1. Family: Family is basic part of society. In the culture of a family, it may happen that parent does not allow to use a certain product, then sale of such product will decrease, so businessman must analyze different family needs . Many occasion of family like marriage of any family member, can increase the demand of goods for breweries.
2. Educational institutions: Educational institutions are also main part of societies. They provide good knowledge, education, awareness, thinking what should students buy or not
33 to buy. Students are not allowed to drink alcohol in schools and this affects sales.
Education also influences the level of skilled manpower employed by the firms for improved performance.
3. Religion: Like family and education institution, religion also effects the business socially.
Different religions have different principles, rules and regulations in which they sacrifice to use some products and to eat some foods. Although, the sector has witnessed continued growth in sales volumes, individual faith and lifestyle restrictions advocated by some religions against alcohol consumption has served to somewhat limit the growth of the sector‟s volumes. In the Southern and Eastern parts of Nigeria which are largely Christian where Pentecostal churches frown at alcohol, as well as the Northern region which is largely Muslim (some of the Northern States have adopted the Sharia Islamiccode which frowns strongly at alcoholic consumption), religious faith is growing and with this growth, to some extent, a declining consumption of alcohol is being experienced.
Nigeria with its population of about 170 million is a huge potential market for investors in brewery business. The country is the second largest beer market in Africa after South Africa. South Africa with a population of 47.9million according to 2007 statistical data, has a beer consumption per capita of 50 hectolitres while Nigeria has 10 hectolitres per capita.
Industry operators are of the view that the existing firms‟ capacity are not enough to meet the demand of the market, and there is therefore room for expansion (Momoh, 2009).
Nigeria is a diverse country with over 250 ethnic groups. The population of the country gives a religious spread of Muslims (50per cent), Christians(40per cent) and indigenous religions(10per cent). The Muslims and Pentecostal Christians do not indulge in beer consumption due to their religious beliefs (Corporate Nigeria, 2010/2011).
The above notwithstanding, beer consumption remains a social activity in Nigeria and the sale of the commodity has continued to increase from year to year.
4. Healthy Consumption: With increasing proportions of the populace seeking solace in various religions, typical consumption levels are likely to be negatively impacted. Another challenge is the increasing desire for healthy foods and drinks by some individuals. This, we opine, may continue to limit the consumption of alcoholic products as several health
34 campaigns advocate for reduced alcohol intake. Market expansion will be fuelled by rising disposable income, the spread of Western influence on lifestyles worldwide and economic growth. Beer is the world‟s number-one alcoholic beverage, with consumption suitable for various occasions at home, in restaurants, bars and clubs.
5. Values and Attitudes: In both actions and thoughts, people are affected by a wide range of influences. Past experiences, cultural and social norms, and the money at our disposal are some of the most important. Connected to all these to an extent are our values – which represents a strong guiding force, shaping our attitudes and behavior over the course of our lives. Our values have been shown to influence our political persuasions; our willingness to participate in political actions, our carrier choices, how much money we spend and on what; our feelings of personal wellbeing. Values represent our guiding principles, our broadest motivations, influencing our attitudes we hold and how we act. Business focus on social values is a movement that could reinstate society‟s trust in companies (Nnanke 2012).
6. Gifts and Donations/corporate social responsibilities (CSR): CSR refers to a business practice that involves participating in initiatives that benefits the society. Communities are grappling with problems that are global in scope and structurally multifaceted – Ebola, persistent poverty, terrorism, climate change and billions are at stake if fast and large scale action is not taken. As consumers awareness about global social issues continues to grow, so does the importance these customers place on CSR when choosing where to shop.
Guiness Nigeria is at the forefront of adopting a responsible attitude towards corporate social responsibility (CSR) in Nigeria. It donated N77.9m, N50,8m and N139.9million respectively in 2010, 2011 and 2012 respectively to better the lives of the members of the community where it does business by provision of clean portable water (through their Dingeo water of life initiative) and health and education and social infrastructure (Guinness annual report 2012). NB Plc. despite the huge turnover and return on investments donated only N67million, 40million and 70million in 2010, 2011 and 2012 respectively( NB PLC annual reports).
35 2.3.6 Technological environment
The technological environment in the manufacturing sector has changed dynamically from mechanized powered systems to the present day trend towards application of advanced manufacturing technology (computerized design, planning, and manufacturing tools).
Technology can be defined as the practical embodiment of knowledge – the useful application of basic sciences (Eager 2003). Thus, Technological environment is associated with the external factors that impact on business operators. It relates to the development of technology which affects business by way of new inventions of productions and other improvements in techniques to perform the business (Eager 2003). According to Stoner; Freeman and Gilbert (2007), technological environment has to do with the new developments in products or processes, as well as advances in science, that may affect an organisation‟s activities. The changing technological environment may pose threats or present opportunities. (Mathew and Cho, 2000; Lall and Urata, 2003; Amsden and Chu, 2004).
The brewery industry is highly capital intensive. This accounts for the reason why the ownership structure is either public and/or state-owned with/without foreign partnership. The technology for the industry, spare parts and expert technicians are rarely available in the country and therefore highly dependent on foreign exchange. Guinness for example has Diego of Ireland as its foreign partner (Trade Invest, 2009).
One of the major challenges facing the industry is the maintenance of equipments and machinery. The players commit huge financial resources in technology and upgrades in order to remain competitive (Equity Research report, 2006).
The rate of technology adoption and the ability to use that technology to remain competitive and add value define the advanced manufacturing sector.” (Ismail 2012.) Consequently, training programs are the popular medium to deliver the necessary skills and knowledge which result in skillful workers who are acquainted with the fundamentals of manufacturing process, computer- related technologies, and automation (Waldeck, 2007; Boothby et al., 2010).
Manufacturers that adopt advanced manufacturing technologies produce Products with high levels of design, Technologically complex products, Innovative products, Reliable, affordable, and available products, Newer, better, more exciting products, Products that solve a variety of
36 society‟s problems (Jabar et al., 2010). When one considers technological environment, he needs to address Issues concerning Investment in advanced manufacturing technology.