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APR = Annual Percentage Rate

ICA = International Cooperative Alliance
AGM = Annual General Meeting
NBCI = Nigeria Bank for commerce and industry
SMEs = Small and Medium Scale Enterprises
NIDB = Nigeria industrial Development Bank
PUSA = Passport USA
WWW = World Wide Web
PTOs = Private Telecom Operators
EDI = Electronic Data interchange
SMs = Short Message service
VTN = Virtual terminal Network
SE = Screening Examination
JMEs = Joint Matriculation Examinations
CAMA = Companies and Allied Matters Act
ISA = Investment and Securities Act
SMAAT = Specific, Measurable, Attainable, Actionable Time related.
NDE = National Directorate of Employment
NPEP = National Poverty Eradication Programme
NEEDS = National Economic Empowerment Development
NeGST = National e-Government strategies
NITDA = National information Technology Development Agency
CEO = Chief Executive Officer


Business growth is the result of “positively motivated business intentions and actions
on the part of the owner-manager or the entrepreneur”.

Business growth is neither automatic nor the result of chance or good luck (Lambing
and kuehl, 2007)

The entrepreneur’s characteristics, educational level, Knowledge of business and his

continued learning all affect the growth potential of the business (Allison et al, 2003).

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A company’s growth is also affected by internal company factors, the resources

available and external factors such as poor market conditions.

Often it is not smooth, some firms grows and then backslide while some skip growth
stages that others experience (Eggers and Leahy, 1995)

An entrepreneur seeking business growth must be knowledgeable about the product he

is currently producing and selling, and about the group of customers to which they are
currently selling that product (the existing market). Hisrich, peters and shepherd, 2009.


Growth come about in two (2) ways, namely;
1. Through managing current products for growth and adding new product lines
(Anugwom, 2007). An entrepreneur does this by developing or acquiring new
businesses through internal and external sources.

Strategies based on internal sources

1. Intensive growth strategies: identifying those opportunities available to the
entrepreneur in its current sphere of operation.
a. Market penetration
b. Product development
 Developing new products
 Duplicate ways of using or application
c. Market development
 New Geographical Market
 New demographic market
 New product use
2. Integrative growth strategies: identifying opportunities available for growth through
integration with other parts of marketing systems
a. Backward integration
b. Forward integration
c. Horizontal integration

3. Diversification Strategies: selling a new product to a new market.

a. Concentric diversification – Addition of related products
b. Horizontal diversification – Adding unrelated products
c. Conglomerate diversification

Strategies Based on External Sources

1. Franchising: An alternative means by which an entrepreneur may expand his
business by having others pay for the use of the name, process, product, service and son
on(Hisrich, et al,
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Types of franchising
a. Product franchising or dealership
b. Manufacturing franchising
c. Business format franchising

Advantages of franchising to the franchisee

a. Product Acceptance
b. Management Expertise
c. Capital Requirements
d. Knowledge of the Market
e. Operating and structural Controls
Advantages of franchising to the franchisor
a. Expansion Risk
b. Cost Advantages

Disadvantages of franchising
To Franchisee
a. Inability of the franchisor to provide services, advertising and location as promised in
the franchise agreement
b. The franchisor’ failure or being bought out by another company

To Franchisor
a. Difficulty in finding quality franchisees
b. Poor management
c. Increase in the number of franchisees
2. Joint Venture: it is a separate entity that involves a partnership between two or more
active participants (Hisrich, et al, 2009)

Factors that result in joint venture

a. The degree of symmetry between partners

b. The agreement of the partners in terms of objective matters
c. The accurate assessment of the parties involved in order to best manage the new
entity in light of the ensuing relationships.

Mergers and Acquisitions: A merger occurs when two companies combine to form a
single company. It is similar to a takeover or an acquisition, except that in the case of
merger; existing stockholders of both companies involved retain a shared interest in the
new corporation.

Reasons for mergers

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a. To increase one’s market share

b. Quest for dominance in competing market
c. Combining a very profitable company with a losing company in order to use the
losses as a tax write-off to offset the profits.

Types of Mergers
a. Horizontal merger
b. Vertical merger
c. Market – extension merger
d. Product – extension merger
e. Conglomeration
 Market extension conglomerates
 Product extension conglomerates
 A Combination of the two above

Two types of merger distinguished by how they are financed includes;

 Purchase mergers
 Consolidation mergers

Acquisitions: Usually refer to a purchase of a smaller firm by a larger one; one

company purchases a bulk of a second company’s stock, creating an uneven balance of
ownership in the new combined company. A type of acquisition is called reverse

Reverse Merger: occurs when a private company that has strong prospects and is eager
to raise financing buys a publicly listed company, usually one with no business and
limited assets.


