Chapter 1

Introduction

Business is any commercial or economic activity that tends towards business profit. The primary,
objective of business organizations is to make profit, grow and survive in the environment in which
it operates.
The environment in which business organizations operate is a complex, multi-focus dynamic and
has a far reaching effect on such organization. The environment tends, shape the outlook, and goal
of the organization by placing constraints on them. These constraints in the environment of
organizations goal could be in the form of competition, this sets a limit on the goals specify by the
organization. For instance, trade union asking for increase in salary, will affect the shareholder
dividend. Unethical behavior also affects profit.
In management, the word “Environment” does not necessarily mean physical surroundings, but is
used to describe all those influences that bear upon the individual organizations. Business
environment is used to mean anything, which surrounds the business organization. It affects the
decisions, strategies, process and performance of the business. The environment is consisting of
factors which are beyond the control of the business (STEP) social, technological, economical,
legal and political. It provides opportunities or poses threats to the organization.
Since business makes demand on the society and the society makes demands on the business,
managers in any organization must interact with and respond to environmental factors internal or
external to their organizations. The sum of these interrelationships within the business and between
the business and the society is what is the management regarded as business environment.

1.1 Concept of environment:

Environment is the totality of the surroundings of the organization for wider concept. Harrison
(1996) defines environment as all the conditions circumstances, and influences surrounding and
affecting the development of the total organization or any of its internal systems. He argued that
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environment contains forces of complexity that are dynamic to varying degrees at differences, and
under different circumstances.

Every organization must exist in some extent; no organization is an island onto itself. Each
organization has goals and responsibilities relates to others in its environment.

1.2 Business environment:

As a concept, business environment is regarded to be a complex and important consequent, it has

been addressed in a number of ways by numerous scholars such as Oyebanji (1994), Lawal (1993)
and Aldrich (1979). Environment in management does not mean the surrounding but it covers the
factors of forces that affect business effectiveness in the process of producing an intending result.

The need for studying business environment is important considering the fact that business
organization do not operate in a vacuum, effective management to complex and dynamic society
requires the assessment of strength and weakness of the organization and the opportunity and threat
posed by the challenges of the external environment. For survival and growth, organization must
adapt these changes.

Types of environment:

There are two types of environment namely, External environment and internal environment (Lawal, 1993).

The Internal Environment

This includes situational factors which are largely the result of decisions of the management
process, most times under management control.
There are five major variables within the organization that management must consider is
described as following:

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 Technology

People Objectives Structure

Tasks

Figure 1: Interrelatedness of Internal Variable of Organization

External environment
An organization’s external environment consists of those things outside an organization such as
customers, competitors, government agencies, suppliers, labor, financial firms that are relevant to
organization’s operations.

Types of external environment

There are two types of external environment
1. Direct (task) Environment
2. Indirect (general) environment
Organizations survival and success depend on the appropriate adoptions to a complex and over
changing environment. It is pertinent for top management of organization to identify opportunities
and threats in the external environment. Internal environment, it should focus on strengths and
weakness, potential and existing ones. It should respond swiftly, in order to know where it can
have competitive advantage over its rivals.

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1.3 Organizational performance:

Organizational performance involves the using of resources wisely to avoid wastage. Given by the
interaction between organizations and environment, it follows that performance relates to how an
organization reacts, understands and influence to certain environment changes.

Derek (1998) defined performance as the willingness of an individual to carry out the goals and
objectives of an organization.

Hence, organization performances is however the ability of group of individuals to achieve certain
of specific goals.

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 Chapter 2
Literature Review

Impact of business environment on organizational performance:

The business environment and its application to work environment is an outcome of his work as
director of the institute of social research, university of Michigan, USA. In his book “New Pattern
of Management” about high producing supervisors who achieve the highest level of productivity
at the lowest production costs with the highest level of employee motivation. In his research work,
he indicates that high producing managers tend to build their successful achievement around their
inter-locking work groups employees whose level of co-operation is sustained through range of
business incentive that extend motives and involves the ego and creativity motives. The research
noted that the high producing manager utilized the tool of the classical management work-study
while recognizing the aspirations of the employees by encouraging participative approaches.

