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Mba 835 Assignment

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81 views3 pages

Mba 835 Assignment

Uploaded by

Soniran Oladimeji
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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OBAFEMI AWOLOWO UNIVERSITY

ILE – IFE

SCHOOL OF POSTGRADUATE STUDIES

NAME: OKUBADEJO OLAYEMI ABIGAIL

STUDENT NO: ADP23/24/EX/MBA/0569

COURSE CODE: MBA 835

COURSE TITLE: MANAGERIAL ECONOMICS

DATE: NOVEMBER 2024


Connecting the Classroom to Real-Life Business in Nigeria

Studying economics in the classroom has been an eye-opening experience for me, especially as I
reflect on how the theories and concepts we have learnt connect to the realities of doing business
in Nigeria. Our country has a unique business environment—filled with opportunities but also
challenges—and it’s fascinating to see how what we study in class can directly apply to real-life
situations. Let me share some of the key lessons and how I’ve come to understand them in the
context of Nigerian business operations.

1. Market Structures: Who Rules the Game?

One of the first concepts we learned in class was about market structures—how industries are
organized and how competition works. This immediately made me think of the telecom sector in
Nigeria. Companies like MTN, Glo, and Airtel dominate the market, and they don’t operate in
isolation. They’re constantly watching each other, reacting to pricing changes and new product
offerings.

For example, when Glo decided to cut the price of data bundles, it didn’t take long before MTN
and Airtel followed suit. This is exactly what we studied in class about oligopolies: companies in
this type of market structure tend to behave strategically because they’re interdependent.
Understanding this has helped me see why businesses in Nigeria must not only focus on their
own strategies but also anticipate how their competitors might react.

2. Resource Allocation: Making Tough Choices

In class, we talked a lot about how resources are limited and businesses need to make smart
decisions about where to invest their time and money. This is particularly true in Nigeria, where
businesses deal with challenges like unreliable power supply, poor infrastructure, and limited
access to capital.

Take SMEs, for instance. Many small businesses have to spend a significant portion of their
budget on generators to keep their operations running. This leaves them with tough choices: do
they spend more on power to maintain productivity, or do they cut costs and risk frequent
downtimes? This is where the concept of opportunity cost really hits home. Businesses here are
constantly weighing their options to maximize output in a resource-scarce environment.

3. Government Policies: Adapting to the Rules

Government policies play a huge role in how businesses operate, and this is something we’ve
explored in depth during class. For example, the recent unification of exchange rates by the
Central Bank of Nigeria caused major ripples in the business community. Companies that rely
heavily on imports suddenly had to deal with higher costs, which forced many to rethink their
strategies.

One company I read about responded by shifting to local suppliers to cut costs. This ties directly
to what we learned about how businesses can adapt to macroeconomic changes, whether it’s
through cost-cutting, diversification, or price adjustments. The lesson for me is that businesses in
Nigeria need to stay agile and informed because the policy landscape can shift at any moment.

4. Risk Management: Surviving in a Volatile Market

Nigeria is a high-risk environment for businesses, and we’ve discussed a lot in class about how
to manage these risks. Whether it’s currency fluctuations, insecurity, or supply chain disruptions,
companies here face challenges that require resilience and creativity.

For example, the agricultural sector, which is so critical to our economy, often faces risks like
farmer-herder conflicts and unpredictable weather. In class, we talked about strategies like
diversification to reduce risk. Dangote Group is a perfect example—they operate in multiple
sectors, so if one industry faces a downturn, the others can help balance things out. It’s inspiring
to see how these theoretical strategies are being used successfully in Nigeria.

5. Entrepreneurship and Innovation: Turning Problems into Opportunities

One of the most exciting things we’ve discussed in class is entrepreneurship. Nigeria’s startup
ecosystem is a great example of how businesses can thrive even in tough conditions. Companies
like Paystack and Flutterwave have built successful businesses by solving real problems in the
payment space.

What struck me is how these companies applied the principles we learned about in class—like
identifying unmet needs and creating scalable solutions. It’s proof that innovation can flourish
when you combine knowledge with a clear understanding of your environment.

Conclusion

The more I learn in class, the more I see how economics is not just abstract theory but a practical
guide to understanding and navigating the world of business. From competition and resource
allocation to risk management and innovation, the lessons we’ve explored have given me a
clearer lens to view the realities of doing business in Nigeria.

This reflection has deepened my appreciation for how interconnected theory and practice are.
The challenges businesses face in Nigeria may be daunting, but the tools and frameworks we’ve
studied make these challenges feel less overwhelming and more like opportunities for growth
and success.

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