In acquisition, one company takes over another and clearly establishes itself as the new
owner. The target company ceases to exist.
In merger, two firms often of about the same size agree to go forward as a single new
company rather than remain separately owned operated.

LEVERAGED BUYOUTS: This happens when an entrepreneur (or any employee

group) uses borrowed funds to purchase an existing venture for cash.

An entrepreneur uses some criteria to determine whether specific company is a good

candidate for leverage buyout
a. The entrepreneur must assess the form’s debt capacity.
b. The entrepreneur must determine whether the present owner’s asking price is

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c. The entrepreneur must develop the appropriate financial package which must meet
the needs and objectives of the providers of the fund


a. Pressures on existing financial resources

b. Pressures on human resources
c. Pressures on the management of employees
d. Pressures on the entrepreneur’s time



For the Economists, Business is any activity that seeks profit by providing goods and
services together (William, 1996)
For scholars of Management, Business is any activity that seeks to (preferably at a
profit) satisfy existing and created needs of customers (Drucker, 1993)
Planning is deciding in advance what to do, when to do it a and who is to do it, knoontz in
ujo (1984)
So planning is defined as deciding in advance what to do, how to do it, when to do it
and who is to do what in making available goods or services for the satisfaction of
existing and created needs of customers.
The business plan is an agreement on how your management team plans to carry out
certain functions to achieve business results and serve as a means of measuring the
company’s performance.

Business planning entails:

 Preparation ahead of time
 Earlier determination of what to do
 Determination of how to profitably make goods and services available for the
satisfaction of the existing and created needs of customers
 When to do what
 The determination of who is to do what

Process of Business Planning

a. Definition of the scope of business: What is our business? What will it be?
b. Determination of goals and objectives

Goals are general targets that the enterprise intends to achieve over a long period of
time, usually five (5) years and above.

Objectives are specific and measurable targets the enterprise intends to achieve over a
relatively shorter period of time, usually one week, one month, one year etc.
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S.W.O.T (strength, opportunities, Weakness, and threats) is considered here

c. Formulation of strategies: The following are considered here

 Resources available
 Managerial capacity
 Organization, culture and philosophy
 Internal and external environmental factors
 Flexibility
 Consistency
 Effectiveness

d. Implementation and execution of strategies: This process comprises the following;

 Assigning of task and responsibilities

 Allocation of resources
 Motivation
e. Evaluation and control: This process entails the following;
 Determination of evaluation intervals
 Determination of tools of evaluation
 Consistent and constant monitoring of environment
 Constant review of strategies


Start-up is a company with a limited history, i.e., newly created and is in a phase of
development and research for markets. “Start-up Company” is often associated with
high growth, technology oriented companies.

Start-uppers: are people involved in the cultivation of high technology startup

companies. They can be entrepreneurs, hackers, web designers or developers, venture
capitalists etc.

Concept of opportunity identification

Entrepreneurial opportunities are those situations in which new goods, services, raw
materials and organizing methods can be introduced and sold at greater than their cost
of production (Shane and Venkataraman 2000)

Entrepreneurial opportunity is feasible, profit- seeking potential venture that provides

an innovative new product or service to the market, improves on an existing
product/service or initiate a profitable product/service in less than saturated market
(Singh 2001)

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We therefore define entrepreneurial opportunity as a feasible profit-seeking situation

to exploit a market efficiency that provides an innovative, improved product, service,
raw material, or organizing method in a less than – saturated market.

One source of entrepreneurial opportunity may be entrepreneurs’ social networks (Hills

et al 1997)
Social networks encompass all of the people an individual knows – family members, friends,
business associates

Stages in identification business opportunity and commencement of operation

1. Monitoring of business environment
2. Generation of business ideas through:
Personal experience
Hobby or a part time job
Work – off
Existing licenses or franchises
Literature e.g trade journals, internet etc
Business acquaintances, bankers etc
Duplication of existing business

3. Choice of location
4. Concluding a feasibility study
5. Recognition of the obstacles and devising ways of overcoming them
6. Planning of operational strategy
7. Deciding on the nature of business formation
8. Registration and commencement of business

Legal forms of start-ups

1. Sole proprietorship Business Enterprises
This is an enterprise established, financed, owned, managed and controlled by one

Easy organization
Quick Decision making
Customer satisfaction

Limited financial Resources
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Unlimited liability
Lack of continuity
Lack of Economics of scale
Mismanagement of Resources
Labour Turnover

2. Partnership Business Enterprises

This is an enterprise established, financed, owned, managed and controlled by two to
twenty people.