In order to improve business environment therefore, managers should improve the skill and
motivational level or conditions of the employee. In establishment where promotion is perceived
as attractive prospect (valance) by a newly appointed staff, it allows the effective performance of
works, it encourages the perception of the workers. All efforts directed towards performance do
not necessarily lead to reward but it’s been ascertain that reward increase the effective performance
of employees.

The exhibition of negative business environment understanding of course proves to the

management the need to control environmental factors by the creation of certain adequate
adjustment and motivational incentives. Lack of free environment problems among workers,
employers and customers in the organization allow frustration and negative uncompromising
behavior which are exhibited as apathy, increased, absenteeism, planning and execution of
fraudulent acts etc. they become disgruntled, pessimistic, counter-productive and develop
defensive mechanisms. In effect, workers indulge in acts and practices that jeopardize and negate
the attainment of organizational goals.

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The managers should work out the appropriate plans that would enable the workers to be highly
task-oriented towards the fulfillment of the organizations ultimate goal in his bid to reach personal
goals and achieve them. It is here that the worker intensifies goals-oriented action in his pursuits
of both company incentives and personal goals.

At the attainment of his final goals, the previously aroused tension reduces and fails completely.
Thus, a continuous exhibition of the same incentive package may fail to elicit further favorable
and positive behavior from the same person. There the manager’s job is more demanding as he is
expected to know the proper solution to the situation he might be in the process of achieving the
ultimate goals of the organization.

The business environment are those factors that influences the individual’s business organization
historical factors, psychological factors, government attitude and regard to foreign good,
international factors and marketing approaches. The relationship between business and its
environment is mutual, that is, the environment exerts pressure on business, while business, in turn
influences various aspects of its environment. Business also depends on its environment for the
supply of all its inputs and at the same time to absorb its output.

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 Chapter 3
Methodology

The study is on the impact of business environment on the organizational performance based on a
few sample sizes. The study is purely based on the information from primary data and secondary
data sources.

For the findings part 11 questions were made to collect the valid data from the employees and
officers of the company and rating them in five criteria, like; strongly agree, agree, neutral, strongly
disagree and strongly disagree.

Sources of Data:
The data used to furnish this report have been collected from the primary sources and secondary
sources. Among primary and secondary sources most of the data have been collected from the
primary sources.

Primary Sources:
 Conducted survey through questionnaire.
 Direct observations
Secondary Sources:
 Annual reports.
 Various publications on the company.
 Company websites.

Methods of Data Collection:

For data collection - Interview method was used. Interviews were taken through questionnaire.

Questionnaire:

Q1. Board of Directors have influence on organizational performance.

Q2. Employees have influence on organizational performance.
Q3. Organizational Culture can influence organizational performance.
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Q4. Owners, processing plant, organizational culture help growth of the individual employee as
well as the organization.
Q5. Customer’s total number can influence organizational performance.
Q6. Availability of suppliers and raw materials improve organizational performance.
Q7. Rivals activity impact on your business performance.
Q8. Technological support can improve organizational performance.
Q9. Political and legal aspects can control organizational performance.
Q10. Strategic partners can influence on organizational performance.
Q11. Sociocultural activities changes business performance.

Sample Size:
There are 50 respondents.
Sampling Method:
Simple random sample method is used to sampling data, where participants are randomly
chosen.
Data Analysis Technique:
MS Excel was used for data analysis.

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 Chapter 4
Company Overview

4.1 About the Company:

The Linde Group, registered as Linde AG, is a German multinational chemical company founded
in 1879. Founder of this company is Carl von Linde. He was a German scientist, engineer, and
businessman. It is the world's largest industrial gas company by market share as well as revenue.
The group is headquartered in Munich, Bavaria, Germany.

The Linde Group has over 600 affiliated companies in more than 100 countries, with customers in
the industrial, retail, trade, science, research, and public sectors.

Linde Bangladesh Limited, a member of the Linde Group, has been contributing towards the
development of the nation as a silent partner. A strong in–built culture with work values reinforced
and developed Linde Bangladesh over the years which are reflected in the performance of its
employees for more than 50 years with continuous expansion in ranging on wide spectrum of
industries from chemicals and petrochemicals to steel. It has a team of around 400 trained,
motivated and professional members who look over operations for 24 hour at three major locations
across the country to support the customers.

