survive, the restaurant industry has become both profitable and competitive (Hughes,2016). Due to a growing competitive trend and the sector's significance to clients, the restaurant industry has a distinctive place in the business environment (Mojekwu, Rahim, & Ighomereho, 2016). The influx of foreign eateries; KFC, Double four, Chinese eateries, etc into Portharcourt and in Nigeria at large, has triggered the need for quick service restaurant to tackle micro environmental factors in order to survive, gain a prime place in the competitive space and improve business performance (Ogunde,2012). Olalekan, (2019) agrees that this is because the micro-environment is basically the environment that has a direct impact on the business. It is related to the particular area where your company operates and can directly affect all of your business processes which includes customers, suppliers, resellers, competitors, and the general public.
Consequently, preliminary studies on the mobile marketing efforts of restaurant in that, most restaurant are performing below customers’ expectations as the case of road side food vendors, quick fix restaurant and other Nigerian Fast food like Mr. Biggs leading to them packing up. While Osuagwu, (2006) opined that the low performance of the restaurant could be attributed to their orientation towards mobile marketing strategies, Olalekan, (2019) argued that poor performance by quick-fix restaurant is factored by microeconomic business factors such as low influx of customers, poor customer services, shallow dressed staffs and location, foreign competitors, and suppliers. While these are two sides of same coin, the researcher therefore, upon the backdrop seeks to micro environmental factors and performance of quick service restaurant in Port Harcourt.
1.3 Objective of the Study
Micro environmental elements and the performance of a Port Harcourt fast service restaurant are the primary focus of this investigation. Specifically, the study will:
Determine whether low influx of customers has any effect on the performance of quick service restaurant in Port Harcourt.
Ascertain whether the presence of foreign competitor fast foods can affect the performance of quick service restaurant in Port Harcourt.
Investigate if poor customer services can affect the performance of quick service restaurant in Port Harcourt.
Examine whether shallow dressed staffs and location would have significant impact on the performance of quick service restaurant in Port Harcourt.
1.4 Research Question
Does low influx of customers has any effect on the performance of quick service restaurant in Port Harcourt?
Does the presence of foreign competitor fast foods can affect the performance of quick service restaurant in Port Harcourt?
Does poor customer services have any effect the performance of quick service restaurant in Port Harcourt?
Does shallow dressed staffs and non-strategic location factor would have significant impact on the performance of quick service restaurant in Port Harcourt?
1.5 Significance of the Study
Findings of the study will be of significance to manager of SME’s quick service restaurants and theoretically contribute to existing literature. To manager of SME’s quick service restaurants it will reveal the the need for SMEs to mitigate the effects of business environment on their businesses is of great importance. Findings of the study will contribute to the general body of knowledge. This research will be a useful point of reference and consultation to other students who may want to carry out a research on the same topic
1.6 Scope of the Study
The scope of this study is to examine micro environmental factors and performance of quick service restaurant in Port Harcourt.
1.7 Limitation of the Study
Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. The significant constraint was the scantiness of literature on formal education on community development. Thus much time and organization was required in sourcing for the materials and literature that will be relevant to study as well in the process of data collection. Also the study is limited in sample size and geography covering only restaurant businesses in Portharcourt. Therefore findings of this study cannot be used for generalization in other eateries or restaurant outside Portharcour this therefore creates a gap for further studies.
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