Large capital
Skill and experience of partners
Effective Decision making
Division of Labour
Risk sharing

Conflict among members
Unlimited liability
Lack of Continuity
Liability of the actions of members
Limited size
Not being a legal Entity

3. Corporation Enterprises (Limited liability Company)

It is a business organization established, financed and owned by a minimum of two
people, often referred to as “share holders”. On the number of share holders, it is
divided into private and public.
Private: Two to fifty
Public: Two to infinity

Large capital
Continuity of Business
Effective management
Easy transfer of investment
Limited liability
Economics of scale
Legal Entity
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Organizational complexity
Slow Decision making process
Separation of ownership from management
Heavy taxation
Lack of secrecy
Lack of personal contact with customers

Viability Analysis of New Venture

There are three basic financial statements to analyze the viability of a new venture viz;
1. The cash flow statement
2. The balance sheet
3. Profit and loss statement
Financing of business Enterprise
Entrepreneurs need to know the types of capital and the associated cost because that
will influence their choice of a particular source of financing

Types of capital
1. Equity capital: comprises of personal money and other assets of the owner(s) of the
business enterprises (okungwu and saleh, 2004)
2. Debt capital: comprises of money and assets realized from loans from individuals
and/ or financial institutions like banks, financial houses etc.

Sources of Equity Capital

a. Personal resources of owners
b. Resources of Relatives and friends
c. Resources of partners and Business associates
d. Retained Earnings

Sources of Debt Capital

a. Banks
Term loan
Bank Guarantee
Commercial loans
b. Government support
c. Specialized financial institution
d. Trade credit
e. Hire purchase
f. Equipment leasing

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Factors influencing choice of sources of capital

1. Nature and value of available assets
2. Costs
3. Dividend payment to shareholders
4. Financial Needs
5. Existing capital structure


Environment is defined as all elements outside an organization that are relevant to its
operation (stoner, freeman, Gilbert 1995). Business environment denotes the full range
of public policies, institutions, regulations and administrative systems within which
people and firms operative (Eboh and Lemchi, 2010). Marire (2004) describe the
environmental factors that affect organizations and businesses thus;

a. Internal environment factors such as the organizational members and the physical
resource needed for the running of the organization
b. External environment factors such as the economic factors, technological, social,
political/legal and ethical factors

The external factors of a business environment include:

1. Political and legal environmental factors: This includes good governance, efficient
and transparent public administration etc
2. Economic environment: economic factors which affect the businesses viz capital
labour, general price level, government fiscal and tax policy and the general economic
growth etc.
3. Technological environment: Effects of technology as in the development of new
products, new tools, machines and new services on the businesses
4. Infrastructural environment: the effect of (in) sufficient access to infrastructure
relevant to communication, energy, transport, water which is severe concern to business
5. Social environmental factors: This consists of the attitudes, desires, expectations,
general education attainment, culture, beliefs and philosophy of a group.

Effects of the Environment on the organization

1. They set limits
2. They provide opportunities and challenges

Environmental Analysis

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Threats and opportunities characterize the future and the present of any business. To
identify these threats, the entrepreneur has to analyze the environment internally and
Externally, he/she must check the general economic conditions, industry projections,
technological changes, competitors, consumer preferences, trends in government
regulation etc
Internally, he/she should examine the organization’s resources to determine its
strength and weaknesses

Market Development Process

This involves the introductions of present products or services into new market
segments or geographical areas.

It delivers the business growth through;

a. New products or services to existing customers
b. New products or services to new customers
c. Exiting products or services to new customers

Analyzing Market Situation

A market analysis involves analyzing the current situation, the market demand, the
potential market demand, competitive trend marketing outlets.

Procedure for analyzing market data

a. Defined the objective of study
b. Conduct a situational analysis of the market
c. Plan the market study
d. Determine the sources of secondary
e. Determine suitable methods for gathering primary data
f. Prepare survey forms and fields test
g. Design sample and collect data
h. Process and analyze both secondary and primary data
i. Measure the present market
j. Forecast future market demand


Sources of funds are places where capital is or can be acquired. Finance refers to raising
of capital funds and using them for generating returns and paying returns o the
supplies of funds which may be equity or borrowed funds (Pandey, 2001).

Nwude chuke (2004) grouped sources of funds into: The short term, medium term and long
term funds.
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Unamka, P.C and Ewurum U.F (1995) grouped the sources into: Short term and long term
Short term finance does not exceed two years e.g trade credit, accrual, prepayment, bill
of exchange etc
Medium term finance is between one to ten years e.g term loan, venture capital, leasing,
hire purchase etc
Long term finance is between ten years and above e.g Bonds, warrants, shares, rights
issues, depreciation etc

The above classification can further be narrowed to equity and debt financing.
A general source of funds includes;
1. Personal funds
2. Thrift societies
3. Partnership
4. Age grade association
5. Trade credit
6. Credit union funding
7. Line of credit
8. Leasing
9. Depreciation
10. Family and friends
11. Service contractors
12. Capital stock
13. Cooperatives societies
14. Mortgage loans
15. Commercial banks loan
16. Angels and venture capital
17. Retained earnings
18. Governments etc

Angel investors
Angel investors are Affluent individuals interested in businesses withpromising growth
potentials, and who provide capital for business start–up

Venture capital
Venture capitals are funds established in the form of a trust/company including
corporate bodies.