4.2 Mission:

Linde Bangladesh Limited is committed to the quality of its products & services. The company’s
motto is to ensure optimum conditions in health, safety and the environment for employees,
customers and stakeholders.

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4.3 Vision:

We shall be recognized as the leader in all the business sectors in which we compete in Bangladesh.
Our success will be built on our absolute dedication to the satisfaction of our customers, through
constant innovation, operational efficiency, cost effectiveness and the talents of our people. We
shall always apply high standards of integrity and responsibility in our activities.

4.4 The Linde Spirit:

The organization’s core values are anchored in the Linde Spirit, its corporate philosophy. All of
its actions are guided by a strong commitment to corporate integrity. It is the fabric of the
company’s moral and ethical code, ensuring that it always acts with honesty and fairness. At The
Linde Group, every employee is committed to their vision and to live up, day by day, to the values
and principles set for them. They call this “living the Linde spirit.” The core values of The Linde
Group are:
Empowering people - People are given the space to contribute and grow.

Innovating for customer - We relentlessly pursue new ways to add value to external customers.

Thriving through diversity - Diversity results in enriched collaboration and enhanced solutions.

Passion to excel - We have the commitment and drive to pursue ever higher standards of
excellence and we celebrate success.

The Principles are:

Safety - The Linde Group will avoid to harm people and society.

Integrity - Our actions are honest, fair and ethical.

Sustainability - We are focused on today's success, but accept our responsibility for future
generations.

Respect - Every human being deserves to be treated with respect.

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4.5 Products and services:

Industrial gases- compressed oxygen, liquid oxygen, compressed nitrogen, liquid nitrogen,
acetylene, carbon dioxide, food grade carbon dioxide, dry ice, compressed argon, liquid argon,
lamp gases, LPG, hydrogen.

Specialty gases – High purity/ultra high purity gases, gas mixtures, fire suppressants, refrigerants,
compressed helium, liquid helium, sulphur hexafluoride, sulphur dioxide.

Welding gases and equipment- mild steel electrodes, low hydrogen/ low alloy electrodes, cast
iron electrodes, hard surfacing electrodes, arc welding equipment and accessories, MIG equipment
and accessories, TIG welding equipment and accessories, plasma cutting equipment and
accessories, safety products, abrasives.

Medical gases and equipment - Medical compressed oxygen, medical liquid oxygen, nitrous
oxide, ENTONOX, medical air, medical carbon dioxide, sterilizing equipment and gases – special
gases, anesthesia machines, ICU/CCU monitors and ventilators, pulse oximeter, infant warmer and
incubators, photo therapy unit, OT light and table, autoclave/sterilizer, gynecological tables,
humidifier, oxygen concentrator. Resuscitators, medical pipeline

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 Chapter 5
Findings and Analysis:

From the different sources of information and interview session, we have tried to find out some
specific outcomes and made a short analysis about our project. First of all, from our findings we
can say that there are no organizations without the Environmental influence on it. It can be internal
or external or can be both. To identify the influence of business environment on an organizations
performance we have conducted a survey and several face to face interviews among the employee
group of Linde Bangladesh Limited. We prepared some questionnaire and based on the answer we
conducted the analysis and findings. The survey questions and responses are given bellow as
graphical representation.

Q1. Board of Directors have influence on organizational performance.

PERCENTAGE
Strongly Disagree
8%

Disagree Strongly Agree

18% 34%

Strongly Agree
Agree
Neutral
Disagree
Neutral Strongly Disagree
14%

Agree
26%

Figure 1: Board of directors influence.

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 Answer Choices Percentage Number
Strongly Agree 34% 17
Agree 26% 13
Neutral 14% 7
Disagree 18% 9
Strongly Disagree 8% 4
Total Number 50

From the survey we can see that 13 and 17 of the sample people agree and strongly agree with that
board of directors have influence on organizational performance. Other 9 said disagree, 4 said
strongly disagree and 7 were neutral. If we go to the percentage, we can see that the higher
percentages on agree. That means board of directors have influence on organizational
performance.

