The strategic concept plays vital role in development of business at global level. The global businesses are affected by number of factors which create barriers in the success of corporation to a great extent. The current study is based on scenario of Nigeria where recent development has taken place. Here, strategic planning, development and analysis has been done by referring the scenario of country. Furthermore, impact of recent development has been analyzed in the light of economic growth and development of the nation. In addition to this, domestic and international issues are addressed which facilitate to continue the growth of Nigeria in future time period also.
Analyzing Nigeria's recent developments
There are several recent changes have taken place in Nigeria due to changing external factors like political, technological and economical. The country has overtaken South Africa as the continent's largest economy. Recent changes have been made with regard to infrastructure development, finance and other related factors (Todaro, Michael and Smith, 2006). This is because of privatization initiatives of the country. Here, long term planning related to infrastructure development facilitates to minimize transport bottlenecks, improving transportation facilities in population centers and new industrial zones as well as making improvements in general economic development. It includes plan such establishing free trade zones and master plan for the development of Lekki penisula east of Lagos. Apart from this creation of additional transport models such as Lagos Metro Blue Line and red line.
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According to the above mentioned changes urbanization is taking place with rapid speed which facilitates to ensure long term growth of country. This helps to emerge middle class people and contribution of international as well as domestic companies are contributing in innovation of nation. Other developments like Ikeja City Mall and Palms Shopping Malls in Lagos State and Polo Part in Enugu state are the key evidence of expanding market (Omotoso, 2008). There are many projects which have been completed without taking any kind of support from government. Furthermore, Lagos initiatives consisting reducing carbon footprints and promote green consumer concept. Apart from this, state is also working with private investors in order to save electricity. In addition to this, there are several factors which ascertain rapid economic development of Nigeria. These are explained as follows-
- Sub-national autonomy-Nigeria has decentralized autonomy thereby private sector seek their path for growth at their own. It enables them to contribute in the direction of growth and success of nation (Aremu, I., 2003).
- Budget constraints-The country like Nigeria face adopt decentralized system whereby they have soft budget constraint. It assists country to make budget ion different development activities without having much pressure of government.
With the combination of these two factors it becomes easy for the management to seek long term growth with increased rate of return. Increased rate can be in term of development of general community. However, there are several factors which affect growth and development of Nigeria-
Lack of connectivity to market- There are several negative features which ha,per performance of country (Gboyega, 2003). It consists of transportation facilities as well as infrastructure. Owing to this, problem has been faced when investors try to operate business in Nigeria.
Poor coordination- The poor coordination can be seen in context of fiscal policy wherein government face issues regarding. Due to fiscal policy in term of oil prices. At this juncture, long term commitments are required with government by which Nigeria can ensure industrial growth in both domestic and international market.
Issues in growth and development of Nigeria
The aforementioned detail depicts that Nigeria has several plus as well as negative points which need to be considered while ensuring overall growth and development of sector in the marketplace. These are as follows-
Poverty and unemployment-The poverty in Nigeria is keep on increasing due to unemployment and high population. However, the rate of poverty declined between 2004 and 2010. The reason behind high poverty rate is lack of resources like poor infrastructure and transportation (Makube and Tebogo, 2011). This creates barriers for international corporation to come into domestic market. For example if any organization come in Nigeria then they cannot find the place for the development and growth of the companies. It is the major problem by which ratio of poverty and unemployment increase to a great extent.
The balance of payment-The country Nigeria depend on the price of oil prices and this is the major reason behind risk of balance of payment. Moreover, reduction in oil prices affect the balance of payment to a great extent. In addition to this, 95% of exports come from oil and its 75% account for consolidated budgetary revenues in Nigeria. The differences lies due to difference in currency value. Similarly, fiscal policy also affect the balance of payment and economic growth of country (Akindele, Olaopa and Obiyan, 2002).
Inflation-The problem of inflation create negative impact on industries as well as economy of country. However, the scenario of inflation during 2009-2010 increased prices of food products. Similarly, there was strong fiscal expansion during that period.
Poor implementation of plans- It is the crucial issue which impede performance of nation. This is because wrong estimation of project team to implement plan and also the resources constraint lead to increase cost. It also consume time which in turn prove to be ineffective for the growth and development of county as whole.
Unequal distribution of power-This is another of issue behind the poor growth because of unequal distribution of power. As many of young population is living in poverty and do not get the opportunity to get the best placement in developing sector.
All of the above issues are very critical which need to be give concentration by the government of nation. However, improvement are taking place by focusing on these issues so that employment opportunities can be created for large number of young people.