Importance of informal sources of funds to new venture

1. They adopt a flexible loan policy
2. Loan processing and disbursements are usually short and timely
3. They have made the small and medium sector enterprise, and blue chip firms the
fastest growing
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4. They are the last resort to a few new businesses that cannot access start – up funds
5. Many new ventures depend on these sources for their growth and survival.

Importance of formal sources of funds to new venture

1. They provide a link between those who have surplus savings and those who need the
funds for investment
2. They extend credit facilities to farmers
3. They provide very important services to the society
4. They provide long term loan which reduces risks
5. They provide long term finances for projects with long gestation period.

Venture capital Process

1. Deal origination
2. Screening
3. Due diligence
4. Deal structuring
5. Post investment Activities
6. Exist
Types of Venture capital funds
1. Seed money
2. Start-up finance
3. Development finance
4. Working capital


Credit is the trust which allows one party to provide resources to another party where
that second party does not reimburse the first party immediately, but instead arranges
either to repay or return those resources at a later date.

Types of credit
1. Trade credit: Refers to the approval for delayed payments for purchased goods.
2. Consumer credit: consumer credit is money, goods or services provided to an
individual in lien of payment.

Record keeping
This is the practice of maintaining the records of an organization from the time they are
created to their eventual disposal.

Money can flow into the business through;

1. Income from selling goods or services
2. Money from selling business assets
3. Money you have contributed to the business
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4. Money you have borrowed

Money can flow out of the business through;

1. Payments for expenses of carrying on the business
2. Payments to buy or replace business assets
3. Payments to you from the business (drawings)

Practicing records management involves:

1. Planning the information needs of the organization
2. Identifying information requiring capture
3. Developing a records storage plan
4. Identifying , classifying and storing records
5. Coordinating data privacy and public access
Five(5) C’s of credit
1. Character
2. Capacity
3. Capital
4. Conditions
5. Collateral

Cost of credit
This is the additional amount, over and above the amount borrowed that the borrower
has to pay.
When interest rates are raising, fixed-rate loans are usually better.
When interest rates are falling, variable rates are generally more attractive

Loan Tenor
This is the amount of time left for the re-payment of a loan or contract or the initial term
length of a loan.

Credit Risk
Credit risk is an investor’s risk of loss arising from a borrower who does not make
payments as promised.

A guarantor is an individual, company or institution pledging to make good on a debt
or product.

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Co-operatives means working together to achieve a particular purpose

Increased strength from joint effort, two heads are better than one, or many heads make
light the work(Gretton,1971).
A co-operative is an association of persons for solving their common problems
(Munkner, 1978).
A review panel on co-operative principles in 1978 revealed that a true co-operatives
must have the following attributes:
1. Open and voluntary membership
2. Democratic control by the rule of “one man one vote”
3. Promote member education
4. Cooperate with other co-operative if need be
5. Pay members back part of the society’s surplus earnings on the basis of each
member’s level of participation
6. Pay only a limited interest on capital employed in the business of the society.

Cost of credit: This is the additional amount over and above the amount borrowed that
the borrower has to pay.
1. Open, social, associationist and integrative
2. Voluntary
3. A morally conscious organization( fair and equal)
4. A peoples private organization
5. Educational
6. An autonomous self-help organization

According to ICA (1995), a cooperative society is an autonomous association of persons

united voluntarily to meet their common economic, social and cultural needs and
aspirations through jointly owned and democratically controlled enterprises.
Objectives of cooperatives
1. Provision of services at lower costs
2. Elimination of usury and unnecessary profit
3. Preventing exploitation of the weak by the strong
4. Protecting the rights of people (as producers & consumers)
5. Promoting mutual understanding among members
6. Inculcating the habit of thrift in its members and the resultant capital accumulation
for development

Types of Cooperatives Societies

1. According to the functions performed with respect to the members’ socio – economic
a. Productive cooperative societies (PCs)

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Ordinary PCs: Members run their businesses separately but own common assets
Full PSc: All productive activities are fully collectivized. (Group production)

b. Auxiliary Cooperative societies – They render essential services to members.