Q2. Employees have influence on organizational performance.

PERCENTAGE
30% Agree, 28%

25% Strongly Agree, Disagree, 24%

22%

20% Strongly Disagree,

Strongly Agree
16%
Agree
15%
Neutral
Neutral, 10%
10% Disagree
Strongly Disagree
5%

0%
Strongly Agree Agree Neutral Disagree Strongly
Disagree

Figure 2: Employees Influence.

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 Answer Choices Percentage Number
Strongly Agree 22% 11
Agree 28% 14
Neutral 10% 5
Disagree 24% 12
Strongly Disagree 16% 8
Total Number 50

From the survey we can see that 14 and 11 of the sample people agree and strongly agree with that
employees have influence on organizational performance. Other 12 said disagree, 8 said strongly
disagree and 5 were neutral. If we go to the percentage, we can see that the higher percentages on
agree. That means employees have influence on organizational performance.

Q3. Organizational Culture can influence organizational performance.

PERCENTAGE

Strongly Disagree,
Strongly Disagree
20%

Disagree Disagree, 32%

Strongly Agree
Agree
Neutral Neutral, 8%
Neutral
Disagree
Agree Agree, 24% Strongly Disagree

Strongly Agree,
Strongly Agree
16%

0% 5% 10% 15% 20% 25% 30% 35%

Figure 3: Organizational Culture.

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 Answer Choices Percentage Number
Strongly Agree 16% 8
Agree 24% 12
Neutral 8% 4
Disagree 32% 16
Strongly Disagree 20% 10
Total Number 50

From the survey we can see that 12 and 8 of the sample people agree and strongly agree with that
organizational culture can influence organizational performance. Other 16 said disagree, 10 said
strongly disagree and 4 were neutral. If we go to the percentage, we can see that the higher
percentages on disagree. That means organizational culture can not influence organizational
performance.

Q4. Owners, processing plant, organizational culture help growth of the

individual employee as well as the organization.

PERCENTAGE
Strongly Disagree
14%
Strongly Agree
28%
Strongly Agree
Agree
Disagree
20% Neutral
Disagree
Strongly Disagree

Neutral
6% Agree
32%

Figure 4: Growth of the Employee and Organization.

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 Answer Choices Percentage Number
Strongly Agree 28% 14
Agree 32% 16
Neutral 6% 3
Disagree 20% 10
Strongly Disagree 14% 7
Total Number 50

From the survey we can see that 16 and 14 of the sample people agree and strongly agree with that
Owners, processing plant, organizational culture help growth of the individual employee as well
as the organization. Other 10 said disagree, 7 said strongly disagree and 3 were neutral. If we go
to the percentage, we can see that the higher percentages on agree. That means Owners, processing
plant, organizational culture helps growth of the individual employee as well as the organization.

Q5. Customers total number can influence organizational performance.

PERCENTAGE
Strongly Disagree Strongly Agree
18% 20%

Strongly Agree
Agree
Disagree
14% Neutral
Disagree
Strongly Disagree

Neutral Agree
12% 36%

Figure 5: Customers total number.

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 Answer Choices Percentage Number
Strongly Agree 20% 10
Agree 36% 18
Neutral 12% 6
Disagree 14% 7
Strongly Disagree 18% 9
Total Number 50

From the survey we can see that 18 and 10 of the sample people agree and strongly agree with that
customers’ total number can influence organizational performance. Other 7 said disagree, 9 said
strongly disagree and 6 were neutral. If we go to the percentage, we can see that the higher
percentages on agree. That means Customers total number can influence organizational
performance.

Q6. Availability of suppliers and raw materials improve organizational

performance.

PERCENTAGE
Strongly Disagree
Strongly Agree
16%
20%

Disagree
12% Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Neutral
16% Agree
36%

Figure 6: Availability of Suppliers and Raw Materials.

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 Answer Choices Percentage Number
Strongly Agree 20% 10
Agree 36% 18
Neutral 16% 8
Disagree 12% 6
Strongly Disagree 16% 8
Total Number 50

From the survey we can see that 18 and 10 of the sample people agree and strongly agree with that
availability of suppliers and raw materials improve organizational performance. Other 6 said
disagree, 8 said strongly disagree and 8 were neutral. If we go to the percentage, we can see that
the higher percentages on agree. That means availability of suppliers and raw materials improve
organizational performance.