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Contribution of recent changes to African economy
The African economy get benefits from the Nigeria because it is the fastest going economy. However, it has volatile nature due to dependency on oil price. After taking over South Africa Nigeria has moved to be the largest economy by GDP size and also 26 the largest economy in the world (Nigeria to become Africa’s biggest economy, 2015). In this regard, service sector has been developed by focusing on developing different sectors like transportation and infrastructure facilities. It create path for international corporation to come across the country and set their business. It provides employment opportunity and also aid to reduce the poverty. Furthermore, South African will remain the most important economy in the world due to growth and developing sector.
With the takeover process, South Africa will also get the good manpower and developing phase by which different sector of nation can be developed to a great extent. Also, South Africa will get the opportunity to work well and develop different sectors in an effectual manner. Furthermore, investors will seek the growth opportunity in Nigeria and globalization in different sector will take place (Step change, 2015). Apart from this, after taking over South Africa government of Nigeria can work well and formulate policies accordingly in order to address specified issues.
The re-basing was planned for 2015 so as to formulate rules and regulation for the coming year 2016. Owing to this, Nigerians will going the get benefits. It aids to reshape overall policies and financial condition of Nigeria. Despite of so many opportunities, Nigeria face issues in the growth and development. Due to issues like Slow ports, poor conditions of roads and lack of electricity. However, in 2012 the World Bank forecasted that economic output of Nigeria as $263bn and for South Africa it was $384bn. At this juncture there are several factors which create stress with regards to dependency on single commodity and 100 million people living in Nigeria who consider less than $1 a day for their survival.
Critical Analysis Of 3 Key Points
There are following key points by which Nigeria can emerge itself in the market. Nigeria has a deserved reputation for corruption, hence the intellectuals might think that the economy will be doubled due to the fiddling numbers. Nigeria's economy has a real growth rate which is typically measured with reference to its pricing aspects. Nigeria left it far too long and as a result, its old GDP figures were proved to be inaccurate. Owing to this these key factors should be prioritize which are explained asd follows. Thus, the economy of Nigeria can improve by emphasizing on these three major aspects:
Health care sector: A healthy workforce is the engine of any economy and so it is for Nigeria as well. The economy has to take several provisions into account so as to cater health care needs to country's population; however failure of such thing leads to decrease in the production of goods and services. There should be prominent facilities under health care aspect so that health standards can be increased. In such respect, the economy can be improved by focusing on education and training standards. This should be taken into consideration because educated economy presents multiple opportunities for the economy to diversify beyond the traditional pillars (Nigeria Economic Report, 2015).
Agriculture and Natural Resources: Nigeria falls under the category of largest importer of food products and the country will be better served if improvement will take place in agriculture sector. The availability of cheaper food products will also improve the quality of life for Nigerians as more people will be able to afford quality food. This would be the best way to improve standard of living which has a direct impact on overall development of Nigerian economy. Direct flow of resources in agriculture sector would improve earnings of people and this simultaneously will increase employment opportunities. There should be strong financial sector that can stimulate growth of the economy and for that credit artifacts should be encourages for overall development of Nigerian economy.
Infrastructure-It is the most important area which contribute towards development of the economy. The infrastructure facilitates are the basic point on which success of country depend. This is because Nigeria has issues related to poor ports, bad roads and poor transportation facilities. This issue does not allow country to expand itself and promote trade in the marketplace (Infrastructure development in Nigeria, 2015). At this juncture, focus need to be laid on development of roads and vehicles which ease industries as well as residents of country. With this, corporation will attract towards the country and its dependency on single commodity will be removed. It aids to improve trade and other facilities by which government of Nigeria can invite foreign direct investment. This in turn economy can be boosted with high per capita income or GDP.
The aforementioned report concludes that growth and development of economy is highly based on several factors like employment, education and basic amenities. In absence of these amenities a country cannot ensure its growth. It can also be said that, diversification of economy in different sector is also the effective means to explore the growth and develop employment opportunity for the youngsters.
- Akindele, S. T., Olaopa, O. R. and Obiyan, A., 2002. Fiscal Federalism in Nigeria: A Contemporary Review. Journal of Social Science. 6(3).
- Aremu, I., 2003. Development and Political Stability in Kwanashie (ed) Politics and Political Power Relations in Nigeria. Lagos. Dat and Partners Logistic Ltd. 12. 248-262.
- Gboyega, A., 2003. Democracy and Development: The Imperative of Local Governance. An Inaugural Lecture. University of Ibadan. pp. 6- 7.
- Makube and Tebogo., 2011. The Performance of Fiscal Transfers in the South African Intergovernmental Fiscal Relations System. FFC, ADDRESS.
- Omotoso, F., 2008. The South-West Position on the Review of the 1999 Constitution. Paper presented at the South-West Legislative Conference on Constitutional Review. pp. 5- 10.
- Todaro, Michael P. and Smith, S. C., 2006. Economic Development. Harlow: Pearson Education Limited.