2. According to the legal status of the cooperative
Registered cooperative societies
Unregistered cooperative societies

3. According to the geographical area of operation

Urban cooperatives
Rural cooperatives

4. According to the organizational level of operation

Primary Cooperatives
Secondary Cooperatives
Tertiary Cooperatives

5. According to the sector of the Economy when the cooperative societies operative
Service Cooperatives etc

6. According to the economic status of members

Producers’ cooperative societies
Consumers’ cooperative societies
Workers cooperatives

7. According to number of fields of operation

Single purpose cooperative societies
Multi – purpose cooperative societies

8. According to numerical size of membership

Small cooperatives
Medium sized cooperatives
Large co-operatives
9. According to the decision making arrangement
Traditional cooperatives
Market – linked cooperatives
Integrated cooperatives

Steps Involved in forming a Cooperative Society

Step 1:
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Establishment of service gaps which the formation of a cooperative society can fill
Step 2:
Search for suitable project/type of cooperative
Step 3:
Set up an organizing committee
Step 4:
Conduct economic and social feasibility study of the project that the cooperative is to
embark on
Step 5:
Invite prospective members to a general meeting
Step 6:
Commence educational programmes and trial run of the cooperative project
Commence legal documentation
Step 8:
Management Structure of the Cooperatives is confirmed and election of officers held
Step 9:
Registered with cooperative Department
Step 10:
Operations of the new cooperative society.

For a cooperative to operative successfully, some basic requirements must be met.

1. Organization of the cooperative must be based on felt need
2. Members control of the society is essential
3. Sufficient volume of business
4. Competent management
5. Homogeneity of Cooperators
6. Adequate audit and financial control

Structure of Cooperative Management

1. The tabular or flat organizational structure
Committee /Board
Manager A Manager B Manager C Manager D
Staff Staff Staff Staff
2. The circular organizational Structure
3. Pyramidal organizational structure
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The most important organ of management in a cooperative society is the general

meeting of members decisions reached at every other meeting of the cooperative society
is subject to approval of the general meeting of members.

Types of General Meeting

a. Ordinary General Meeting: Normal meeting of the cooperative society held at
agreed intervals – weekly, monthly or quarterly.
b. Extra-Ordinary/Emergency general meeting: meeting that is held when a need that
requires urgent attention arises.
c. Annual General meeting (AGM): performs some statutory functions function for the


“Marketing” is derived from the word “market” which refers to a group of sellers and
buyers that cooperate to exchange goods and services.

Marketing is the activity, set of institution, and processes for creating, communicating,
delivering and exchanging offerings that have value for customers, clients, partners and
society at large. kotler Philip (2008).
Marketing is a set of process that are inter-connected and interdependent with other
functions, whose methods can be improved using a variety of relatively new
approaches (Selden, 1997).
Marketing concept aims at fulfilling its organizational objectives through the
anticipation of the needs and wants of consumers and satisfying these more efficiently
than competition (Amstrong, 2008).
Marketing therefore is used to identify the customer, satisfy the customer and keep the
Production concept or orientation is the specialization of a firm in the production of a
given product or service as much as possible. Product orientation emphasizes quality of
the product in the midst of many products.

Recent approaches in marketing include B2C, B2B, B2S, B2C is relationship marketing
with focus on the customer. B2B is business or industrial marketing with focus on an
organization or institution. B2S is social marketing that is concerned with benefits of the

B2C = Business to Customers
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B2B = Business to Business

B2S = Business to Society
Also there is internet marketing (e-marketing. Online marketing, affiliate marketing)
Constructive criticism helps marketers adopt offerings to meet changing customer
needs and wants .
The SIVA – Dev. Chekitans and shults(2005) provides the 4Ps model of marketing
(product, price, placement , promotion).
Selling is just the act of persuading or influencing a customer to buy a product service
or idea.
Six Steps a Consumer or business buyer moves through when making
a purchase decision includes;

According to Michael porter’s classic book “Competitive Strategy” the three most
common competitive Strategies are: - low-cost supplier, differentiation and niche
The whole thinking here can be subsumed into an algebraic representation of 6W +H
which means: What, Who, Why,
When, Where, Which + How?


The word customer refers to one with intention or willingness to encourage or stand for
the benefit and business success of a business person by buying and motivating other
users of the goods and services to buy and use the goods and services produced by the
business person
Customers are also current or potential buyer or users of the products of an individual
or organization called the supplier, seller, or vendor.

Types of Customers
1. Business customers – buys to re-sell
2. Consumer customer – buys to consume

Customer care means serious attention to entrepreneur’s cautiousness in relation with

Customer’s behaviour refers to how customers react in the process of acquiring and
utilizing economic goods and services.

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Factors that contribute to customer’s satisfaction includes;

1. The value of money you offer
2. How well your products match customer needs
3. Your efficiency and reliability to orders
4. The expertise of your employees
5. How well you keep your customers informed
6. The after sales services you provide.