Q7. Rivals activity impact on your business performance.

Figure 7: Rivals Activity.

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 Answer Choices Percentage Number
Strongly Agree 30% 15
Agree 28% 14
Neutral 12% 6
Disagree 20% 10
Strongly Disagree 10% 5
Total Number 50

From the survey we can see that 14 and 15 of the sample people agree and strongly agree with that
rivals’ activity impact on your business performance. Other 10 said disagree, 5 said strongly
disagree and 6 were neutral. If we go to the percentage, we can see that the higher percentages on
agree. That means rivals activity impact on your business performance.

Q8. Technological support can improve organizational performance.

PERCENTAGE
Strongly Disagree
12%

Disagree Strongly Agree

18% 44% Strongly Agree
Agree
Neutral
Disagree
Neutral Strongly Disagree
6%

Agree
20%

Figure 8: Technological Support.

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 Answer Choices Percentage Number
Strongly Agree 44% 22
Agree 20% 10
Neutral 6% 3
Disagree 18% 9
Strongly Disagree 12% 6
Total Number 50

From the survey we can see that 10 and 22 of the sample people agree and strongly agree with that
technological support can improve organizational performance. Other 9 said disagree, 6 said
strongly disagree and 3 were neutral. If we go to the percentage, we can see that the higher
percentages on agree. That means technological support can improve organizational performance.

Q9. Political and legal aspects can control organizational performance.

PERCENTAGE

Strongly Disagree,
Strongly Disagree
18%

Disagree Disagree, 24%

Strongly Agree
Agree
Neutral Neutral, 18%
Neutral
Disagree
Agree Agree, 22% Strongly Disagree

Strongly Agree,
Strongly Agree
18%

0% 5% 10% 15% 20% 25% 30%

Figure 9: Political and Legal Aspects.

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 Answer Choices Percentage Number
Strongly Agree 18% 9
Agree 22% 11
Neutral 18% 9
Disagree 24% 12
Strongly Disagree 18% 9
Total Number 50

From the survey we can see that 11 and 9 of the sample people agree and strongly agree with that
political and legal aspects can control organizational performance. Other 12 said disagree, 9 said
strongly disagree and 9 were neutral. If we go to the percentage, we can see that the higher
percentages on disagree. But the difference of agree and disagree is very low. That means political
and legal aspects can sometimes or can not control organizational performance.

Q10. Strategic partners can influence on organizational performance.

PERCENTAGE

Strongly Disagree Strongly Agree

22% 22%

Strongly Agree
Agree
Neutral

Disagree Disagree
18% Agree Strongly Disagree
24%

Neutral
14%

Figure 10: Strategic Partners Impact.

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 Answer Choices Percentage Number
Strongly Agree 22% 11
Agree 24% 12
Neutral 14% 7
Disagree 18% 9
Strongly Disagree 22% 11
Total Number 50

From the survey we can see that 12 and 11 of the sample people agree and strongly agree with that
strategic partners can influence on organizational performance. Other 9 said disagree, 11 said
strongly disagree and 10 were neutral. If we go to the percentage, we can see that the higher
percentages on agree. That means strategic partners can influence on organizational performance.

Q11. Sociocultural activities changes business performance.

PERCENTAGE
Strongly Agree
16%
Strongly Disagree
34%
Agree
Strongly Agree
14%
Agree
Neutral
Disagree
Neutral Strongly Disagree
8%

Disagree
28%
Figure 11: Sociocultural Activity.

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 Answer Choices Percentage Number
Strongly Agree 16% 8
Agree 14% 7
Neutral 8% 4
Disagree 28% 14
Strongly Disagree 34% 17
Total Number 50

From the survey we can see that 7 and 8 of the sample people agree and strongly agree with that
sociocultural activities changes business performance. Other 14 said disagree, 17 said strongly
disagree and 4 were neutral. If we go to the percentage, we can see that the higher percentages on
disagree. That means sociocultural activities changes business performance.

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