Customer care service is made up of the nature of the organization, type of services
rendered by the organization to the customers, customer’s service needs and
expectations and satisfaction of customers’ expectations. Lyons (1970) stated that
customer care service is all the direct and indirect contact between an organization and
its customers.
Efficient and effective customer service involves;
Attentive listening to customers
Making polite suggestions
Making promises that you will keep
Taking an extra effort
Building an efficient customer service team
Knowing who is the boss
Identifying and anticipating needs
Making customers feel important and appreciated
Helping customers understand your systems
Appreciating the power of “yes”
Giving more than expected
Getting regular feedback
Treat employees well


Electronic business is a flexible process that enables everyone in any geographical area
to partake actively in business around the world both in abstract and real object forms.
E-commerce deals directly with the exchange of goods and their payment facilitated by
electronic transaction e.g retail shopping, airline booking, and banking Etc. The driving
force behind e-business is the Networking economy.
E-Trading deals with the selling of financial instruments such as stock, bonds and
treasuries electronically. (B2B, B2C)

E-Business and its impact

1. The commercial exchange of goods, services, information enabled by an electronic
2. A collapse of time and space between partners
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3. The transition to the ‘new world’ network economy

4. Creating the web enabled enterprise

Changes Enabled by a Technology Push

1. Converging channels
2. Diverging channels

Basics of E – Business
1. The parties (actors) you are dealing with e.g customers, suppliers, Government,
2. The resources at your disposal e.g investment funds, infrastructure, personnel,
strategy etc
3. The business functions to be performed e.g Delivery, Promotions, Procurement,
Management, Operations etc

Critical Success Factor (CSFs) for E-business in the Developing World

1. It fulfills a need of a group of users
2. The users have sufficient means to make use of the service
3. The necessary infrastructure is adequate in relation to the physical environment
4. The target group has sufficient know-how to make use of the service
E- Business process cycle
1. Awareness(vision)
2. Ambition(Scope)
3. Concept(road map)
4. Realization(on the road)

EDI involves data exchange among parties that know each other well and make
arrangements for one – to – one connection , usually dial – up.

Important Implication of Increased E-Trading

Reduced cost of transactions
Greater liquidity
Greater competition
Increased Transparency
Tighter Spreads



Transition in business is a process in which a business undergoes a change and passes

from one form or stage to another.

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Transit must occur in many new ventures either for the reason of retirement or death of
the owner, or expansion of the business.
The life cycle of an industry is depicted as an S – shaped curve and is made up of four
A succession plan is a process in which leadership, and eventually ownership is
transferred t a successor
Personal Discipline in Business
This is the ability to do what is necessary or sensible without needing to be urged by
somebody else. The ability of the entrepreneur to stick to the right code of conduct or
behaviour in spite of his personal desires largely depends on his traits,
attitudes and habits.

1. Trait – Extraversion, openness to experience, agreeableness, Conscientiousness,

Emotional stability.
2. Attitudes – career attitudes, Mental attitudes etc
3. Habits

The three (3) widely used method of business evaluation includes;

1. Asset, 2. Cash flow and 3. Earnings.
Specific evaluation enables an entrepreneur determine the present value of the
company, i.e., valuing the company based on its future sales and profits.

Stress and Pressure

Stress may be simply defined as a person’s adaptive response to a stimulus that places
excessive psychological or physical demands on that person.

Stressor (stimulus) refers to anything that can induce stress. Stress may be positive or
negative. When stress emanates from a good source, for example getting a promotion or
political appointment, it is called eustress. But negative stress is called distress e.g
Excessive pressure, bad news etc.

An entrepreneur can apply the following coping strategies in managing stress in

business especially in transition situation.
i. Exercise
ii. Relaxation
iii. Time Management
iv. Role Management
v. Support Groups

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Leadership is the process of directing the behaviour of others or organizing a group of

people to achieve a common goal. A leader is a person who has a vision, a drive and a
commitment to achieve that vision and the skills to make it happen.

Characteristics of a good Leader

Self – confidence
Forward – looking
A leader can be task – oriented or people – oriented

Differences between Leadership and Management

1. Managers have subordinates while leaders have followers
2. Managers are authoritarian and have transactional style, while leaders are
charismatic and have transformational style
3. Managers are work focus while leaders are people focus
4. Managers seek comfort while leaders seek risk

Effective Leadership
According to ken “SKC” Ogbonnia, “effective leadership is the ability to successfully
integrate and maximize available resources within the internal and external
environment for the attainment of organizational or societal goals”
An effective leader is generally someone that leads by example and other people just
tend to follow because they believe what they do is the right thing.
Keeping promises is another sign of effective leadership.

Some components essential to effective leadership are;

a. Communication
b. Knowledge and understanding
c. Team work
d. Vision
e. Ethics
f. Commitment
g. Recognition and Encouragement
h. Flexibility with leadership styles
i. Risk and innovation
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Situational Leadership
This leadership theory was developed by Paul Hersey, professor and author of the book
Situational leader and Ken Blanchard, leadership guru and author of the one minute
manager while working on the first edition of management of organizational behaviour
(now in its 9th edition).
The fundamental under pinning of the situational leadership theory is there is no single
“best” style of leadership. The driving philosophy behind Blanchard and Hersey’s
leadership theory is the importance of a good match between leader and follower.
Leaders must be mature enough to take responsibility for their actions and choices.
The four basic ways of leading followers in the situational leadership method are;
 Directing
 Supporting
 Coaching and
 Delegating

Interpersonal Skills
Interpersonal skills are sometimes referred to as people skill or communication skills.
Interpersonal skills are the skills that a person uses to interact with other people such as
active listening and tone of voice.
Helpful tips for improving interpersonal skills
a. Smile
b. Be appreciate
c. Pay attention to others
d. Practice active listening
e. Bring people together
f. Resolve conflicts
g. Communicate Clearly
h. Humor them
i. See it from their side
j. Do not Complain

Conflict Management/Resolution
Conflict refers to perceived incompatibilities resulting typically from some form of
interference or opposition.
Conflict management is then the employment of strategies to correct these perceived
differences in a positive manner Conflict management were introduced by Nurmi and
Darling. Dysfunctional conflict is destructive and leads to decreased productivity,
functional conflict may actually encourage greater work effort and help task
Sources of Conflict
According to both Draft and terry, several factors may create
organizational conflict:
Scarce Resources
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Jurisdictional Ambiguities
Personality Clashes
Power and Status Differences
Goal Differences
Communication Breakdown
Conflict Management Styles
1. Avoiding Conflict Resolution Style
2. Competing Conflict Resolution Style
3. Accommodating Conflict Resolution Style
4. Compromising Conflict Resolution Style
5. Collaborating Conflict Resolution Style


Time management is the act of arranging, organizing, scheduling and budgeting one’s
time for the purpose of generating more effective work and productivity.
Tips for Effective Time Management
1. Spend time planning and organizing
2. Set goals
3. Prioritize
4. Create a ‘to do list’
5. Be Flexible
6. Learn to say no
7. Reward yourself
8. Eliminate the urgent
Time Management Techniques For Students

1. Study difficult or boring subjects first

2. Be aware of your best time of day
3. Use waiting time
4. Get off the phone
5. Avoid noise distraction

This is the art of doing something else when there are more important things to do.
Tips To Avoid Procrastination
1. Make a plan quickly and start working with it
2. Complete a task and move on
3. Practice time management techniques
4. Do not be a perfectionist
5. Develop self discipline
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Information management refers to any act that utilizes information systems technology
and management skills to the task of managing enterprise data resources, to fulfill the
information needs of both internal and external requirements of the firm.
Business information management can be applied in the following areas:
1. Marketing information system
a. Marking/marketing research
b. Market management
2. Manufacturing information systems
3. Human resource management information system
4. Accounting information systems
5. Advertisement and promotion information systems
6. Sales management information systems

Functions of Information Managers

Strategic planning and control
Tactical planning and control
Operational planning and control

Types of Information Management Systems

1. Document management system(DMs)
2. Content Management System(CMs)
3. Learning Management System(LMs)
4. Library Management System(LMs)
5. Records Management system (RMs)
6. Geographic Information System(GIs)
7. Digital Imaging System (DIs)

Management Information System (MIs)

This refers to all aggregate systems in an organization that allows managers to make
decisions for the successful operation of their day to day business enterprises.
The functional lines are structured as follows:
1. Financial MIs
2. Accounting MIs
3. Manufacturing MIs
4. Marketing MIs
5. Human resources MIs

Information and Communication Technology(ICT)

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ICT refers to the specific, purposeful and systematic use of electronic/manual

technological appliances in computing, for business purposes, telecommunication etc,
to process and distribute information.

ICT usually consists of four main components

1. The input unit
2. The memory unit
3. The central processing unit
4. The output unit

Care of ICT
1. Cover appliances always to prevent dust
2. Place the appliances in a ventilated environment
3. Clean the surface with dry cloth daily
4. Connect with Stabilizer or Ups
5. Never place heavy objects on ICT appliance
6. Never place ICTs on wet surface
7. Always shutdown appliances properly
8. Do not attach ICTs with spliced extension wires

Mini Project Writing

In a bid to attract financing/investments, new venture require a good mini proposal in
other to serve as a marketing tool meant for the purposes of securing bank loans and to
apply for financial support from other relevant sources.
Four (4) aims of a mini – proposal includes;
To establish the viability of the project
To act as a selling document to potential investors
To develop a business strategy for the project
To convince financial institutions to assist the project.
To effectively give a presentation, the entrepreneur needs to check the following;

Steps towards effective presentation

Formulate your goal
Analyze your Audience
The basic relevance test (BRT)
Convincing through organizing
Convincing through use of language Structure
The opening
The body of the presentation
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The conclusion of your presentation

Visual Aids
The purpose of visual aids is to support verbal communication. It should
be used to show;
a. What something looks like
b. How something looks or works
c. Relationship between things
d. Highlights important information
e. Clarify the structures of your argumentation
f. Emphasize technical terms, names, titles etc.

Choosing visual Aids

Use chalk or white boards
Use flipcharts
Use the overhead projector


Decisions are hypothesis put forward for the solution of a problem. – Okoli (2004)
Decision is a choice whereby a person forms a conclusion about a situation Appleby
Decision is a conclusion drawn from factual premises and value premises – Herbert

Decision Making
Decision making implies the selection from among alternatives of a course of action –
(Chukwuemeka 1998)

Situation under decision-making includes decision making under;


Aspects of Decision Making

1. Factors that influence the choice people make
2. Factors that bias or interfere with decision making, other aspects include:
Information, knowledge and experience

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Phases/stages of Decision Making

1. Exploration stage
2. Analytical
3. Exploring possible solution
4. Decision Stage

Steps for making a good Decision

1. Problem identification
2. Evaluation of relevant information
3. Gathering data
4. Develop alternative solutions
5. Study the effect of alternatives on problems
6. Select the best alternatives course
7. Implement and monitor the chosen course
8. Always check on the progress of the solutions

Types of Decision
According to Drucker (1954)
Tactical Decision – routine and few alternative
Strategic decisions

Other types
Organizational decisions
Personal decision
Basic Decision
Routine Decision

Herbert Simon classified decisions as follows:

Non – programmed decisions

Rational Decisions according to Ile (2001) can be classified into

1. Automatic Decision
2. Memory Decision
3. Cognitive or Normative

Three basic communication channels are:

1. Downward channel
2. Upward channel
3. Lateral or horizontal channel

Barriers and Breakdowns in communication

1. Lack of planning

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2. Poorly expressed message

3. Communication in the international environment
4. Loss by transmission and poor retention
5. Poor listening and premature evaluation
6. Distrust, threat and fear
7. Information overload


A business plan is a written statement that describes and analyses your business and
gives detailed projections about its future (Mckeever, 2007).

Why write a business plan?

It gives you a list of goals and steps to follow
It helps uncover obstacles you might have otherwise over looked
It improves your management capabilities by giving you practice in anticipating
situations both good and bad for your business
It trains you to analyze, organize and make better decisions
It transforms you into a respected professional

Production planning is the process of making decisions as to the resources which the
organization will require from its production operation. Dilworth (1993)

A carefully developed production plan will allow your company to meet the following
Minimize costs/maximize profits
Maximize customer service
Minimize inventory investment
Minimize changes in production rates
Minimize changes in work-force levels
Maximize the utilization of plant and equipment

Advantages of product planning

1. Reduce labour by eliminating wasted time
2. Reduce inventory cost
3. Optimizes equipment usage and maximizes capacity
4. Utilizes human resources to their full potential
5. Improves on – time deliveries of product and services

Key factors of production planning

a. Forecast market expectations
b. Inventory control
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c. Availability of equipment and human resources

d. Standardized steps and time
e. Risk factors

How to plan
The production plan needs to address specific key elements well in advance of
Material ordering
Equipment procurement
Bottle necks
Human resources acquisitions and training
Communicate the plan to the employees
Consider changes

This is a written document that specifies in details an organization marketing objectives
and how marketing management can use the controllable market tools to achieve these

Contents of Marketing Plan (kotter, 2008) Exchange summary, current marketing,

opportunity and strength/issues analysis, objectives, marketing, action programs,
projected profit and loss statement, controls.

The marketing strategies encompasses six(6) P’s:


Organizational plan is basically a to do list for an organizational that lists out the plan
of work, programs and organizational growth over a period of time- six months, a year,
five years. It encompasses the following aspect:
a. Forms of business organization
b. Organization structure (organogram)
c. Staffing pattern
d. Pre-operating activities
e. Schedule of pre-operating activities
f. Pre – operating cost

Steps to creating an organizational plan

1. Decide on categories
2. Set goals
3. Set tasks
4. Plan a schedule
5. Choose responsibilities
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6. Support
7. Follow through
8. Plan evaluation

Staffing pattern
This indicates the personal/personnel requirement (skills required and personnel) by
function (marketing, production, administration, and finance) and an estimate of

This is the means where by the entrepreneur answers questions on the immediate and
future solvencies and liquidity and adequate finance generated internally or externally
at the best possible terms of revenue and capital requirement.

Three financial areas are discussed here:

1. Sales forecast
2. Projected cash flow
3. Projected balance sheet